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As a first-time business owner or CEO, managing people might feel overwhelming. Hiring, onboarding, compliance, and performance management can take time and energy. The good news is that establishing a strong People Operations system can turn this challenge into a streamlined, scalable advantage for your business.

In this article, we’ll break down the five non-negotiable building blocks of a strong People Operations system. Whether you’re just starting or looking to improve, these actionable steps will set you up for success.

Why People Operations Matter

Your people are your greatest asset (yes, it’s cliche!). A strong People Operations system ensures you’re not just hiring and managing employees but empowering them to drive your business forward. Without a system, you risk high turnover, low engagement, and operational inefficiencies.

The key takeaway? A solid People Operations system isn’t just for large companies. It’s essential for small businesses that need every team member to be on top of their game.

The 5 Non-Negotiable Building Blocks

1. Recruitment and Hiring Process

Your recruitment process is the gateway to your business. It’s not just about finding warm bodies to fill roles—it’s about strategically sourcing candidates who align with your company’s values and goals.

• Action Step: Write clear job descriptions that outline the tasks, skills, and cultural fit you’re looking for.

• Pro Tip: Use structured interviews with consistent questions for all candidates to ensure fairness and thorough evaluation.

2. Onboarding and Training

An employee’s first 90 days are crucial. Onboarding goes beyond paperwork; it’s about setting expectations and equipping new hires for success.

• Action Step: Create a 30-60-90 day onboarding plan to outline learning and performance milestones.

• Pro Tip: Pair new hires with experienced team members for mentorship.

3. Employee Policies and Compliance

Clear policies provide a foundation for consistency and compliance. They should cover everything from time-off procedures to anti-discrimination practices.

• Action Step: Develop an employee handbook that’s easy to understand.

• Pro Tip: Partner with an HR expert to ensure federal, state, and local laws compliance.

4. Performance Planning

Performance management is about more than annual reviews. It involves regular feedback, accountability, and growth opportunities.

• Action Step: Schedule monthly one-on-ones with your team to discuss goals and challenges. Between these sessions, be sure to provide regular feedback + coaching.

• Pro Tip: To set clear expectations, use SMART goals—specific, measurable, achievable, relevant, and time-bound.

5. Engagement and Retention

Engaged employees stay longer and perform better. Building a culture of recognition, growth, and belonging is key.

• Action Step: Conduct employee surveys to gather insights on engagement.

• Pro Tip: Celebrate small wins and milestones to show your appreciation.

How to Get Started

You don’t have to implement everything at once. Start small:

1. Pick one area—like onboarding—to focus on this month.

2. Create templates and systems to standardize processes.

3. Get feedback from your team and refine it as needed.

Remember, a strong People Operations system evolves as your business grows.

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My mission is to help business owners and CEOs build high-performing teams, increase profitability, and give them back 25% of their time. If this newsletter would help someone you know make better strategic decisions for their business, please forward it to them.

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Thank you for reading. I appreciate you!