When you’re an owner or in charge of a company, there are so many individual issues to worry about—sometimes it’s a wonder you can think at all. Is it true that the most important thing to worry about is profit—for without it, you don’t have a business at all?

Focusing on profits blinds some managers and business owners to the real purpose of business, which is people. After all, no matter what business you are in, it exists to sell a product or service to people; it needs great people to keep it running smoothly, and having happy people as employees and customers makes it all worth doing.

A good team makes a manager’s job easier—but leading them effectively takes time and effort. And good leaders know that putting profits before employees is a recipe for disaster. No matter what size business you’re running, from a team of three to three hundred, you can’t reach goals and become a successful company by yourself. But how does a manger create a tight, efficient and effective team of employees?

Find the people who work best for you and with your other team members. Hire for skills, sure, but skills alone won’t make up for a lousy attitude. Passion and drive can’t be taught, so look for those attributes along with a stellar set of skills. Personality differences help make a stronger, more diverse team. But it’s not a good idea to bring polar opposite strong personalities into the same team. Knowing your team members well and hiring for compatibility will help ensure a winning team.

Don’t be afraid of conflict. Conflict helps employees sort out leadership roles, and move toward a tighter-fitting, focused group dynamic. But conflicts must be worked out or your teams will be completely ineffective.

Watch the rule-makers. Let your team leaders set the rules for the group—to a certain extent. Nobody wants a bully at work, but employees with natural leadership qualities will find ways to make the team work most efficiently. Working together pleasantly is a nice by-product of great leadership. If you start hearing complaints about rules that aren’t working for everyone, address them right away to avoid losing productivity.

When you have passionate, driven individuals, clear and focused leadership, and healthy doses of well-managed conflict, you have the beginnings of a great team of employees—and the potential for great profits, too!

Every business has different needs from its employees. A day-care center and a lawn-care service both have “care” in their names, but if the nanny is better with chrysanthemums than with kids, he or she is not going to fill the day care owner’s needs.

Still, there are plenty of basic traits employers like to see in their job applicants. We surveyed a few employers who are hiring right now about the most important qualities their new employees have. NO matter how smart, how educated, or how articulate a job-seeker is, remember this list when you’re hiring—because these are the qualities that really count!

Christine, a communications company owner, said, “First, I look for talent, then creativity. Everyone has a gift, and my job as an employer is to figure out how each employee’s talent can benefit my company. Creativity is absolutely essential. I can’t be the only one to solve problems. Having creative people around spurs ideas, growth, and helps us overcome challenges.”

Joseph, a construction company manager, looks for honesty and integrity, a positive attitude, and flexibility when he’s hiring new employees. “I know it’s difficult to judge these qualities through a job interview. That’s why we conduct background checks to make sure we’re hiring honest people. Past employers will tell me if a candidate has integrity. And asking the right questions reveals the person’s attitude and flexibility. These are traits that I cannot teach an employee—and I don’t have the time to deal with anyone’s bad attitude or rigidity.”

“I like to hire adults,” says Cynthia, a financial services HR manager. “Follow-through is important. Our supervisors don’t want employees who just don’t do what they say they’lll do. And who has time to follow-up to make sure they do their job? So, self-reliance and drive are two other qualities I definitely look for in a job candidate.”

To Kevin, owner of a small organic farm, three things are all that matter: “Passion. Confidence. And the desire to work. I can teach anyone how to do their job if they have those three attributes going for them.”

Heather owns a tech-services company. She says, “To me, adaptability is key. Things in our business change every day. Employees who are stuck in a rut or work only within the limits of their job description are just not going to succeed here. So, I don’t hire anyone without demonstrated adaptability. If they’re highly responsible and smile a lot, that also helps them when I’m deciding whom to hire.

If you’re an employer getting ready to hire again, keep these traits in mind, and see how they fit within your company’s needs and culture. Some qualities are just good for employees to have!

Supervisors everywhere know the frustration of strolling past an employee’s work station, only to find them texting furiously instead of doing what they’re being paid to do. Increasingly, employers are taking steps to cut down on employees’ extracurricular digital communication—whether its instant messaging (IMing), web surfing, texting or making personal phone calls on company time.

Some consider it an invasion of privacy, but the law is solidly on the employer’s side. Employers are allowed to monitor employee communications, and most communication equipment is the property of the business—so its use is dictated by business needs, not staff’s need to keep up with their friends’ latest activities.

Three forces are at work in employee monitoring: first, employers are ever-vigilant about squeezing every ounce of productivity out of workers. If an employee is not giving 100% to his or her employer, there are probably others who will be happy to take over that position. Second, risk-averse employers know that keeping workplaces completely litigation free is an elusive goal—but one that can come closer to happening with the right monitoring practices. Keeping all staff safe from harassment is easier if you know what types of emails and IMs are flying around the company. Third, it’s more important than ever to keep company information and trade secrets confidential. Too many firms have been taken down by loyalty-lacking employees. It’s way too easy to forward a company-only email to the press or a blogger who will quickly spread the information throughout the industry.

Monitoring software is easily found online or at electronics retailers. Depending on the package features, keystroke monitoring, website tracking, and even webcams capture employees’ activities.

Data from 2007 shows that 2/3 of employers check up on employees’ Internet use. From tracking time spent and websites visited, to keystroke monitoring to capture search terms, employers can get a full picture of which employees are using company equipment for work use and for personal use. And a 2009 survey shows that nearly 90% of employees used office networks to send jokes, rumor, or gossip to outside recipients. 14% have sent confidential company emails to third parties.

So far, the courts have ruled that employees have no expectation for privacy when using employer-provided computer systems, cell phones, and pagers. Even employees who send personal emails through a private account are using company servers—and so have no right to expect those emails will not be monitored.

Employers’ best practices are communicating the need for monitoring, and to put a clear policy in place, so workers know exactly what is and what is not allowed—and the consequences for breaking the rules.

With a glance through the companies on Fortune Magazine’s list of The 100 Best Companies to Work For, similar themes arise, even though the 100 firms represent a wide range of industries. Businesses of any size can use these themes to make their workplace one of choice for their employees, too. Reducing turnover reduces costs, increases productivity, and makes everybody happier.

Do the right thing:

• The #1 company on the list is SAS, a software firm. Employees get unlimited sick days, free medical care, a free fitness center and summer camp for their kids. The CEO believes in the trust between the company and the employees. Perks are probably a big expense, but SAS is very profitable (it’s the world’s largest privately owned software company) and turnover is a low, low 2%—the lowest in the industry.
• Johnson Financial Group, keeps pay in place if staff must be out of work for a crisis. The CEO says they will always “do what is right.”
• Arkansas Children’s Hospital sponsors a summer camp for sick kids—and awards extra vacation to employees who volunteer there.

We’re all in this together (even in a tough recession year):

• Edward Jones, the investment firm, froze salaries but continued profit sharing and did not lay off a single employee or close a single office.
• Wegmans Food Markets has never had a layoff, and didn’t end that streak. 11% of its employees have been with the grocery chain for over 15 years.
• Shared Technologies, a phone and data systems company, limited layoffs by cutting pay for employees (5%) and management (10%). The CEO of AFLAC, the insurance firm, gave up a $2.8 million bonus—and maintained all employee benefits.
• Nugget Market, a small chain in California, helped employees through the recession with 5% discounts on groceries; management showed appreciation by washing all the associates’ cars one day.
• Men’s Wearhouse demonstrated a team approach with pay cuts at the top: the CEO took a 20% pay cut, the SVPs, 5%, and the board of directors 10%.

Let’s keep having fun:

• The Scooter Store, in Texas, keeps celebrating with quarterly pep rallies and birthday parties every day.
• Mattel, the toy maker, keeps employees happy with potluck breakfasts, volunteer days, picnics and milk-and-cookie parties.

Benefits for all:

• Build-A-Bear Workshop gives part-time employees access to health insurance.
• CISCO offers on-site child care.
• Methodist Hospital System gives out bonuses based on patient satisfaction each quarter.
• PCL Construction focuses on healthy employees with gym memberships, unlimited sick time and paid life insurance.

Maybe these ideas will inspire other employers to think creatively and hang on to your valuable employees longer!

No matter what size company you own or lead, an employee handbook is always a good idea. Everyone benefits from fewer misunderstanding and clear expectations. With a handbook, employees know exactly what they can and cannot do, and management has clear guidelines to follow for managing staff. In addition, employee handbooks can help your company avoid lawsuits by clearly stating company procedures.

Here are a few tips for creating an employee handbook for your company:

• Include a Statement of Company Culture. An introduction of the company, its history, mission, and values can create a culture statement to help new employees begin to assimilate into the company
• Keep the language simple and direct. Using legal terms and twenty-five dollar words could be confusing to employees.
• Cover the basics. Include the company’s compliance with discrimination laws, what constitutes full- or part-time employment, how and when employees are paid, and where employees are to park. Include employee background screening policies. Consider including standards of conduct, any dress code requirements, where to address complaints, how disciplinary action is handled, and vacation, family leave, and sick leave policies.
• Beyond the basics: Be sure to cover your company’s cell phone policy. Are staff members allowed to accept personal calls during working hours? What about when driving company vehicles?
• What are the company’s policies on company vehicles? How will you cover military leave? Violence or sexual harassment? Drug and alcohol use? What about staff visitors during work hours? How should employees notify management when late for work or ill?
• Have an attorney review the handbook: An employment-law attorney is equipped to advise on legality of the employee handbook. The only thing worse than no handbook is one that is not enforceable—and the only thing worse than that is a handbook that could spark a lawsuit!

Employee handbooks vary in size, scope, and detail, depending on the size and culture of the company. The important thing to remember is that even a basic handbook is a must-have for every company with employees!

What type of supervisor are you? Do you rule with a firm hand, expect your employees to live up to your expectations, and discourage feedback? Or are you more like a mentor, molding and shaping your staff members to create the most effective team possible?

Sports analogies are used often in business: we work in teams, set goals, and hit home runs, whether we work at a baseball diamond or in a coffee shop. And today’s managers are more like team coaches than strict bosses who must be obeyed—or else.

Employees are an asset; their knowledge and talents are your company’s resources. It’s up to the coach to decide how to best use those resources, for the benefit of the team. Even in today’s economy, when staffers should be happy to be employed, there is a certain balance that must be maintained between the company’s needs and the employees’ needs. To keep that balance at an optimum level, good leaders find that nurturing talent and encouraging feedback and communication are among their best tools.

Asking open-ended questions is a good way to start. Instead of a “yes” or “no” question, like “Do you have what you need to do your job?” a coach would ask, “What are the specific tools I can provide so you are most successful at your job?” The first question is confusing; a worker is likely to say “yes” to avoid looking unprepared. The second choice is better—your employee has a wide range of possible answers, none of which can be considered incorrect.

Secondary questions, such as, “I never thought about it that way. Can you explain what you mean by that?” will help employees feel valued and confident in their opinions. Encourage staffers to open up in their communication by choosing questions wisely; help them think broadly about issues, and ask for their suggestions to improve procedures and policies.

Practice the art of active listening: make steady eye contact, engage fully with your staffers, and ask clarifying questions. Nothing does more to indicate to your employees that you are listening to them and care about what they think.

Here’s a twist on the usual employer advice. We’re going to tell you what NOT to do if you want to be a successful leader of teams or individual employees:

• Don’t hire indifferent applicants: You can’t teach passion. Limit your hires to people with passion. Whether it’s for a hobby, their accomplishments, previous jobs, or your company, product or customers, passion is the secret ingredient that makes good employees great.
• Don’t multi-task: Pay attention to one thing—or person—at a time. New studies show that multi-tasking is not an effective way to manage your to-do list. Encourage your employees to focus on what they’re good at, and to not try to solve every problem.
• Don’t ignore your gut: There may be a good reason you feel you can’t trust a particular worker. However, if you feel that way about the majority of your employees, the problem is probably you—learn to give up control and to trust people. Let go of the little things and manage from a higher place.
• Don’t be stingy: Generosity breeds loyalty. Make it part of your company’s culture to give time, energy, and presence, as well as fair pay and benefits, to the best of your physical and financial ability.
• Don’t shut out ideas: Listen to your staff’s ideas. Out of ten ideas, you might hear eight that are just bad, one that’s promising, and one that knocks your socks off. And when you hear that great idea, execute it—make it happen. It could be good for the company and will definitely be good for employee morale.
• Don’t be all business: If you’re not enjoying what you do, it’s not likely that the people who work for you will. Make a joke. Ask how people are. Bring in cookies. Take a half day off just to goof off. Have fun.

Any business that survived 2009 is positioned to improve in 2010. Hopefully, lending will loosen up, enabling businesses to invest in equipment or facilities. Hopefully, job losses will halt, employment will tick up, and consumers will again have cash to spend.

If your planning for next year includes adding employees, it’s a good time to reflect upon your most important asset—human capital—and plan on how you’ll inspire your people to perform at their best, while keeping them enthusiastic and productive about their work and your company.

Effective teams of workers are not happy accidents. In the leadership role, business owners and managers directly affect the performance of their teams. Hiring the right people and placing them in the right position on the right team is a delicate, but necessary practice. If it’s done well, your business will run better and more profitably.

Asking the right questions starts before the hiring process does. Ask your current staff what additional personnel they would hire, given the chance. Ask what they need. Ask what’s working and not working in their current team relationships. Listen well, and ask for input. Have a brainstorming session. While your employees may not have all the answers—or even many usable ideas—it’s important they feel included in the process. And usually, the workers on the ground are acutely aware of what’s lacking in their world.

During the hiring process, look for attributes that will fit in well with established teams. This doesn’t mean that your staff cannot work with someone who doesn’t share their musical taste or hobbies. It’s good to have a diverse group of people working toward a common goal, so everyone contributes his or her strengths. While skills can be learned, enthusiasm, a positive outlook, and passion to do well cannot. Debbie Downers will often bring everyone around them down, too.

Acknowledge and quickly deal with conflicts as they arise. It’s part of gluing a good team together. Certain rules, like fostering a sense of mutual respect, should be adhered to. Let your team know that open communication is always okay, and they’ll be more likely to put conflicts behind them.

Take the time to find the best people, thorough sound procedures, including pre-employment screening. Turnover is costly both in terms of dollars spent and goodwill lost when team members have to deal with new hires more than they should. Nurture your new hires, integrate them fully, and provide all your people the resources they need to succeed. Spend time and effort in 2010 to keep your most valuable asset—your people.

For many employers, hiring new staff is not an issue they’re dealing with right now. But for those who are expanding or replacing workers, good hiring decisions are necessary to stay viable. If areas of your business growing and need additional staff, here are some tips to prepare for the onslaught of employment applicants you’ll likely see.

1. Gauge Real Interest: You might receive a hundred responses to an advertised position, so screen for the truly interested candidates—before you start reviewing resumes. Send an email to every applicant asking him or her to complete a simple second step—like attending an information session or answering a few preliminary questions. Those who do not respond can be culled out immediately.

2. Schedule Interviews over One or Two Days: Depending on how many candidates you decide to see, plan to interview them all, back-to-back, over one or two days. Dragging the process out over a week or two is inefficient. And only seeing those job-seekers who are able to meet on your schedule is another way to screen out the less-than-enthusiastic.

3. Involve Your Staff: It’s wise to expand interviewing to more than just HR or hiring managers. When co-workers are encouraged to participate in the hiring process, they feel a sense of appreciation—and this approach creates camaraderie right from the beginning. New employees who know that everyone they work with had a hand in their hiring feel more accepted and transition more quickly.

4. Consider Conducting Personality Tests: Some firms have potential candidates complete 15-minute questionnaires that predict behavior, style, and motivation.

5. Observe Candidates Outside the Interview: Creative companies bring finalists into the workspace for a day or two of observation. Both candidates and existing staff and management do the observing—each side to see if the potential hire and company culture are a good fit. Taking candidates to lunch or dinner, or just hanging out after work in relaxed settings with other staffers can be very telling. Human nature leads us all to behave one way in an interview and another when we’re relaxed and having fun.

What makes employees happy and loyal? Company culture, extra perks, feeling appreciated by their employers—all of these factors are important, but they are not the deciding ones when employees are faced with the decision: “should I stay or should I go?”  The two things employees put at the top of the list are pay and benefits.

According to a survey conducted for the last three years by a Florida staffing firm, compensation and benefits are the most important thing in their relationships with their employers.

Although fewer workers have quit jobs this year (according to the U.S. Department of Labor), history suggests that workers who are unhappy will start looking for employment elsewhere as the economy improves. And the main reason they’re unhappy?  Their pay has been cut during the recession.

One study, conducted last May, showed that employees at 235 large U.S. firms are less committed to their employers—so those firms who managed to keep their strongest people during the recession may be at risk of losing them.

What can employers do to hold on to good employees?

1. Make up for pay cuts: it’s a sure way of making affected employees happier. And if you plan on giving raises, say so! Now is not the time for surprises—people need reassurance more than ever. So don’t keep plans to yourself, or use a pay raise to bargain with an employee after they announce they’re quitting.

2. If you promise a pay raise, follow through: nothing is worse than making a promise and not delivering on it.

3. Be flexible: We’ve shared lots of ideas in this blog about boosting morale and supporting employees’ needs. Sometimes it can make up for lower pay—but not always.

4. Pay a performance bonus: If you can, write a bonus plan that rewards your staff for meeting objectives. Pay-for-performance is a good way to give a sense of ownership and commitment.

5. Be open and accountable: if management is getting raises and bonuses, and staff is not, be prepared to explain why.