The Ultimate Entrepreneurship Guide (Part 4): Understanding Employer Responsibilities

The Ultimate Entrepreneurship Guide (Part 4): Understanding Employer Responsibilities
September 17, 2013 Oasis500

A successful entrepreneur is one who is clear about their responsibilities as an employer and related aspects like payroll, taxes and benefit requirements. The employers of all small and medium (SME) enterprises including a startup company also have the responsibility to provide its employees a safe working place. Also employers can be held responsible for the wrong acts of their employees even if they do not agree with that behavior. To avoid such a scenario, employers must imbibe in their employees the right values and an understanding of organizational rules and regulations. Such issues can be handled via company training programs or educational seminars. Inability to handle any of the responsibilities attached to entrepreneurship could have a significant negative impact on your business’ future.


Major Responsibilities of Employers

Becoming an SME entrepreneur is not easy since it involves management of a full-fledged organization manned by a variety of people handling different functions. It is the employer’s responsibility to ensure that the employees understand the nature of their work and perform it accordingly. The employers also need to create a conducive work environment, motivate the employees to provide their best and look after their welfare. Another major responsibility of an SME entrepreneur is to ensure that all his staff is compensated adequately. Some major responsibilities that every businessman should know about are:

    1. Creation of a Safe Work Environment: It is the responsibility of every employer that he creates a safe work environment for his employees. The entrepreneurs need to ensure that workers and other people present in the work premises are protected from anything that may cause any kind of harm. Safety at workplace also refers to emotional safety. Thus an employer needs to ensure that the work place of the enterprise has no physical hazards or toxic components which can affect the health of his employees. In addition, adequate health care and first aid facilities should be in place at the work place.Entrepreneurs also need to create a conducive and healthy work environment with no scope for hostility or any other type of harassment or discrimination. This involves risk assessment on a regular basis and informing and training employees about ways to deal with the various types of risks. The employers should also make the necessary investment for acquiring all appropriate protective equipment that is essential for allowing workers to complete their work safely. Regular workshops and training programs should be carried out to train the employees about the correct use of the equipment.
    2. Maintain Ethical Business Practices: While it may be easy to grow one’s business by following unethical work practices, ethical business practices are what help you develop a sustainable businesses. It is important that one carries out his business as per the government regulations and keeps tracks of any changes in such regulations on a continued basis. This is important because the way an entrepreneur runs his business also has a significant impact on his relationship with his employees. If you are following ethical business practices for running your business, your employees will get the confidence that they will also get a fair treatment and thus are always willing to follow the rules.
    3. Provide Growth Opportunities to Employers: A good employer is one who provides his employees with a chance to learn more and emerge a better worker. Employees often need encouragement and motivation to produce their best output. It is the responsibility of the employers to provide them the right environment, educate them about new methods or technology whenever required and give them the chance to utilize their varied skills. This is possible by conducting regular workshops, training programs and feedback sessions. This will allow the owners of an SME to motivate their employees to work hard and offer their best.
    4. Adhere to All Legal Requirements: A good entrepreneur is one who understands the legal requirements of his role as an employer. This means he should be well versed with the rules and regulations relating to payroll, taxes and benefit requirements. All employees need to be adequately compensated for their work in terms of fair wages, adequate leave and other perks or benefits associated with their job. The owner of any kind of enterprise should ensure that no discrimination is done whether while making appointments or reimbursing the staff.
    5. Recognize Employee Contributions: A good entrepreneur will always recognize the contributions made by his employees working at various levels and in various departments. The success of any SME is highly dependent on the performance and the contribution of its employees. So one of the best ways to reward such employees is recognizing the contribution made by them. This recognition could be in the form of monetary rewards or certificates, a promotion, or any other form.


Entrepreneurship education is an ongoing process wherein employers need to be aware about their responsibilities and take adequate steps to handle them. Employers work as a role model for their employees, and thus enterprises should take all the necessary steps to complete their responsibilities in a law abiding manner.


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