Obey the laws regarding employees. Don’t discriminate in hiring, for example, or permit sexual harassment.
Hire carefully. Look for people with a strong work ethic, and avoid hiring those who feel life owes them something.
Adopt strong employment policies. Communicate them clearly to employees and enforce them.
Keep good records of employee mistakes. Even when they’re not firing offenses, make sure you document your own actions and the reasons behind your employment decisions.
Consider buying employment-practices liability insurance (EPLI).
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.