296 - Why Contractors Shouldn't DIY Their HR with Tena Jolley

Written By Guest User

What happens when you fire someone without documentation, and they file a claim? What about the employee you've been keeping around for years because you're too scared to have the conversation?

In this episode, Martin sits down with Tena Jolley, founder of Apella Strategic Solutions and a 30-year HR veteran, to break down everything small business owners get wrong about human resources. From progressive discipline and employee evaluations to bonus structures and the real cost of keeping legacy employees on the payroll, Tena walks through the practical steps that protect your business and your bottom line.

If you've ever thought, "I can't afford HR help," this episode will change your mind. You'll discover how fractional HR consulting works, what progressive discipline actually looks like in practice, and why the cost of not having an HR professional in your corner is far greater than the cost of getting one.


Time Stamps

  • 00:50 - Episode & Guest Intro

  • 03:44 - Why You Shouldn't DIY HR

  • 04:56 - At Will Misconceptions

  • 08:49 - Cost and Fractional HR

  • 11:26 - What HR Really Covers

  • 15:48 - When Hair Is On Fire

  • 19:17 - Unemployment Claims Explained

  • 22:31 - Progressive Discipline Steps

  • 26:55 - Handling Attitude Issues

  • 30:19 - Reviews That Look Forward

  • 31:03 - No More Annual Ambushes

  • 32:27 - Who Should Evaluate

  • 33:47 - Work Family Boundaries

  • 36:29 - Can People Really Change

  • 39:25 - Legacy Employees Costly Lesson

  • 42:50 - No Surprises Review Rhythm

  • 44:01 - 360 Feedback Done Right

  • 47:53 - Bonuses That Drive Results

  • 51:10 - Alignment And HR Compliance

  • 53:16 - Start Small With HR Help

  • 54:40 - Wrap Up And Sign Off

Snippets from the Episode

  • "Not having someone at your side is gonna be much more costly than having someone who walks alongside you, with solutions at a reasonable rate." — Tena

  • "If you wanna ruin a good employee, tolerate a bad one." — Martin

  • "During that performance review, there's no surprises." — Tena

  • "You can't be a sissy and own a business." — Martin

  • "Progressive discipline, it's a mindset shift. It doesn't have to be a difficult conversation. It can just be conversational and that I'm doing this to help you and I want you to win." — Tena

Key Takeaways

  1. HR covers far more than hiring and firing; it includes handbooks, job descriptions, compensation strategy, employee training, organizational design, and compliance with federal and state laws.

  2. Progressive discipline has four steps: verbal warning, first written reprimand, second write-up, and separation. Each step should be documented and focused on helping the employee succeed.

  3. Employee evaluations should happen at least quarterly, not just annually, and should focus on a roadmap forward rather than a year's worth of saved-up grievances.

  4. Subjective issues like attitude can be addressed objectively by including conduct expectations in your employee code of conduct and discussing them during the interview process.

  5. Keeping underperforming or toxic employees because you're afraid of unemployment claims or confrontation can cost you your best people, your culture, and significant money when you sell the business.

  6. Bonus structures should reward measurable outcomes like accuracy, response time, and process improvements rather than flat annual gifts that create entitlement.

  7. Fractional HR professionals can work with your budget on a retainer or project basis, starting as small as a single job description, and scale with you over time.

Resources

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295 - Keep Your Team in the Yellow Zone: A Contractor's Guide to Managing Employee Capacity