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Preparing for a natural disaster is crucial for all businesses, but a small business may face unique challenges such as document loss, remote work, and recovery.
Preventing Document Loss
From tax documents to employee records, keeping documents from being lost is an important step in preparing for a natural disaster. The IRS provides helpful guidelines on how a small business can prepare for a disaster, including keeping a disaster loss workbook (Publication 584-B) that a business can use to inventory its business equipment. Further, having important tax documents such as federal 941s, 940s, 944s and W-2s and state sales tax returns in an electronic database that is backed up regularly can prevent these documents from being lost in a disaster. The same goes for payroll and employee documents — keeping an electronic copy of them (e.g., pay information, employee emergency contacts, pay period information) will provide security in times of a disaster. For any documents that are kept in physical form, it is important to ensure that they are kept secure in a locked filing cabinet in a locked room, both in times of a disaster and in the regular course of business. While certain physical files may be necessary, it is advisable that all employee-related files and information be backed up and saved on some secure electronic platform that can be accessed after a natural disaster, even if you maintain those physical files in your office.
There are many different human resource management systems (HRMS), human capital management (HCM) systems, and payroll systems that are useful for storing and updating employee records and information, as well as for providing a communication tool for updating employees on office closures and other information in times of emergencies. If feasible, investing in an HRMS or HCM system that can keep and manage files and provide a central place for employee communications is useful and helpful not only for everyday operations but also for preparing for and facing a natural disaster. Many systems also provide options to run payroll remotely to ensure it continues even when the office is closed or if management is unable to access it.
Emergency Plans and Communication
Before a natural disaster begins to form, it is important to have an emergency plan in place that employees can review in order to prepare for what to expect if the office is closed for a short or extended time. Emergency plans should include how employees can communicate with management and how management will communicate with them. These communications can be done through an HCM system, as discussed above, or by email, phone, text, etc. Regardless of how the business decides to communicate with its employees, it should make sure that it is communicating updates to employees before, during, and after a natural disaster.
Emergency plans should be included in the handbook provided to each employee upon hire and should also be easily accessible in the office for employee review. These plans should also be updated when needed and reviewed regularly with employees to ensure each employee knows what to expect in case of an office closure due to a natural disaster. Having a plan in place can provide a sense of calm when faced with an emergency.
Remote Work
Not every position in the business is able to be performed from home and not every business can operate outside the office, and in those cases, it is crucial to communicate expectations and emergency plans to employees before a disaster strikes. Work that cannot be performed from home should be reviewed and included in the emergency plan and discussed with the employees so the team can prepare accordingly. For extended office closures, make a plan and determine how long the business can stay closed or how long the business can operate during an extended closure. With this, also determine which employees can work remotely and plan for how they will work remotely (e.g., laptops, virtual private networks, virtual meetings). For employees whose positions cannot be performed remotely, the business should plan for and discuss with employees the expectations regarding their hours and pay, how they will be paid, and whether the extended closure will result in unpaid leave. It is important to make sure that employees know what to expect with their work.
Recovery and Assistance
After a natural disaster, the business will be faced with how it can recover both physically and financially, especially for disasters that result in extended closures. For small businesses that meet specific criteria and qualifications, the Small Business Administration (SBA) can assist them within a declared disaster area through a disaster loan. The SBA has different loans based on need, and the criteria for assistance can be reviewed on its website.
A small business can be faced with unique challenges in a natural disaster, but having an emergency plan in place and knowing what resources are available can ease the burden of preparing for it.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
