Human resource management can seem tedious and even unnecessary to a small business owner. You do not have hundreds of employees, so why complicate things? Effective HR management can, however, be a great asset to your business, helping you avoid lawsuits from former employees, giving employees an environment where their skills can grow, and most importantly, giving you better oversight and control over your business. Human resource department also plays an important role in helping you avoid personnel related mistakes that have the potential to result in lawsuits and fines that can hurt your business. Read on to see what common mistakes HR department can help avoid.
Hiring the Wrong Person for the Job
This seems intuitive but it is easy to make this mistake, especially if you rush through the hiring process to fill important positions. You must have a clear picture of what the position you are advertising requires. What will the employee be doing? What skills are required to do this effectively? This picture must be communicated clearly to the applicant and the interview panel. This communication starts with the job advertisement and requires a clear job description.
Employees Not Trained Properly
If employees are not trained properly with regards to their roles and responsibilities their work performance will suffer. You cannot assume that experience at a previous employer translates perfectly to your organisation. Perhaps the previous employer used different software, or the previous employer had a different job description for the same position. If an employee does not know how to do their job effectively it will negatively impact on their performance and your bottom line. It is also bad for their morale and might result in a resignation. It is simple to keep this from happening by thorough in service training and an employee handbook stipulating procedures and company rules.
Not Addressing Performance Issues
Addressing performance issues and initiating disciplinary processes can be very unpleasant, and it is always tempting to ignore these situations and hope that they resolve themselves. This attitude has caused many problems for small businesses. When the time comes and an employee needs to be let go, if proper procedures were not followed it can lead to costly lawsuits. A small business needs to be informed about the laws surrounding dismissal and must also follow them to the letter. Implement a performance appraisal system and document all actions taken. Keeping track of performance issues can keep you from ending up in front of an employment tribunal.
Not Seeking Assistance from Professionals
Small business owners and entrepreneurs are usually not equipped to take care of all the various management roles in their organisation. Just as you need employees to know exactly what they should do and how they should do it, it is important to expect the same from management, and yes, even the owner(s). Assuming that you can go-it-alone has led many a small business into trouble. When it comes to HR, leave it to the professionals and give them tools, like hr software solutions by XCDHR for example, to do their job efficiently.
HR is a crucial aspect of keeping a small business running well, and it does not need to be a nightmare. There are resources available, use them and watch your problems fade away.
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