Let’s be honest, when you take the plunge and start your new business the last thing you are thinking about is HR. In truth, it will feel as though there are hundreds of other issues to get your head around and HR just doesn’t fall into the priority list.
However, it really should. Like it or not, this is a really important part of your business. It would be fair to say that the HR field has exploded over recent years and is now a key element of how any business operates. The fact that you can now obtain an online employment law degree should tell you everything you need to know about the importance of this field.
To guide you along your way somewhat, we have penned today’s guide. We will now take a look at some of the prime mistakes that are made when it comes to HR in a new business.
- Not having a written employment contact for your workers
Some people might regard this first mistake as unbelievable, but unfortunately it does happen. Some businesses are so preoccupied with other parts of their business that they won’t even provide a written employment contract for anyone they take on.
Suffice to say, the legal ramifications for this can be severe. They differ depending on where in the world you are based but if we were to coin the UK as an example, a worker can receive up to 4 weeks’ worth of pay if they don’t have one.
It can also open up a whole host of problems later down the line. Without a contract, an employee doesn’t necessarily know what is expected of them and as such, any future disciplining can be difficult.
- Not managing sickness
As the media keep telling us, sickness absence days in some countries can cause big problems. Despite this, a high number of new businesses don’t have any policies in place which can help them manage these.
For a start, they don’t have any rules. The knock-on result is that employees don’t know what to do when they are not able to come in, and this can obviously cause conflict. This lack of rules can span to the rights that your employees have when they are sick. For example, do they receive full pay or not?
As well as all of the regulations you need to set, you also need to monitor your sickness carefully. Far too many companies just keep the information “in their head”, meaning that it’s very difficult to spot patterns later on.
- Ignoring employee development
Another crucial mistake made in the world of HR is ignoring employee development. In other words, there is no room for training.
There’s no doubt that the reputation of training has turned on its head over recent times. Once upon it was almost frowned upon, but nowadays businesses realize that it’s a way in which they can both attract and retain employees. It makes them feel valued and if you are not providing any opportunities in this regard, you risk losing your prized workers to competitors who will.
