5 Common HR Mistakes Every Business Owner Can Avoid

Often described as the key mediator between employees and you, the business owner, your HR department relies on your leadership to steer the ship that is your company in the right direction. However, the process of hiring, training, and retaining your employees is a fluid and ever-changing one, especially considering the same changing nature of the laws on which you base your collaboration.

With so much on your plate already, it’s no wonder that many business owners, no matter the size of their company, let a few key HR steps fall through the cracks. More often than not, these issues can be easily avoided, so let’s see which HR pet-peeves you should keep an eye on, and how you can make sure they never affect your business again.

Hasty dismissal

Unless there was a flying copier incident that jeopardized the safety of your employees, you cannot fire an employee on the spot without properly investigating the situation. If you are not satisfied with that particular employee’s performance, there should be a written record of your attempts to help them overcome any issues, followed by a proper training protocol, and an account of why you are not satisfied and how that has affected your business.

Sometimes all it takes is a few training sessions to help your employee perform better, but even if that is not the case, the least you can do is save yourself an unfair dismissal claim from a disgruntled employee.

No hiring strategy in place

It doesn’t matter if you are looking for a single person to handle your social media, or an entire team of graphic designers to build your brand, every company needs a reliable onboarding process. It serves to test the candidates on several levels, filter out the unsuitable ones, and help you focus on the ones with the most potential to fit into your company culture.

In fact, a single mismatch can cost your company as much as $50,000 in the long-run, according to this 2013 study. So, take your time to refine the hiring process, it will be worth your while, as well as your budget.

No binding contract

There are no exceptions to this rule: even if you are hiring remotely or choose to work with freelancers only, every collaboration requires a legal basis. While online platforms such as Upwork have their own pre-defined legal terms of each contract, every employee should have a clear idea of your expectations, their rights, and the scope of work involved.

All of these essential bits of information can be included in your employment letter, but they should be further elaborated and agreed upon in a legally-binding contract. That way, both parties involved kick off the partnership knowing what to expect and what is expected of them.

Lack of training

Another common HR issue is offering regular growth opportunities to your employees, but not just in the form of a simple title. Every team needs a chance to improve their skills and master the latest techniques in their field of work, which is an investment that benefits both your employees and your entire business.

This is one of the key factors that contributes to the happiness of your employees, because they will recognize a chance to grow out of their current role without leaving their post at your company. Consider visits to various conferences and seminars, as well as in-house mentorship programs for employees of all experience levels.

Not matching skills and pay

Complying with the basic Modern Awards and the National Employment Standards is another pivotal piece of the employment puzzle that often gets neglected. As a consequence, many businesses end up with significant back pay claims, and even more importantly, with a severe blow to the reputation of your business.

Even if you do comply with the essential provisions of Modern Awards such as paying the needed rates for the specified position, you also need to ensure that other details of the contract are in accordance with the law. Are they getting paid for working after hours? Are they aware of their leave rights and other benefits? All of these and many other details should be regularly checked and updated depending on the position, seniority, and advancement of your employees.

No matter the size of your business and how long you’ve been in the game, keeping your HR practice up to date and in excellent working order is crucial for your entire company. There will always be roadblocks to tackle during the growth of your business, so make sure this aspect of its operations works smoothly so that you can devote your attention to other, more pressing matters of your company.

Guest Author, Raul Harman, s a B.Sc. in Innovative entrepreneurship and has a lot to say about innovations in all aspects of digital technology and online marketing.  While he’s not enjoying travel, football and great food, you can find him on Technivorz.com.

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