Mistakes can have costly consequences for companies and their human resources teams. Many businesses rely on HR to streamline important processes, such as recruiting, but don't necessarily realize the amount of work these leaders perform. Regardless, HR handle a wide variety of responsibilities and it's not uncommon for errors to be made. Let's look at some ways HR can avert these damaging blunders:
Don't rush
It's easier to make mistakes if HR is in a time crunch. Hasty hiring, terminations or company policy changes, if made too quickly could have costly results. Businesses need to ensure job descriptions are accurate for successful recruiting efforts, according to Entrepreneur. Poorly written rundowns of positions can potentially attract the wrong applicants. HR could then hurriedly hire a candidate who isn't the right fit.
"HR mistakes can damage to a company's standing within the market and community."
The onboarding process can also suffer from a timeline that is too rapid. New hires may feel unprepared even after their training is complete and make preventable mistakes. A company's guidance of new employees should be thorough and continue with a development program and check-in schedule. This way, workers will enter their position as prepared as possible, with access to further training or coaching in the future if necessary.
Consistently document everything
Having records of all business processes, employee complaints and hiring practices will ensure HR runs into fewer issues over time. Beginning with hiring, companies should clearly define their processes: criteria for new hires and onboarding strategies, to name a few. HR should have documentation of employee performance evaluations, complaints, company criticisms and terminations. These records can save a company's reputation and financial standing if a lawsuit is ever waged against the enterprise, especially a wrongful termination struggle.
Businesses should also have written records of company-wide procedures in the form of an employee handbook. This guide should remain up to date as policies change. HR should make sure to communicate these changes to employees at all levels of the company. The handbook should include guidance on compensation, discrimination and harassment, among other typical business practices. HR can use this record as a defense if employees try to take advantage of certain procedures. Triton HR offers HR consultation and can help with creating and establishing policies and handbooks.
Lastly, HR should ensure all documents are in a readable format. Any handwritten record should be typed up and all policies should be current.
HR mistakes can have costly consequences on companies.Understand legal intricacies
Noncompliance with federal, state and local regulations could cost companies money and their reputation. Requirements change constantly, so it's important that HR remains aware of any updates. These alterations should also be reflected in the employee handbook and communicated to all workers. Common problems include failing to comply with the Fair Labor Standards Act, eligibility requisites and misclassification of employees, according to Intuit.
HR professionals should know the differences between employees and independent contractors, as well as the reporting requirements for each. The IRS commonly discovers these misclassifications, which result in higher costs for employers. If a worker is misclassified an independent contractor, companies must provide benefits and fair compensation.
HR mistakes can damage a company's wallet and overall standing within the market and community. Businesses should ensure all important information relating to employees and the enterprise itself clearly documented and relayed to workers. Company processes should not be rushed to avoid hasty errors and compliance costs. It is HR's responsibility to make sure these procedures go off without a problem.