6 HR Blunders Your Business Could Be Making

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hr-blunder-of-the-weekOver the past 20 years in Human Resources, I have seen common mistakes that small and medium sized enterprises (SME) make either in hiring or managing employees that can be drilled down to 6, yes that’s right only 6.

The following is a list of the top six HR blunders – and advice on how your small business can avoid them.

1. Failing to do candidate proper screening.
That means improperly vetting credit, driving, and criminal records and even comparing what job candidates say about their work experience with their references’ comments. According to information provided by ADP, screening indicated an adverse record for 82 percent of candidates.

Background checks can reveal issues about a candidate that might cause a business owner to remove them from employment consideration on account of potential risks to the business, such as a criminal conviction that could impact the candidate’s ability to perform his or her job duties.

Proper screening will also ensure that you get the right fit of candidate to the role, team and company. You can ask about honesty, punctuality, trustworthiness etc.

2. Hiring too quickly.
When a SME business can shell out thousands of dollars to recruit just one employee, that old saying “haste makes waste” becomes reality. So develop a hiring process and stick to it.

SME’s work your network to find good candidates. That network includes social media, website ads, recruiters, and former employees who might want to come back.

The hiring process still needs to be thorough and diligent, so don’t take shortcuts. At the same time, you’ve got to work fast enough to catch that great job seeker.

3. Failing to make hiring an ongoing process.
Hiring isn’t an event, it’s a process. By maintain your networking and making sure employees know that you’re looking.

As a SME business, you may be one resignation away from a critical need in your company. If you have to start the recruiting engine up from scratch, you lose valuable time, which is money and profits.

What’s more, small businesses should have a succession plan. If an employee resigns, it’s important to know who will be moved up or moved over. And that becomes easier if employees are cross-trained.

4. Ignoring retention efforts.
It’s a jungle out there, right? And in today’s improving economy, the jungle is offering some good hunting.

Professionals have a lot of options, and we’re seeing candidates take new jobs at a rapid rate.

That means Management need to focus on morale and company culture in their employee-retention efforts.

5. Firing too quickly.
There’s that “haste makes waste” saying again. Businesses that fail to follow their termination plan and the legal implications may face lawsuits by former employees.

Co-workers who have to take on their former colleague’s work won’t be happy, which affects morale. And businesses that don’t follow final pay requirements may incur wage and hour violations.

6. Improper pay.
Just because someone’s title is “manager” doesn’t make them exempt to paying them the right amount. Exempt status must meet specific salary and duty tests, and that classification then determines eligibility for overtime pay and certain benefits.

Companies aren’t spending enough time on compensation reviews to ensure that they are paying above the Award based on overtime, penalties etc and to make sure that they are competitive in the market.

 

Moreton Bay HR Solutions is a leading Human Resource Outsourcing and Consulting and Business Solutions company that specialise in partnering with small to large companies to meet their workforce needs.