It’s easy to ignore the human resources side of your
business when things are flowing smoothly. After all, there are far more
pressing concerns nagging us each day. Relations with employees can be
enjoyable and fulfilling or time-consuming and terrifying, depending on the
situation.
Being proactive in the area of HR, recognizing and
rectifying HR mistakes before they become serious problems, can save you
countless headaches and protect your business against costly legal claims.
HR mistake #1: An outdated employee handbook
Every
business, no matter how small, should have an up-to-date employee handbook. If you don’t put the most current dos and don’ts in
writing, you’re asking for trouble. In addition, laws change, which may
significantly alter the applicability of your policies.
Even
a few pages outlining acceptable and expected behavior provides employees with
tangible guidelines. The employee handbook should be updated about every two
years, and all employees should sign an acknowledgment form stating that they
received the publication and will abide by its policies.
Include
information such as your company’s:
- code of conduct
- communications policy
- nondiscrimination policy
- compensation and benefits
- employment and termination guidelines
HR mistake #2: Failing to document performance issues
Written
policies and standard operating procedures are the boundaries that govern
employee conduct. When a violation occurs, it must be accurately and thoroughly
documented. Although it may seem time-consuming to jot down in a file that
someone was reprimanded for repeated tardiness, it’s important evidence that
can support a decision to terminate that individual for
unsatisfactory job performance,
for example.
In
addition, when a company is consistent in its application of performance
issues, it’s better able to address potential legal issues that may arise in
the future, such as a discrimination claim.
HR mistake #3: Incomplete employee files
For
compliance reasons, it’s very important to keep records of all the personnel
documents attached to your employees’ work histories.
It’s
also a good practice to make sure the proper documents are kept in the employee
performance file. Some documents that contain personal information, such as
leave and disability forms, should be kept in a separate folder since these are
personal in nature and aren’t needed to manage an employee’s performance.
It’s
helpful to have a binder for all valid I-9s, which verify employee identity and
work eligibility in the United States. They should be easy to access and
updated when necessary. Fines can add up quickly if you can’t produce current
and accurate documents upon request by Immigration and Customs Enforcement
(ICE).
And
because of the Health Insurance Portability and Accountability Act (HIPAA), it’s
crucial that you store your employees’ health and welfare-related benefits
information separately as well.
HR mistake #4: Hasty hires and inaccurate job descriptions
Hurried
hiring and promotion processes can lead to a host of problems for employers.
Before you even consider hiring someone, take time to flesh out exactly why
you’re hiring and what skills are necessary in the ideal candidate.
A
few hours spent crafting a solid job description can prevent countless hours of future hassle. For
example, when you’re recruiting a candidate, they may have impressive skills,
but that skill set must also address your needs. A detailed job description
helps you stay focused on exactly what you need in a potential candidate.
Likewise,
job descriptions are important references when an employee requests a
modification to their job for medical reasons.
Say
one of your warehouse supervisors, John, is involved in an accident and breaks
his leg while on vacation. He recovers and comes back to work, but he is not
physically able to do the heavy lifting he could before. Can he continue in the
same role? If so, does he need a modification to help him carry out his duties?
If he can’t remain in the role, what are your options? In order to determine
that, you’ll need to engage in the interactive process. The first step in this
process involves reviewing the essential and marginal functions of the job –
which should be identified in his job description.
Understanding
exactly what is expected of the employee, including what job tasks are
essential and which are marginal, can simplify an otherwise cumbersome process
when dealing with the Americans with Disabilities Act (ADA). It can also help
identify what a company is able to provide employees in a situation like
John’s.
HR mistake #5: Disregard for training
Taking
time to train your employees is a valuable investment in the future of your
business. By including training in the onboarding process, your employees may become more fully engaged and
understand how to use their skills to best benefit your company.
Employers
who spend time on training also get training’s indirect benefit: employees who
feel like they’re valuable and capable of doing more for your organization.
And
remember, it’s important that the employee’s performance, including skills and
areas of opportunity and growth, are accurately reflected in their performance
reviews.
HR mistake #6: Inadequate HR policies
Don’t
overlook the importance of an internal HR audit. Set aside time annually to
make sure your HR policies are current and complete.
For
example, many businesses don’t include a vacation payout policy in their
handbooks — or a complaint process or disaster and workplace violence plan for
the organization. This creates situations where employees may quit with unused
vacation time. If they don’t know ahead of time how that time will be treated,
they will likely complain.
Also,
sometimes the unthinkable happens and disaster strikes. By providing clear
guidelines on how to respond prior to an incident, you can help minimize the
impact it might have on your employees and your business.
A
well-thought-out plan will help protect you, your employees and your customers.
Consider
these questions when developing your plan:
- Who will be in charge?
- What are your pre-established responses?
- Will you shelter in place or evacuate in
certain situations?
- Do you have an off-site meeting place for
people to gather?
- How will you communicate with your employees
during a disaster?
Having
policies and plans for handling unexpected events reduces the stress,
liabilities and costs to your business.
HR mistake #7: Employment compliance ignorance
Managers
must be fluent in employment laws and regulations. In addition, they must have
access to a resource that can keep them up to date in the changing employment
environment.
Misclassifying employees as
independent contractors when
they’re not, or as exempt from overtime when they shouldn’t be, can be costly
oversights. Failure to comply with OSHA (Occupational Safety & Health
Administration) regulations for your industry may also yield stiff fines.
Prevention
is key. Take time to identify what regulatory agencies govern your industry and
what laws must be followed.
Looking for additional HR tips? Get our free e-book
How
effective are your HR practices? Download our free e-book, 7 Most Frequent HR Mistakes and How
to Avoid Them, to discover additional strategies
for correcting these common errors.