Owning and managing a small business in this day and age can mean wearing many hats, from planning and strategy, marketing and sales to accounting and human resources. Unfortunately, the pitfalls of having to juggle multiple roles can increase the likelihood of making mistakes.
It’s easy for small business owners to ignore the HR function when things are running smoothly. However, in doing so, it can lead to costly mistakes (think legal action and high employee turnover) and these can have serious consequences.
How can you stop dropping the ball when it comes to HR? Listed below are the four most common HR management pitfalls faced today (and how to avoid them!):
1. Rushed recruitment
When it comes to hiring employees for a small business, mistakes are sadly all too common. From poorly written job descriptions to hurried interview processes, these practices can result in attracting less than ideal candidates. Have you ever stopped to think how much a “bad hire” could cost your company?
There is a solution however… Create a consistent interview process, start by writing clear and accurate job descriptions that will attract good talent and make sure too include all relevant information on the role (remuneration, qualifications, bonus job duties, company info, etc.) You want to make it enticing to the candidate, what sets your company apart from the rest? and why would they want to work for you?
A really critical factor that employers tend to overlook when hiring, is ensuring a candidate is a good fit to the company culture, this is just as important as having the right skills for the job especially within a small business. Get more people involved in the interview process, the best hiring decisions are made as a team.
2. No Employee handbook
Not having any company policies in writing is just asking for trouble and it doesn’t really matter what size company you are either, you NEED some form of employee handbook.
Having an employee handbook is a start, but not enough, as the policies within it need to be reviewed, updated and communicated on a regular basis. What’s more you should get every employee to sign an acknowledgment form stating that they have read and understood everything in the handbook.
- The HR Rev guide to Employee handbook requirements
- Employee handbook for small businesses – ready to use template
3. Addressing performance related issues
While no termination of employment is really a positive one, complicated ones may lead to legal action. It is much easier when you are properly prepared and that preparation starts by addressing and documenting performance-related issues. When performance problems arise, aim to nip them in the bud by addressing them during performance reviews. This then gives employees an opportunity to correct the issue.
But what happens when that feedback doesn’t solve the problem? Sometimes terminations are unavoidable, but doing them right can avoid any unwanted issues. The key is to thoroughly document employee performance problems. This may seem time-consuming, but in the long run it can serve as valuable evidence should a termination be necessary.
4. No investment in employee training
As an employer when you invest in your employees you are investing in your company. This investment is most clearly demonstrated by providing appropriate training opportunities for employees. These opportunities should begin with a thorough on-boarding process for new hires and continue with structured professional development and training plans for current employees.
By providing your new employees with the tools they need to hit the ground running and current employees with opportunities to grow, you can be rest assured that your employees, at whatever stage of their career, are performing at peak performance.
If you are struggling to get the most out of your HR function… book your obligation FREE audit with us today…