Is your business protected?

Top 5 HR Mistakes Made by Businesses!

by Complete Concepts Consulting

HR mistakes for any company can be costly, but for small businesses, it can be catastrophic. HR mistakes can have a significant effect on the potential survival of a company. Below are the top 5 HR mistakes most commonly made. With government oversight at an all time high, it is critical to be aware, be proactive and be in compliance. Click here to request more information about Complete Concepts Consulting's complimentary compliance consultation to help businesses identify potential risks and save money! Non-Compliance with Government Regulations. Many small business owners are unfamiliar with the majority of laws that govern the workplace. While most but not all federal laws cover companies as small as 15 employees there are few regulations that do not apply to your business. Companies must also comply with State and local regulations which make it difficult for business owners to have a thorough knowledge of every regulation affecting their business. Businesses need the knowledge but they don’t know it. Hiring the Wrong Person. Many small business owners hire people but do not take the proper steps to ensure that the person is right for the job.  In some cases, the job has not been clearly defined, skills needed for the job are not laid out and the recruiting process is not documented. Because the owners have good intentions and want to help people, they often don’t conduct background screenings. They often miss a “skeleton in the closet” which leaves the business liable for any misdeed carried out by that employee. Misclassifying Employees. One law that applies to almost all employers regardless of size is the Fair Labor Standards Act. This complicated regulation governs most compensation issues including overtime pay. Paying someone a Salary does not make them exempt from overtime and calling someone an independent contractor does not make them so. It is estimated that 70% of businesses routinely violate wage and hour law under this act. Lack of Documentation. Documentation in most companies is typically an afterthought. In many small businesses it is non-existent. More often than not, I-9 forms which prove a person's eligibility to work in the US are incomplete. Discipline records are almost never there and terminations generally are not supported which result in lost unemployment cases and lawsuits either lost or settled for unforeseen amounts of money that can cripple a small business. Not Motivating Employees. Employees value rewards, and not just monetary ones.  In today’s economy, employees are feeling under-appreciated and overworked. As the job market begins to improve, unhappy employees will begin to look for other opportunities often taking knowledge learned at your business to a competitor. Employee turnover can be devastating to a small business. Small business owners must be vigilant in protecting what they have worked so hard to create. While you may not have the money for an internal HR team, services offered like those from Complete Concepts Consulting will  help limit your risk from non-compliance, recruit and retain top employees, and give you the freedom to grow your business.