As an entrepreneur or a small business owner, it is expected that you should master the art of jumbling. You should be ready to wear multiple hats from marketing to accounting to human resources. However when you juggle with multiple tasks, it increases your likelihood of making mistakes. It is seen that entrepreneurs or small business owners often undermine the human resource side of their business, especially when things are running smoothly. Unfortunately HR mistakes can be very expensive and if not taken seriously they can open the doors for potential litigations or employee turnover. These mistakes could have serious consequences for small businesses.
- Overly hasty process
There are quite plenty ways small business owners could make mistakes like poor job description that will attract less-than-stellar candidates to a hurried interview and selection process. Hiring mistakes can prove very expensive. Create a consistent interview and selection process. You should clearly and accurately give out job description. You should also involve more people in the hiring process. Best hiring decisions are made as a team.
- Misclassification of employees
The Internal Revenue Service (IRS) vigilantly looks for small businesses that try to misclassify employees as contractors for tax reasons. Get yourself familiar with what differentiates an employee from a contractor.
- Employee handbook
Business of any size needs to have some sort of employee handbook. Not having an employee handbook is like inviting trouble. Not just that, employee handbook needs to be updated on a regular basis and well communicated. You should also get your employee sign an acknowledgement form stating that they have read and understood everything in the book.
- Employee training
When an employer invests in their employee, an employee in turn invests in the company. You should provide enough employee training opportunity, which should begin with a through on boarding process. Providing employees with tools they need to do their jobs and periodic training opportunities to keep them updated and competent will ensure your employees at all stages are performing at peak performance.
- Keep record of performance issues
If you are running a business, you can’t even fire without preparations. Messy fires are sure shot recipe for inviting unwanted lawsuits. However it can be easier one if you are prepared for it. Start by preparing and documenting performance-related issues. This also gives employees an opportunity to correct the issue.