The common HR mistakes small businesses make

Running a business means taking on a lot of different jobs and responsibilities and unfortunately, HR can often end up as an afterthought… until something goes wrong.

If something does go wrong, it can very easily lead to fines, disputes and unhappy employees, so in order to help protect your business and your employees, here are some of the most common HR mistakes small businesses make, and how you can avoid them:

Not having proper employment contracts in place

Whilst a handshake or offer of employment letter are both legally binding, they are not robust enough to protect your business. It is a legal requirement to issue an employment contract by their first day of employment. It needs to include, to name but a few: pay, working hours and days, duties, notice periods and termination conditions. Ensure it is signed and kept in a safe place for referring back to if needed at a later date.

Non-existent onboarding process

New employees cannot be ‘chucked in at the deep end’ and expected to figure it out. In our experience, the times clients tell us they expected the new person to ‘hit the ground running’, it has not worked out well. 

They need a structured onboarding process where company culture, policies and their role expectations are clearly explained. Often we hear ‘they’ve been working for 20 plus years and should know better’ but the reality is that your expectations may well differ from their previous employer’s. You should schedule check-ins with them on a regular basis such as 30, 60 and 90 days since employment.

Poor record keeping

Not keeping important notes and HR records can wind up being a very costly mistake. Keep a record of everything from conversations with employees, time off requests and any other correspondence. We have a saying in HR – if it wasn’t written down, it didn’t happen.

Inconsistent HR policies and practices

Not having HR policies and practices in place is risky business, especially when it comes to your employees, as they need to be treated fairly, otherwise you could be open to discrimination claims.

We regularly review client’s policies and procedures and these need to be communicated across your team.

Avoiding difficult conversations

It can be difficult to talk to employees about issues such as poor performance, misconduct or conflict, but doing so can save your business a lot of trouble. Address issues early on, document your discussions and agree on the next steps. 

If any of these HR mistakes feel familiar to you, it’s time to take action, before it’s too late. We are the experts and are on-hand to keep you, your business and your employees protected. Just get in touch and we can discuss how we can help.