2017-03-15 00:00:00 Human Resources English Discover some common HR mistakes that small business owners make, and learn how you can avoid them in your business. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Two-women-in-accounting-office-discuss-HR-mistakes-at-desk.jpg https://quickbooks.intuit.com/ca/resources/human-resources/common-mistakes-need-to-avoid/ Common HR Mistakes You Need to Avoid

Common HR Mistakes You Need to Avoid

2 min read

A business is nothing without its employees. If you don’t treat them right, they aren’t going to stick around and help you grow your business. If you want your business to succeed, you may want to avoid some of these common HR mistakes at all costs.

Hiring in Haste

Some small business owners rush to hire because they want to find someone to fill an empty position quickly. Chances are they may end up hiring the wrong person for the job. An essential part of the hiring process is defining the job description of the position you’re looking to fill, and the skills and experience you expect the applicants to have. Also, don’t skip background and reference checks on prospective employees because these checks may let you discover things that people don’t want you to know. You want to keep a cool head and not hire someone just for the sake of filling a position.

Promoting the Wrong Person to Be a Manager

Small business owners often make the mistake of promoting someone to be a manager based on seniority and ignoring the fact that not everyone is cut out to be a good manager. This can have a negative impact on productivity and morale in the workplace. In the end, a promotion that is meant to reward an employee may end up doing more harm than good. When you promote someone, make sure the person being promoted is up for the job. You may also need to provide additional training and support to the new manager to help him or her transition into the new role.

Not Complying With Legal Requirements

HR can be a minefield when it comes to compliance. Ignoring government regulations, either because you don’t know they exist or you don’t think they apply to you, is not a good excuse when the law catches up to you. Make sure you understand the legislative requirements with regards to HR, including employee health and safety, pay equity, and human rights. If you have a hard time understanding these laws, consider getting help from an HR expert.

No Employee Handbook

If you want your employees to follow company policies and procedures, you need to let them know what these policies and procedures are first. This is where an employee handbook comes into play. An employee handbook doesn’t have to be 2 inches thick. Even a few pages outlining all the do’s and don’ts can prevent the “Nobody told me” excuse when an employee violates a rule. Also, make sure to keep the employee handbook up-to-date to include current company policies.

Don’t Take Employee Complaints Seriously

Sometimes small business owners drag their feet in handling employee complaints because they don’t have the resources or the know-how to handle them. This is a big mistake, especially if the complaints involve serious matters such as harassment or discrimination. When an employee makes a complaint, you’re obligated to investigate the matter and take appropriate actions. Failure to do so can lead to serious consequences such as fines and even lawsuits. HR mistakes can be costly, but most of them are easily avoidable. Stay aware of them, and you’ll be in a better position to address them proactively.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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