6 Small Business HR Mistakes and How to Avoid Them

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small business HR mistakes

Did you know that 47% of HR teams report that employee retention and turnover are their biggest challenge?

Small business HR mistakes can have a tremendous impact on your company’s bottom line. And while they may not seem like a big deal, they can add up to serious issues down the road.

So how can you avoid HR mistakes? By knowing what they are in the first place!

If you are wondering what small business HR mistakes are and how to avoid them, this short and simple guide is for you.

1. Not Having an Employee Handbook

The first mistake that your HR can make is not having an employee handbook.

An employee handbook is a document that your company develops to provide accurate information about the company’s policies, procedures, and benefits. It can also help protect you from lawsuits by making sure employees are aware of what’s expected of them.

If you need help creating your employee handbook, contact these hr services today.

2. Not Monitoring Hours Properly

This is another mistake that your HR can make. It’s important to monitor employee hours because many companies are required to keep track of them.

You need to know how many hours an employee works per week. You also need to know what type of work they do during those hours.

3. Underpaying Workers

This is another mistake that can cost your company money.

You need to make sure you’re paying workers the right amount for their work. If they are not being paid correctly, then you could violate federal or state laws.

This can also lead to lawsuits if employees feel they haven’t been paid correctly.

4. Avoiding Progressive Discipline

Progressive discipline is a system that provides warnings and corrective action before firing an employee.

It allows you to build a case against the worker. This makes it easier to fire them if they don’t improve their performance.

If you do not use progressive discipline, then you could be open to lawsuits from employees who feel you unjustly fired them.

5. Failing to Document Workplace Rules and Policies

If you do not document your rules and policies, then it’s hard to enforce them.

Employees may feel that their rights are being violated. This is especially true if they have never seen them before.

You can avoid these problems by ensuring that all new employees receive a copy of the company handbook.

6. Ignoring Unlawful Harassment or Discrimination

There are many types of unlawful harassment and discrimination.

You can face legal action from an employee if you do not take steps to prevent or stop it. To protect yourself, keep a record of all complaints about harassment or discrimination.

And, you should make sure you investigate them thoroughly.

Avoid These Small Business HR Mistakes

These small business HR mistakes can derail your business.

You can avoid them by ensuring that you understand all laws that affect hiring and firing. In addition, make sure you keep excellent records of all employee matters.

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