To become successful in their venture, every business needs to become familiar with the art of juggling. Each department is vital in ensuring business success; however, most entrepreneurs take for granted the human resource department when other factors are flowing easily.
Human resource departments have much accountability to protect the brand or company and the labor force. Companies have faced cases after making a slight mistake, while some have harmed their brand and reputation. Well, errors are predictable, but human resource departments need to be conscious of and keep away from these errors to keep aware of the complaints and protect the business.
Non-Existing Handbook of Employee
Each brand needs to be modernized, reorganized, and communication work rules must be written on paper. That is why human resource departments should have a handbook that is updated on a regular basis and the rules communicated to workers often.
It is highly advisable to revise or renew the employee handbook at least once in two years and make sure that every worker acknowledges and signs on it to make sure that they have acquired the rules and they will follow them.
The handbook must take account of benefits and compensations, code of conduct, guidelines on termination and employment, nondiscrimination policies as well as communication rules.
Fast Hiring Process
The human resource department often makes mistakes when hiring staff, particularly for small and medium-sized companies. Usually, the department makes the error of making low-quality job descriptions such that they end up hiring a less qualified worker. Besides, the hasty hiring procedure also signifies that the department hurries the interview process, so they hire half-baked workers.
Human resource departments must spend more hours making tough job descriptions to avoid trouble and save expensive mistakes of hiring less qualified staff. Human resource departments must have a thorough job description, which makes sure that they acquire the best workers based on the needs and demands of the employer.
Non-Complete Staff Files
It is very vital for human resource managers to keep informed records of staff files associated with their work backgrounds. Also, make sure that you keep personal files in another folder from the performance document as they have personal details which aren’t needed for handling employee’s performance.
The other common mistake done by human resource managers is the failure to file valid forms that verify job eligibility and worker identity based on the state’s policies.
Ignorance of Employee Compliance
Another mistake made by human resource managers is the failure to know employment rules and regulations. These rules change most of the time, and some human resource managers aren’t updated with these changing policies that sometimes get them in issues like complaints and lawsuits.
Some human resource managers misclassify workers by categorizing them as in house staff once they aren’t or fail to pay workers overtime. It is vital to avoid this mistake; hence, human resource managers have to know regulatory firms that rule their organization and adhere to the regulations.
Failure to Record Issues in Performance
Human resource departments can keep away from complaints once they keep away the errors of performance issues that are not recorded or documented. Workers do not want a termination; however, it is vital for human resource managers to prepare for termination by recording them.
Human resource managers must provide workers the chance to boost their performance by emphasizing issues during performance check-ins prior to ending their contracts. In order to avoid this kind of mistake, human resource managers must record performance problems during appraisal with the assistance of a performance appraisal app.
Disregard for Employee Seminars and Training
A company must invest in their workers via training in order to mold their skills in the specific area. Human resource departments are tasked with the job of training new recruits and making sure constant professional training for regular workers.
Business owners can be guaranteed of worker utmost performance after attending training during the onboarding development and afterward after hiring the workers to explore the development opportunities; besides, it makes sure that workers feel appreciated by the company, so they work to ensure utmost performance. Human resource managers have to do regular performance assessments to make sure that the talents and development opportunities mirror in their reports.
Payroll Pitfalls
Worker pay complaints have risen in the past couple of years. Often this takes place when a worker is improperly classified as excused and overtime pays are not compensated.
It is essential that the workers are classified rightly under the Fair Labor Standards Act. Work titles do not establish exempt status. To qualify for an exemption, an employee’s job responsibilities, as well as pay, must meet the requirements imposed by the Department of Labor.
Keep in mind workers should get overtime compensation for any hours worked over forty hours in a workweek.Â
This overtime pay can’t be less than 1.5 times their regular compensation.
Another potential pitfall in payroll is the misclassification of gig employees. Each time you know whether a person is a worker or an independent contractor, the relationship between the employee and the business should be assessed very carefully. To assist, know when an employee is an independent contractor or worker, the IRS offers an 11-factor test divided into various classifications such as financial control, behavioral control, and the kind of relationship of the parties.
Businesses should comply with the city wage as well as hour regulations that often have more serious requirements. For instance, California Labor Code needs particular items of detail on pay stubs, which include bonuses, commissions, and overtime pay.
Employers who misclassify employees or make other errors in payroll can face fines, back salaries, class action pay, and even lawsuits. That is why it is vital to have a good human resource practice put in place, precise records in the latest systems, as well as periodic assessment of pay slips.
To avoid these errors, there are companies that offer reliable and simple payroll processing via manager and workers self-service portals. Other forms of HRM software are available to make the process easier aside from making these mistakes.
