Preventing Costly Human Resource Errors at Your Business

The human resource department may seem like an afterthought, but a polished and up-to-date HR division can prevent difficult-to-manage costs. HR specialists interact with employees throughout the company and can recognize and rectify mistakes before they escalate. Though given the department’s broad reach, they are also more susceptible to snafus. Mishandling the errors and solutions impedes day-to-day functions and productivity, which is why human resources must remain vigilant and proactive.

 

Failure to pinpoint and resolve HR issues beforehand could result in disgruntled employees, legal claims as well as other damaging situations that businesses may never recover from. 

 

Here, we review common HR mistakes and practices to error-proof your systems and implement well-thought-out procedures.

 

Documentation and Policies

 

Lack of documentation and failure to update policies such as employee handbooks is a burdensome yoke to break. Companies may struggle to scale and expand if their data management system is antiquated or face severe repercussions during legal entanglements. Physical documentation has several pros, but transitioning to a digital filing system can save both time and money long-term. Develop a record and retention process to quickly locate information, perform periodic audits, and identify areas that require modernization.

 

Employee handbooks, for instance, should be updated at least every two years. They should reflect the latest laws, document expectations, unacceptable behavior, and the consequences for improper actions. Distribute the handbook to employees who, in turn, should sign an acknowledgment affirming that they’ve received and reviewed the most recent publication and will abide by HR policies.

 

For added context, the company’s handbook should include the following: code of conduct, communication and nondiscrimination policies, an overview of compensation and benefits, as well as employment and termination guidelines.

 

Pay Misclassification

 

HR should familiarize themselves with the different types of employees and the legal guidelines applicable to their work status. Time and attendance software should be used to reduce inaccuracies, track working hours, and administer state payroll regulations.

 

Lackluster Hiring Process

 

Hiring managers may perceive HR as a disruptive force within the hiring process that only adds red tape and bureaucracy; however, this assumption is far from the truth. Human resource professionals possess particular skills necessary to attract and identify talent best suited to the needs of the organization. Detailed job descriptions, for example, that highlight the role’s deliverables in addition to the company’s overall expectations. Furthermore, they’re trained to educate employees on the dos and don’ts of the interview process. Asking appropriate questions and avoiding taboos is crucial to representing the company with dignity and respect.

 

Poor Training

 

A significant portion of the training process falls on the hiring manager and his or her associates. Still, a well-executed onboarding process can make all the difference. Employers who develop a formal onboarding program in conjunction with HR will improve new employee engagement, motivation, and morale, thus saving time and valuable resources. An official orientation also signals to new hires that they’re assets to the organization on day one.

 

HR Audit

 

Human resources should understand their organization’s ecosystem and research problems before prescribing solutions. A useful technique to ensure the success of the company is via an internal HR audit. When performed annually, a review of policies, communication, and guidelines will keep the company’s infrastructure agile and equipped to mitigate unexpected costs, stress, and liabilities.

Do you need help revamping your HR department? StaffScapes is an industry leader in Human Resource solutions as well as payroll processing services in Denver, CO. Call us today to learn how we can help elevate your workflows.