At cavnessHR we deliver HR to companies with 49 or fewer people by automating the HR process while maintaining the human touch.
It’s easy for small-business owners and startup founders to sometimes ignore the human resources side of business when things are running smoothly. However, doing so can lead to costly mistakes that could have serious consequences.
Here are five of the most common HR pitfalls small businesses and startups face today (and how to avoid them):
1. The hiring process is overly hasty.
When it comes to hiring workers for a small business or startup, mistakes are all too common. From poor job descriptions that attract less-than-stellar candidates to a hurried interview process that results in hiring “warm bodies,” hiring mistakes can be detrimental to business.
These hiring mistakes often stem from having an overly hasty hiring process. The solution? Create a consistent process and stick with it. Start with an accurate, clear job description that aims to attract quality talent. Including the right information in a conversational tone is the key to weeding out unqualified candidates from the get-go.
One thing employers tend to overlook when hiring is interviewing for cultural add. Ensuring a candidate will be a good addition to the company culture is just as important as having the right skills for the job -- especially for small businesses.
2. Employees are misclassified.
The Internal Revenue Service (IRS) has been known to target small businesses and startups in an effort to find employers who misclassify employees as “contractors.” To avoid the penalties that result from misclassifying employees for tax reasons, get familiar with what differentiates an employee from a contractor.
3. Employee handbook is outdated (or nonexistent).
To reduce violations, employers must have, update and communicate work-related policies. Businesses of all sizes need to have some form of an employee handbook. Not having company policies in writing is just asking for trouble.
Having an employee handbook isn’t enough, however. The policies outlined in the handbook need to be updated on a regular basis and communicated often. What’s more, people should sign an acknowledgment form stating that they have read and understood everything in the handbook.
4. Employee training takes a backseat.
When employers invest in their people, they, in turn, invest in the company. This investment is most clearly demonstrated by providing various training opportunities for employees. These opportunities should begin with a thorough onboarding process for new hires and continue with professional development programs and events for current staff.
By providing new hires with the tools they need to hit the ground running and current employees with opportunities to grow, employers can rest assured that employees at all stages are performing at peak performance.
5. Performance issues aren’t documented.
Messy fires can lead to unwanted lawsuits. While no termination is a positive one, it can be easier when properly prepared for. That preparation starts by addressing and documenting performance-related issues. When performance problems arise, aim to nip them in the bud by addressing them as soon as they happen. This gives employees an opportunity to correct the issue.
What happens when that feedback doesn’t solve the problem? Sometimes terminations are unavoidable, but going about them the right way can avoid any unwanted issues. The key is to thoroughly document performance problems. It may seem time-consuming, but it can serve as valuable evidence should termination be necessary.
We are looking for people to help us do user testing on our upcoming new site. If interested in being a cavnessHR website tester. Send an email to jasoncavness@cavnessHR.com
Thanks for your time today and remember to be great every day!
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