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Blog  »  January 2015  »  Avoiding the Top HR Mistakes Small Businesses Make - Blog
Jan 15

Posted by
Laura Murphy

Avoiding the Top HR Mistakes Small Businesses Make

For time pushed managers of small businesses, HR and people matters often come far down the never ending “To Do” lists. However, employers ignore HR matters at their peril; avoiding such matters can often have painful, costly consequences that can set businesses back.

The following are some of the most common HR blunders that small businesses are making.

Failure to recruit properly
o Don’t fall into the trap of hiring somebody just because you know them or because you feel sorry for them. Only hire people who have the skills, experience and qualifications for the job. Also, always carry-out reference checks on new employees.

Not having Employment Contracts and Policies in Place
o Legally, every employee regardless of whether they are full-time, part-time, or temporary should have a written statement of their terms and conditions of employment. Having well drafted policies clearly sets out a company’s stance on certain matters, enabling managers to smoothly deal with issues should they occur.

Incomplete or Inaccurate Documentation
o Regulations are in place that specify certain information that employers must hold on employees, failure to comply with such regulations could result in costly fines. Additionally keeping accurate records will help employers manage different situations as they arise, e.g. records of an employee’s performance/ disciplinary background will be crucial if escalated action, such as dismissal, is required.

Not understanding basic employment law
o Employers should never assume that employment laws don’t apply to them! Unfortunately for businesses employment law is ever changing. It is the duty of employers to keep on top of legislation and make sure their business is operating as it should be.

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