Avoid These HR Mistakes
Small business owners have mastered the art of juggling multiple roles. From Customer Services to Human Resources, taking on a small business means being versatile. This also means the HR side of the business tends to take a back seat to other tasks that feel like a higher priority. However, between taking on various roles and pushing back those tedious HR tasks, your business could be looking at serious consequences.
1. Outdated Employee Handbook
We have said it once, and we will say it again and again, businesses of all shapes and sizes need to have some form of an employee handbook. Having up to date work-related policies and procedures highly reduces employee violations. Employees should receive this on their first day and should sign an acknowledgment form stating they have read and understood everything in the handbook.
2. Misclassified Employees
Small businesses are notorious for misclassified employs, which means they are an easy target for the IRS. Avoid misclassifying employees by learning the differences between an employee and a contractor
3. Supervisory Training
The effectiveness of your supervisory team is in direct correlation with your business’ level of success. Investing in training your supervisors on essential management skills will produce confident and capable managers who can lead more productive and effective teams.
What should you document? EVERYTHING. The Good, the bad, and the ugly should all be documented. You should also be sure to document in real-time in order to produce more accurate reports. Documentation can sometimes make or break a company if legal issues ever arise.
5. Employee Files
Employee files should be audited for compliance consistently. Willis HR suggests 3 folders for each employee; Administrative, Confidential, and Medical.
The administrative folder is used for general employee documents (work histories, performance reviews, etc.).
The confidential folder is used for documents that contain more personal information (ex: leave and disability forms). The medical folder is used to store your employees’ health and welfare-related information (This also assists in keeping your business in compliance with the Health Insurance Portability and Accountability Act a.k.a. HIPPA.).
It also helps to have a separate binder for all I-9s. Fines can accumulate quickly if you cannot produce current and accurate documents when requested by Immigration and Customs Enforcement (ICE).
Starting, running, and building a business can be stressful but you don’t have to do this alone. Willis HR has options for all businesses no matter the shape and size. If you have questions or concerns about your compliance contact us today. We solve your people problems.