Human Resources (HR) is an integral element of business operations and directly impacts the long-term success or failure of a company. Unfortunately, it’s sometimes overlooked by some small to mid-sized businesses simply because of its meticulous and time-consuming nature.
However, when poor HR decisions are made, it can create a host of issues and compliance concerns, which put a business at unnecessary risk. Accordingly, there are three primary human resource decisions to avoid.
1) Rushing the Hiring Process
When you’re desperate to fill a vacant position, it’s a natural reaction to approach the process hastily and try to rush things along. However, this can quickly open a can of worms and harm your company in the long run. Whether it’s not having a clear idea of the skills you’re looking for in an employee, failing to dive deeper into applicants’ credentials or not interviewing enough candidates, rushing the hiring process can hurt your productivity and profitability.
In fact, information from a survey found on the CareerBuilder website states that “27 percent of U.S. employers reported a single bad hire cost more than $50,000.” Besides that, making the wrong hire can be toxic to your company culture if employee morale and customer relations take a blow.
2) Skimping on New Hire Orientation
Regardless of a new hire’s existing experience and talent level, they’re likely to need some orientation to get started out on the right foot. Otherwise, a lack of initial training puts new employees at a disadvantage that not only hinders their progress, but can hurt your company’s bottom line.
By properly preparing new hires and equipping them with the tools needed to perform their jobs at a high level, you’re placing them in a position to succeed, which is mutually beneficial for everyone. You can also increase your retention rate and improve the likelihood that employees will stick around for the long haul. Information on Capterra’s website even found that “New hires that undergo a structured onboarding program are 58% more likely to be with the company after three years.”
3) Failing to Establish Comprehensive Workplace Policies
A formal set of workplace policies is important for three main reasons. First, it lets employees clearly understand your expectations and what is and isn’t acceptable. Second, it can prevent a lot of problem behavior from arising and keep your workplace running smoothly. Third, it establishes uniformity in terms of employee rights and responsibilities, which is important from a legal standpoint and reduces your chances of getting hit with a lawsuit.
However, deciding not to establish a thorough set of workplace policies can have a host of negative consequences and invites a lot of problems. If your workplace policies are insufficient, it’s smart to clarify any ambiguous areas ensuring there’s no confusion.
Here are some specific elements to touch on:
- An at-will employment statement
- Employee responsibilities
- Employee conduct
- What constitutes harassment
- How performance and behavioral issues will be handled
- Safety protocol
- Grounds for termination
Making the wrong human resource decisions not only makes your workplace less efficient, it can create a lot of unnecessary headaches. But, by giving HR plenty of attention and doing things the right way, your business can operate more fluidly and with less friction.