Here are five of the most commonly-made HR mistakes
Small business owners often wear many hats. Because most small businesses have limited resources when launching, the owner has to take on the responsibility of handle almost every aspect of managing the business. That includes the finances, marketing and sales, as well as legal matters. However, when it comes to human resource management, small business owners often fall short. Because, more often than not, Small business owners lack the interest or skill set to manage what is their most valuable asset.
Managing people is about much more than simply hiring employees and delegating tasks. It is about creating an environment that employees can thrive in and be excited to be a part of. As small businesses grow, owners need to identify human resources needs, write job descriptions, screen and interview candidates, train, manage and pay employees. For some businesses, it is best to hire a dedicated HR manager to handle screening, hiring, training and employee-related processes.
Here are five of the most commonly-made HR mistakes that small business owners make.
1 Hiring the wrong people to begin with
This is not just a problem for small business. If even large corporations with dedicated recruitment teams can get it wrong, imagine how vulnerable sole proprietor businesses are to making this mistake. They simply don’t have the money or the time to do background checks or pull references to verify the information on a candidate’s CV.
2 Unclear job description
Part of the reason for hiring the wrong people is that most small business owners don’t have a clear and accurate job description from the onset. They don’t specify the skills, training, and education that an ideal candidate should possess before even applying for a role. And that only costs them in the long.
3 Not understanding employment laws.
Most small business owners either ignore or are simply not aware of basic employment law. But there are many legal issues - from overtime and minimum wage requirements to health and safety matters – that small business owners have to be cognizant of.
4 No performance management
Small business owners often do not know how to deal with employees that do not perform well. They often ignore the problem or hope that it goes away on their own. But small business owners have to do performance review with a correction plan poorly performing employees so that he or she knows how they can improve.
5 No budget for training and development
When employers invest in their employees they, in turn, invest in the company. But many small business owners either don’t realize this or they ignore it because they fear losing an employee to a better paying job after investing their time and money in them.
