Three HR Mistakes Small Businesses Make

Small business owners often wear many hats. Among them HR can sprawl into a full time position. This can result in mistakes that make it difficult for employees to work, easier for the IRS to target you, and can distract business owners from the important task of managing their business. Below, some of the top HR mistakes small businesses make:

Hasty Hiring Process

Employee turnover is expensive. Holding out for employees you are confident in might slow down the process but it will save you money in the long run. This starts with job descriptions. Make sure you have a job description that is succinct, easy to understand, and fully sums up the position. A quality description is as helpful internally as it is in the recruiting process, as it helps clarify exactly who you are looking for and what they should be doing.

No Internal HR System in Place

Have a current employee handbook complete with a summary of benefits, and make sure systems vital to time-tracking, like punch clocks, are all set up before bringing on new employees. Not having these things makes a bad impression on new hires and makes it harder for both sides to understand expectations for things like dress code, sick leave, etc.

Poor Record Keeping

In addition to tracking hours worked, you should have clear records of performance evaluations, any customer or client feedback, and notes on any disciplinary issues. Employees should also have easy access to records regarding changes or adjustments to benefits and salary. The more specific all of these records are the easier dealing with issues that arise becomes.