by Nigel Hilton
When your business grows, it is inevitable to get help and employ people. You cannot run a huge venture as a one-man band, and this comes with challenges. From choosing the right people to making sure that all risks are eliminated, providing training and development, as well as payroll and pensions, you have to start thinking of the practical side of having employees. To help you avoid the most common mistakes that can cost you a lot of money, we have included a list of what to look out for below.
Image by Flickr
1. No Clear Human Resource Policy
If you don’t have a clear policy on hiring, training, and managing employees, it will be easier for your workers to claim that they were treated unfairly. Before you hire your first employee, you should create a contract that covers all the aspects of employment, including training, rights and responsibilities, compensation and benefits, and disciplinary actions. This way, you can make sure that everyone knows what is expected from them and you get the results you want to achieve through your human resources policy.
2. Lack of Transparency
Image by MCLB ALBANY Photos
It is important that you are honest with your employees about their chance of a pay rise, and the length of the contract. If you offer people 3-month apprenticeships and keep on hiring new people once the contract is up, you can be accused of not having a clear strategy, and taking advantage of low-cost or free labor, instead of paying a full-time employee. You might end up in court, and it will be hard to defend yourself, unless you can prove that you didn’t know that the job would last longer than the contract.
3. Forgetting to Vet Your Employees
When somebody applies for one of your jobs advertised, you need to look beyond the CV, to make sure there are no nasty surprises. Check out the social media accounts of the employee, talk to their previous employers, ask for references. If your business is regulated, it is recommended that you go through the official channels, and complete an employee vetting to make sure your future worker is not a high fraud risk, or a convicted criminal.
4. Health and Safety Issues
Once you have your first employee, you will need to create a health and safety procedure in the workplace. If most of your workers are going to be working in an office, make sure that you train them on manual handling, and get their seats adjusted according to the health and safety requirements of your industry. Offer eye tests, and regular health assessments. In case your workers need to carry out manual labor, supply them with safety equipment needed for the job, or you will need to face lengthy personal injury cases that will damage your reputation. Check out http://www.morrisjamespersonalinjurylawyers.com/practice_areas/delaware-auto-accident-lawyers.cfm to learn more about the types of claims your employees can make, to prepare for the risks.
5. Protecting Your Intellectual Property
It is also important that you have internal policies set up to protect your assets. If your company has unique software or methods that are patented, you will need to ask your new employees to sign a non-disclosure agreement as soon as they start working for you. If you fail to do so, they might find another company in your industry to work for, and sell your internal information to your competition.
6. Fraud Risk
There are two different types of fraud risk: personal and computer-based. In case you deal with sensitive customer information and personal data, you will need to create data protection guidelines to be followed by all your employees. Make sure that everyone in your organization is trained in handling sensitive information, and is aware of the current regulations in your industry of protecting paper or electronic records. Personal fraud risk can occur when an employee is vulnerable to commit fraud, as they are facing financial issues or are at a risk of being blackmailed.
In case you have never had employees, you will need to get used to the idea of keeping people happy while making them serve your business interest. It is important that you have a transparent human resources policy set up before you employ the first person, and you create important internal policies that protect your business and the individuals in your organization. Check out the employment law in your state and regulations particular for your industry, and avoid personal, compliance, and financial risks. Use vetting as an effective way of screening your potential workers, and making sure they are the best candidates for the position.
