The 5 Most Common HR Mistakes Small Businesses make

If you are a business owner, you probably know how important the role of the Human Resource (HR) Department is for the success of your business. HR is one of the most important departments of your business or organization. If you need to make your business successful and profitable, you should ensure that your HR team is working efficiently and playing its role in the success of your business.

Sine we are human, we all make mistakes, but mistakes within an HR department can be very devastating and may cause you some serious troubles, such as employee replacement costs, advertising, and legal costs.

Although there are many possible mistakes, I am going to focus on the five most common HR mistakes that small businesses make.

1.  Inappropriate Job Description

This is the mistake that happens all the time in most businesses and organizations. When a business grows at a quick pace, it often needs a larger workforce to meet the growing demands. If an HR department advertises for a position, they must be careful to make the job description specific and relevant to the advertised post. Otherwise, people who apply will not understand what their role is and what they have to do if they get hired. If you hire people who have different qualifications and skill sets than the ones required for the open position, your business will suffer.

2.  Not Hiring the Right People for the Job

This goes along with the mistake listed above. One of the most devastating mistakes HR can make is hiring the wrong person for a job. Often an HR department will hire people they know for open positions, instead of hiring the most competent and qualified persons available. This can cause serious damage to a small business that does not have the time or finances to verify a candidate’s qualifications and experience (provided by a resume), so hiring people after interviewing and on merit is the best choice. If you hire people on a relationship basis or on how you feel about them, it will cost you more HR expenses. They won’t perform well and need you to replace them, which will cost you more.

3.  Undocumented Performance-based Terminations

Almost all businesses have written standard operating procedures and policies that all employees agree upon and have to follow during their stay in the business or company. It might seem like a time-consuming process, but in the long run it could be very productive and helpful regarding the performance of employees. It is a mistake for small businesses to not create standard operating procedures. There should be a service/record book for every employee that encapsulates all mistakes and achievements of the employees. So before making performance-based terminations, you should check the record book of employees to see the previous records and performances.

4. Quick Hiring and Promotions

Often when a small business needs new employees, the hiring process is done too hastily, and this may cause serious troubles for the company. Hiring is a not a simple and inexpensive process, so you should not hire people overnight. Likewise, when somebody is consistently performing well, you should not advance them too quickly; this may cause troubles as well. When you need to promote a worker to supervisor, before doing so, you should give proper training to that worker before he/she starts supervisor duties.

5.  Not Paying Attention to Training of Employees

This is the most common mistake small business HR teams make. It is important to note that different people come from different backgrounds, qualifications and work experiences. They can be very skilled and experienced employees, but before coming to your business, they do not know the working environment, policies and special demands of your business. It can save you a lot of time and money if you train new hires before they start working officially. Sometimes, when you install a new unit for a new product or you need something that differs from the norm of your company, you should also train your current employees to make them well aware of the new rules, duties and requirements.

Contact HR Business Partners, a Minneapolis-based HR consulting firm, with knowledge and experience in the field of small business HR and human resources outsourcing.