3 Common HR Mistakes Small Businesses Make

and How to Fix Them

Administrative functions are a key part of any business, but with limited time it can be tricky to balance between HR and managing your company. Most small businesses don’t have a dedicated HR team and in turn, have a few mistakes that can end up being costly. 

Let’s take a look at 3 of the most common mistakes small businesses make, and how you can fix them!

Mistake 1: Failing to Remain Compliant

HR compliance is a very important, yet very elaborate, topic. Even many large companies face issues with non-compliance. Without an experienced HR team, you could receive large fines and penalties for non-compliance. 

Here are two small examples of common mistakes to help you understand the subtle nature of compliance: 

A company terminates an employee due to misconduct but never provides an employee handbook, or policy training, and never documents any acknowledgment of understanding. This company is faced with a dispute and has to pay a large penalty.

Another company incorrectly classifies a new employee and then unknowingly violates wage and hour laws resulting in significant backpay.

The only way to ensure you are compliant with all of the local, state, and federal employment laws is to have an in-depth understanding of the laws that apply to your business. Utilizing industry experts, whether an in-house or outsourced team, ensures you can remain compliant.

Mistake 2: Poor Onboarding Processes

Another small mistake businesses often make is having an ineffective onboarding process. Onboarding begins the moment a potential employee reads the job description and continues until they are fully comfortable in their role and ready to perform at their best. 

Bad onboarding results in unproductive new hires, high employee turnover, reduced productivity, and more. When your employees understand their role, resources, and requirements for success, your employee engagement will skyrocket, driving business growth. 

Creating a formal onboarding checklist that covers everything from job expectations and company policies to hands-on training is one way to ensure you have a comprehensive and effective process. 

Consistently review your current onboarding practices, from training to interviews, to identify any areas that need to be addressed. Consider asking your current or former employees about their onboarding experience to gather firsthand insights and make improvements.

Mistake 3: Ignoring the Importance of Company Culture

A company’s culture sets the foundation for how employees feel, work, and talk about their jobs. Ignoring its importance leads to disengagement and poor communication, as well as high turnover which can stall your growth. 

Company culture consists of many things such as conflict resolution, collaboration, team morale, and connection to company goals. Without intentional effort and maintenance, a company’s culture can quickly become toxic. 

With fewer employees, small businesses especially need a strong company culture as even small changes can quickly impact the entire team. A positive culture provides opportunities to recruit top talent and helps current employees succeed saving you time and money.

Build a Stronger Foundation with Effective HR

Making sure your business has a strong foundation with sound practices is an effective way to drive growth. A compliant business saves money, a good onboarding experience helps top talent perform at their best, and a positive company culture drives productivity.

Analyzing and auditing your business often will help you identify errors in your current administrative processes. Recognizing gaps and fixing any issues creates a company culture of accountability and will help your business be more efficient and successful. 

Claim a free consultation from a JoltHR professional to determine your business needs and excite growth in your company!