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Last Updated on October 29, 2022
New business owners often make the mistake of thinking that sales and marketing are the most important departments in their business. In reality, HR is the most important department because your employees are everything and when they are not looked after properly, all areas of the business will suffer. Creating a well-functioning HR department is key to long-term success in business, but a lot of new business owners don’t have much experience in this area and they make some common mistakes. These are some of the big HR blunders that new business owners need to watch out for.
Underestimating The Importance Of Benefits
Many small business owners assume that they don’t need to offer extensive benefits, They’re only a small company with limited funds, so surely their employees will understand if they decide not to offer perks and benefits? The thing is, it’s not about whether they understand or not, it’s about whether they will want to work for you and how motivated they will be if they do. The best candidates will have offers from elsewhere and if those rival companies offer great benefits, you will miss out on the best people. Good benefits also boost productivity, so even though they are an added cost, you will see a return on that investment. Some companies choose to use services like Gusto Payroll services to make this process more streamlined.
Destroying Or Losing Employee Documents
There are specific laws in place about how long you have to keep recruitment documents and employee files, even after they leave your company. They vary from state to state but you need to keep these things for at least a year in most places. New businesses often worry about data protection, so they go overboard with shredding and end up destroying documents that they were supposed to keep. It’s a good idea to use services like PhysicalAddress, who can collect mail on your behalf and digitize it. This helps you manage the amount of paper coming into the office, so you can stay organized and reduce the chances of accidentally losing important employee documents. If the hard copy of something does get lost, you will still have a digital copy should you need it.
Not Having A Good Recruitment Process In Place
Recruiting good employees is a lot harder than people realize and new business owners often fail to develop a proper recruitment process. They think that putting out a job advert and then sitting down for an interview is enough, but you need to consider clear goals and determine exactly what gaps you are trying to fill in your business. You need to plan your interviews carefully to ensure that you get the information you are looking for. It is often best for new business owners to use a staffing company if they feel out of their depth with recruitment. If you are going to manage recruitment on your own, make sure that you put a clear process in place.
It is all well and good recruiting people to work for your business, however, you need to ensure your staff members are looked after. Don’t be one of those companies that are all about the numbers. Think about employee mental health for a start. If there is a problem outside of the office causing one or more of your staff members issues, then there will be problems with their work. Be approachable as a boss and reassure them that they can come to you and vent or talk about any issues they are having inside of work.
Being a good boss will also mean your employee churn is less. This means that people won’t come and go constantly. This can cause huge hassle for your business and you could end up losing money and time.
HR is often neglected in the early days of a new business because business owners are more focused on marketing campaigns and finding their first customers. Those things are obviously important, but it’s equally important to manage your HR department well and avoid these common blunders.