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Human resources are the lifeblood for any business, and HR professionals play a role in nearly every aspect of your company. Depending upon the size of a business, there may be an HR team for larger companies or one person for smaller firms, and that person may also be the owner in some instances.

HR policies connect every department and employee in your organization for recruiting, hiring and training as well as providing structure for performance reviews and salary plans, including pay raises, bonuses and terminating employees when necessary.

Common HR mistakes can be costly

Because HR plays a critical role in any business, mistakes can have a tremendous impact on your company and potentially lead to expensive remedies. Here are a few of the most common:

  • Ignoring employee-reported issues: When employees report problems to HR, a lack of response often leads to conflict between workers and management, even hostility, and can increase turnover. Let the employee know you hear their concerns and tell them how they will be addressed.
  • Bad hiring decisions: Research shows making poor hiring choices can cost companies a significant amount of money. Rely less on a single interview for making hires and do more research, finding people who fit your culture and also have the necessary skills.
  • Avoid punishment-based discipline: Fear and punishment go hand in hand. Fearful employees often escalate situations that can result in lawsuits. Ask questions of an employee who has job performance issues and listen carefully to their answers before offering feedback.
  • Poor management training: Untrained managers can make costly mistakes, such as asking illegal interview questions to candidates. Don’t put a manager on the front line until they understand correct procedures and policies.
  • Be proactive, not reactive: Address potential issues before they become real problems. Assess your company’s policies and address vulnerable areas before they require costly fixes.

Seek professional guidance for setting up a reliable HR system

Human resource professionals play a critical role in onboarding new employees, helping them become productive teammates much more quickly. HR also sets standards for salary structure, so workers know how raises are judged and whether their current position has the potential for growth. An experienced employment and business law attorney here in Ohio can review your HR policies to make sure you meet existing standards and devise a strategy to help your company and employees succeed.