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Avoiding Common HR Mistakes

Avoiding Common HR Mistakes

Avoiding Common HR Mistakes

Human resources may sound and look like a straightforward topic, but it's not one that should be taken lightly. HR mistakes can cost you time and money, and your reputation. Here are four common mistakes to be aware of. Companies of all sizes, from global corporations to mom-and-pop outfits, are prone to these potentially critical faults.

Rushing Through the Hiring Process

When you have an immediate need for a new hire, such as a marketing associate or perhaps even an HR manager, it's tempting to accelerate the hiring process and skip seemingly less important steps. But in doing so, you are putting yourself at risk of hiring the wrong person for the job (while simultaneously missing out on other top talent). Resist the urge to rush a new hire.

Not Keeping an Updated Employee Handbook

The employee handbook may be something that your workers joke about and chuckle over, but it's an extremely important mechanism for establishing rules, guidelines and parameters. For many companies, having an employee handbook at all is a perennial "to do." That's unfortunate, because not only should you have an employee handbook, but you also should update it regularly as the landscape of your business and industry evolves.

Providing Inadequate Training

In the same way you may want to rush the hiring process, it's equally easy to fail to provide the necessary training for your new hire to succeed within your company. This is especially true in small businesses where there is plenty to do and new employees are expected to contribute from Day One. Make a conscious effort to offer all new employees sufficient tools, resources and support. Otherwise you are setting up both the employees and your business for failure.

Being Lax on Compliance Issues

Whether it's violating wage standards, not paying your taxes correctly, failing to document an employee termination or anything in between, HR is full of complex issues that you may know "a little" but not enough about. To avoid these types of pitfalls, contact me today and I'll be happy to communicate with any HR staff you already have in place to ensure that your business runs smoothly and efficiently. If you don't have any HR staff, that's even more reason to call me — it all starts with payroll!

 

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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Know the Rules on Classifying Employees

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Establishing Accurate Timekeeping Practices

The Fair Labor Standards Act (FLSA) requires that employers track hours worked by nonexempt employees, who typically are paid by the hour. Although you can choose your own timekeeping system, it’s essential that the records you keep are accurate and complete.

Grasping the Complexity of Payroll Tax Withholding

The rules for withholding federal payroll taxes are quite straightforward, applying to most employees in the United States, regardless of location. The rules tend to be more complicated on the state side, however, as they are location specific and may even include local tax withholding.

Traditional Leave Plans versus Paid Time Off

Traditional leave plans separate time off into different categories, such as vacation, sick, and personal time. Employees are allotted a specific number of days or hours for each category. The time off, which is based on length of service, must be taken for the allotted purpose.

Terminating Employees the Right Way

The process of terminating an employee should not be taken lightly, as improper handling can lead to unpleasant results, such as the employee suing the company. It’s therefore vital that you follow the law when firing or laying off an employee.

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