How to Avoid Expensive HR Errors?

People are the most valuable resource for any private or public organisation, business or institution. That is why HR development and growth is one of the most important corporate functions.

The immense responsibility alone makes it a challenge. That is why errors like lapse of judgment frequently run in the industry.

In the last decade, resource management software has taken over many key HR functions like payroll management, communication interfacing, attendance, etc. HRM Software helps automate certain functions that carry a high probability of error and thus nullifies chances of the same. However, some loopholes remain.

Here are someapointers on how to avoid expensive HR errors:

Don’t wait for problems to be reported

Many managers call it the “open door policy” where problems, when incurred, are reported back from time to time. However, that leaves many minor detailed ignored and left out. New age HR managers should always be on the lookout themselves.

For instance, with SHIFTS advanced communication interface you can keep real-time track of performance in any project. As you can communicate instantly and directly, problems can be found and solved with maximum efficiency.

Documentation is important

Important policies, agreements, contracts, rules and functions must be documented for smooth company functioning. One might think that it might not be important for a small business, but proper documentation comes in handy every step of the way.

Make informed hiring and removals

You may be hiring new talent without an HR professional. This means that you will have to guide him or her through the work process and effect training for the role. Are you up for that? If not then make sure your HR framework is.

Similarly, when you are firing someone, remember to take care of certain things like

• Final pay

• Documentation

• Severance and contractual agreements

Stay updated on latest compliances and standards

There are numerous regulations and standards when it comes to Human Resources . These laws also continue to evolve and change rapidly. That is why it is important to keep monitoring them. Compliance requirements can be easily missed, and they can quickly add up to big penalties that can prove very costly for small employers. Make sure you have advisers like an employment lawyer and accountant to help keep you up-to-date.

Allow your employees to grow and reward them timely

HR growth is essential even for small businesses and MSMEs. You should not think that you don’t need employee appraisal and engagement programs just because you are not a multinational.

In fact, it is quintessential for your employees to feel rewarded on performance you want to scale up. Rewards and appreciation create a close relationship between the company and your employee that transforms into enhanced performance.

Recognition of reliable performance is essential to a healthy workplace. You don’t want to face retention issues, as employee turnover can be costly. You can avoid this issue by using simple appraisal methods. These can include public recognition, annual appraisals, extra holidays or even a gift certificate occasionally!

The focus should be to forge employee relationships around trust, loyalty and performance based appraisal. Using tools like automated HRMs helps a lot, but in the end, as an HR manager, your goal should be transparency and efficiency.

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