Common HR Mistakes Every Business Should Avoid

Mistakes happen, but they can be detrimental to your business when they involve your human resources department. Human resources is a critical sector to the success of both your company and its employees. HR is truly the backbone of any business, contributing to its overall growth or failure.

Why is HR so Important?

Imagine a complex network of departments and employees, all connected at a central hub: human resources. Because HR is involved in every department and consists of every employee, it’s an essential part of the daily operations of a business. It also means that any mistake could result in widespread consequences throughout the entire company.

Outlined below, are some of the most common HR mistakes that every business should be aware of and aim to avoid with the assistance of a professional employer organization (PEO) like Alliance. We ensure that your small or large business is fully equipped with comprehensive, easily accessible, and up-to-date HR services that cover every base ranging from payroll to onboarding to workers’ compensation. As HR is responsible for handling so many of these critical operations, such can often fall through the cracks without professional HR management like Alliance provides.

Failing to Remain Compliant

It is of the utmost importance that your HR department enforces compliance with company policies and state and federal regulations at all times. Failing to do so could make you vulnerable to all kinds of lawsuits, audits, and penalties. While these consequences may not happen right away, lapses in compliance will inevitably lead to problems.

Payroll must be audited, taxes must be filed on time, paperwork must be filled out completely and accurately, the list goes on and on. It’s the responsibility of HR to be fully aware of and compliant at all times, allowing management and other employees to better focus on and carry out their jobs.

Without HR management software and services, critical HR duties are often put on the backburner or assigned to someone without the proper knowledge or experience to avoid compliance issues. Save you and your business from compliance issues and the associated hassle with comprehensive HR services from Alliance.

Failing to Outsource Payroll

Oftentimes, businesses will attempt to conduct payroll in-house without the assistance of professional HR payroll software and servicesor an accountant. This generally results in a myriad of issues from incorrect payroll processing, taxes, deductions, write-offs, compliance, and the misclassification of employees and contractors. Trying to manage payroll alone can also be a big drain on time, resources, and energy.

Ensure that your payroll processing and administration is always correct and processed on-time with customized systems provided by a professional resource like Alliance.

Failing to Understand Risk Management

HR is responsible for managing on-site inspections and business analyses that protect you and your business from potential accidents and financial risks. The department should be fully aware of and stay current on workers’ compensation, laws regarding sexual harassment, discrimination, equal employment, health insurance, etc. Failing to do so often leads to lawsuits, financial loss, and state conducted audits and fines.

Because HR also handles employee complaints, failing to do so properly often results in disgruntled employees, a continuation of bad behavior, lower productivity, hostile work environments, and a high turnover rate.

It is therefore all the more critical to entrust HR responsibilities to a professional and experienced HR management resource. Not only will this reduce and protect your company from liabilities, but will also keep both you and your employees happy.

Failing to Go Digital in HR

With the modernization of HR services and software from resources like Alliance, businesses that remain in the dark ages of paper and non-automated spreadsheets are likely to fall by the wayside, especially when it comes to HR procedures like onboarding. Employees today expect a level of digital convenience and accessibility when it comes to onboarding, personal information, company orientation, payroll, direct deposit, taxes, etc.

Failing to make this process as fast and easy as possible often turns away potential employees, makes current employees feel insecure, and suggests to clients that your business is not streamlined, efficient, and utilizing modern technology.

Digital HR services and software from Alliance can help to increase total HR efficiency, accuracy, security, organization, and so much more! Avoid these common, costly mistakes and focus on growing your business.

Learn more or contact our HR management specialists today.