Running a business comes with its share of challenges. When it comes to managing human resources, the stakes are high. In this blog, we’ll look at five costly HR mistakes in your business that can cost you precious time, money, and even damage your reputation. But fear not, we’ll also provide you with practical solutions to fix these issues.
Contact Alison at Metis HR for a chat about any HR mistakes you’re worrying about. Call today on 01706 565332
1.Not Carrying Out Right To Work Checks
Failure to conduct right-to-work checks can have severe repercussions for employers. Non-compliance may trigger civil penalties, with fines of up to £20,000 per breach for inadequate or neglected checks. In more serious cases, criminal prosecution may result in imprisonment for up to 5 years and/or unlimited fines, especially if involved in condoning illegal employment and concealing such actions. The fallout extends to financial and reputational losses. This can include, enforced debt actions, county court judgments, potential director disqualification, or even business closure, leading to negative press and reputational damage. Visit https://www.gov.uk/check-job-applicant-right-to-work to learn how to complete a right to work check.
2.Not Handling Disciplinaries and Grievances Correctly
Disciplining employees or addressing their grievances can be delicate situations with legal and financial consequences. If you were to unfairly dismiss an employee you could face paying out £19.290 at employment tribunal. To handle these in-house, ensure you have clear policies and follow them rigorously. Impartiality is crucial; involve other directors or managers if needed. Seek professional HR support to check your policies are up to date or if the case you’re dealing with is complex.
3.Not Managing Employee Performance
For a thriving small business, your team’s productivity is key. Effective performance management not only boosts business but also keeps your employees satisfied. Create a standardised process for reviewing probationary periods and checking on-going performance, involve employees in the process, set SMART targets, and keep regular records. Have an employee who is consistently underperforming? Get professional HR support to discuss your options and strategies to try to get the employee back on track.
4.Not Having Robust Contracts of Employment and Effective HR Policies in Place.
Robust employment contracts play a crucial role in mitigating legal risks. They offer protection to employers by clearly outlining their rights and obligations. In the event of a disagreement about the terms of employment, a well written, comprehensive contract of employment will serve as a protective measure. Reducing the potential for legal liability. It will be more costly to fix the issues further down the line if you don’t have employment contracts in the business. Metis HR provide bespoke contracts and handbooks. These can be tailored to your business, giving you peace of mind that you are compliant from day one.
5.Becoming a Jack of All Trades and a Master of None.
Launching your own business can be a tight financial rope to walk. We’re all looking for ways to save money. Tying to take care of every function of your business can be hard. You can feel overwhelmed and it’s certainly not without its risks when Google is free for a reason! What if we told you there’s a way to get your time back, allowing you to run your business, all for a manageable monthly fee? If handling HR feels like too much—whether it’s due to a lack of skills, time, or know-how—consider outsourcing. Metis HR can help you get back in control. Don’t let HR pitfalls jeopardise your new business. Address these issues head-on, and watch your business thrive.
Is it time to outsource your HR? Contact Alison for a FREE HR trouble shooting call. We can establish the goals for your business, define what HR challenges or issues your currently facing and let you know how Metis HR can help you. Call 01706 565 332 or email info@metishr.co.uk
GET IN TOUCH
Schedule a FREE call
