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3 HR mistakes small business owners make and how to avoid them.

Apr 22

4 min read

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Hr mistakes business owners make
HR mistakes business owners make

Running a business is all consuming, there are so many things to think about and so many hats to wear.  You’re probably managing social media, sales, accounts, clients and growing the business.  With so much going on it is easy for things to get lost and slip through the cracks.  When it comes to dealing with people issues, left unchecked mistakes can get worse and end up costing you more time and money than if you had just dealt with them in the first place.


Mistake # Ignoring people issues.


Small issues can be easy to ignore and, in some cases dealing with them can seem petty.  That employee who comes in 5 minutes late, in the grand scheme of things it doesn’t seem like that big a problem.  And of course, if it is a one off then it isn’t a big deal, we are all late sometimes.  What if it keeps happening though and 5 minutes becomes 10 or 15 minutes? Let’s not forget that your employees should be ready to start work at the appointed start time, not just get to work at that time.  We all know that by the time you get in, visit the loo, make a drink and log on to your computer, that’s 10 minutes gone.  So, in reality 5 minutes late equals a ready for work time of 15 minutes late.   In the meantime, your other employees who are at their desks raring to go, see this lateness and if it continues start to get annoyed, talk amongst themselves and get distracted. 


A minor gripe suddenly snowballs into poor morale, conflict, lost productivity and maybe even a formal complaint.  Instead of having a quick chat to nip it in the bud, you have a full on HR issue which takes far more time to resolve and can create a culture of moaning and unresolved tension.


What to do.

Deal with any issues as soon as they happen.  That employee who was 5 minutes late, schedule a quick catch up, ask what happened and remind them that as a one off it happens to us all but you do expect them in 10 minutes before they are due to start work.  You may feel a bit awkward the first time you have the conversation, however, best case scenario it won’t happen again and if it does you’ve already outlined your expectations making it easier to follow up.  It also sends a message to the rest of team, (they will know you’ve had the conversation), meaning that it stops any gripes from them about some people being treated differently or better. 


Foster a culture of check in’s, clear policies, communication and dealing with issues quickly and effectively.

 

 

Mistake #2 Not documenting decisions or processes


A lot of managers and business owners make this mistake.  The problem is if you don’t write it down then it didn’t happen.  Unfortunately, this means that when something happens and then happens again if it isn’t documented you are starting from scratch.  In the example above, all that needs to happen is a quick email, summarising the conversation and any agreed actions.  It might seem like overkill, which is often why managers don’t do it but if it the lateness happens the following week you have something to refer back to.  It will also show up any patterns, if for example the lateness happens on the same day every week, is there something happening on that day which causes it? 


Records are useful because we all forget things, having incidents written down allows for accuracy.  Having decisions documented also makes life easier if there are any disputes later down the line.  Verbal and informal agreements can cause issues if things need to change or with other team members who might perceive unfairness in their treatment compared to someone else.


What to do.


Make sure you have a clear record of any conversations, detailing the salient points, any decisions and any actions.  Sometimes a quick note via email will suffice if it is a simple issue which has been dealt with.  Other times a more formal letter may be required. 

Record any agreements or changes to contract in a formal letter, outlining if this is a permanent change or a temporary change.  Include timescales and follow ups.

Make sure you have clear policies and processes, which all employees should have access to.  This ensures consistency and covers any legally required processes, it also ensures that everyone understands how problems will be dealt with. 


Mistake #3 Thinking you can do HR yourself.


It is tempting to think we can do it all ourselves and honestly some people issues do not require a heavy handed approach however, I have heard from clients that they thought they could deal with a people problem and then ended up in a bit of a pickle because they didn’t know what to do.  Some issues are common sense and can be easily dealt with however, what seems like common sense when you’ve been in HR for 20 years might not seem so straightforward if you’ve never dealt with the issue before.


What to do.


If you’re struggling to deal with a people problem sometimes you need to talk to an expert to get some clarity.  This can save you time and money in stopping problems from escalating.  Outsourcing your HR or having time every month to check in with an HR consultant to chat through issues and get advice on how to deal with it, means you stay compliant, protect your business and free yourself up to focus on running your business.


Final thought!


Mistakes happen and we all make them and hopefully learn from them along the way.  When it comes to people problems in your business not only can they be costly and time consuming they can also lead to much bigger issues.  Make sure you have good HR foundations in place, then when the inevitable happens you will be equipped to deal with them.


If you’re not sure where to start and need help, get in touch.  I support small business owners with HR, providing clarity and putting simple, practical and effective solutions in place to save you time and stress.  Email me at bev@bdhr.co.uk.

 

Apr 22

4 min read

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