Thursday, August 11, 2011

HR Mistakes Made by Businesses – Large & Small

Running a business can be tough at any size. To follow are some common mistakes that can be easily avoided by staying true to some simple guidelines. 
  1. Failure to develop an effective corporate communication strategy; internal and external.
    • Establish specific communication policies
      • internal/external email
      • internet/intranet
      • social media
      • IM
      • media/public communication
      • corporate document sharing
    • Publicize internal communication; open access promotes honesty and trust between management and staff
      • staff meetings
      • town halls
      • newsletters
    • Handle confidential information appropriately
  2. Failure to link individual goals to company goals
    • Short-term and long-term objectives; personal and company
    • Developing action plans
      • corporate > division > department > individual
    • HR planning
      • staff selection & planning
      • training & development
  3. Not utilizing HR metrics to track activity and performance
    • Measure how activity is impacting the bottom line, not just the cost of the activity
    • Needs to objectively demonstrate benefits to the business
  4. Lack of employee motivation and retention strategies
    • What motivates employees?
      • recognition; feeling valued by the organization
      • sense of achievement
      • feeling they are an integral part of the organization
      • opportunity for increased responsibility and advancement
      • compensation package
    • Develop credible reward programs
    • Insure that compensation packages are competitive to the market
  5. Lack of strategic recruitment plan
    • Hire people that fit; effort, expectations, attitude, talent, skills, training, experience
    • HR needs to manage the recruitment process, not department heads or executives
  6. Lack of training
    • Empower front-line management with authority; train them to use it effectively for the organization’s benefit
    • Don’t allow lack of awareness to be an excuse for inappropriate actions
    • Insure managers have training regarding legal issues affecting the manager/employee relationship
    • Ensure there is a clear understanding of corporate values
  7. Not establishing employee performance guidelines
    • Establish a reward system based on performance
    • Insure timely attention to employee performance issues to prevent staff morale issues
  8. Failure to keep up-to-date on legal requirements related to HR
    • Establish a network of experts for guidance
    • Participate in continuing education programs
  9. Lack of documentation
    • Insure proper tracking, measuring, analysis, reporting and follow-up
    • Meet all legal requirements for payroll documentation
  10. Failure to maximize the effectiveness of the HR team
    • HR should be an integral part of the executive team
    • Be pro-active rather than re-active to avoid negative perception amongst staff
    • Allow the HR department to be the catalyst for change management initiatives

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