Top 10 HR Mistakes Small Business Owners Make & How You Can Avoid Making Them

Hello, small business owners,

We understand that you have a lot on your plate, making it easy for Human Resources tasks to slip through the cracks. However, we also recognize that effective HR practices are among your company's most critical aspects of daily operations.

Ensuring you're getting HR right is essential for the success of your business. Putting your people first is one of the fastest paths to seeing your company thrive. While you may grasp this concept, it can sometimes be clearer where HR mistakes are being made and where you excel.

That's where we come in!

Here are 10 common HR mistakes we've observed and tips on how to improve:

Misusing salaried and hourly classifications:

Designating a position as salaried solely based on meeting the $684 per week threshold isn't enough for compliance. Avoiding overtime pay is more complex than labeling a position with a salary. Ensure that the position, not the person, passes the duties test and meets the weekly salary threshold. You're covered if the role falls under exempt categories and meets all criteria.

Inadequate onboarding:

Rushing through the new hire training period without providing structure, support, feedback opportunities, and involvement in the company culture can decrease employee retention. To enhance retention rates, set a strong foundation for new hires.

Lack of clear communication:

Avoiding hard conversations and failing to set clear expectations hurts your employees and business. Prioritize clarity and effective communication to foster employee success.

Delaying addressing toxic performance:

Tolerating poor performance diminishes the value of good employees and can lead to decreased retention. Address toxic behavior promptly through open communication.

Reacting instead of responding:

Taking a proactive approach to HR issues sets excellent businesses apart. Give yourself time to research and respond strategically rather than reacting instantly.

Making assumptions about employee behavior:

Hold employees to realistic and fair expectations by clearly defining desired behaviors and outcomes.

Neglecting structure:

Implement and reinforce SOPs, policies, and training to ensure employees meet expectations as your business grows.

Focusing on heuristics over performance:

Avoid snap judgments and focus on addressing performance-related issues rather than non-performance-related characteristics.

Allowing employees to dictate culture:

Intentionally set the tone for company culture through your actions and leadership rather than allowing employees to question what company culture is.

Insufficient recognition:

Recognition boosts employee satisfaction and retention. Show appreciation for contributions through thank-you notes and specific acknowledgments.

Strong HR practices are essential for employee satisfaction and company success. Addressing these common pitfalls can help your business thrive. Reach out for expert HR consulting to support your journey.

Get started today!