5 HR Problems Small Businesses Often Ignore Until They Become a Big Problem
Running a small business means there is always something that needs your attention.
Customers need looking after. Staff need managing. Bills need paying. New work needs winning.
HR can easily slip down the list of priorities, particularly when everything seems to be going well.
The problem is that small HR issues rarely stay small when they are ignored.
An employee who is regularly late, a contract that has not been updated for years, or a performance problem that nobody wants to address can eventually become a much bigger issue for the business.
Here are five common HR problems that small businesses often put off dealing with.
1. Employment contracts that are out of date
Many businesses have employment contracts that were written several years ago and have simply been reused ever since.
Your business may have changed considerably since those contracts were written. Your employees may have different responsibilities, working arrangements may have changed and employment legislation may have been updated.
An old contract may no longer accurately reflect the way someone works for you.
It is worth checking whether your contracts clearly cover areas such as working hours, holiday entitlement, pay, notice periods, probation arrangements and other important terms of employment.
A contract should reflect the current working relationship, not the business you were running five or ten years ago.
2. Putting off difficult conversations
Nobody enjoys telling an employee that their performance is not good enough.
It can feel easier to let things carry on and hope they improve.
Unfortunately, that approach can make the situation much harder to resolve later.
If someone is regularly making mistakes, failing to meet expectations, arriving late or causing problems for other members of the team, dealing with the issue early is usually much easier than waiting until everyone is frustrated.
The first conversation does not necessarily need to be formal.
Often, a straightforward conversation can make a significant difference.
Explain what the problem is, give the employee an opportunity to respond and make sure they understand what needs to change.
The important thing is not to ignore the problem simply because the conversation feels uncomfortable.
3. Treating every absence in the same way
Someone being off sick for a few days is very different from someone who has a long term health problem or a pattern of regular absence.
Small businesses can sometimes fall into the trap of treating every absence in exactly the same way.
That can create problems for both the employer and the employee.
It is important to understand the reason for the absence, keep appropriate records and consider whether there are underlying issues that need to be addressed.
Managers should also be careful about making assumptions.
A member of staff who is frequently absent may have a genuine health condition, difficulties outside work or another issue that needs to be discussed.
Good absence management is about understanding what is happening and taking appropriate action, rather than simply counting the number of days someone has been away.
4. Not having proper HR policies in place
You do not need a huge employee handbook full of complicated legal language.
You do, however, need clear policies and procedures that tell employees and managers how important workplace issues will be handled.
Depending on your business, this could include policies covering areas such as:
• Sickness absence
• Holiday
• Disciplinary procedures
• Grievances
• Flexible working
• Equality and diversity
• Health and safety
• Bullying and harassment
• Family friendly leave
Policies are particularly important when something goes wrong.
Having a clear process gives managers something to follow and helps employees understand what they can expect.
It also means you are not trying to work out what to do for the first time when a difficult situation has already arisen.
5. Assuming HR is only needed when something goes wrong
Perhaps the biggest mistake is thinking that HR is only something you need when you have a difficult employee.
Good HR should be helping your business before problems arise.
That could mean making sure your contracts are correct, improving your recruitment process, helping managers deal with performance issues, reviewing your policies or making sure new employees receive a proper induction.
It can also mean having someone you can speak to when an unusual situation comes up.
For a small business owner, having access to experienced HR advice can provide reassurance when you are dealing with something you have never faced before.
So, how do you know if your business needs an HR healthcheck?
You do not need to wait for a serious employee problem before looking at your HR.
If you cannot remember when your contracts were last reviewed, you are unsure whether your policies are up to date, managers are dealing with employee issues without any HR support, or you simply want to know whether everything is in order, it could be worth having a review.
An HR Healthcheck gives you the opportunity to look at what you currently have in place and identify anything that needs attention.
It is much easier to fix a small gap now than deal with a much bigger problem later.
HR support for your business
Westcountry HR works with small and medium sized businesses across Newton Abbot, Exeter, Plymouth and Devon.
You do not need to employ a full time HR manager to have access to experienced HR support.
We can help with employment contracts, handbooks and policies, employee issues, performance management, recruitment, training and day to day HR advice.
Our approach is straightforward. We get to know your business, understand what you need and give you practical advice that you can actually use.
Not sure whether your HR is where it needs to be?
Westcountry HR offers a free HR Healthcheck to help identify what is working well and where there may be gaps.
Get in touch with Westcountry HR to arrange your free first visit.