Top 10 Common Mistakes of Small Business Employers

         1.  Understanding the similarities and differences of state/federal employment laws and which ones apply.  At HR Logic we took the guess work out of understanding these laws by creating an easy-to-use guide for indentifying your responsibilities as an employer in the State of California.

         2.  Not selecting the right person for the right job, the first time.  HR Logic understands that interviewing can feel a bit overwhelming and time consuming.  You do not want to use “your gut feeling” without asking the appropriate questions.  We have developed a system to help managers make quality hires through diligent prescreening and behavioral interviewing.  Putting the wrong person into a job can really cost the company.  Consider the following:  the cost of hiring a new employee can easily be thousands of dollars, lost productivity, retraining, loss of knowledge and the possible negative impact to other team members.

            3.  Job descriptions are a must have.  Hiring the right employee starts with a well-written job description.  This is the starting point for understanding what essential skills and qualifications a candidate should posses. 

      4.  Not having an employee handbook and human resource policies.  These tools are essential to the backbone of a company’s human resource department.  Consider these guidelines the “laws” of your organization.  It communicates to all levels of employees how to behave and act when in the workplace.  HR Logic has compiled a valuable Company Policy Guide with an accompanying Employee Handbook that you can easily customize for your company’s needs.

           5.  Providing feedback to your employees.  Managers should not wait until the annual evaluation to discuss how an employee is doing.  Throughout the year you need to let your employee know what he/she is doing well in addition to areas of improvement.

           6.  Offering benefits to your employees.  In this competitive workforce you will need to consider what affordable benefits you can provide to your employees.  If you are not currently offering any benefits to your employees consider the following low-cost options:  holiday pay, spot bonuses, vacation/sick pay, fitness memberships, telecommuting, credit union memberships and flexible work schedules.

      7.  Understanding the differences of hiring an independent contractor versus an employee.  Consider the following:

Behavioral Control – An employee is generally told when, where and how to do the work.

Financial Control – An independent contractor can realize a gain or loss.  An employee will be paid by the company and taxes are to be collected by the employer.

Type of Relationship – Usually independent contractors will have a written contract with specific outcomes to include a timeline.  HR Logic has created a thorough contract template that any company can revise to meet their specific needs.

           8.  Missed meal breaks for hourly employees.  An employee is required to take a 30 minute break, after 5 hours, except when workday will be completed in 6 hours or less and there is mutual employer/employee consent to waive meal period.  If the meal break is missed, the employee is entitled to one hour of pay (which can also incur overtime pay).

            9.  Reporting new employees.  All businesses are required to report new hires and independent contractors to the State of California within 20 days of the first day of work.  Employers can now submit this information online.

            10.  Filling out the I-9 Work Authorization Form correctly.  Did you know that employers can be fined between $110 - $1,100 per mistake or omission on I-9's?  It is recommended that you hold a yearly internal audit of your I-9's.  If you find errors you should initial and date all corrections.  Do not use white-out or cross-out errors.

 

HR Logic © 2010 | Privacy Policy | Terms Of Use