A lengthy hiring process, over-casual work, or lack of a job guide are just some of the common human resource management mistakes that small and medium-sized businesses make. As a result, they lack talented employees, have to deal with legal disputes or suffer from the atmosphere and performance in the workplace.
Unlike large companies, small and medium businesses do not usually have a dedicated HR department, so human resource management usually falls to the shoulders of a manager or a member of the business team. However, they still have to perform their other duties at the same time, so the field of human resources is usually reduced to the minimum necessary. However, errors in human resource management can have far-reaching consequences for a company, from the unnecessary expense of having to replace an inappropriate employee to time and money lost in lawsuits with employees. What are the common mistakes in human resources for SMEs and how are they avoided?
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Don’t put off a job interview unnecessarily
Small business leaders tend to get busy because they usually cannot afford to pay a group of managers to take on some of their responsibilities. One of the many such tasks is interviewing job seekers. All too often, however, it seems that the company manager, due to lack of time, manages to interview one of the candidates on Monday, another on Tuesday, and the third on Wednesday, and takes him next week to browse his notes and announce the results to the candidates. But this is a fundamental mistake. While reviewing candidates’ CVs again during breaks between other business meetings and comparing them with what the candidates said during the interview, candidates may have fallen into a faster competition or a bigger company long ago. “Small companies need flexibility and speed to be able to outpace large companies and get talented candidates for themselves, especially at a time when unemployment has reached a record low in our country.” Says Jerry Gemilka, ICU director for companies helping small and medium businesses. So definitely do not prolong the hiring process. Negotiate with the candidates on the same day and ask all the candidates the same questions. This will allow you to compare their answers faster and easier. Ideally, send them your decision on the same day.
Don’t rely on intuition
Small businesses are a bit like a family, especially if there are few employees. Sure, this atmosphere is not a bad thing, but it can lead to some informality even in such important processes as HRM. For example, it is not a good idea to hire and fire employees solely on the basis of a certain feeling or intuition. This is particularly risky in the latter case, as an employee who is fired without “evidence” of proper documentation of his or her crimes or the crimes he has committed has an advantage if a complaint is made about the legality of the dismissal. Therefore, it is definitely worthwhile for the company to properly document any important situations, disputes between employees, breaches of labor regulations and the like. It is also advisable to regularly appraise the performance, attendance, or behavior of employees in writing.
The employee handbook is the basis
The employee book (“employee book” or “employee handbook”) is a document, thanks to which the new employee can easily get acquainted with the company’s rules, organizational structure, code of ethics, company culture and company values. The handbook also serves as a practical guide and guide for the various internal processes and procedures in place. Unfortunately, small businesses tend not to pay much attention to it. According to a Gusto survey, only 26% of small businesses (1-9 employees) have an employee directory. Medium-sized companies (10-200 employees) are much better at 87%. The most common reason for not having a small business directory is because they think they have too few employees to pay. However, experts from the HR industry agree that an employee handbook is the foundation that every company should have, regardless of the number of employees. “The employee handbook will greatly make it easier for newcomers to assume their position and fulfill their new responsibilities. Additionally, if companies do not fail to consistently codify all employee rights and obligations, it will also serve as a basis for potential conflict resolution.” Jiří Jemelka supplies.
Don’t hire people just with their knowledge or experience
Small and medium firms tend to be at a disadvantage compared to large firms in terms of the number of job applicants. So it is not surprising that their managers often want to “jump” into the opportunity to hire someone with many years of experience in the field, excellent knowledge, and a great reputation, but fail to know if this person is a good fit for their company or not. Other aspects – for example whether he is able to identify personally with the company’s culture and values. Just imagine what it would be like if a “carnivore” juror took one cigarette after another and stubbornly ignored the classified trash bins as marketing director at a company that produces plant products, whose corporate culture is based on a healthy lifestyle and ecology. This is of course a slightly exaggerated example, but it is really necessary to think in that spirit when recruiting and not only to examine the professional side of the candidate, but also to take into account his personality, hobbies or values. It’s certainly not a good idea to underestimate this area, and even expert studies claim that one “inappropriate” employee can reduce the performance of an entire team by 30 to 40%.