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9 Questions Every Entrepreneur Should Ask for Healthy HR

It’s that time of the year again! Summer is drawing to a close, back to school sales are heating up, and businesses are assessing progress for 2017 and considering what to change, maintain, or scrap for 2018.

Just as a yearly medical check-up is critical to our physical well-being, so too is the need to regularly evaluate business processes and systems for maximum performance.  In particular, the need to evaluate human resources is critical given that it is often the greatest spend for many businesses and the largest potential risk. 

Below is a quick “check-up” related to your people processes Take a moment and answer “yes” or “no” to the following questions:

1. ARE YOU CONFIDENT THAT YOU ARE 100% COMPLIANT WITH EVER CHANGING STATE AND FEDERAL REGULATIONS FOR EMPLOYERS?

2. IS YOUR EMPLOYEE MANUAL CURRENT WITH EXISTING STATE AND FEDERAL REGULATIONS?

3. DO YOU KNOW HOW TO APPROPRIATELY ADDRESS HR-RELATED EMPLOYEE CLAIMS (I.E., DISCRIMINATION, SEXUAL HARASSMENT, ETC.)?

4. CAN YOU QUICKLY AND EASILY ACCESS EMPLOYEE DATA SUCH AS PAYROLL RECORDS, BENEFITS, PERSONNEL DATA, VACATION, SICK-TIME ACCRUALS, AND SPECIALIZED REPORTS?

5. DO YOUR EMPLOYEES HAVE A CLEAR UNDERSTANDING REGARDING HOW THEY CONTRIBUTE TO THE SUCCESS OF YOUR BUSINESS? 

6. WOULD YOUR EMPLOYEES RECOMMEND YOU AS AN “EMPLOYER OF CHOICE”?

7. DO YOUR EMPLOYEE BENEFITS (INCLUDING MEDICAL) REPRESENT A COMPETITIVE ADVANTAGE AT THE BEST POSSIBLE COST?

8.  ARE YOU SATISFIED WITH YOUR CURRENT EMPLOYEE ONBOARDING PROCESS?
• DOES YOUR ONBOARDING MINIMIZE TURNOVER?
• DOES YOUR ONBOARDING ENHANCE EMPLOYEE ENGAGEMENT?
9. DO YOU HAVE JOB DESCRIPTIONS FOR EACH ROLE/JOB TITLE IN YOUR ORGANIZATION?


If you answered “No” to one or more of the above questions, this raises a “red flag” that may put your business at risk on a number of fronts, ranging from the “soft costs” of lower employee productivity to the “hard cost” of potential fines, lawsuits, and more that can devastate a small business.

As a brief overview of areas which business owners and entrepreneurs often neglect, consider the following:

EMPLOYEE HANDBOOKS

Companies are not required to have an Employee Handbook. However, a handbook does serve as a way for a company to state policies and expectations of employment.  A handbook could protect the company in court by showing that an employee knew or should have known about a company policy.

JOB DESCRIPTIONS

Although job descriptions are not legally required, job descriptions can help regarding the following:

• Support decisions concerning candidate suitability in the hiring process
• Minimize employee turnover by helping ensure a good job fit
• Provide a means to evaluate employees’ performance, and minimize the risk of wrongful termination charges
• Provide a defendable position regarding return to work programs and reasonable accommodation

The discussion provided above is not intended to be an exhaustive treatment of the areas that should be reviewed as part of an overall HR evaluation to ensure optimal people processes.  However, it is a good start on areas that are often neglected by business owners, and that can have a big positive impact on the business.

About the Author

PathGoal Employer Services can help you fully “check-up” on the health of the people processes for your business.  We are a full-service, HR solution provider for small-to-medium sized organizations, including compliance, worker’s compensation, payroll, benefits, HR admin, and more. 
Call Felicia at 919-590-0973 for a free, no-obligation assessment to help ensure maximum return on your HR budget, optimal productivity, and minimum employer-related risks.