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Five Indicators of Your Level of HR Risk

Why would anyone need an HR Consultant? This is a question I get on a weekly basis. The fact is most companies could benefit from the services of an HR Consultant…they just don’t know it. It’s no secret that many businesses don’t consider HR a priority, until it becomes a problem. An audit, a lawsuit or a particularly sticky behavioral issue can thrust HR into the spotlight but by then it’s generally too late. So, here are five scenarios that allow you to easily assess your businesses’ HR risk. If any of these look familiar, there’s a good chance you need to proactively repair your HR operations…before your HR activities become a problem.

Are your HR Policies & Procedures written down?

If all of your HR policies, procedures and processes aren’t written down…it could spell trouble. When it comes to HR, informality equals extremely high risk. Policies and procedures related to employee hiring, promotion, compensation, discipline and exit are teeming with potential risk, especially if they are not formalized. Formal, written policies are also needed to outline how to handle day-to-day activities such as attendance, conduct and performance. Informally handling any one of these activities puts you at high risk for an employment related lawsuit. Every business should have custom, written policies and procedures for all major Human Resources activities, as well as, training for staff on the proper procedures and practices to follow to mitigate risk and ensure fair practices are enacted.

What's Your Turnover Rate?

If you are unable to retain good employees, odds are you have HR issues. Employee turnover is a symptom of larger organizational problems. Employee retention strategy (the ability to diagnose, create solutions for, train to mitigate and track the causes of employee turnover) isn’t a skill set most small-to-medium sized businesses have in-house. Yet, strong retention of your employees can mean the difference between staying in business and shutting your doors for good. A professional HR Consultant can help you mitigate the cost and risk of employee turnover. Let a proven HR Consultant help you get the most out of your valuable (and expensive) human resources.

Do you put up with poor performance and/or inappropriate behavior?

On the other side of the coin, there are businesses that perpetually put up with bad behavior and sub-par performance from their employees because they lack the tools to properly handle bad employees. In this case, retention is extremely bad for business. Not correcting and retaining bad employees is bad for your customers and your employees. It impacts profit and morale in very negative ways. Proper HR policies, procedures and practices can replace fear and non-action. Every business should be armed with appropriate HR actions designed first and foremost, hire and then retain the right people. Further, businesses need tools to correct bad employee behavior and/or performance; or appropriately and legally separate the bad employee from your company in a timely manner when possible. Imagine a workplace free of the fear of litigation where you are allowed to make HR related actions that are best for your company.

Are your personnel files are a mess?

If you aren’t familiar with and following very specific guidelines and procedures when it comes to your employee’s personnel files, places your company at risk of sanction by the EEOC and/or Immigration & Naturalization. Are you following proper hiring procedures related to I-9 forms? Are you separating employee information properly? Do you have the required number of separate files for employee hire, performance and medical information? Where are these files kept? Who has access to these files? How long are you keeping employee records? Not having accurate, properly stored and segregated personnel files is an easy indication that you probably have bigger HR issues.

Do you have an “official” HR office?

If your Human Resources activities are being handled by one or even several people as a part of their non-essential duties, be careful. HR is a broad and dynamic workplace function that needs to be handled by knowledgeable, up-to-date professionals. The chances of having something fall through the cracks increases dramatically when no one’s primary job function is to ensure your HR policies, procedures and practices are current, lawful and executed properly.

If one, several, or even all of the above scenarios are true for your company or if you aren’t sure whether or not any of the above scenarios exist; it's time to take a hard look at your HR operations. A trained, professional HR Consultant can provide you with an assessment of your level of risk, develop a plan to mitigate your areas of risk and implement that plan.

Whether you know you are ready to engage a consultant or simply want to assess the level of potential risk HR represents for your company, TLJ HR Consulting is ready to support you. Don’t risk another day of non-compliant, risky and costly HR deficiencies. Partner with TLJ HR Consulting to get your company on its way to lawful, useful and beneficial Human Resources solutions to enhance your business.

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