How to Deal with Small Business HR Issues

HR issues exist in all kinds of businesses, be it big or small. 

But, small businesses or SMEs do not usually have assigned HR departments like larger organisations. Most of the HR issues in small businesses need to be managed by the business owners themselves. 

These are some of the most common HR issues you could face, and how you can solve them.

Discrimination and Harassment

One might think a small business should have no issues in being just and fair, but that does not mean discrimination and harassment issues will not happen. The best way of dealing with these cases is to obtain the services of a lawyer who are experts in Employment Law.

However, not many small businesses can afford lawyers. Another way to solve this problem is to conduct an impartial investigation by a neutral party (that both parties agreed to) to handle any cases of discrimination and harassment.

If you wish to learn more about workplace discrimination law in Malaysia, you can read the article here.

Weak Hiring Process

Many HR issues can arise from a poor hiring process. For example, if one posts a poor job description, they will attract job applicants who do not have the right qualifications and experience. 

Some employers prefer to hire people fast. The problem with that is it always leads to the wrong person being hired for the position. If you wish to dismiss someone after discovering they do not have the right skills and experience, but you do not have just cause to do so, your mistake of not being clear in the job-posting could cost you a lot.

How do you find the best candidate for the job? Here’s a simple guide to hiring the best candidate.

How do you avoid this problem? By writing your job description as detailed and clear as possible. This is how you attract the right quality talent for the job.

Insufficient Documentation

Large companies often keep a lot of documentation and they keep it proper. Small businesses, on the other hand, are not as formal. You need to document things such as company policies and employee benefits correctly. If not, confused employees will ask you a lot of questions.

Worst case scenario, you could end up facing legal troubles if employees say they were not made aware of essential company policies. Here’s an easy way to deal with this problem before it happens. 

Avoid legal troubles by watching out for these issues

Compile every document in a clear, easy-to-read employee handbook. It will take a lot of your time, but it will be worth it. 

Misclassified Employees

One of the worst mistakes a small business can make is to misclassify its employees. In your small business, make sure you know the difference between an employee and an independent contractor. Knowing the difference will save you a lot of money.

Here are 7 Legal Mistakes that Small Business Owners Can't Afford to Make

Promoting the Wrong People 

Usually, small business owners know their employees rather well. So, it might be tempting to offer a promotion to someone you like or someone that does a great job in their current position. But that does not mean the employee will thrive in the promoted position.

Promote the wrong person, and you'll land in hot water.

If you promote someone beyond their capabilities, you will soon notice a lot of problems, mainly incompetence. This could lead to the employee leaving, even though they are great at their previous lower-level position. 

Stop promoting the wrong person as a reward and instead conduct a thorough assessment of your employees’ skills and attributes to find out who can truly hold the managerial position.

Source: hppy

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