5 HR Pitfalls Startups and Small Businesses Should Avoid

Operating a startup or small business comes with a unique set of challenges and triumphs. As business owner, now only are you responsible for steering your company through its various challenges, but you must also avoid major pitfalls along the way. One of the areas that poses the most risks for a startup or small business is mishandling Human Resources (HR) issues.

It is very possible to successfully avoid these pitfalls with planning, foresight, and the right tools at your disposal.

Here are the 5 Major HR Pitfalls

HR Pitfall #1 - No Updated Employee Handbook

A company handbook is like having a book of standards and guidelines for your company. It defines your company’s boundaries, gives ground rules and details what’s acceptable and what’s now. This handbook should include policies that comply with the federal, state and industry regulations that apply to your company. Keeping this handbook updated is vital, because employment laws and regulations are subject to change. You need to be sure your company’s handbook reflects the current HR regulations.

HR Pitfall #2 Not Enforcing HR Policies

Having up-to-date HR policies is key. But if you don’t enforce the policies, you are setting yourself up for major issues. This can range from decreased employee morale and high turnover, to employee lawsuits and negative publicity. Remember, the HR policies are meant to be enforced.

HR Pitfall #3 - No HR Employee Training

HR Training is key for any sized organization. Most importantly, it reinforces the message of compliance with HR laws and regulations within your company culture. Your company’s employee training should be customized. At minimum, you should train employees on HR Compliance, Company History, your Products, and your Market.

HR Pitfall #4 - Using Unethical Hiring Practices

Did you know that unethical hiring can lead to lawsuits and fines? Many hiring practices that go on today are unethical and illegal – but often hiring managers, owners, or recruiters are unaware of the HR laws that govern their state. It is vital that your company understand how to pre-screen, select, and inteview candidates legally – using an unbias and ethical selection process.

HR Pitfall #5 - No HR Compliant Tracking

Many startups and small businesses don’t have a way to track or maintain HR complaints. Neither do the employees themselves know how to issue a complaint. Your company should have a way to track and manage all complaints. Instead of instructing employees to “go to a supervisor or manager”, you can instruct them to issue the complaint in a HR Complaint Tracking system – which provides many added benefits.


Learn More About How To Avoid the 5 HR Pitfalls

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About the Author ComplyTrain

ComplyTrain is a proprietary cloud-based software platform that provides everything companies need to deploy a complete HR compliance program. We make HR Compliance assessible to every company, no matter the size. A rock solid HR compliance program helps companies build a compliant workforce, promoting workplace safety, inclusion, and unbias treatment, and helping avoid costly lawsuits, fines, and negative publicity from being sued. www.complytrain.com

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