Top 5 HR Pitfalls
Every company succumbs to HR pitfalls. And let’s be honest, they often don’t even know they have a problem! As with anything in life, unless you know better, how can you expect to improve anything? Below are some quick things to be aware of and resources to use:
Employee v. Independent Contractor: There are federal and state regulations to be aware of. Huge liability for employers in cases where they should have been paying employee taxes and offering certain benefits!
Exempt v. Non-Exempt Employee: Do your employees meet the salary threshold and pass the Fair Labor Standards Act (FLSA) duties test for being exempt?
Use of Interns: Interns can be a win-win way for your company to receive help and allow interns to gain experience, but are you managing this properly? Are the interns being paid? Unpaid? For more information, click here.
State of Residence Implications: Do you have employees in multiple states?
Leave Policies - You may need multiple leave policies to comply with different states' requirements (medical, vacation/sick/PTO, etc.)
Payroll Processes - You may need different payroll processes to comply with states' payroll requirements as to when they terminate, minimum wage requirements, overtime calculations, and the list goes on.
Leave Policies: Do all your leave policies work in conjunction? What if an employee needs to take medical leave--do they have to use up vacation days first? You need clearly defined policies on how this works to treat all staff consistently.
Human Resources is an investment. One that every organization should work into their budgets. Do you value your accounting partner? IT Vendor that gets you up and running? Then, why not invest in HR, and make sure your business avoids any pitfalls that can detract from your mission?
