Renee Matlock, the owner of The Private Practice Coach, shares with clients her wealth of experience, gained over 30 years of building a profitable, multi-disciplinary private practice.
BLOG: Top 5 Small Business HR Mistakes
Top 5 Small Business HR Mistakes
Top 5 Small Business HR Mistakes And How They Can Impact Your Bottom Line*
How Does Your Business Measure Up?
1. Hiring in Haste–It can cost a small business up to $3665 to recruit one candidate. (This includes: cost to market, time spent to recruit and interview, lost revenue, etc.)
2. No Employee Handbook–MYTH: Small businesses don’t need a handbook. FACT: A handbook can help inform employees of established workplace policies and procedures. (Keep your policies clear and simple.)
3. Improper Pay Practices Up to $1000–The maximum penalty associated with each minimum wage or overtime pay violation. (Know your state and federal regulations.)
4. Missing or Incomplete Records–An accounting firm consented to pay over $17,000 in back wages and damages stemming from, among other things, failing to retain adequate records of employees’ wages, hours and other conditions of employment. (Be sure to complete an I-9 for all new employees.)
5. Terminating in the Heat of the Moment–In 2013 the EEOC received 73,588 complaints alleging wrongful termination based on a protected characteristic, e.g., race, religion, sex. (Any termination should be properly planned, documented and executed.)
6. Oops–The title says “5”, but a 6th needs to be included! Be certain if you retain Independent Contractors, that the individuals meet the IRS definition for an independent contractor. Misclassifying employees as independent contractors and failing to provide W-2 forms can subject an employer to back taxes of as much as 41.5% of the contractors’ wages, according to the IRS. And these penalties can go back for three years.
Improve your HR compliance to reduce costs and sleep well at night!
*www.sbshrs.adpinfo.com/top5
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