6 common HR mistakes that affect a company’s greatest asset

It is almost a cliché. Companies large and small often proclaim that employees are their greatest asset. While they are correct, it is ironic that many damaging mistakes that companies make are related to ineffective or poor human resources practices. Following are several of the most common mistakes and how to avoid them:

Hiring without due diligence. Companies that are experiencing rapid growth and need to ramp up quickly are sometimes tempted to take shortcuts in the hiring process. Almost inevitably, this will create problems in the near future, if not immediately. Smart owners and hiring managers interview serious job candidates more than once and include at least one other member of senior management in the process. They check references thoroughly and verify key background facts, such as experience and education.

Misclassifying employees. Sometimes – especially when economic conditions are poor – businesses elect to staff some functions with workers the company classifies as independent contractors rather than employees, thus saving on payroll taxes and employee benefits. It is important to recognize that the rules defining which workers can legally be classified as independent contractors are complex, and federal and state agencies are aggressively cracking down on businesses that misclassify employees. The financial penalties for improperly classifying workers can be catastrophic, even to the point of threatening a company’s existence.

Read the complete article here: http://www.bizjournals.com/nashville/blog/2015/05/6-common-hr-mistakes-that-affect-a-company-s.html