21 Mistakes Not to Make in 2021

2020 was a wildly chaotic year for HR departments. Trying to juggle benefits packages, remote employees, and onboarding at the same time was a challenge. However, those that were prepared naturally handled this transition more smoothly than those who went in blind. Here is a peek into 2021 and items for which your HR department needs to be prepared. 

1. You should avoid applying for a COVID-related SBA loan without guidance as trying to maneuver through the bureaucratic nightmare that is their system  can leave you frustrated. Ensure you have someone guiding you that understands government loan programs.

2. You should not forget to follow up on PPP loan forgiveness guided by someone who understands the paperwork. The forgiveness program is widely available but must be utilized correctly to be efficient.

3. Don't forget to update employee handbooks to account for COVID-related safety measures. A post-COVID work environment looks very different from the one from before. All your new materials for employees should reflect these changes.

4. You should avoid misclassifying employees as exempt when they do not meet the legal standard as set forth by the FLSA. This may happen when the employer has not done a proper and thorough analysis of the job duties to determine if the position meets the legal standards.

5. You should not ignore best practices for risk management. Using risk management, you can identify potential workplace problem areas and develop ways to make for a safer work environment. You should have an effective claims administration to minimize medical costs and loss. Your team should put policies in place that lessens the chance of workforce injuries and costly lawsuits.

6. You should avoid falling behind on payroll. Employees get their work done and expect compensation. They are not interested in the intricate steps involved in getting them their pay on time. There are many spots where errors can occur that will slow a payroll system down. These issues can result in unhappy employees or tax problems for your company.

7. You should avoid expanding into new markets without appropriate policies and protocols. Whenever you consider growing your business across state lines or into new markets, it's vital to have a healthy plan in place before you begin. This is crucial, as many HR-related laws and regulations vary from state to state. You need policies and experts to help guide you if you are planning to expand. Failure to plan may cause your expansion plans to fail disastrously.

8. You should promote effective onboarding techniques. The longer it takes to onboard a new employee, the longer that employee is idle. Having an effective onboarding plan will ensure that your employee is as efficient as possible for your organization. Similarly, an ineffective or disjointed onboarding process can also leave the new employee thinking that the employer is disorganized and inefficient.

9. You should always be promoting your employer brand. The best employees are already working for other companies. You are looking to attract passive candidates who are not currently looking to switch positions. The only way to attract passive candidates  is by continually promoting your employer brand. Increasingly candidate want their organizations to share similar values to them and have competitive benefits packages. You should not only be advertising your best features but responding online to reviews and comments about your company.

10. You should avoid making legally binding promises without documentation. People's memories may differ, causing friction in the workplace. Ensure that all commitments to an employee, such as extra time off or increased pay, are documented to avoid costly HR errors. It is highly recommended that any offer of employment also be reduced to writing to include a clear understanding of the job title, compensation, FLSA designation, benefit eligibility, reporting relationship, start date, and a stipulation of the “at-will” employment relationship that the employee will have with the employer.

11. You should not ignore the employee experience. The experience can be defined as all of an employee's experiences in a company, from onboarding to offboarding. Every interaction the employee has with management will shape their opinion of the company. You always want to strive for the best employee work environment and creating a space where employees experience more positive interactions than negative ones will impact how effectively they perform.

12. You should document your disciplinary process. Once again, you do not want to create a situation where management has one view of events, and the employee has a differing viewpoint. By documenting all disciplinary action, even those as minor as discussing a persistent error, you can avoid workplace conflict before it occurs. It may also be essential in justifying a separation.

13. You should avoid choosing a 401k without extensive research. The correct 401k can provide proper support for your employees and help market your company's achievements. However, the plan must reflect the needs and wants of your employees to have a positive impact.

14. You should continue to implement compliance training programs. As new employees are onboarded, it is essential that they be familiar with company regulations and their new positions, so they have a complete understanding of the workplace culture they are joining.

15. You should always offer competitive benefits. Benefits are a powerful recruiting tool. If you want to attract the best candidates and find more passive recruits, you have to advertise your fantastic benefits package. On the other hand, poor benefits will drive away your most talented workers.

16. You should always keep sensitive information secure; not only can this create a toxic workplace, but it also might violate government regulations.

17.  You should avoid lowering the productivity of revenue-generating staff. Your revenue-generating team is your most valuable resource; make sure they always have the resources they need to work effectively.

18. You should set up an employee referral program. No one markets your business better than happy employees. They know your culture and understand who would be a good fit.

19. You should always have a financial contingency plan. As we learned from 2020, emergencies can happen without notice. You should always have a plan in case you need one. 

20. You should avoid asking about race, religion, or politics during a job interview. If someone is not hired, there should never be a question of if it was due to discrimination.

21. You should increase your productivity through outsourcing. Not everything needs to be done in-house; outsourcing can save your business time and money.

It is the job of HR to keep their businesses running smoothly, and there are a lot of moving parts. To ensure compliance and obligations are met, organizations can partner with regulatory experts who can handle the bulk of the administrative burdens.