key areas for HR risk management

While each business will have a unique subset of risks based on its industry, mode of operation and location, human resource departments within those companies often have similar areas of risk. Here are the most common areas that need to be included in your crisis management plan:

compliance with regulations

Your organisation must follow all hiring and management laws, including federal, regional and local ordinances. You may be required to obtain identification documents from employees, pay quarterly and annual taxes and ensure fair and equitable hiring practices.

Failure to follow these laws can leave your company open to risks such as fines, lawsuits and even closure. Strict policies on promptly completing all documentation can help mitigate some risks. In addition, consider working with a knowledgeable HR solutions partner who can advise you on employment laws and facilitate payroll processing.

recruitment

Having effective recruitment procedures in place does more than help you attract desired candidates and improve cost efficiencies in the hiring process. It also helps eliminate bias, leaving you less open to the risks of unfair hiring tactics.

Take the time to audit your recruitment processes for any liabilities, whether from unstructured interviews or out-of-date applications. Also, be on the lookout for over-promising during interviews, as it could lead to literal or psychological contract violations regarding job responsibilities and promotion opportunities.

onboarding

Many of the risks employers face from subpar employees, including negativity, low productivity and refusal to follow procedures, can be addressed with an effective onboarding process. This process should provide a detailed and up-to-date handbook and a full explanation of company policies. Keep an eye on new recruits and watch for early warning signs, like inappropriate comments, attendance issues and over-sharing of company details on social media. A quick response from the HR team may help resolve problems before they escalate.

Providing a suitable mentor can also help you recognise employees struggling to adapt and may encourage the new employee to make positive changes. Also, pay attention to team and coworker dynamics during onboarding. If you spot any tendencies toward harassment or improper behaviour on the part of the new employee or their colleagues, now is the time to address these risks.

management

Your management team can help lessen HR risks in your company or escalate them. It’s up to you to discover any toxic managers on your staff. They will significantly increase your chances of employee attrition, legal retribution and loss of productivity.

Consider requiring training and development programs for all managers along with frequent monitoring of individual departments through surveys and personal chat sessions. By improving the effectiveness of your managerial staff, you can drastically reduce the chances of retaliation lawsuits. Requiring that an incident response plan be followed should any altercations occur between employees and between employees and management can also help mitigate risks.

remote work

Remote work is here to stay, and many companies offer employees a chance to work from home either permanently or as a hybrid model. If your company provides this perk, be aware of its associated risks.

access to secure data from home
feelings of overwork as the employee is ‘always on’
lack of oversight, leading to productivity loss
employees may get overlooked for promotion or miss receiving instructions or announcements due to their not being on-site

To safeguard against these potential hazards, it is imperative to establish a remote work policy and consistently revise it as the modern workplace undergoes changes.

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