Top 5 HR Issues and How to Avoid Common Pitfalls

Anyone heading up an HR department knows that their jobs are typically not dull, be it from when they walk in the office until they leave for the day.

Whether it is dealing with hiring and firing issues, disciplinary matters, compensation matters, or even helping an employee with a benefits question, the workday can be busy from start to finish.

With that in mind, what are some ways to better deal with the major HR issues that many men and women face in overseeing such departments? Also, how can the latest HR software help them in making a cumbersome task much easier?

First and foremost, make sure you know how to shop for the right HR software system.

Some of the tricks of the trade include:

• Quotes – Get quotes from a number of vendors, not settling on the first one you come across. With numerous quotes, you can compare and contrast the pros and cons of each system, seeing what you are getting for your money. Make sure you ask if you can receive a free demo trial, allowing you to see if your HR personnel like the system

• Customer service – One of the most important aspects in the software system search is the customer service you will get from any provider that you select. Get the feel early on when obtaining information and a quote from them if they seem eager to work with you. If they are bad about returning calls and/or providing you with pertinent information (including exact pricing, meaning no tacked on fees), then you are probably best served looking elsewhere

• Stability – Lastly, do a review of each vendor that you are looking at doing business with. Have they had any issues with the Better Business Bureau (BBB)? Do they have financial issues that could lead them to go out of business, potentially leaving you with no one to contact if you need assistance or upgrades to your software?

HR Issues Past, Present and Future

With those tips in mind, finding the right software system to handle HR issues then leads you to the issues themselves.

Among the typical HR matters and how the right software system can best handle them:

1.   Payroll – In many smaller offices, the person overseeing HR also ends up handling payroll, simply due to the fact that some companies try to do more with less. If a company chooses not to outsource its payroll needs to a payroll provider, the individual heading up HR can be on the front line, making sure that all employees are compensated properly and in a timely manner. If this doesn’t happen, you can soon find yourself with morale problems, something no business owner wants to deal with. In order to make sure payroll is done correctly and on time, look for a system that combines HR and payroll, as there are numerous vendors out there that can solve two major tasks for the price of one. Find a dual system that reduces the chances of duplication, records hours worked (see more below), and properly notes each employee’s function and scheduled pay rate. Your software should also be able to catch any mistakes, such as under or over paying an employee.

2.   Hours – One of the biggest challenges HR personnel face is making sure each and every employee works the required hours they are given. In some instances, employees will look to work less than is required, typically working a few hours under the standard 40-hour work week, while others will try and work more in order to claim overtime pay. Having the right software in place will allow you to properly record the hours each worker completed in their week, avoiding incorrect payments. Even though some companies still use time cards, many others have software installed on each worker’s computer, showing when they logged in to start the day, any breaks taken (10 minute breaks, lunch), and when they clock out at day’s end.

3.   Benefits – Even though many companies have cut back on their benefit offerings in recent years due to tougher economic times, others still offer their workers decent benefit packages. With a good HRIS in place, you can track and record all the different benefit options for your employees, including health and life insurance premiums, 401k contributions (including matching what your workers put in), workers’ compensation, and more.

4.   Projects – HR software can also help you avoid tie-ups in getting projects done. As an example, say you have a worker or workers who are assigned to write or design projects on their computers. While not turning this into a beat the clock contest, you can review each worker’s production, looking to see where time can be saved on the next project. Such software allows you to review how much turnaround time was required from beginning to end, giving you a number of options, including assigning those projects with a tight deadline to your fastest workers (assuming they are qualified) and determining if you need to put more manpower towards one or more assignments.

5.   Disciplinary – Finally, while no HR personnel enjoy dealing with disciplinary matters, just about every business will cross this bridge at one time or another. As a result, having a good HR software program in place to record such incidents is a requirement. With the right program, you can document any matters where employees were informed of disciplinary issues involving themselves. You can record the date, details of the discussion, whether or not the employee signed off on the matter, and what steps were recommended by the individual’s immediate manager.

With the right software system in place, you can better the chances that your HR department runs efficiently from the start of the work day until closing time.

About the Author:
With 23 years’ writing experience, Dave Thomas covers a wide range of business topics including Human Resources, Small Business, social media, marketing, and reputation management. He is a frequent contributor to a variety of websites, including Small Business CEO, TweakYourBiz.com and Reputation.com.