The importance of following HR process

As a business owner it is imperative to have outlined a process when it comes to HR, whether this be onboarding, grievances or disciplinary (and everything in between).

Having designated policies and procedures helps create a culture of trust between the business and its employees. It sets clear expectations of what the business expects of its workforce and, what the workforce expects from the business.

Furthermore, having HR processes mapped out can help reduce the risk of being taken to an employment tribunal and the possibility of financial detriment should an employee claim be successful.

For more on how your business can and should incorporate HR procedures in accordance with the ACAS code of practice, into your organisation, contact Croner.

Call our expert HR advisors today on 0808 501 6651.

What HR processes should my business have?

Businesses should seek to outline their core processes; this will help to simplify the procedural elements and help when it comes to creating policies in line with the ACAS code of practice. Some of the key practices you should have a process for are:

• Recruitment and onboarding
• Training and development
• Performance management
• Compensation and employee benefits
• Company culture
• Business communications
• Legal compliance

Implementing and maintaining process in these areas will be vital to the compliant operation of your business.

Recruitment and onboarding

Recruitment is arguably one of the most important processes your business needs to work as seamlessly as possible. Without a proper recruitment procedure, it can take months to recruit for a role and even then, it could wind up being the wrong hire for your business if you haven’t laid the appropriate groundwork. This can be particularly costly, both monetarily and in terms of increased risk of additional staff turnover.

Likewise, failing to onboard staff correctly can mean that they never get settled in their role and can lead to higher rates of turnover. A good onboarding procedure maximises employee engagement, whilst the opposite is true of poor onboarding.

Training and development

Like onboarding, training and development can have a monumental impact on employee satisfaction and retention. Even if you’ve hired the best possible candidate for a role, or you’ve got an experienced team around you, there will come a point where their skills will need to be upgraded.

Investing in training for your employees ensure that your employees’ skills and knowledge stay current. It can also help with employee retention. If an employee feels like they’re stagnating then there is a high risk of them leaving your business to pursue other opportunities, beneficial to their career growth.

Setting out a process for training and career development will help ensure that your staff are growing, which is beneficial for them and for your business as well.

Performance management

Following on from training, implementing a stringent performance management process can help ensure your employees are performing optimally. If there are skill gaps this process can help identify them, allowing you to put additional training in place.

Managing performance and continuously developing your employees also has a positive effect upon employee retention. Employees feel better supported by management which aids engagement.

Compensation and benefits

Whilst not directly responsible for any benefits in addition to employees’ remuneration, HR has a role in communicating these to employees. HR should also ensure that employees’ compensation and benefits are competitive within the industry.

Company culture

HR is instrumental in creating the working atmosphere and promoting the shared values and beliefs of your organisation. This is vital in creating a positive environment for employees to thrive in.

A toxic and generally negative company culture will ultimately lead to increased staff turnover, low productivity, a lack of employee engagement and a potential increase of claims against your business. The opposite is true of a positive company culture.

HR can help nurture company culture and mould it, ensuring a productive and positive environment.

Business communications

Good communication is imperative for avoiding employee misunderstandings, encouraging engagement and ensuring that your business operates seamlessly.

Legal compliance

Understanding employment law in full is a fundamental requirement of HR. They should also understand all aspects of regulatory compliance when it comes to the business’s responsibilities to staff. Failure to follow correct procedure in this area can result in a costly legal entanglement.

What happens if HR process is not followed?

Failing to follow correct process as laid out in the ACAS code of practice, or failing to follow the procedures outlined in policies and documentation, can lead to an employee raising a claim against your business.

Being taken to an employment tribunal can be extremely costly for a business. The financial damage is only one element, the reputational damage can be equally, if not more devasting, resulting in lost custom and staff.

How do I keep my business compliant?

Your HR practices and policies should be compliant with current employment law legislation and your processes should fall in line with the ACAS code of practice.

Ensuring that you keep up to date with the latest changes to legislation and best practice can help your business pre-emptively address future issues, before they become a potential legal issue.

Contact Croner for expert HR compliance advice

With over 80 years of experience in helping businesses keep compliant with employment law and HR best practice, Croner can offer professional HR advice and solutions, tailored to your business’ needs.

Call today on 0808 501 6651.