How to Develop a New Business

All for-profit businesses exist to make money. To make this happen, they employ people with the right skills and expertise needed in the field. Most employers make the miscalculation of thinking that the overall cost of hiring someone is the salary they will pay them. The truth is that there are many other hidden costs that you incur when you hire someone. In recent years, the ancillary costs of hiring people has been increasing. If you do not have a sound HR department that analyzes the overall cost of hiring a certain employee, you are likely to find yourself in huge problems, which will affect your company's bottom line. Here are the top eight sources of human resource risk.

The Workplace Culture

There are two components of the workplace culture. First is the teamwork culture that everyone capitalises on. The second aspect of culture and one which is normally ignored is the risk management culture. It determines why employees act in the ways in which they do. The workplace culture determines the level of employee unrest, the quality of leadership and how everyone will act in case of an uncontrollable circumstance. It is advisable to keep working on both aspects of culture so that in case a crisis occurs, your team will be equipped to sail through it.

How injuries lead to Lost Productivity

Most employers believe that the best way to protect themselves from the liability that results from workplace injuries is a worker's compensation plan. It is indeed true that this plan is a legal business requirement. However, when calculating the cost of having an employee out of work, you have to factor in the lost productivity that you incur from their absence. Also, think about the state they will be in when they return to work and whether they will be as productive as they were before the injury.

Lawsuits Connected to Employment Law

The HR department is there to make decisions that serve the best interests of the company. However, some decisions can fall short of employment law standards by inadvertently discriminating against a group of people. If one group feels undervalued, the morale of the collective plummets, affecting your bottom line.

Before making an HR decision, it is advisable to step outside the economic sense of the decision and look at other related risks. You will only have an easy time making HR decisions when you weigh all the factors. Hire a company for HR risk assessment services to help you.