Top 5 risks for SMEs

Many small and medium businesses focus on HR only when it becomes an issue. That’s often when it’s too late.

We’ve worked with hundreds of Australian businesses over the past 17 years, helping them manage compliance, employment, recruitment and performance risks. If you have a small or medium size business or are looking to set one up, here’s what you need to know.

1. RECRUITMENT

Don’t underestimate the value in spending time on recruiting the right people. Poor recruitment practices can be very costly to any business – time, costs and negative impacts on customers and other staff can kill an otherwise great business. Finding people that are the ‘right fit’ is even more important when it’s a smaller team and each employee has a greater impact on culture and behavioural norms.

2. COMPLIANCE – EMPLOYMENT LAW

As the saying goes, ignorance of the law is no excuse. Employment is heavily regulated with a wide range of related legislation. Non-adherence can be very costly through potential litigation or fines. Make sure you are across the relevant laws that apply for your industry and business.

3. COMPLIANCE – MODERN AWARDS AND PAY

It is crucial that businesses understand what modern awards may be applicable to their employees, and any minimum pay rates based on specific classifications. Additionally, provisions such as overtime, allowances or loadings must be understood and paid if applicable.

4. PERFORMANCE AND BEHAVIOUR MANAGEMENT

Managing poor performance or workplace behaviours is essential, as not doing so will have potentially serious consequences for team morale, productivity and customer service. There are however risks related to the way these issues are handled, particularly if not done fairly or within legal parameters.

5. TERMINATION OF EMPLOYMENT

This is a really common area where many businesses slip up, often resulting in lost time and money. It is essential that any termination of employment is done so in compliance with employment law (Fair Work Act). Employers have some protections from claims of unfair termination, however it is still essential that the Small Business Code is followed.

 To minimise your risk and optimise your business for HR peace of mind, contact us on 02 9819 6324 to speak to a 360HR Associate.