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The world of HR is often thought to be daunting and difficult. It’s certainly not the easiest element of a business to manage and control.

Those in charge of company HR need to understand employment law, maintain excellent organization and possess the people skills necessary to manage tricky situations with tact. So there are always challenges to face.

However, side-stepping some HR worse case scenarios are possible if you know what to look out for. Here are five HR nightmares and what you can do to avoid them.

Losing your Top Talent
Anyone working in HR understands the time, effort and company money it takes to hire a new employee. A high staff turnover is really bad news, particularly if it’s your best employees who are jumping ship.

Staff retention is all about communication. Do your employees have opportunities for workplace progression? Do they feel positive about the work environment? Are there any improvements that would make them happier and more productive in their work? Ask these questions regularly to avoid losing your top talent.

Being Stuck with an Underperformer or a Liability
Once you’ve hired someone, it can be very tricky to show them the door without facing legal repercussions. Many companies end up stuck with an underperforming or problematic employee because they can’t produce the documentation they need to fire them.

Always encourage your managers to conduct appraisals honestly. An employee track record of “could do better” will bolster your case much more effectively than a series of glowing reports made because your managers don’t like to offend. Also, maintain proper documentation of any complaints or issues raised regarding an employee.

Misclassifying Employees
Are your staff employees or contractors? Misclassifying your staff can cost you dearly. Governmental organizations have the power to impose high penalties on companies who renege on responsibilities towards their staff through misclassification.

You need to fully understand the difference between employees and contractors. There are plenty of online resources that can help you to make the distinction. And then meet your employer responsibilities to both classes of worker.

Battling with A Negative Atmosphere
A negative atmosphere in the workplace will hamper your employees’ productivity. It can make people dread coming into work and limit communication between teams. Once negativity takes hold, it can be infectious and very hard to eliminate.

Avoid negativity in the first place by maintaining a great workplace culture. That means appreciating your employees for the work they do, operating an open door policy where employees can communicate issues or grievances quickly and easily, and maybe providing a few little perks to show your staff that they are valued.

Dealing with a Lawsuit
If a worker feels that your company has compromised their legal rights, they can build a lawsuit against you and try to take you to court – a scenario bound to cause any HR manager a serious load of work and stress.

To avoid litigation you need to be fully versed in employment law and how it applies to every aspect of the job – the interview, the working day, disciplinary proceedings, hiring and firing. With these laws in mind, develop protocols that you stick to and document rigorously. This will provide you with the evidence you need to prove you have acted in keeping with your responsibilities should an accusation be made.

Working in HR can be really rewarding. But there are always tough days to contend with. Keep tricky situations to a minimum by maintaining excellent document organization, recognizing and preventing potential problems before they arise and doing your best for the staff on your payroll.

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Lily Kaligian is an editor at Businesscheck.co.nz and Canadabiz.net. She creates a variety of articles about careers, entrepreneurship, technology, business, education, as well as travel and personal development.

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