Five mistakes employers make

In my 28 years in Human Resources I’ve witnessed enough employment situations to conclude there are at least five mistakes employers make…irrespective of industry. Here’s my list:

1. Hiring based solely on technical attributes

There’s little doubt a prospective employee’s technical expertise for their role with you is important. But it’s not the be all and end all. And it’s not the primary reason many technically adept employees don’t work out in their new role.  Cultural fit is also vitally important: the willingness and ability to play as part of your team and contribute to the workplace culture you seek. And there’s one other key attribute that will ensure your newbie succeeds with you. Know what it is? Find out before you interview for your next role!

2. Not addressing underperformance early

Think about it this way: you have a toothache and elect to not go to the dentist. Is it going to get better? Unlikely. Same with your underperformance issue. And, just like your tooth issue, the infection of an underperformer will spread through your business.

No employer enjoys what they often perceive as possible conflict when speaking to an employee about a concern on performance or conduct at work. But addressing underperformance in a timely, fair and consistent manner is part of being a successful employer. And holding these conversations doesn’t have to involve conflict. Let us show you how. 

3. Paying Award-covered employees an annualised salary

There’s a number of reasons an employer might pay an annualised salary rather than the hourly rate, overtime, penalties and loadings of the applicable Award. The most common one? It’s simpler. But even if you pay above the Award, you are still obliged to consider what’s in an applicable Award when it comes to annualised wage arrangements. Consequences of not doing so? Your employee makes contact with the Fair Work Ombudsman (typically when their employment ends or via the FWO’s Anonymous Reporting Portal), you get audited and as a result, you have to backpay entitlements under the Award. That’s a costly error…in terms of time, dollars and company reputation. Solution? If you pay an annualised salary, ensure you have well-worded set off clauses in place and that you conduct an annual audit of your annualised wage arrangements.

4. Not understanding the Awards that covers their employees.

It’s not uncommon for a business (even a small one) to be covered by more than one Award. Depending on the type of work your business and employees do, different awards could apply to different employees. Finding out which award applies to your business is essential to understanding your obligations and paying your employees their correct entitlements. Case in point? Annual leave loading. Have you been paying it? Do you have to? 

5. Failing to hand out the Fair Work Information Statement

This one’s always been interesting to me, simply because I’d assume there’d be almost no employer wilfully not handing out a Fair Work Information Statement…they just don’t know they have to. And there’s three Information Statements.  

If an employer fails to provide an employee a copy of the Statement prior to commencing work, this is a breach of the National Employment Standards (NES) and the Fair Work Act. This can result in a court imposing civil penalties against the employer. And we’re talking serious money here. 

Bottom line? Employers must give every new employee one or more Information Statements, depending on the person’s employment type.

Contrary to popular belief, starting a business isn’t hard. But keeping one going and generating an acceptable return is. When it comes to the stage of employing people to grow your business it can be challenging to know what you need to know. That’s where Bare Bones Consulting can help: genuine HR manager-level experience across domestic and international corporate, blue collar and FIFO sectors, tertiary qualifications in HR and the knowledge to help you at any stage of your business: startup, growth phase or established. We can provide advice on workforce planning, recruitment, onboarding, employee engagement…everything you need to find and keep the best people. And on the occasion that one of your guys isn’t going to work out, the most risk-free options to exit them out of your business. Like to know more? Give us a call or shoot us a message through our online “Contact Us” portal.