Friday, February 3

Why HR Risk Management is so Important

In the modern business world, risks are inevitable, and while many of these dangers come from external factors, others originate with a company’s own employees. These potential workplace dangers are referred to as HR risks, and unfortunately, they are among the hardest to control. However, with the appropriate management strategy and tools, you can minimize these risks and protect your business from losing precious resources.

What is HR Risk Management?

HR risk management is a process that involves focusing on the potential dangers posed by the employees of a company, addressing them, and taking steps to ensure that they don’t occur again in the future. An HR risk management plan may differ from business to business, but an effective system has two essential functions. The first involves ensuring that all of a company’s employees know what is expected of them and the consequences of not complying with company policies. The second function involves closely monitoring employees of all levels to identify, assess and mitigate any dangers as soon as possible.

Potential HR Risks to be Aware of

Many potential HR risks that exist within the workplace are easily detected. However, others may go unnoticed for extended periods before any red flags of suspicion are raised. Therefore, more than ever, it’s crucial that every business implements a strategy to identify and eliminate these risks before the damage becomes irreversible. Some of the most common HR risks include but are not limited to:

IP Leaks

Whether disclosed maliciously or unintentionally, leaks of intellectual property (IP) pose one of the most significant risks a modern organization can face. Information that ends up in a competitor’s hands can cause many complications both inside and outside the workplace.

Lack of Critical Skills

Sometimes a new hire’s potential is overly exaggerated in the interviewing and onboarding process. As a result, they fail to live up to expectations once they enter the working environment because they lack the essential skills needed to succeed.

Time Theft

You’ve no doubt heard the phrase “time is money.” Unfortunately, the saying most certainly applies when it comes to company time. Unproductivity and wasted time on the clock may not sound like an enormous problem, but over time, those minutes turn into hours, the hours into days, and before you know it, you could lose thousands of dollars.

Cyber Security

Weak passwords and failure to properly sign out of company accounts and devices put your business at risk of hacking and losing confidential information.

Reducing HR Risks in the Workplace

As mentioned before, various components make up an effective HR risk management, but regardless of the type of business you run, here are a few tips you can apply to promote a more secure workplace.

Provide Excellent Onboarding and Training

It doesn’t matter if you are onboarding an employee for an entry-level or senior management position. Proper training and onboarding are an absolute must. Too many business owners have the trial by fire mentality and that their new hires will “get the hang of it, soon enough” However, this type of thinking is the worst you can have when bringing new employees into your workforce. Fixing their needless mistakes robs you of precious time, energy, and resources.

Rather than worrying about resolving the errors of a poorly trained employee, dedicating your resources to onboarding and training is a sure-fire way to guarantee that your new hires can jump right into their new role, fully equipped with all the knowledge and skills they’ll need to begin producing immediately.

Create a Friendly and Welcoming Atmosphere.

If your employees don’t feel comfortable enough to ask about their work, you can’t expect them to perform at the desired level. So, work hard to provide your workforce with a friendly environment that welcomes questions, concerns, and productive criticisms. It’s also a good idea to ensure that your workers are well aware of any resources available to them that may make their work efficient and more enjoyable.

Utilize Digital HR Management Tools.

Fortunately, thanks to advancements in technology, you don’t need to hire a massive human relations team to detect and mitigate HR risks within your company. Instead, modern software programs can help you ensure that your entire workforce is aware of company policies and can notify you if any of these policies have been violated. Additionally, these electronic strategies allow for enhanced onboarding and biometric cyber-security, giving your peace of mind that all HR risks are accounted for.

The Importance of HR Management

Establishing an efficient HR risk management plan for your business is a significant investment but a necessary expenditure to succeed in the modern business landscape. Rather than hire a large team of human relations experts, many corporations have saved thousands of dollars by opting for an electronic HR management system like EMPTrust. With all of the features and functions included with a capable software program, the value for money cannot be overstated. If you’re interested in what a digital HR management solution can do for your business, contact EMPTrust for a free demo.

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