Employment LawIs your business in need of a HR health check?

Is your business in need of a HR health check?

Unfortunately, it’s all too common seeing headlines about businesses underpaying staff, failing to provide safe working environments, and not adhering to legal employment obligations. The risks involved in HR non-compliance can be catastrophic for a business. Not only can your brand be severely damaged, you can also be exposed to hefty financial and legal risk, or even have to live with the fact one of your employees has been injured due to a lack of protocols in the workplace.

Sadly, HR non-compliance is often the result of businesses putting HR on the back burner and not quite comprehending the magnitude of consequences this can cause. Business owners generally have to be a ‘jack of all trades’ and take on many roles. This is particularly common for small business owners that have limited resources. This is a key reason HR can sometimes be a low priority. Businesses that experience fast growth are also at risk of HR non-compliance as their HR framework needs to evolve with their business to remain compliant.

Complying with employment laws and regulations that govern your business is imperative. If this task is too overwhelming to be handled internally, and you see cracks appearing, it may be worthwhile engaging a HR Consultant to provide a HR health check on your business. The priority areas a HR expert can assist you with include:

• Confirming you are paying your people correctly and providing them with the correct entitlements

• Reviewing current employment contracts

• Reviewing all workplace policies

• Confirming correct workplace health and safety measures are in place

• Checking accurate records are kept

• Verifying Fair Work compliance.

• HR experts can also assist in the areas of performance management, recruitment and onboarding, and employee engagement to name a few.

Please don’t think your business is immune to a Fair Work Inspector knocking on the door. The Fair Work Ombudsman Annual Report 2019-2020 states Fair Work Inspectors completed more than 4,500 workplace audits and recovered close to $30 million for workers during the financial year. There was also a 49 per cent increase in penalties handed down by the courts in 2018-19 to $7.2 million.

HR plays a very important role in keeping businesses compliant with employment law. There are numerous laws that must be adhered too, which can expose you to financial and legal risk. Taking a proactive approach to HR not only minimises your risk of non-compliance, it also creates a positive business culture which impacts business success. HR may seem like a low priority at times, although if you are not proactive in this area, it could be your business at risk.

An investment in establishing and maintaining good HR practices helps to show your employees they are supported and valued; and are considered an important asset to your business.

The Fair Work Ombudsman Annual Report

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