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Common pitfalls when small businesses bring on employees

On Behalf of | Feb 8, 2023 | Business |

The decision to hire a new employee is often an indication of a company’s success. When small businesses are in a position to afford another worker, this can be a sign of growth. Unfortunately, some business owners and executives will let their excitement about a company’s economic traction overshadow the risks involved in the onboarding process.

When hiring new workers, companies need to be proactive in protecting themselves from many of the risks that result from employing people. What are some of your company’s biggest risks associated with the hiring process?

Unrealistic worker expectations

One of the biggest issues when hiring workers, especially highly-compensated talent, is the potential for a discrepancy between what the worker expects and what the company intends to provide.

Confirming specific details, like base pay, bonuses and severance package details in written job offers are crucial efforts in re: a company’s self-protection. Dictating clear terms about everything from performance expectations to severance pay in writing is necessary so that workers cannot make future legal claims about unmet expectations.

Workers who later compete against your business

Someone who has worked for your organization can do real damage after leaving. While you may want to transition away from the inclusion of non-compete agreements given the scrutiny they have recently started receiving, there are other restrictive covenants that can protect your company against a worker unfairly competing against your business in the future.

Non-solicitation and non-disclosure agreements can help to prevent misconduct when workers leave your organization. Especially for those with access to trade secrets or those who serve in an executive role, limiting what they can share with others after leaving the organization can be a smart move.

Worker mistakes and misconduct

From claims that you unfairly endangered workers to allegations that your business ignored harassment or discrimination, there are many ways that inadequate training could come harm your company.

Making sure that you provide appropriate training given someone’s position, including training on harassment and discrimination, is important. Your organization needs to ensure that every worker knows how to do their job safely and what standards your company holds regarding conduct toward others. Proper training and even re-training throughout someone’s employment can reduce the company’s responsibility for worker mistakes and misconduct.

Taking the right, proactive steps to protect your business is key to long-term stability when expanding your workforce.