Having a business represents several risks to the owner. When you throw employees into the mix your risk of lawsuits and claims grows by leaps and bounds. Keeping a vigil eye over all the aspects of the business that involve employees can be overwhelming. The best way to minimize a company’s risk against employee lawsuits and claims is by outsourcing certain elements of your human resource activities

Onboarding

Onboarding is the critical process of helping new employees acquire the skills, knowledge and behaviors to become effective contributors to an organization. Companies without onboarding experience higher numbers of turnovers and employee complaints.

Timekeeping

One of the most notable applications of an HRMS is timekeeping.  Accurate timekeeping helps HR departments track employee scheduling, attendance and hours worked, which could be key in determining if an employee is entitled to additional compensation or leave. Wage and hour claims are very difficult to defend against if you don’t have a good record keeping system in place.

Hiring Claims

Proper documentation and consistent processes in place for screening and interviewing job applicants is essential for failure to hire cases.  Without proper documentation, it is difficult to tell whether a company failed to hire based on deliberate discriminatory actions.  Having a uniform system of recruiting, resume selection, interviewing and hiring that is accurately documented for all hires is a great way to keep an employer out of the courtroom and a way to help ensure better hires.

Wrongful Termination

The risk of wrongful terminations suits can also be minimized and contained.  There are times when firing is a necessary solution to an employee problem.  If an employer chooses to terminate an employee based on poor performance, the company needs to be able to prove the employee was consistently evaluated along with their coworkers if applicable or as a single entity.  The reviews should accurately chronical that the employee was unable to meet the position requirements even after communicating that feedback to the employee. Many companies miss the opportunity for consistency by not creating standardized employee evaluation processes with consistent documentation, evaluation time frames and grading criteria. Outsourcing and HRIS programs can track performance, help supervisors track and schedule monthly or yearly reviews and then share the information with authorized users across the company.

Compliance is a necessity in today’s business climate. Outsourcing not only minimizes a company’s risk of being dragged into a legal altercation, it also provides comfort knowing that your business is protected.