An organization’s success depends largely on the quality and performance of its employees. Implementation of HR risk management is a proactive action to identify potential employee-related risks to the organization and minimize any issues before they arise. HR professionals should consider all of the possible consequences of employee-related risk as they can negatively impact reputation, productivity, financial and other aspects of the organization.
What are the ways?
Following are a few ways that can help to minimize the potential employee-related risks in an organization:
1. Well-Planned Recruitment and Hiring Plan
Employees are the most valuable asset and spine of every organization. The HR team plays a prime role in the candidate selection process as it needs to be perfectly aligned with the strategic goals of the organization. We always know that hiring the right candidate for the right job is very important. But how are we deciding on the right candidate? It is not only about hiring the most qualified in terms of skills, but also other factors such as characteristics, willingness to learn, culture fit etc. Hiring in a rush can create multiple potential risks for the future of the organization. Proper time and consideration should be given to the hiring process and it should be done carefully.
2. Follow Legal Guidelines
It is vital for each HR professional in an organization to be aware of local labour regulations as well as relevant international regulations if the organization has employees in multiple countries. There are complicated legal guidelines surrounding employment in a business. Hence, it is important that the HR team stays up to date on legal employment issues to avoid any risk of litigation against the organization. In addition, the HR processes should be regularly audited to ensure the organization comply with these laws.
3. Establish a Strong Workplace Culture
Establish a workplace culture where ethics and values are built into daily processes to reduce the risk of unethical behaviours. It is important to guide employees on how to behave ethically within the workplace. Managers or supervisors should set a good example for their staff by behaving ethically and supporting the company’s codes of conduct and ethics in speech as well as action. Besides, developing an open and welcoming culture within the workplace will aid in getting insights into employees’ problems and needs. It builds a sense of belonging where every employee is valued. Being open and approachable to employees about every topic will make them more open about their ideas and criticism.
4. Provide Proper Onboarding and Training
Some employers will expect new employees to learn on the job from supervisors or other employees and not provide proper onboarding and training. It could lead to employee dissatisfaction with the job and management, potential risks on employees’ safety and the overall well-being of an organization. HR teams should aim to train the new employees the relevant skills for the job and build their trust in the organization during the employee onboarding process. A strong onboarding process will result in better employee retention, employee satisfaction and overall productivity levels. Moreover, HR teams should establish a detailed training program and ensure the requirements discussed in training are up to date.
5. Encourage Growth
One of the main reasons employees quit is that they do not see potential growth in the organization. When employees feel they are in a dead-end position, they could grow bored and complacent and their productivity may suffer. In order to have a better employee retention rate, HR teams and managers should help employees to grow and ensure that their employees reach their personal career goals. Organization can provide opportunities through online training courses, educational webinars, in-house lectures and workshops in order to allow employees to gain more knowledge and learn new skills. Meanwhile, HR teams may incorporate skill development and training goals into regular performance evaluations and give employees extra incentive to reach their goals. Employee growth is not only important for individuals, but also good for organization.
Wrapping Up
An organization may face multiple threats and risks from its employees. These threats may affect the overall performance negatively and ultimately hinder the organization in achieving the organizational goals. Therefore, HR professionals must ensure HR risk management is implemented in the organization in order to lessen the impact of the risks.