What Human Resources Systems Should Your Business Have in Place?
Labor can be your biggest expense, accounting for 70% of your costs. Therefore, you must have human resources systems in place for managing your workforce. After the systems come the policies and procedures. The key ones associated with discipline and termination include:
The hiring letter specifies the job is at will. Employees, with the exception of those in Montana, are aware that “at will” means they can be terminated for no cause at any time with no warning. Onboarding requires signing agreements that outline how disputes will be handled. Mandatory confidential arbitration could be required, and the internal grievance process should be spelled out.
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Have an employee handbook that states all company policies and procedures. That handbook could be a major piece of evidence for the company should litigation occur after the firing. The handbook should state that the business has the right to change company policy and procedures at any time.
Establish channels for communication among immediate supervisors, human resources, public relations and in-house/outside legal. They should all be in the loop about a developing employee problem.
Key takeaway: Having the appropriate human resources systems and documents in place, such as hiring letters and employee handbooks, at the start of employment, can help your business avoid potential legal situations resulting from terminating an employee.