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HR policy and legislation too complicated

The results are in: 81 percent of small businesses feel HR policy and legislation is too complicated

Cristina Lavecchia, Editor, HRinfodesk, published by First Reference, August 2016

On March 18, HRinfodesk conducted a poll asking readers whether HR policy and legislation is too complicated for smaller businesses. A whopping 81 percent responded “yes”.

It is undeniable that continuously developing laws, whether related to employment standards, health and safety, human rights and privacy requirements, can have a great amount of strain and pressure on small businesses to keep up. For many small businesses, a lot of that stress may stem from possible litigation arising out of non-compliance.

In stating the above, it is crucial for small business owners to keep in mind this sentiment, found in a quote from John Foster Dulles, “The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year”. To help efficiently and effectively deal with the “tough problem” of legislative compliance as "the little guy", implementing good human capital strategies and management will help you accomplish that. Human capital is the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Human capital is a valuable element of the intangible assets of an organization. The know-how, imagination and creativity of employees are as significant to business success as “hard” assets. The importance of human assets tells us why it is significant “to measure their value as a means of assessing how well they are used and of indicating what needs to be done to manage them more effectively”. The concept of human capital can most usefully be looked at as a “bridging concept”. That is, human capital “defines the link between HR practices and business performance in terms of assets rather than business processes” (Baron and Armstrong, 5).

Over the years, organizations have increasingly been recognizing the link between business performance and the people within their organization, as well as acknowledging that people-related issues need to be a part of their decision making. Therefore, persons who manage an organization's human capital are under more pressure than ever to deliver results from their workforce practices and policies, while ensuring compliance with the law. “Knowledge and understanding of the essential aspects of managing employees and the regulatory framework that drives it, can improve the effectiveness of human resources management, protect your business from needless litigation, and help your business succeed and stand out in the marketplace” (The Human Resources Advisor).

This means that understanding your legal obligations as an employer toward your employees is essential in today's competitive and legal environment, in addition to having in-depth knowledge of all areas in the human resources function. Blending your business' philosophy and culture, with legally-based company policies, practices and procedures, will help set the framework for the design and content of a good human resources management plan (The Human Resources Advisor).

Interested in a reliable resource that will help your organization stay out of legal trouble, avoid fines and penalties, and save money as you comply with the rules and requirements set in law? Be sure to check out The Human Resources Advisor! The objective of The Human Resources Advisor is to provide those who manage personnel, be it the owner, an executive, a human resources professional, an administrator, a finance manager, an operations manager, a payroll specialist, a manager, a supervisor and so forth, with the business and legal information they will need to effectively manage their human resources in compliance with the law. Request your 30-day free trial here!



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