As companies continue to find their footing in this slippery and unpredictable economy, you shouldn’t lose sight of the importance of solid HR practices in your company. Despite the desire to cut costs – and perhaps cut corners – solid HR is critical in protecting your company against lawsuits, and in weathering the economic storm. We ask our prospects the following five questions when considering, How does their HR bottom line look?
- Is your employee handbook up-to-date?
- Do your managers understand and comply with progressive discipline practices?
- Do you have detailed job descriptions to hold employees to objective standards?
- Do your Human Resources practices reduce your liabilities as an employer?
- Are you prepared to adapt to changes in Human Resources/Benefits regulations?
If you answered No, or I’m Not Sure, to any of the questions above, you may be placing your company in jeopardy. Recent reports support the tale that during an economic downturn, employment lawsuits rise. A recent overview of the legal landscape by The Legal 500, a 20-year old publication providing comprehensive worldwide coverage on legal services providers, confirmed this fact:
The onslaught of wage and hour litigation continues unabated, although the focus has now turned to cases of greater complexity or those relating to specific industries such as pharmaceuticals or construction. The other main development in this area is the increase in litigation resulting from widespread reductions in force. As the hostile economic climate of 2009 forced workers to scrutinize the reasons for their termination in more detail it made them more likely to pursue claims of wrongful termination when they couldn’t secure employment elsewhere. Along with these trends, new legislation continues to fuel changes in the employment landscape.
What are you doing to protect yourself?
In our next post, we will discuss two cost-effective ways employers can protect themselves from the ever-growing tide of employment lawsuits.