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Human Resource Employee Risk Profile.
By Philip Lye
Thursday, 22nd November 2007
 
This SIMPLE Checklist should be used as a guide to assess your human resource management and employee relations risks- It is intended to assist you to identify your ‘risk profile' and ‘potential exposures' and with identification to take appropriate action to minimise these potential risks and exposures.

Please answer the following question honestly. If you can only answer part of the question in the affirmative, then you should select ‘No' eg in Q1 if you have employment contracts for your employees and not for your management team then select ‘No'. 

1. I understand my businesses basic employment obligations and comply with them.  Yes / No 
 
2. I understand my obligations required by federal legislation and or state legislation and have updated my employees, employment contracts, policies and procedures.  Yes/ No 
 
3. I have contractors agreements for all independent contractors (associates) and understand the Tax, Superannuation, Retirement Fund, Workplace Health & Safety and implications of engaging a contractor.  Yes/ No 
 
4. I have up to date job descriptions for all employees/associates/contractors.  Yes/ No 
 
5. I have up to date employment contracts for all employees and management.  Yes/ No 
 
6. I induct all employees into the workplace using a documented process.  Yes/ No 
 
7 . I have fully documented human resources procedures and policies in place.  Yes/ No 
 
8. These policies and procedures are available to all employees and are regularly referred to, used and maintained.  Yes/ No 
 
9.  I have documented grievance, discrimination, workplace bullying & sexual harassment policies in place and provide regular training to employees.  Yes/ No 
 
10. I have a written termination procedure and policy in place.  Yes/ No 
 
11. My employees have been trained and understand that we do not accept discrimination, workplace bullying & sexual harassment.  Yes/ No
 
12. My business has a grievance policy and procedure and my employees/associates and I understand how to manage grievances.  Yes/ No 
 
13. I understand that a grievance does not have to be in writing for me to investigate the grievance and failing to investigate can result in severe penalties.  Yes/ No 
 
14. I do not avoid correcting or confronting an employee in a timely manner when a situation arises that requires my involvement.  Yes/ No

15. I understand and ensure my business complies with workplace (occupational) health & safety legislation and obligations.  Yes/ No

16. We have low employee turnover compared to our industry average.  Yes/ No 
 
17. I provide my employees with regular constructive feedback and reward them where appropriate.  Yes/ No 
 
18. Minor workplace issues are not taking to much of my time.  Yes/ No 
 
19.  I look after myself holistically, sleep well at night and are not prone to over-worrying.  Yes/ No 
 
20.  I have documented processes and routines to provide life balance such as time with my partner, family and time for myself.  Yes/ No 
 
COMPLETE THE QUESTIONAIRE AND RATE YOUR PRACTICE AND YOURSELF
The Basic Essentials you require to protect your business from Employment risk.

Job Description – presently Biz Momentum is involved in the case of a 55 year old person employed for 2 years in a small business claiming $325,000 for psychological injury for not having a job description. Authorities have engaged Barristers to fight this common law claim.

Employment Agreement/Independent Contractors Agreement – not having an agreement leaves you exposed to the courts and tribunals interpreting your responsibilities. You must protect your business good will and assets through a well written agreement that is easy to understand by all parties.

Policies and Procedures – harassment, drugs and alcohol, email use, mobile phones, workplace health & safety, visiting client at home, client relationship policies to name a few. Biz Momentum assisted (along with legal counsel) a client who had breached a basic policy.

The matter ended in court and costs before settlement were $32,000 which did not include management time in the paper work and record keeping requirements to get to trial. In another instance an employee was awarded $1,000,000 and the company fined $300,000 for failing to manage and act on a grievance in a timely manner.

Induction progress – recently an employee claiming the workplace did not induct him lost his case because the employer produces a signed induction form. He was claiming $300,000 damages.

Each business must be assessed against legislation, regulations and your business requirements.

RATINGS
18 from 20 - well done

16 from 20 - well done, almost there

12 from 20 - you and your Practice has identifiable employment risks and you need to take action

10 from 20 - you have a high risk profile, take action

9 or less from 20 - remedial actions are urgently required to ‘protect' your business

Further Information
Philip Lye is Director of Biz Momentum Pty Ltd. He works with small to medium businesses to help them cut through the maze of people matters. Clients get specific actionable strategies to protect their business interests. For more information on Philip, visit www.biz-momentum.com    and subscribe to his free monthly e-zine.
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