10 Things a CMA Must Know about HR In spite of the growth of the human resource profession, the fact still remains that a large number of CMA members are charged with the responsibility for the people side of the business. And while you may be exceptional at all of the accounting functions, leading and managing human resources may not only be your least favourite task, it can be troublesome to say the least. Transactional activities such as payroll, benefits, calculating vacation and sick leave are typically not a problem. It’s all those interpersonal issues such as team conflict, absenteeism, rewards and recognition and even employee termination. And then again, organizational structures and systems must be put into place to manage all of these HR complexities. Finally, in the midst of all the accounting responsibilities, CMA leaders must take time to stay current with the latest trends in labour and employment law, workplace health and safety regulations.

It’s well known and you’ve probably experienced the fact that people problems can quickly overwhelm a business. At the same time, you need to keep in mind that the government doesn’t care if you are big or small when you violate the law. Violation of employment laws can carry heavy financial penalties regardless of whether you have 1, 10, 30 or 100 employees. And with the potential of high profile publicity of these workplace issues, who needs this kind of hassle? You get the hint; managing your human resources the old fashioned way; “by the seat of the pants” just won’t work any more. Errors in human resource management will cost as much as any production error. For instance, when was the last time you calculated lost time for absent or injured employees? What about metrics for reduced productivity, poor customer service, poor team relations, lost sales and revenues and the potential for costly legal fees? Take time to set some metrics for your firm and then make certain you aren’t heading toward some of the more common HR mistakes inexperienced leaders make. To prevent such problems, here are 10 things you must know about HR:

1. Use patience in recruitment and selection – many small businesses have sharper peaks and valley’s in their business cycle with the result they tend to simply hire “bodies”. They neglect to carefully define jobs, the skills required and then match these to appropriate candidates. The result is a series of poorly hired candidates, high turnover and higher costs to the company.
2. Conduct appropriate and legal candidate interviews – many inexperienced leaders have no idea and/or ignore the fact that some interview questions are totally illegal. Their questions fail to apply directly to the job the candidate but instead make discriminatory inquires. Questions about religion, age, national origin, marital status, number of children, birthplace, willingness to work on a specific religious holiday, political beliefs, dates of graduation, medical information, or organizational memberships are all illegal.
3. Apply provincial employment legislation – when candidates are hired, inexperienced leaders ignore the fact that there is standard legislation spelling out specific employment contract rules for employer/employee relationships. Ignoring them puts your company at great risk. Particular current issues relate to job titles for managers and overtime. Check it out.
4. Set out performance expectations – while each new employee is excited about their new role, failing to clearly define the role, its boundaries, skills and expectations leads to disillusionment on the part of both parties. How can one feel a sense of accomplishment if their goals and objectives are unclear, there is no feedback, coaching or guidance?
5. Document performance – Not documenting performance is the most frequent mistake made by inexperienced leaders. They often simply don’t follow a systematic approach to employee performance management. Whenever an employee is experiencing difficulty, they must be informed of their challenges and given the opportunity to improve. Termination without cause can be complicated and a costly endeavour.
6. Produce and maintain policies and procedures –policies and procedures are critical for managing the human side of your business. But photocopying a policy manual from another business just won’t do. You have to examine what policies apply to your industry sector and ensure that all policies fit your own company. In addition, your policies must not be discriminatory in any way and must be applied consistently.
7. Ensure Excellence in employee communications – as a company grows, it’s harder and harder to maintain direct face to face contact with your employees yet many inexperienced leaders don’t effectively implement any communication strategies. If you want employees to remain loyal and connected, then make sure they are connected.
8. View training as an investment not as an expense – most inexperienced leaders fail to see training as an investment and fail to set aside a percentage of salary for training. In fact, in many cases, these leaders fear that increased training will only make the employee more marketable while those who do invest in training reap the rewards of a highly productive and motivated team of workers.
9. Value Human Resources in general – inexperienced leaders who don’t treat their people well will soon give their company a bad reputation. The result will be difficulty recruiting good staff, high employee turnover, low trust in management, low morale and low productivity. This in turn will drag your business down and prevent you from being as successful as you could be.

Managing human resources is becoming increasingly complex and requires specialized and comprehensive knowledge. Failure to effectively manage your human resources will only result in costly mistakes. Keep in mind that violation of employment laws can carry with it heavy financial penalties and unwanted public profile regardless of whether you have 1, 10, 30 or 100 employees. The solution is to take training in human resources yourself and/or hire a professional in the field. The payback will be immediate.