Starting a business from scratch is both an exciting and scary time. It is the point where the foundation is set for the future success of the venture. Unfortunately, an often neglected or overlooked area of this foundation is a solid HR tools investment. A time management and attendance system and a payroll system help manage the growth of your start-up smoothly and ensure that you hire and retain the right people. Below are five common mistakes that start-ups should avoid.

Inadequate Employee Records

When a business is small it is easy to overlook the importance of having proper employee records in place. With just a few people this sort of HR requirement seems unimportant. However, this while not a priority is very important. You should have employee records that include basic details; salary scheme, tax details, attendance details and qualifications. Later the records should include a growth path for each employee. These records become very important as your employee strength increases as you need to comply with labour laws and government regulations, not to mention being important for employee growth within the company.

Ignoring Employee Development

This happens as a result of inadequate records. Without proper data on each employee’s strengths, goals and career growth path it is easy to miss providing them with training and opportunities to acquire new skills. Today, employees want and expect to grow and learn along with the growth of your company and will be dissatisfied if they feel left behind. A good communication channel is essential so that miscommunications and frustrations can be avoided and that is why a proper HR system should be in place from the outset. HR tools help your company grow smoothly and progressively.

Not investing in a time and attendance system

With the advance in HR tools it is important that you make use of them for your start-up. With just a few employees it is easy to keep an eye on attendance and to schedule work rosters if necessary. However, as your workforce grows this becomes time consuming to handle manually. A time and attendance system removes the hassle of handling this and provides you with accurate records that are easily accessible. You will also have access to a system that helps you manage multiple rosters and shifts with ease.

Taking Care of Payroll professionally

Again, as a start-up it is probably easier and cheaper to handle the payroll yourself. But again, by doing this you would not be taking the bigger picture into consideration. Remember your company will grow, your workforce will increase, you will have other areas that will need your immediate and sometimes even constant attention. Investing early in a payroll system will make your business life less complicated and the overall flow of the business smooth. It doesn’t matter how many new employees you hire, your payroll system will ensure that salaries, bonuses and other remunerations are taken care of with speed, precision and professionalism.

Being afraid to fire an employee

While we always endeavour for the best at the outset there are times, when we make a mistake, or the fit just doesn’t work. The worst thing you can do for both your company and the employee is not to terminate the employment. It may seem harsh, but it doesn’t have to be so. Done with professionally and handled with compassion you can ensure that the terminated employee is sent with the proper requirements to gain employment elsewhere. However, make the decision and take prompt action so that things to do not fester and frustrations build up.