Personnel Risk Management
Employee risk management is the process of identifying, analyzing, accepting, and mitigating risks that arise from work activities and employee processes.
People are the backbone of every business, but they generate significant risk. Employee-related exposures, such as health and safety, geopolitical risks, and digitization have been rapidly boosting risk registers and are demanding increased board attention. This trend has been accelerated by the pandemic which illustrated that threats to the health and well-being of the workforce threaten the overall resilience and success of a business. Workforce risk management is crucial to protect, equip, and motivate this most critical asset: people.
Whether you are a plant supervisor or corporate risk advisor, managing your workforce and protecting employers from hazards and geopolitical workforce risk requires vigilance and planning. It’s critical to be aware of workplace risks, develop strategies to reduce their prevalence in the workplace, promote a safe work environment and keep employees protected.
Common risks HR managers should recognize
Implementing human resource risk management into your business can be daunting if you don’t know what you’re looking for. Here are a few common scenarios HR managers should have on their radar:
- Software security breaches and the release of confidential employee information
- Employees working more than their agreed-upon hours
- Employees being paid less than their equals
- Employees not receiving accommodations granted by law
- Missing or incomplete background or reference checks for new hires
- Employee injuries due to lack of training or education
- Employees feeling like they can’t be honest about potential work issues
Ways to reduce risk in the workplace
Follow these tips to reduce the number of potential employee-related issues in your organization:
- Develop a recruitment and hiring plan. Hiring new employees in a rush can lead to problems down the line. It’s best to plan for your hiring needs so you can take the time to properly vet all candidates. Missing a reference check could be damaging and costly to the business.
- Read up on industry and government compliance regulations. Be aware of labor laws, workplace safety rules, privacy laws, and industry norms. Ensure your organization’s policies reflect these regulations.
- Follow the latest legal guidelines. It’s important to stay up to date on legal employment issues, especially regarding family leave, medical leave, and ADA compliance. If your organization has employees in multiple locations, be aware that laws can differ from place to place.
- Provide proper onboarding and training. Establish a detailed program to prepare new employees at all levels to work effectively and safely at your organization. Carefully track onboarding and training requirements to ensure all employees complete them.
- Create a welcoming culture. Develop an organizational culture that encourages employees to ask for help. This way, those struggling with work or personal issues are aware of the resources they can use, so they don’t feel ignored or alone. This can reduce potential dissatisfaction with leadership.
