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Risks in human resource management and how to minimize personnel risks

admin October 13, 2022

Risks in human resource management are a common problem in most companies today. In fact, leaders always have a headache and fatigue in managing human resource risks because human resource risks will bring many losses and heavy losses to companies. Especially with larger companies, the risk level is higher, so what is the risk in personnel and are there ways to reduce risk in employee management?

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I – General understanding of risks in human resource management

1. What is the risk in employee management?

Personnel risk management is those that focus on the specific risks that employees pose to the company. This can be related to specific risks that employees pose to the company such as: inappropriate employee management, employee behavior or how you hire and lose employees.

Proper HR risk management doesn't just focus on senior employees. Everyone from part-timers to senior management is included to help HR measure risks and potentially prevent HRM problems before they even begin.

2. Some types of risks in human resource management

Any business has potential personnel risks in the management process that you can hardly recognize. That makes it difficult and hinders businesses when they do not know what they are looking for and realize the problem of the company. Here are some common types of risk that managers need to be aware of:

- Software security breach and disclosure of employee confidential information

- Employees work more than agreed hours

- Employees are paid less than their salary

- Employees do not receive legal accommodation

- Background check or missing or incomplete references for new hires

- Employees injured due to lack of training or education

- Employees feel like they can't be honest about potential problems at work

II – The importance of risk in human resource management

Personnel risk management is an important part of any company regardless of size or size. A good HR risk management strategy can help you figure out how to deal with problem employees, make good hiring decisions, and help you better manage people in your organization. The risk management in human resource management brings many great benefits such as:

– Helping to ensure benefits for individuals and companies: Ensuring the benefits for each individual and business will be a source of motivation, creating a premise to help employees stick with the organization.

– Serving the needs of people, having a direct impact on the activities and interests of the organization.

– Create ties with public relations, trade unions

– Bringing high stability to the organization, giving the organization a sustainable development

It can be seen that human resource risk is one of the potential problems in every company that needs to be recognized early for timely resolution. Therefore, finding a solution to minimize human risk management is a necessity and extremely important. So what are the solutions, how to manage employees to help reduce human risk in the business? Find out with us below.

Risks in human resource management and how to minimize personnel risks

III – Ways to reduce risks in human resource

1. Develop recruitment and recruitment plan

Hiring new employees in a hurry can lead to problems. It's best to plan your hiring needs so you can take the time to check all the candidates correctly. If companies have difficulties in the , you can use HR software, employee record management software to optimize the recruitment process quickly and efficiently.

2. Make a training schedule for employees

Provide appropriate referrals and training. Establish a detailed program to prepare new employees at all levels to work effectively and safely at your organization. Carefully monitor referral and training requirements to ensure all employees complete them.

3. Create a friendly work culture

Develop an organizational culture that encourages employees to ask for help. This way, people struggling with work or personal issues are aware of resources they can use, so they don't feel ignored or alone. This can reduce potential dissatisfaction with leadership.

Thus, the above article has mentioned a number of risks in human resource management, and offered solutions to minimize risks in human resource management. Hopefully, the above article will provide you with useful knowledge to recognize and overcome those risks in the management process so that the company can re-evaluate its situation and predict possible risks.

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