SWOT Away your Labor Issues
When you put together your annual business plan, you probably do a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to determine how your company is different from your competition and what actions will keep your business going and growing. But, the biggest threat to your business may be the one thing to which you are paying the least attention.
Based on recent regulatory and court activity, wage and hour litigation is the single greatest threat to your continued business success according to this article on compensationcafe.com. Misclassification, wage theft and other issues require as much attention from businesses as product, pricing and promotion.
Wage and hour litigation is expensive – costing companies up to double and triple damages plus fines plus attorneys fees. While income from operations usually comes in incrementally, wage and hour settlement payouts are a large sum hit on the bottom line. This can not only devastate an organization it can bankrupt it, affecting every single member of that company.
So, how much attention are you paying to your employment practices? Have you performed a SWOT analysis? What are your strengths? Your weaknesses? Where do you have opportunities? What issues pose the greatest threat?
Conducting a compliance audit is a great opportunity to identify and eliminate your unwritten employment policies and practices. Research best practices through discussions with human resources professionals and your legal counsel and make a plan to implement them.
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