getty
Risk management and worker protection are crucial considerations for small businesses. As employers, small business owners need to be aware of various risks that could impact their employees' health and safety, as well as their own financial stability. From workplace accidents and injuries to legal liabilities, understanding the basics of risk management is essential for protecting both workers and the business itself.
Below, 15 Forbes Human Resources Council members share key factors small businesses should know about risk management and worker protection, including identifying potential risks, implementing safety protocols, obtaining appropriate insurance coverage and complying with relevant laws and regulations. By prioritizing risk management and worker protection, small businesses can create a safer work environment, safeguard their employees' well-being and mitigate potential financial risks.
1. Create Employee Policies
A risk management strategy requires buy-in from the whole team for effective execution. With that in mind, small businesses should develop a standard of practices, craft employee policies to reflect these standards and conduct regular training addressing high-risk areas of concern while placing signage throughout the workplace for key issues such as policies protecting worker safety. - Niki Jorgensen, Insperity
2. Build A Unique Employee Value Proposition
Ultimately, it boils down to building a compelling employee value proposition, as investing in risk assessment and worker protection helps minimize potential legal and financial liabilities for the business and shows we care. Small businesses can create a positive work environment by prioritizing worker safety and well-being and building a solid reputation as responsible and caring employers. - Raj Tanwar, Advantage Club Technologies Private Limited
3. Consider PEO Solutions
From my experience, benefits often seem expensive to smaller businesses, yet there are well-known professional employer organization-PEO solutions that allow smaller companies to access great social benefits and legal coverage options for their employees. This is something every small business should consider. - Nick Frey, Avomind
4. Be Proactive, Not Reactive
It is better to be proactive with risk management than reactive. Think of policies and procedures that would help protect your business. If you aren't sure, consult with a professional who can help you. You will save costs in the long run with a small up-front investment. - Erin ImHof, CertiK
5. Hire An Expert
As a small business owner, please hire an expert. Mitigating your risk, building your policies and overall building the administrative processes is not typically why you went into business. Outsource and trust the experts to set up your business for success. - Jessica Wallen, Wurl, LLC
Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
6. Take Risks Seriously
One thing small businesses should know is that risk is real and everywhere. The biggest component of battling risk is understanding it. If you are not versed in that universe, my recommendation would be to partner with a group or broker firm or an outside counsel to review your industry, applicable risks and ways to mitigate them. - Omar Alhadi, Adobe Care and Wellness
7. Establish Clear Policies
In small businesses, in my experience, the owner and staff call themselves a family. The owner is bewildered if an employee is padding expense reports. Employees are upset if they think they are not part of the "inner circle." Thus when a problem arises, if you do not have the required policies, the business is at the mercy of the employee. - Patricia Sharkey, Sharkey HR Consulting, LLC
8. Work Toward Creating Desirable Outcomes
Risk management isn't entirely about avoiding "bad" outcomes. Often the best risk management and worker protection strategies involve creating healthy, sustainable and desirable outcomes. Think of it as running towards a solution, rather than away from a problem. Employee engagement is a great example and, as this Harvard article explains, advancing engagement also improves safety efforts. - Rick Rittmaster, CorTalent
9. Review Your Plan Regularly
The procedure for risk management should have a transparent structure with a visible action plan. It entails locating the risk, determining how severe it is and how likely it is to materialize, ranking the risk according to its evaluation and determining how each risk will be mitigated per industry and company requirements. This risk management plan must be reviewed regularly, mainly when a change occurs. - Dr. Nara Ringrose, Aquila Nuclear Engineering
10. Take Responsibility For Employee Safety
One thing small businesses should know about worker risk management and protection is that they have the responsibility to provide a safe and healthy work environment for their employees, whether they are working in-office or remotely. Small businesses should also have insurance policies in place to protect themselves and their employees should any accidents or injuries occur in their workplace. - Laura Spawn, Virtual Vocations, Inc.
11. Seek Guidance From HR
It may not make business sense for a small business to have in-house HR support. If they don’t, they should engage an expert’s experience to conduct a full analysis of federal, state and local employment laws to educate them on what needs to be done to comply. Remember, this must be reviewed periodically, as new laws are continually put in place. - Lisa Shuster, iHire
12. Understand Your Fiduciary Responsibility
If you offer a retirement plan (i.e., 401(k), pension plan or anything else), be aware of the fiduciary responsibility you have in managing it, especially if you do not have a broker. This includes making deposits on time, creating an investment policy statement, reviewing the health of your plan and taking action when funds are not performing. This is also a great time to review operational compliance and participation rates. - Jessica Adams, Brad's Deals
13. Follow Relevant Regulations
Assess and mitigate potential hazards, provide adequate training and follow relevant regulations. Establish safety policies, communicate them effectively to team members and foster a safe culture. Neglecting risk management and worker protection can result in injuries, lost productivity and legal liabilities, which can be particularly detrimental to small businesses with limited resources. - Joseph Soares, IBPROM Corp.
14. Take All Necessary Steps
Don't cut corners because you're small. Protect you and your business by putting policies and procedures in place that keep you compliant with federal, state and local laws. - Veronica Oubayan, CarepathRx
15. Find An Affordable Vendor
A risk management policy has no minimum headcount because it only takes one incident to damage an organization. If finances are a concern, find a vendor with scalable offerings that can customize programs to your business, but don't delay implementing it, or worse, forgo it entirely. - Patrick Donegan, SEI
