04 Nov Human Resources & Risk Management
Risk management, with respect to human resources, just does not stop at background or reference checks, or after qualification confirmation. Both Human Resources and Risk Management departments must continue to work together and make sure to identify employee–related potential risks on a continuous basis and devise strategies in order to mitigate the identified risks.
After all, risks are unavoidable, and businesses have both a moral as well as a legal obligation to pay attention to the well-being of their employees. This includes employees working under the organization and others who are in touch with the operations.
There should always be a harmonious connection between different departments in every organization to generate the desired outcomes efficiently. As a matter of fact, it is essential for even the risk management and the HR department to work in collaboration and embody a working culture of awareness that eradicates potential risks effectively.
Speaking of this, we have come up with a few examples of HR activities and associated potential risks that an organization must take into account.
Compensation and benefits
This is one area where there are always risks in the form of financial abuse cropping up quite frequently. Organizations should consider these and make timely efforts to deal with them in time.
To put it precisely, companies can manage risks due to compensation and benefits by keeping the packages as simple as possible. They should construct reward programs in a way that they link performance with pay. Other than this, employment contracts should be up-to-date as per the legalities. Most importantly, they should make special efforts to avoid any sort of discrimination and that all rewards are strictly performance-based.
Occupational Health and Safety
This is another very sensitive area where risks are highly inevitable. Risks can include environmental and personal injuries. To overcome these risks, the HR department, in combination with the risk management department, must devise strategies such as conducting regular safety checks. Moreover, they can regularly ask for feedback from their employees through surveys regarding whether or not they find the working conditions safe and satisfactory. In addition to this, they should make sure to provide appropriate clothing and safety gear to the workforce. Moreover, the risk management department should design both on-site and off-site training programs and workshops so that the staff is well-prepared in case they encounter any life-threatening issues.
Furthermore, there should be policies such as life and medical insurance that can be put into action right away as and when needed in times of accidents.
The potential risks here could be related to the property. An organization must make sure that all the information is retrieved and equipment returned, especially if the employee was working remotely. The HR department, along with a risk management team, should formulate working structures in a way that instantly deactivates all access codes and passwords.
Additionally, they must conduct exit interviews so that an organization knows where it stands and whether they must address needs immediately to reduce the labor turnover.
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