Top 3 Unsolved Employer Frustrations Due to HR Challenges That Can Put You in Legal Trouble

Posted On:

18 Jan, 2024

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Posted By:

Rakesh Verma

In every organization, the human resource serves as a bridge between employees and management. Right from allotting employees to managing them, the HR team takes care of everything for better company operations.

However, like every other department, HR has its share of challenges, leading to employer frustrations. Due to some HR challenges, the overall operations of a company and its success can be affected.

To mitigate these challenges, it’s crucial to find out the frustrations that employers face. Even though a lot of technological advancements have taken place, let’s check why employers still suffer.

What HR drawbacks lead to employer frustrations?

There’s no doubt about the fact that HR operations have now become mostly technology-oriented. Most companies are using HRM software systems to keep track of their employees and enhance their business growth.

However, all these solutions majorly cater to large companies and MNCs with multiple employees. What about the small industries? Have you ever seen any employee attendance system in any startup?

Even if you see small businesses hiring HR professionals, they’re still not satisfied with the results of the existing HRM systems due to these reasons:

1. Poor business efficiency

A large part of any business operations is the employees. To manage employees in a way to enhances business operations, it is crucial to abide by labor and tax laws. Otherwise, it can affect business operations and efficiency.

The problem with MSMEs and startups is the founder managing everything from the beginning till the end. Juggling between so many tasks simultaneously leads to a haphazard situation. This is why employers fail to follow the labor and tax laws, ultimately leading to chaos in the company.

2. Non-compliance

When a company hires any professional, it requires maintaining proper documentation. As per the labor laws, every company must have records of every employee even after the employee is terminated.

This is where the small and medium industries fail. On one hand, this affects the company reputation. On the other, the employers fail to provide any suitable documentation, precisely, offer letter, salary slips, and experience letter, to the employee, blocking future opportunities for them.

3. Lack of knowledge about labor and tax laws

Unfortunately, a majority of the MSMEs have no clue about the labor and tax laws of India. As a result, they don’t have any idea about how to manage and keep an account of their employees.

Similarly, when it comes to paying the employees, the employers barely follow any rules as mentioned in the tax laws. Firstly, they pay in cash and secondly, do not provide any salary slip. Violating all these rules can land them into legal trouble.

Conclusion

To eradicate such employer frustrations while thinking of an affordable solution to manage employees, you have MicroHR by your side. It is a free HR software for startups and small business with automated employee management feature that reduces the tasks of employers and brings efficiency to their business.

Right from being a free employee attendance system for MSMEs to managing compliance and documentation, MicroHR is your go-to affordable HR software for small businesses. Being a mobile-friendly software, you can micromanage your employees right from your fingertips.

Want to know more about MicroHR? Click here.

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