7 Most Frequent HR Mistakes and How to Avoid Them

Overview How effecive are your HR pracices? You could be missing he mark and no even know i. This guide will help you ideniy and correc seven o he mos common HR misakes.

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Inroducion Lack o an updaed employee handbook Lack o documenaion or perormance-based evaluaions Insufficien and improperly sored employee records Poor hiring and promoion decisions A disregard or raining Lack o adequae HR policies Ignorance or disregard or applicable laws and regulaions Resources Abou Insperiy

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Introduction While i migh be easy o ignore an employee-relaed siuaion unil i reaches a boiling poin, i can also make a company vulnerable o a liany o liabiliies. Luckily, some o he mos common HR misakes are also he mos prevenable when you ake a proacive approach o planning.

In this guide, we will outline the most frequently seen offenses and how to avoid them.

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1. Lack of an updated employee handbook Your employee handbook should be boh a general and fluid documen ha is revised a leas every wo years o keep he inormaion curren. Employees should receive eiher a revised prined copy or be noified when a new elecronic version is available. You should also require hem o sign an acknowledgmen ha hey have received he handbook and will abide by he policies. Solid policies can reduce your company’s liabiliy, as well as provide sandards o conduc or your employees. Handbooks should no include specific employee benefis inormaion or sandard operaing procedures. These documens should be mainained separaely because hey can become quickly oudaed.

Wha o include in your employee handbook Code of conduct

• Code o ehics • Dress code • Grooming • Saey • Atendance

Communications policy

• Mail/email • Tex messages • Social media

Nondiscrimination policy Employment and termination policy Acknowledgement

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When an employee perormance issue arises, be sure o documen: • Who was presen • Wha he problem is (examples are helpul) • When i occurred • Where improvemen mus be made • How o aciliae improvemen • Possible consequences i improvemen is no achieved

2. Lack of documentation for performance-based terminations Yes, i is your business, bu impulsively firing an employee can creae a hos o problems. Esablishing and adhering o a progressive discipline policy no only provides employees an opporuniy o improve heir perormance, bu can also demonsrae ha negaive employee acions (such as a demoion or erminaion) are due o perormance-based reasons. I’s vial o esablish a disciplinary acion procedure o help avoid liabiliy issues. Documenaion prior o erminaion is imporan. Afer every discussion wih an employee abou he employee’s perormance, conduc or atendance, wrie down he specifics abou he conversaion.

Have the employee sign a document acknowledging the meeting occurred, and that the employee was made aware of the issue. The employee is acknowledging receip o he counseling or warning, no ha hey agree or disagree wih he observaions or course o acion. I’s also imporan o be sraighorward in all discussions wih employees. A candid conversaion may be uncomorable, bu skiring any issues in an atemp o be polie can creae anoher layer o problems. When i’s ime o discipline or erminae an employee, keep he discussion proessional and concise. Be sure ha proper procedures are ollowed prior o erminaion, and ha you can prove an employee was erminaed or perormance, no unairly le go.

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3 HR Files o Mainain

3. Insufficient and improperly stored employee records How hick are your employee files? I he answer is no very, you likely have deficiencies.

I-9 folder

• All employees’ I-9 orms Personnel folder

• Job applicaion • Resume • Background check inormaion • Offer leter • W-4 • Employee reviews • Counseling/documenaion records • Training records • Confidenialiy/non-compee agreemen • Handbook acknowledgemen signed by he employee • Drug esing consen/ acknowledgemen HIPAA-protected folder

• Healh, lie and denal benefis orms • Drug esing resuls • Personal or amily medical leave inormaion • Docor’s noes • Benefis enrollmen papers • Worker’s compensaion

A valid I-9 (verificaion o employee ideniy and eligibiliy o work in he US) is paricularly imporan o have on file – i can be a cosly misake i i canno be produced upon reques by Immigraion and Cusoms Enorcemen (ICE). You may decide o creae one older o house all employees’ I-9 documens so ha hese are readily available. Since ICE has he righ o inspec hese documen s where hey are mainained, i is generally a beter pracice o keep I-9s separae rom oher personnel documens so you do no have o produce he enire personnel file in he even o an audi.

Take time to identify what regulatory agencies govern your industry and what other documents might be necessary according to law. A personnel file should also be kep or each employee, and each file should conain paperwork relaed o he employee and sored in a secure place. You migh also decide o creae a second personnel file or each employee o include healh and welare-relaed benefis inormaion ha may be proeced under he umbrella o he Healh Insurance Porabiliy and Accounabiliy Ac (HIPAA). Employers should conduc rouine audis o employee files o make sure all perinen inormaion is horough and accurae. I’s also imporan o veriy ha inormaion is being appropriaely proeced since he poenial or human error in such areas is high.

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4. Poor hiring and promotion decisions No properly screening poenial employees and candidaes or promoion is anoher common misake. Correcing poor hiring decisions can be cosly in erms o employee engagemen, reenion and even replacemen. Though paienly waiing or a candidae who bes fis your company’s needs can be ough, hasily hiring a candidae can be disasrous. Hiring

Factors to consider before hiring

• Skills • Background check • Job experience • Culural fi • Educaion • Desire o work or company Factors to consider before granting promotions

• Perormance • Leadership • Srenghs

• Weaknesses • Necessary raining

When inerviewing a poenial employee, i’s imporan o go beyond he scope o skill-based quesions and ask behavioral-based quesions o beter undersand how candidaes will fi ino your company culure. For example, raher han asking “How are your cusomer service skills?” you migh pose his quesion: “How did you work hrough a difficul cusomer service siuaion in he pas?” This provides an opporuniy o spo poenial red flags in knowledge, skills or compeencies, as well as evaluae a good culural fi. Promotions

Oher common misakes are keeping employees in he wrong posiion or an exended period o ime or graning promoions wihou raining. For example, employees may be dedicaed workers, bu i hey are placed in a supervisory posiion wihou prior managemen raining or experience, hey migh no have he skills necessary o be successul.

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When you hink o running a background screening, you migh simply hink o a criminal background check.

In reality, an employment screening service should offer at least these vital components at a minimum: a

Educaion verificaion

a

 Job hisory verificaion

a

Criminal background check

a

Naional Sex Offender Regisry check

a

Social Securiy number race

a

Fraud deecion

4. Poor hiring and promotion decisions (continuted) Screening

Selecing he bes person or he job using pre-employment screening can help ensure a avorable oucome. Such screening has become increasingly affordable or even small businesses hoping o ideniy candidaes’ inheren srenghs and weaknesses. Various esing producs are available or his kind o screening. Anoher opion is background screening, which looks a a prospecive employee’s educaional credenials, criminal background or credi background. Background screening is imporan, bu care should be used in deciding wha checks you run and how you apply hem o your hire/no-hire decision. Background checks should be job-relaed. This is an area where he Equal Employmen Opporuniy Commission (EEOC) has been increasing scruiny o employers. Also, here are specific laws governing background checks ha may require noice o and auhorizaion rom he employee. Make sure o use a repuable screening company ha is amiliar wih hese requiremens.

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5. A disregard for training  All indusries grapple wih how o bes use and maximize heir people. The difference beween bes-inclass and lax companies ofen lies in he srengh o he workorce. Taking ime o beter yours is a valuable invesmen in he uure o your business.

The reality is that training starts on the first day of the job as employees try to understand how to use their skill sets to best benefit the company. Thus, onboarding training is paricularly imporan in helping new employees undersand processes and expecaions righ off he ba. Addiionally, many employers implemen a raining program in order o improve profiabiliy, cusomer service, qualiy or efficiency. When esablishing an effecive raining program, i’s imporan ha you know wha you wan o accomplish. I’s also imporan o undersand he direc and indirec benefis o raining. For example, sending an employee o a seminar migh no only each him a new skill, bu also make him eel more valued and, hereore, happier in his role.

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6. Lack of adequate HR policies Vacation payout policy

Abou hal o he 50 saes require employers who offer vacaion pay (or paid ime off) o have a policy in place regarding payou o unused vacaion ime when an employee leaves a company. Some saes require all accrued, unused vacaion o be paid ou upon erminaion o employmen, bu oher saes deer o he employer’s policy, provided i is clearly writen and has been communicaed o he employee. When you do no have a policy clearly defining when an employee is or is no eniled o be paid or accrued, unused vacaion, you may have o pay ou or all unused vacaion ime. Check wih the state labor department in the state(s) where you have employees or insigh ino specific rules. Complaint process

All employers should have a ormal, sep-by-sep complain process in place ha allows employees o express concerns when hey eel wronged or unhappy abou a work-relaed issue. In addiion o helping manage liabiliy by addressing work problems beore hey become legal problems, having his ype o policy in place can help aler managemen o a problem or issue beore i escalaes and causes a disrupion in produciviy. A as and effecive soluion can benefi everyone involved. The employee is again happy and producive, and managemen has avoided wha can be a lenghy and expensive resoluion process. Disaster and workplace violence plan

Disasers and violen evens are ypically unanicipaed. Thereore, i’s essenial ha your company is prepared and has a disaster recovery plan in place. Your plan should have a clear policy, a response plan and raining ha covers wha o do during cerain siuaions, such as during a workplace violence inciden or naural disasers.

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7. Ignorance or disregard for applicable laws and regulations All business owners should be aware o perinen laws and regulaions and comply wih he enes o hem. Many business owners find hemselves aoul o he law afer growh propels hem ino a new level of compliance.

Businesses commonly misclassify employees, but this can be a costly mistake. For example, when employees are misclassified as exemp employees and hey work unpaid overime, hey may be eniled back pay.

What’s the difference? Independen conracor

Overime exemp employee

Non-exemp employee

• No ax wihholding • Typically works or oher eniies • Provides heir own equipmen • Ses heir own hours • No direced on a daily basis by he company • Numerous oher acors

• Tax wihholding • Mus mee specific overime exempion requiremens • Salary wage • No overime pay required • Pay can be reduced only under cerain circumsances

• Tax wihholding • Hourly wage • Overime pay • Paid or acual ime worked • Hours mus be accuraely racked

To deermine classificaions, you mus look o he employee’s specific duies and how hey measure up. So, while properly classiying employees is vial, i is also somewha complex. The Fair Labor and Sandards Ac (FLSA) governs he issue and he Unied Saes Deparmen o Labor Wage and Hour Division provides guidance on he FLSA.

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