HR Disaster: 4 Mistakes That Could Bankrupt Your Company

It’s said that we should see mistakes as an opportunity to learn, but in business you can’t afford to make too many mistakes. HR can be a complex and demanding role that bears the responsibility, in part, of seeing that these mistakes don’t happen in the employer-employee relationship. Just defending an employee lawsuit can cost up to $125,000. Here are four costly mistakes that HR must avoid.

1. Favoritism

It’s often the case that you develop a stronger bond with one particular person, but that bond shouldn’t affect workplace behavior. If HR staff or managers offer the same individual most or all of the key assignments, opportunities, and support, it gives that individual an unfair advantage.

This has a negative effect on the morale of other employees. Disaffected workers have lower productivity and company loyalty. This means less profit and higher employee turnover.

2. False Hiring Promises

When trying to land a promising candidate for a key position, HR recruiters are often forced to add more incentives to the recruitment process. Sign-on bonuses, profit sharing, golf club memberships, and anything else that might sweeten the deal are on the table.

However, promises of quick promotions, raises, or growth potential should be avoided. Setting high expectations that you can’t guarantee will only lead to disillusioned employees who start demanding special treatment.

3. No Written Policies

Clearly defining and communicating policies on everything from tardiness to workplace violence, as well as disciplinary procedures, gives everyone a clear sense of obligations and consequences.

By sticking to your own rules in all circumstances, you have a stronger foundation by which to justify your actions against employees who may seek damages against your company or specific individuals. Before this happens, consult a business attorney and discuss the legal strength of your company policies.

4. No Emphasis on Training

HR managers who regard training as merely an obligation are doing the company and its employees a disservice. Proper training programs are an important part of getting the most from your workforce.

By providing training programs in job skills, you’re creating more productive employees with a greater sense of satisfaction and job engagement. Through training on behaviors like discrimination or harassment, you’re creating a better working environment with less likelihood of worker lawsuits.

Eliminating these HR mistakes will give you both a better company culture and a happier workforce. They also help to safeguard you against employee lawsuits.

Author: Anica Oaks is a professional content and copywriter from San Francisco, California. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. If you need business law advice, Anica suggests you check out the services of The Weisblatt Law Firm.