The 9 Most Common HR Mistakes

Xenium HR Business Partners Annie Oxenfeld, Jenny Scull, and Judy Lofurno contributed to this post.

You’ve started a company, hired some stellar employees, and things are rolling more smoothly than you could’ve ever imagined. Your team works hard, is seeing fantastic results and growth, and—best of all—you all feel more like friends than a boss and a couple of employees.
What could go wrong? Seemingly nothing!
…Until something does.
Maybe an employee experiences a personal loss or other hardship in his or her life, and it impacts how they work or behave in the office, requiring you to confront and coach the employee—something you’ve never done before. Maybe you have a problem employee and the only possible solution is to fire them, but you don’t have any written documentation of the issues to protect you if the employee challenges it in court. Maybe something shifts in your company and you suddenly need to hire someone to support a new initiative, and you rush the hiring process, creating trouble down the road.
We see these and other problems all too often in our work. They’re all easily preventable with a little research and consideration and, most of all, recognition of the real likelihood for problems to arise even at a seemingly idyllic company.
Here are the most common issues we see, and what you can do to avoid them:

1. Omitting policies from an employee handbook

The problem: Many small business owners who know their employees well are often tentative to impose policies on their workers, for fear of the reception a strict policy might receive in a company culture so steeped in trust and friendliness.
However, it’s inevitable that problems will come up, and it’s unrealistic to assume that your company is the exception. A company with an incredible culture and close, friendly staff can still have that one person who causes problems, costs the company tons of money, and makes the workplace negative for everyone else. Sometimes the trigger is totally external, such as a financial hardship, a personal circumstance—factors outside of your control.
What’s inside your control are the guidelines and policies you create for your company to protect your company and your employees in case something unexpected does occur. You don’t want to be scrambling for a way to back yourself up when action is needed immediately.
How to solve it: Take a look at some policy templates and example scenarios. If you are still wary about adding policies, consider approaching your handbook as a robust picture of your company rather than a list of rules. Add introductory, friendly language to the handbook including your company’s history, mission statement, values, culture, and more.
Additionally, know that your employees may be more appreciative that you are forward-thinking. Many people love having common guidelines to refer to regarding what the parameters are for holidays, vacations, pay periods, and more

2. One-on-one coaching

The problem: Coaching meetings are frequently swept aside in favor of other tasks. These meetings are an opportunity for regular feedback, which employees love. Studies show that employees are more engaged even if they receive negative feedback than if they don’t receive any feedback at all. They want to hear from their manager, but when these meetings are not made a priority, it can make a huge difference in engagement, retention, success of your employees, efficiency of your business, morale, and even figuring out if your employees are in the right roles or if their skills and interests are being fully utilized. When those meetings don’t happen, the employee misses out on the opportunity of being checked in on, voicing concerns, and having those concerns followed up on— allowing a small issue to potentially grow into something worse down the road.
How to avoid it: Prioritize employee feedback and communication between employees and supervisors. Create a schedule for regular 1:1 check-ins, and stick to it. Write out agendas for each meeting with example agenda items such as checking in, talking about the employee’s job overall, setting goals, and asking the employee if they need anything more from management.

3. Lack of an effective performance plan

The problem: When an employee’s performance becomes truly problematic, a number of things can go wrong in how the situation is handled. In some cases, a manager doesn’t have the skills to manage such an issue, or just doesn’t have the time in his or her schedule, and the issue isn’t given its due attention. In other cases, a manager prefers face-to-face conversations, and the performance improvement plan consists of a few discussions with the employee about his or her behavior. Some may skip documentation due to time constraints or because they believe they have a lot of freedom as an at-will employer.
You absolutely have the freedom to fire a person whenever, for any reason, as an at-will employer. However, you may be opening yourself up to a lot of risk if you don’t have solid documentation in place. An employee could come back at a later date and claim they were fired for being in a protected class, and suddenly it’s your word against theirs.
How to avoid it: Take training workshops in conflict resolution and performance plan management, and document the steps taken throughout such a process. Recognize that although documentation does take time, it truly is a protection for your business.
Verbal conversations might be easier, but in the end it’s better to have something in writing. If getting a signature seems overly formal for the situation or your company, try an email follow-up. Another option to consider is the idea of positive discipline, which is becoming more popular and effective in certain work environments. Utilize this concept by inviting an employee to write a commitment to change. Say, “We want to help you move past this and succeed in your role. What is your solution to this issue? What do you need to be successful? What resources could we provide you with to help you? How else can we help?” Have them write it down and sign it at the bottom.

4. Strategic Hiring & Mindful Termination

The problem: Oftentimes, entrepreneurs find themselves overwhelmed, exhausted, and in great need of support. In the scramble for resources, they speed through the hiring process to get a person at a desk as quickly as possible. This doesn’t always result in a perfect employment fit and often causes trouble later down the road, costing the company time, energy, and money.
Alternately, when understaffed, some managers will delay firing an employee who ought to be exiting as soon as possible. The time will be right, the documentation is solid, but the employer will deliberately wait. A project isn’t complete or another employee is on vacation, and the employer is concerned about the work being covered. This sets the precedent that the employee’s behavior is okay and that removing them from the workplace is not a top priority.
How to avoid it: When looking to hire, first consider what pieces you could outsource or handle yourself until you grow a bit more. Talent is hard to recruit right now, so be prepared to be patient and expend resources to widen your talent pool. Have multiple people at the interview, do reference and background checks, keep a consistent approach for all candidates, and take your time selecting the perfect candidate.
When it comes to termination, once everything is in order, don’t delay.

5. Onboarding process

The problem: First time business owners or large businesses often have issues in their onboarding process. An employee’s first impression of a workplace can have lasting impacts on how they view the company.
Sometimes a person is trained by someone completely outside of his or her department, and isn’t introduced to members of their team until a later date. This can leave new employees feeling disoriented in a new workplace and in their understanding of who their coworkers are. Orienting new hires to the office facilities, introducing them to the people on their team, and ensuring that they feel as though much forethought went into hiring them are essential parts of this process that often fall by the wayside, or are rushed in a large company setting.
How to solve it: Structured onboarding makes a huge difference in initial engagement and retention later on. Have a plan in place to train new employees and set them up for success. Onboarding is not just day one—it can go all the way through day 90 and transition into regular check-ins.
Create a schedule for an employee’s first day. Have desk supplies ordered and ready, ensure someone is at the front desk to greet them, take them on a tour of the office facilities while also making introductions, and set up meetings for them. Think of ways to go the extra mile to really give a new employee a warm welcome. At Xenium, we decorate new employees’ cubicles with balloons, streamers, and treats.
Make sure people are being trained and welcomed by a relevant employee. If the new hire is in an executive level management role, have other leaders of the organization welcome the individual into his or her role. If it’s more of an entry level position, have that person’s manager interact with them first. Sometimes HR can be part of the onboarding process, but it’s good to get your leaders and managers to show that they are invested in new employees and to begin building those relationships right off the bat.

6. Job descriptions

The problem: Some new companies do not have job descriptions or updated versions. Later down the road, if a situation occurs with an employee’s medical problem and medical certification from OFLA or FMLA is needed or a job needs to be modified, it can be hard to work backwards and create something on the fly in that situation.
How to solve it: Have job descriptions for every employee. These can help set the expectations for new hires and serve as a useful reference throughout employment. Be sure to regularly update job descriptions. Set a schedule to review them if needed.

7. Understanding of FMLA/OFLA/ADA conditions

The problem: Employment law changes all the time. By keeping up to date with current areas that are being heavily litigated, you can be proactive about ensuring that your business operations and documents are in order.
A pertinent example is the new FLSA regulations. In the current landscape, a lot of employers have misclassified employees and are at risk for fines and backpay of overtime. With the new regulations, it will become even stricter, as that area is being heavily litigated right now.
How to solve it: Stay up to date on FMLA, OFLA, ADA conditions, FLSA classifications, and other laws in your local area that could impact your company practices and policies. Know when to loop in an HR professional or consult a lawyer for clarification on a specific issue.
Here are a handful of resources to get started in building your knowledge of these topics:

8. Not being aware of pay rates

The problem: Companies with financial concerns may want to pay employees minimum wage to help keep the business afloat. However, they may not attract many candidates.
How to solve it: Be aware of what’s going on in your industry, particularly when it comes to offering competitive wages. Design a compensation plan for your entire organization by utilizing resources.
If raising your wages isn’t possible, bolster your recruiting and retention strategies by considering other things you can provide as an incentive for people to want to work for you. Millennials are known to look for a quality experience in addition to salary. Consider how your company’s culture could help you stand out to candidates—offer the flexibility to work from home, donate to charitable causes, have a fun office culture, and more. Non-monetary qualities are becoming more and more important when it comes to distinguishing yourself in the market. Start by creating a mission and core values, and integrate them into every aspect of your company.

9. Filing & I-9 forms

The problem: I-9 forms are very specific, and have a tight timeframe—employees must fill out the first page on their first day, and the employer must have the final page filled out within three days. They must also be kept separate. Personnel files cannot have leave, medical, investigation, or birthdate information.
How to solve it: Become well versed in filling out an I-9 correctly. They are very specific, both in how you fill them out and make corrections if necessary. Perform an annual audit for all of your employee records to ensure your paperwork is filed correctly.

Header image credit: ITU Pictures Flickr