HR has a lot of responsibility in the workplace, to say the least. They manage everything from hiring new employees, to choosing a benefits plan, to making sure that company policies are in compliance with federal and state laws. With so many responsibilities, it’s easy to understand how some things might fall through the cracks – however, these cracks can be costly. If you are a manager or C-suite executive, it’s important for you to help your HR department avoid costly mistakes. To help you out, we’ve rounded up the 5 most common mistakes in HR so that you can know how to avoid them.

1. The 5 Most Common, Costly HR Mistakes
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Phone: (877) 598-0555
Email: info@corpfi.com

2. The 5 Most Common, Costly HR
Mistakes
•HR has a lot of responsibility in the workplace,
to say the least.
•They manage everything from hiring new
employees, to choosing a benefits plan, to
making sure that company policies are in
compliance with federal and state laws.
•With so many responsibilities, it’s easy to
understand how some things might fall
through the cracks – however, these cracks
can be costly

3. •If you are a manager or C-suite executive, it’s
important for you to help your HR department avoid
costly mistakes. To help you out, we’ve rounded up
the 5 most common mistakes in HR so that you can
know how to avoid them.
•Asking illegal questions during an interview
•While most employers know that it is illegal to ask an
interviewee about their age, race, gender, pregnancy
or disability status, that doesn’t mean it doesn’t
happen. Sometimes, interviewees let it slide; other
times, they decide this is a company they don’t want
to work for. And yet other times, they sue for
discrimination.
The 5 Most Common, Costly HR
Mistakes

4. •To avoid this pitfall, keep your questions
limited to the professional arena.
•You can even have HR draft a list of
permissible questions, and stick solely to that
list.
•You should also have HR help you when
drafting the initial job description, making
sure it doesn’t list requirements that could be
viewed as discriminatory.
The 5 Most Common, Costly HR
Mistakes

5. •Employers who are not clear about their overtime
policies often end up with employees working
unapproved overtime hours.
•While employees may say they needed to work
overtime in order to get the job done, most companies
do not want to pay unplanned overtime wages.
•One of two things can happen: You can pay, and cut
into your budget, or you can refuse, and risk a lawsuit.
Not being clear on your
overtime policy

6. •Another overtime issue is when HR
wrongly classifies an employee as being
ineligible for overtime pay.
•In fact, the Fair Labor Standards Act has
very specific guidelines for what renders
an employee ineligible, and it’s up to HR
to apply those guidelines accordingly.
Not being clear on your
overtime policy

7. •To keep within legal overtime frameworks, set a clear
overtime policy for employees. Whether it is setting a
blanket ban on overtime, always allowing it, or
requiring employees to receive individual approval
for each overtime assignment, make sure you have a
policy, and that your employees sign on it.
•To check if your employees are exempt from receiving
overtime pay or not according to the Fair Labor
Standards Act have HR do their own due diligence.
Not being clear on your
overtime policy

8. •It’s true that not all federal laws apply to all
companies, but HR needs to do proper research in
order to determine which laws apply, and which don’t.
•Assuming that certain laws don’t apply because, for
example, you have fewer than 50 employees, or you
are affiliated with a non-profit, is a recipe for disaster.
Thinking that not all laws
apply to your company

9. •In order to stay in compliance with the law, hire an HR
professional who is 100% familiar with the laws, or
outsource to a consulting company, broker or agent
who can do an assessment for you.
•They should be well versed in EEOC, Department of
Labor, OSHA requirements, and any other relevant
laws.
Thinking that not all laws
apply to your company

10. •Sometimes managers have issues with employees, but HR is not
so keen to record them. They think that it will blow over on its
own, or that a warning will do the trick.
•This is not a good HR practice, and here’s why: Let’s say a
number of managers have come to HR to report the lackluster
performance of a certain employee. However, the last
documented performance review of this worker was 11 months
ago, and it was great. If you fire him, he may have cause to sue –
after all, there are no documented cases of poor performance –
only a sterling report!
•Therefore, be sure to record any performance problems or
complaints that occur, even though it means more paperwork.
Not documenting performance
problems or complaints

11. •When the time comes and you need to fire an
employee, there is a wrong way and a right way to do
it.
•The wrong way is firing an employee in public, or
during a private meeting, to get emotional and drag
out the conversation.
•The right way is to make sure you have legal back-up
to what you are doing, and then to arrange a private
meeting and state the facts with as much
consideration as possible without becoming critical or
apologetic.
Messy Firings

12. Messy Firings
Some examples of laws to review are:
•Is this person pregnant? Disabled?
•Have they filed a Worker’s Compensation claim in
which firing can affect the claim?
•Do you have documentation supporting your reasons
for firing this employee?
•Has this employee received warnings in the past?
•What about the employee’s contract?
•Is it time-restricted in any way?

13. Messy Firings
•If HR has made sure you are in the clear in all these
aspects, you can then proceed with the termination
process.
•A good way to ensure that you don’t stumble during
this incredibly difficult meeting is to rehearse
beforehand. Practice with someone from HR or in
front of the mirror alone. As usual, rehearsing can
ensure you are better prepared.

14. •Additional HR tips include making sure that
employees have filled out all their paperwork and that
managers have regular training regarding sensitivity
and discrimination. If you have any questions
regarding the HR practices of your company, feel free
to contact Corporate Financial.
•We have over 20 years of experience in HR consulting
and would be happy to help ensure that your company
is in compliance with all necessary laws.
Other HR Tips

15. Contact us:
Corporate Financial, Inc.
Phone: (877) 598-0555
Email: info@corpfi.com
www.corpfi.com