What are the SIX biggest HR mistakes to avoid?
- Failure to document performance related issues, or taking an employee action without documentation.
- Not having a formal compensation plan resulting in:
- No stated pay philosophy, lack of a standard in establishing pay. Pay philosophy is most associated with competitive position within the labor market and budget limitations. Different pay philosophies can be established for different jobs based on required skills, knowledge education in tight labor markets.
- Lead the market in pay
- Match the market in pay
- Lag the market in pay
- Equal pay concerns
- Not establishing caps on salary ranges to avoid overpaying for a job based upon market data.
- May be in violation of equal pay act, requiring equal pay for equal work men and women.
- Not being competitive in wages and benefits as compared to the market
- Inefficient, or ineffective, use of personnel related resources.
- No stated pay philosophy, lack of a standard in establishing pay. Pay philosophy is most associated with competitive position within the labor market and budget limitations. Different pay philosophies can be established for different jobs based on required skills, knowledge education in tight labor markets.
- Outdated employee handbook or HR policies or polices not meeting actual practice. Policies and practices should align, inconsistency could result in legal challenges
- Failure to take action in dealing with difficult employees. There is a saying that 20% of employees will take 80% of your time. Employees observe how these difficult coworkers are dealt with, or not. Not taking corrective action with difficult employees affects supervisor credibility and overall effectiveness.
- Failure to align HR strategies with organizational goals. The cost of personnel is usually the largest budget line. All HR functions should be structured to support organizational goals and ensure the best use of these resources.
- Not having a formal policy on harassment, sexual misconduct, sexual harassment to ensure prompt investigation, maintaining confidentiality, protection from retaliation, and not taking appropriate correct action.
