1. Inaccurate Job Descriptions
No matter the excuse employers should always take the time to come up with an accurate job description. By hiring someone who doesn’t fully understand the position an employer opens themselves up to risks including: disgruntled employees, high turnover and even legal issues. Next time you are writing a job description be aware if not done properly you could be writing someone’s ‘get out of jail free’ card.
2. Crossing the Line in an Interview
Occasionally you have an interview where the interviewer has nothing prepared. Instead of using a list of questions they are going off the cuff as the interview moves forward. This is a mistake. When interviewers use this tactic they risk asking something they shouldn’t. If this happens and the person doesn’t get the job the employer could be looking at a discrimination suit.
3. Not Checking References
Checking references and credentials are an essential part of the vetting process. By failing to do so a company is put at great risk for a bad hire. Studies have shown that replacing a bad hire can cost up to 50 or 60 percent of an annual salary. In addition to cost, a company may be looking at other damages that could have been avoided with proper background screening.
4. Rash Hiring
Hiring too quickly has the same repercussions as not checking references. By cutting corners or hiring on the spot an employer takes a big risk of missing something. This could result in a bad hire – increasing the risk of turnover and a loss in profit. Don’t forget about the other candidates who may feel that they didn’t get a fair chance. Hiring is one area of business that time is very important. The more time spent on the decision the more informed you will be about your new hire.
5. Failing to Address Problems Properly
A big mistake employers often make is not properly addressing problems. By failing to do so the problem may continue to grow and eventually get out of hand. If the result ends with someone getting fired the employer could be facing a lawsuit for unfair termination.
6. Keeping Poor Records
This goes hand in hand with properly addressing problems. An employee’s history with any company should be well documented including: performance reviews, promotions, raises and corrective actions. If nothing else an employer should at least document problems and behavior issues. By properly documenting everything a company protects itself from any legal issues.
7. Not Updating the Employee Handbook & Workplace Policies
If there is one thing to take away from this post this is it. Companies should evaluate and update workplace policies at least yearly if not more frequently. Laws and regulations are constantly being updated, if your policies do not reflect your state regulations you could face serious legal fines and employee lawsuits. Updated policies will ensure that you and your employees are on the same page – greatly reducing that risk.
The moral of this post, pay a lawyer because you want to not because you have to. Avoid legal issues by staying educated and up to date on employment laws and regulations. Know of any mistakes we missed? We would love for you to share them in the comments below.
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