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Top 10 Costliest HR Mistakes

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A review of some of the costliest HR mistakes companies make.

Published in: Business, Technology
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Top 10 Costliest HR Mistakes

  1. 1. The Top 10 Costliest HR Mistakes: How much is your organization at risk?
  2. 2. What you will learn today: • Top 10 HR Mistakes costing you serious money – Day-to-day activities putting your company at risk • How to make the most of your HR • Case Study Examples
  3. 3. A little bit about Pivotal Experience: 25+ years/ Private/ Canadian Market Position: broadest range of HR solutions » Outsourced HR • HR Help Desk • HR Projects » Outsourced Payroll » Recruiting
  4. 4. Mistake #10 FAILURE TO DEVELOP FREE FLOWING COMMUNICATION
  5. 5. Mistake # 10: Failure to develop free flowing communication • Need specific communication policies – Internal / External Email – Internet/Intranet – Social Media / Twitter – IM • Institutionalize internal communication = promotes honesty & trust – Staff Meetings – Town Halls – Newsletters • Handle confidential information appropriately; privacy legislation Consequence: • Most union drives / major internal problems result from communication gaps between the organization and employees • Alleviates anxiety during tough periods
  6. 6. Mistake #9 NOT LINKING INDIVIDUALS GOALS TO COMPANY GOALS
  7. 7. Mistake # 9: Not linking individual goals to corporate goals • Do you have a plan? 1. Strategic Analysis – SWOT 2. Direction -> Vision, 2 & 5 yr objectives 3. Action Plans: Cascading Goals • Corporate <-> Division <-> Dept <-> Individual 4. Follow Through • HR Gap Analysis 1. Selection & Staffing 2. Organizational development 3. Training & development Consequences: • Waste of your work force
  8. 8. Mistake #8 NOT USING THE RIGHT HR METRICS
  9. 9. Mistake # 8: Not using the right HR metrics • Measure how HR activity is impacting the bottom line, not just the cost of it • HR isn’t the “soft and fuzzy” of the business • It can and should objectively demonstrate its benefits to the business Consequences: • You can’t change what you can’t measure
  10. 10. Mistake #7 LACK OF MOTIVATION & RETENTION TOOLS
  11. 11. Mistake # 7: Lack of Motivation / Retention Tools • Top 5 Motivators 1. Feeling valued and recognized 2. Sense of competency 3. Being involved 4. Opportunity for growth 5. Total compensation • Some turnover is good • Be competitive in the job market • Develop credible, objective recognition and reward programs Consequences: • People rarely leave for money; they often leave for a perceived breach of the unwritten employment contract
  12. 12. Mistake #6 LOSING CONTROL OF RECRUITMENT
  13. 13. Mistake # 6: Losing Control of Recruitment • Success depends on having the right people on the bus – Hire for fit, effort, attitude and talent • Control your people costs or they will control you – Correct hiring mistakes • Critical that HR leads recruitment Consequences: • Failure to lead recruitment diffuses control to inexperience and untrained personnel
  14. 14. Mistake #5 NOT TRAINING THE FRONT LINE STAFF
  15. 15. Mistake # 5: Not training the front-line staff • Empower front-line managers with authority, train them to use it for the organization’s benefit • “Not knowing” is not an excuse • Corporate obligation to train legal and jurisdictional issues affecting manager/supervisor • Ensure an understanding of core values Consequences: • Employee is severely injured on the job site and investigation identifies supervisory negligence
  16. 16. Mistake #4 NOT ADDRESSING EMPLOYEE PERFORMANCE
  17. 17. Mistake # 4: Not addressing employee performance • Use performance as cornerstone for reward • Failure to address performance issues negatively affects morale of the top performers • Poorly designed and administered programs damage the credibility of the organization; calls into question corporate values and integrity Consequence: • Creates perception that sub-standard performance is acceptable; drives away your ‘A’ players
  18. 18. Mistake #3 NOT KEEPING UP WITH THE LAW
  19. 19. Mistake # 3: Not keeping up on the Law • Seek out expert advice • Educate yourself with regular training • HR has significant potential for employee litigation • Employees are becoming well educated in employment rights – PIPEDA, WSIB, OHRC, Return to Work, Accommodation, ESA 2000, Pay Equity, Employment Equity Consequence: • Employees and their advocates are better prepared – increasing risk to your company
  20. 20. Mistake #2 POOR/NO DOCUMENTATION
  21. 21. Mistake # 2: Poor or No Documentation • If you don’t track it, you can’t measure it, follow up, analyze, report or provide advice • Payroll documentation is legally required • Four key types: – Job descriptions; job evaluation; performance management; compensation Consequences: • Failure to keep accurate vacation records results in overpaying accrued vacation at termination • Failure to track and retain payroll records results in recreating payroll histories retroactive seven years to establish pay equity entitlements
  22. 22. Mistake #1 INEFFECTIVE USE OF HR
  23. 23. Mistake # 1: Ineffective use of HR • HR should be on the executive team • People issues are becoming landmines • Reactive approach creates negative perception • HR should be the catalyst for change management Consequences: • Focus on the transactional aspects of HR , benefits administration, employee sign ups etc tends to relegate the role to one of administration
  24. 24. Top 10 Costly HR Mistakes 10. Failure to develop free- 5. Not training front-line staff flowing communication 4. Not addressing employee 9. Not linking Individual goals performance to company goals 3. Not keeping up with the law 8. Not using the right HR 2. Poor/No documentation metrics 1. Ineffective use of HR 7. Lack of motivation/retention tools 6. Losing control of recruitment
  25. 25. Questions? www.pivotalsolutions.com Call 905.890.4452 to request more information

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