Learn the Top 10 Employee Management Mistakes and How to Avoid Them in this informative ebook. This is an excellent resource for small business owners and managers.

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2. THE TOP 10 EMPLOYEE
MANAGEMENT MISTAKES
AND HOW TO AVOID THEM
Thinking that you can avoid or ignore employment
laws because no one will know.
Not having an employee handbook or failing to
regularly update the employee handbook.
Not having accurate job descriptions.
Asking whatever you want in a job interview.
Not doing background checks as a part of your pre-
employment process.
Failing to properly address and document
performance problems.
Not giving employee feedback.
Not rewarding and recognizing employees.
Having improper pay practices.
Underestimating the importance of HR-related
functions within your organization.
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3. Thinking that you can avoid or ignore
employment laws because no one will
know.
The problem:
Employment laws are confusing and it’s sometimes hard
to tell which ones apply to my business. Plus, it seems like
the laws are constantly changing and I don’t know what
we need to do to be in compliance.
How to avoid it:
The law can be a complicated area to navigate, but
ignorance is no defense. Most employment laws are
based on number of employees, so start there. There are
at least 25 federal laws that apply to companies with less
than 50 employees. On top of those regulations, there are
state laws that may apply and specific laws that apply to
certain industries.
Best practice tip:
It’s important to be in compliance because failure to
comply and getting caught can result in some hefty fines.
An internal HR audit is a great way to ensure that you are
up-to-date with your employment law compliance.
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4. Not having an employee handbook or
failing to regularly update the employee
handbook.
The problem:
I’m not sure what to put in an employee handbook.
Who reads the employee handbook anyway? Why
should I even bother with creating or updating a
handbook?
How to avoid it:
Employee handbooks provide a framework for what is
and isn’t allowed in your workplace. It’s a way to
communicate applicable employment laws, as well as
information on policies and procedures specific
to your organization.
While writing and updating an employee handbook
can take valuable time, the investment is worth it so
that employees know what is expected of them.
The handbook is also a valuable tool if you have to
discipline an employee or terminate an employee.
Best practice tip:
Handbooks should be reviewed at least annually, but I
recommend every six months due to the changing
landscape of employment laws.
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5. Not having accurate job descriptions.
The problem:
Our employees do what their managers ask of them, so
we really don’t need a boring job description
documenting this information.
How to avoid it:
Job descriptions are used for recruiting, but they are
also important tools when determining essential
functions for ADA claims and when dealing with
performance issues. It’s also a great way for a new
employee to understand what is expected of him.
Best practice tip:
If you don’t currently have job descriptions, ask the
incumbent to compile a list with her daily, weekly and
monthly tasks. From there, you can determine which
tasks are essential and the required knowledge, skills
and abilities for the position.
If you’re hiring for a brand new position, check out
online resources like O*NET for sample job descriptions.
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6. Asking whatever you want in a job
interview.
The problem:
The interview is our one chance to figure out if a
candidate will be a good fit for the position and our
organization. I want to get to know the candidate on a
personal level.
How to avoid it:
Determining whether a candidate has the required
knowledge, skills and abilities for a position is an
important goal of an interview. It’s equally important to
assess whether the person will be a good fit for your
organization, but there are some topics that you need
to steer clear of in order to keep your interview from
going into the discriminatory zone. Refrain from overtly
personal questions and keep your inquiries on job-
related topics.
Best practice tip:
Train your interviewers. We assume that people know
how to interview, but many interviewers report feeling
unprepared and unknowledgeable about what is and
isn’t allowed in an interview.
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7. Not doing background checks as a part
of your pre- employment process.
The problem:
Background checks are costly and slow down the
recruiting process. Can’t we just trust what candidates
tell us in the interview?
How to avoid it:
When companies tell me that they don’t want to
conduct background checks (and/or drug tests), I share
this story:
Several years ago, I was hiring a mechanic who would
have welding responsibilities. He didn’t indicate any
criminal history on his application form. However,
during the background check process, we determined
that he was a convicted arsonist. We decided that it
wasn’t in the best interest for the safety of our current
employees to bring in this person and give him ready
access to an open flame.
Best practice tip:
Come to the realization that not all employees are
honest in their applications, resumes and interviews.
Background checks and drug tests are an employer’s
best due diligence to ensure that the organization is
protecting its current employees.
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8. Failing to properly address and
document performance problems.
The problem:
Maybe if we ignore the performance problem it will just
go away or the person will eventually leave for another
job.
How to avoid it:
This is another area where the job description is
important. Take a look at that document and determine
where the employee is falling short. Have a one-on-one
discussion with the employee and provide steps to
improve the performance. In some cases, the
introduction of a written performance improvement
plan with specific, measurable goals and timelines
may be helpful. At a minimum, send an email to the
person as a recap of your conversation and the
expectations going forward.
Best practice tip:
Performance problems don’t magically go away. You’ll
protect the health and morale of your other well-
performing employees if you effectively deal with the
problem person when the issue arises.
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9. Not giving employees feedback.
The problem:
My employees know that they’re doing a good job, so I
don’t need to tell them anything about their
performance except during their annual review.
How to avoid it:
Feedback shouldn’t be a one-time per year event.
Instead, regularly monitor the performance and
progress of all your employees and provide them with
regular comments on what they’re doing well, as well as
any areas for improvement. This is also a great time to
discuss training opportunities, career path progression
and to get feedback from the employee about what’s
going well and where they may need help.
Best practice tip:
Feedback should be timely and regular. Even your top
performing employees are looking for affirmation about
their work. It doesn’t take long to check-in on your
employees and see how they’re doing. You may be
surprised at how a little attention can result in big
productivity gains.
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10. Not rewarding and recognizing
employees.
The problem:
My employees know I appreciate them. What more do I
need to do?
How to avoid it:
Some of your employees probably do know that you
appreciate them, but don’t make the assumption that
all of them are feeling valued. Little things like saying
“thank you” and “job well done” can go a long way in
encouraging employees to continue with positive
performance.
Best practice tip:
Rewards aren’t always monetary or in the form of a
bonus. Think about creative ways to incentivize your
employees and find out what each of them likes and
dislikes to make the reward even more valuable in
their eyes.
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11. Having improper pay practices.
The problem:
We made all of our employees salaried because it was
easier to do this from a payroll perspective. Plus, we
don’t have to pay overtime.
How to avoid it:
The Fair Labor Standards Act is considered the largest
piece of wage and hour legislation. This law has very
specific rules about who can and cannot be considered
exempt and non-exempt. Employers who fail to
classify their employees properly can have some very
expensive consequences, so it’s important to get this
right.
Best practice tip:
Again, this is an area where the job description can be
helpful in determining whether the position is exempt
or non-exempt. Take a close look at the job duties, as
well as the requirements outlined in the FLSA. The
complete law is available on the Department of Labor’s
website.
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12. Underestimating the importance of
HR- related functions within your
organization.
The problem:
HR is a nice-to-have function in an organization and I
don’t have to worry about that.
How to avoid it:
HR isn’t just a nice-to-have. It’s essential to maintaining
a legal and effective workplace. While you may not have
a need for a full-time HR department, your organization
is faced with workplace and employee issues on a daily
basis.
Best practice tip:
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