Find out the 7 most frequent HR (human resource) mistakes and how to avoid them through our comprehensive presentation.

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Obviously, the daily operation of your business is a top priority, but ignoring some employee-related
tasks can open your company to a litany of liabilities. Though it may be easy to ignore a volatile
situation until a problem arises, prevention in the form of an HR checkup can greatly decrease the
possibility of a costly problem.
The most frequent HR mistakes made by business owners are:
1. Lack of a comprehensive and updated employee handbook.
Your employee handbook is a fluid document that should
be regularly reviewed to ensure it contains all pertinent
information. Employees should receive a revised copy
or be notified when a new electronic version is posted,
and sign a document acknowledging they have read and
will abide by the tenets of the policy. If unacceptable and
acceptable behaviors aren’t outlined, you’re giving your
employees a free pass to use the, “I didn’t know it was
wrong” defense.
2. Lack of documentation for performance-based terminations.
Yes, it is your business, but impulsively firing an employee can create a host of problems. Establishing and adhering to
a progressive discipline policy can help your managers ensure that they can establish that an employee was fired for
performance-based reasons.
“Employers will call us frustrated and ready to pull the trigger, but it’s important to follow a plan and minimize
liability,” says Felicia Hobbs, an Insperity HR specialist.
Documentation prior to termination is important. After every discussion about an employee’s performance, conduct or
attendance, write down the specifics about the conversation: who was present, when it occurred, what was discussed,
where improvement must be made and how to facilitate improvement. Have the employee sign a document acknowl-
edging the meeting occurred and that the employee was made aware of the issue if a dispute should arise.
It’s also important to be straightforward in all discussions with employees. Frank conversation may be uncomfortable,
but skirting any issues in an attempt to be polite can create another layer of problems. When it’s time to discipline or
terminate an employee, keep the discussion professional and concise. Be sure that proper procedures are followed
prior to termination and that you can prove an employee was terminated for performance and not unfairly let go.
Avoiding Trouble
Take a proactive approach to your HR policies to ensure you’re not reacting to a crisis.
800-465-3800 | insperity.com

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3. Insufficient and improperly stored
employee records.
How thick are your employee files? If the answer is
not very, you likely have deficiencies. Each
employee file should contain copies of all required
documentation. For example, failure to keep a valid
I-9 (verification of employee eligibility) on file can
be a costly mistake if it cannot be produced upon
request by a number of governmental agencies.
Take time to identify what regulatory agencies
govern your industry and what documents should
be contained in an employee file. Also be certain all
annual reviews and other routine employment
paperwork is maintained in the file. The Society for
Human Resource Management (SHRM) recommends
keeping the following items in a personnel file:
Application or resume
Offer letter
Confidentiality/non-compete agreement
Handbook acknowledgement
Drug testing policy acknowledgment
Drug testing consent form
Background check consent form
Performance records
Training records
Employee files may contain drug testing results,
paperwork from a leave such as the Family and
Medical Leave Act (FMLA), return to work letters
from doctors, benefit enrollment papers or workers’
compensation information. Keep this information in a separate file, made private to all but HR supervisors.
This type of protected information typically falls under the umbrella of the Health Insurance Portability and
Accountability Act (HIPAA).
A supervisor would be able to access the first level of files, such as reviews, etc. Some employers may even want to
create a third file containing forms such as I-9 forms, payroll records containing Social Security numbers or other
protected information, W-4s and garnishment information.
SHRM recommends employers conduct routine audits of employee files to ensure that all pertinent information is
thorough and accurate. It’s also important to verify that information is being appropriately protected since the
potential for human error in such areas is high.
How Insperity can help
Recruiting and retaining top-tier employees
requires taking care of their health and well-being
so they can stay honed in on the tasks that drive
your business forward.
InsperityTM
takes the guessing game out of
choosing health care. With Insperity, you’ll find
a variety of health care plans, and all of them
are backed by a full-service approach that
helps you steer clear of dramatic cost increases
and remain in compliance with ever-changing
government regulations.
Insperity makes the most of the latest
technological advancements available to
make life easier for you and your employees
to manage their benefits. The centerpiece of
Insperity’s online resources is the Employee
Service CenterSM
, which provides automated,
personalized services that save you from spending
your valuable time answering questions about
benefits and managing employee paperwork.
800-465-3800 | insperity.com

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4. Poor hiring and promotion decisions.
Not properly screening potential employees and candidates for promotion is the most common mistake committed
by business owners, says Lori Dawson, an Insperity account executive. Correcting poor hiring decisions can be costly
in terms of employee engagement, retention and even replacement. Though patiently waiting for a candidate to best
fit your company’s needs can be tough, hastily hiring a candidate can be disastrous.
“Keeping people in the wrong jobs for a long time is a common mistake,” Dawson says. “So is promoting people who
are good at one job to management. Somebody may be a great worker, but if he or she is placed in a supervisory
position without training or developed managing skills, they won’t succeed.”
Selecting the best person for the job using pre-employment screening can help ensure a favorable outcome. Such
screening has become increasingly affordable for even small businesses hoping to identify a candidate’s inherent
strengths and weaknesses.
“If, for example, you’re looking for someone who’s detail-oriented, screening can
tell you if a candidate meets that requirement,” says Dawson.
While a person can capably perform job tasks that may not mesh with his or
her inherent personality traits, a person’s natural strengths should match his
or her job requirements.
“You can’t force someone who’s not detail-oriented to become detail-oriented,”
adds Dawson.
5. Disregard for training.
All industries grapple with how to best utilize and maximize their human capital. The
difference between best-in-class and laggard companies often lies in the strength
of the workforce. Taking time to better yours is a valuable investment in the future
of your enterprise.
Many employers often opt to implement a training program in order to improve profitability, customer service,
quality or efficiency.
“Companies are knowledge-based businesses, and you’ve got to provide the knowledge,” says Rick Gibbs, an
Insperity senior HR specialist.
When establishing an effective training program, it is important that you, as the business owner, know what you want
to accomplish and how the program will best benefit your company.
For example, providing tuition assistance would be a great benefit to the employee, but it may not yield a high return
on investment for your business. However, sending an employee to train as a notary public so you no longer have to
pay an outside source for notary services would be a benefit to your business.
800-465-3800 | insperity.com

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6. Lack of adequate HR policies.
All employers should have the following in place:
Employee grievance plan An employee griev-
ance policy is a step-by-step method that allows
employees who feel they have been wronged to
address their concerns. A grievance policy can also
alert management about the problem or issue. A
fast and effective solution can benefit everyone
involved; the employee is again happy and produc-
tive and management has avoided what can be a
lengthy and expensive process of resolution. In a
sample employee grievance policy, SHRM suggests that employers establish a written plan for how employees should
go about informing management of a potentially detrimental situation. Such a policy should be clearly delineated in
the employee handbook and easily accessible to all employees.
Disaster/workplace violence plan Disasters and violent events are typically unanticipated; however, your
company should be prepared and have a plan in place. A disaster recovery plan should have a clear policy, a response
plan and training that covers what to do during certain situations, such as during a workplace violence incident or
a natural disaster.
7. Ignorance or disregard for applicable laws and regulations.
All business owners should be aware of pertinent laws and regulations and comply with the tenets of them. Many
business owners find themselves afoul of the law after growth propels them into a new level of compliance.
Did you know?
Not sure what to do? If you have a question
concerning your HR needs, Insperity’s Contact
Center specialists are here to help via phone or
email. More than 95 percent of callers get what
they need during the very first call – that’s more
than 20 percent higher than the industry average
of 75 percent for first-call resolution.
800-465-3800 | insperity.com

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DM-W13-725
About Insperity
InsperityTM
, a trusted advisor to America’s best businesses for more than 25 years, provides an array of human resource
and business solutions designed to help improve business performance. Insperity Business Performance Advisors offer
the most comprehensive Workforce OptimizationTM
solution in the marketplace that delivers administrative relief,
better benefits, reduced liabilities and a systematic way to improve productivity. Additional offerings include
MidMarket SolutionsTM
, Performance Management, Expense Management, Time and Attendance, Organizational
Planning, Recruiting Services, Employment Screening, Retirement Services and Insurance Services.
The information contained in this document is for general, informational purposes only and is not intended to be legal ad-
vice. This information is not a substitute for the guidance of a professional and should not be relied upon in reference to any
specific situation without first seeking the advice of a qualified HR professional and/or legal counsel regarding applicable
federal, state or local laws. Insperity and its employees make no warranties, express or implied, and make no judgments
regarding the accuracy of this content and/or its applicability to a specific situation. A reference or link to another website
is not an endorsement of that site or service.
To find out more or learn how
Insperity can help your company,
call us at 800-465-3800.
Visit us at Insperity.com
800-465-3800 | insperity.com