Human Resources can arguably be the most important department in a business. Connecting workers and providing the tools and training necessary for optimal productivity and customer service can make the difference between a good business and a great one. That’s why it is so important to avoid as many mistakes as possible. Listed are the top 7 most common mistakes HR departments make- and why businesses shouldn’t follow suit.
Ignoring Employee-Reported Issues
Showing employees that the HR department and management care about issues can keep up morale and foster a team environment. Empathizing with the employee and identifying steps that will be taken to improve the situation will go a long way to employee satisfaction.
Unstructured Pay Increase Plans
Performance reviews and pay increases should be laid out clearly for employees. The schedule should identify when regular performance reviews will be done, as well as the expectations that must be met in order to qualify for a pay increase. In addition, Forbes recommends that a schedule of possible pay increases and pay caps should be identified before the employee accepts the position. 
Inadequate Management Training
An ill-prepared manager has the potential to sink a good business. Since managers are on the front lines, dealing with both customers and employees, they must employ a wide variety of skills. An important aspect of training for management should include the legality of interviewing, issues of discrimination, and how to work with a variety of personality types.
Poor Data Management
The HR department holds the keys to much of the documentation of the business, and much of this documentation is required by law. Keeping good records and maintaining a good filing system assists the business in maintaining good legal standing, as well as making things easier to find.
Underestimating the Importance of Human Resources
When working properly, the HR department functions as an invaluable partner to the business as a whole. Most HR departments have a working knowledge of the organization in its entirety, the employees, the customers, and other stakeholders. This knowledge often gives the employees in the HR department a bird’s eye view of the business that others may not have.
Making Bad Hires
Einstein HR recommends going beyond the interview for hiring decisions, by initiating more steps in the interview process that are based on the company’s culture. Bad hires cost businesses a significant amount of time and money, so taking the time to make sure a candidate is a good fit for the company will be well worth it in the end.
Fear-based Disciplinary Actions
Most businesses employ disciplinary actions that are rooted in punishment or correction, which often trigger a fear response in employees. When employees are fearful, they can quickly escalate a situation that could result in a lawsuit. To counter this reaction, the HR department can begin discipline discussions by asking questions and listening to the employee, making them feel valued and that their side has been heard.