The Top 10 Costliest HR Mistakes:How much is your organization at

risk?

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

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

FAILURE TO DEVELOP FREE FLOWING COMMUNICATION

Mistake #10

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

NOT LINKING INDIVIDUALS GOALS TO COMPANY GOALS

Mistake #9

Mistake # 9: Not linking individual goals to corporate goals

• Do you have a plan?1. Strategic Analysis – SWOT2. Direction -> Vision, 2 & 5 yr objectives3. Action Plans: Cascading Goals

• Corporate <-> Division <-> Dept <-> Individual4. Follow Through

• HR Gap Analysis1. Selection & Staffing2. Organizational development3. Training & development

Consequences: • Waste of your work force

NOT USING THE RIGHT HR METRICSMistake #8

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

LACK OF MOTIVATION & RETENTION TOOLS

Mistake #7

Mistake # 7: Lack of Motivation / Retention Tools

• Top 5 Motivators1. Feeling valued and recognized2. Sense of competency3. Being involved4. Opportunity for growth5. 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

LOSING CONTROL OF RECRUITMENT

Mistake #6

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

NOT TRAINING THE FRONT LINE STAFF

Mistake #5

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

NOT ADDRESSING EMPLOYEE PERFORMANCE

Mistake #4

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

NOT KEEPING UP WITH THE LAWMistake #3

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

POOR/NO DOCUMENTATIONMistake #2

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

INEFFECTIVE USE OF HRMistake #1

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

Top 10 Costly HR Mistakes

10. Failure to develop free-flowing communication

9. Not linking Individual goals to company goals

8. Not using the right HR metrics

7. Lack of motivation/retention tools

6. Losing control of recruitment

5. Not training front-line staff4. Not addressing employee

performance3. Not keeping up with the law2. Poor/No documentation1. Ineffective use of HR

Questions?

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