The Top 5 Mistakes Employers Make in Hiring and Firing Procedures

As a business owner, hiring and firing can be stressful. Unfortunately, many employers make mistakes in hiring and firing. These mistakes can result in costly lawsuits, disciplinary actions, and low employee morale.

Hiring Mistake 1: Not Defining the Job’s Qualifications or Overlooking Them

Without a clear and concise definition of what the job requires, you cannot effectively identify the ideal candidate. Defining the job includes creating a job description, stating employee qualifications, and establishing their duties and responsibilities. Overlooking some qualifications can also lead to disastrous outcomes. For instance, hiring a person with a history of misconduct in finance to handle your business’s finances. This mistake can be avoided by reviewing resumes and applications and conducting background and reference checks.

Hiring Mistake 2: Not Conducting Effective Interviews

Another common mistake that employers make is not asking appropriate job-related questions during interviews. Asking irrelevant questions, not taking notes, and interrupting the candidate are signs of poor interviewing skills. Conducting effective interviews involves asking job-related questions, assessing the candidate’s behavior, experience, and references, and evaluating the candidate’s fit with your company culture.

Hiring Mistake 3: Rushing the Hiring Process

Hiring the first candidate that applies can be the biggest mistake an employer can make. It is crucial to take your time and evaluate all candidates based on job requirements and experience. Rushing the hiring process can lead to poor hiring decisions and high turnover rates. Rushing can also lead to neglecting to check references and conducting background checks. It is essential to have a hiring timeline that incorporates each step of the hiring process.

Hiring Mistake 4: Not Offering Competitive Wages and Benefits

Compensating low wages and minimal benefits often leads to high turnover rates, leaving your business exposed to financial liabilities. Offering competitive wages and benefits packages is critical to keeping your employees and attracting top talent. Employers must determine what they can afford and offer alternative benefits, such as a flexible work schedule, paid time off, and bonuses.

Hiring Mistake 5: Ignoring Discrimination Laws

Ignoring discrimination laws during the hiring process can lead to costly fines and lawsuits. Employers need to develop and maintain fair and nondiscriminatory hiring policies, including EEOC guidelines, state, and federal laws. This involves avoiding discriminatory hiring practices based on age, gender, race, sexual orientation, disability status, and other protected classes.

Firing Mistake 1: Improper Documentation

Not documenting employee actions, problem behavior, and performance can lead to misunderstandings and costly litigation. Documenting employee performance includes dates, times, and incidents. Documentation should address areas of improvement, the steps the employer took to provide feedback, coaching, and support.

Firing Mistake 2: Appearing Biased or Prejudiced

Appearances of bias or prejudice can lead to costly discrimination lawsuits, including wrongful termination. Employers must communicate clearly and genuinely when terminating or disciplining an employee. Avoid making comments that could appear potentially discriminatory.

Firing Mistake 3: Acting Based on Emotions

While employers may have strong feelings about a situation, it is essential to make objective decisions rather than acting on emotions. Employers must remain in control and take the necessary time to analyze situations before taking any disciplinary action or terminating an employee.

Firing Mistake 4: Terminating as Retaliation

Retaliation against employees who complain, challenge, or make a report against an employee or employer violates federal and state employment laws, and it can be incredibly damaging.

Firing Mistake 5: Neglecting Ongoing Performance Feedback

Neglecting ongoing performance feedback leads to high turnover rates and creates an uncomfortable work environment. Employers should routinely provide feedback, both positive and constructive, to their employees. Offering feedback promotes a positive work environment and reinforces that the employer values their employees’ contributions.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help Keep Your Business Compliant

It is crucial that your business has clear and structured hiring and firing processes. Protect yourself and your business by speaking with one of our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients in Pennsylvania and New Jersey.