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
Mistake #10

FAILURE TO DEVELOP FREE

FLOWING COMMUNICATION
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
Mistake #9

NOT LINKING INDIVIDUALS GOALS

TO COMPANY GOALS
Mistake # 9: Not linking individual goals to corporate goals

• Do you have a plan?

1. Strategic Analysis – SWOT
2. Direction -> Vision, 2 & 5 yr objectives
3. Action Plans: Cascading Goals
• Corporate <-> Division <-> Dept <-> Individual
4. Follow Through

• HR Gap Analysis
1. Selection & Staffing
2. Organizational development
3. Training & development

Consequences:
• Waste of your work force
Mistake #8

NOT USING THE RIGHT HR METRICS

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
Mistake #7

LACK OF MOTIVATION &

RETENTION TOOLS
Mistake # 7: Lack of Motivation / Retention Tools

• Top 5 Motivators
1. Feeling valued and recognized
2. Sense of competency
3. Being involved
4. Opportunity for growth
5. 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
Mistake #6

LOSING CONTROL OF
RECRUITMENT
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
Mistake #5

NOT TRAINING THE FRONT LINE

STAFF
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
Mistake #4

NOT ADDRESSING EMPLOYEE

PERFORMANCE
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
Mistake #3

NOT KEEPING UP WITH THE LAW

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
Mistake #2

POOR/NO DOCUMENTATION
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
Mistake #1

INEFFECTIVE USE OF HR
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- 5. Not training front-line staff

flowing communication 4. Not addressing employee
9. Not linking Individual goals performance
to company goals 3. Not keeping up with the law
8. Not using the right HR 2. Poor/No documentation
metrics 1. Ineffective use of HR
7. Lack of motivation/retention
tools
6. Losing control of
recruitment
Questions?

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