What do you consider your most important responsibilities as a CEO?
Like many, sales and marketing may take up a big part of your day. While there’s nothing wrong with this approach, there are other tasks that deserve your attention.
Without a dedication to developing a solid all around HR strategy, there’s a good chance you could make mistakes that end up costing your company quite a bit of time and money.
So, with that in mind, let’s examine 10 HR mistakes CEOs should never make:
1. Hiring the Wrong People
This is a mistake you should never make, as your workforce will be the difference between success and failure.
With the average cost to replace an employee well into the thousands of dollars, it’s imperative to do whatever you can to hire and hold onto the right employees.
2. Engaging in a Nasty Email Exchange with an Employee
If a problem escalates, there’s a chance it could eventually reach your desk.
Listen up: you never want to engage in a nasty email exchange with an employee.
There are steps you can take to reply to an angry email without ruining your reputation. There are also steps you can take to improve any situation, such as talking things out in person.
3. Outdated Employee Handbook
According to the U.S. Small Business Administration, a well-rounded employee handbook should include a variety of information.
From standards of conduct to safety and security to anti-discrimination policies, you should leave no stone unturned. Everything should be outlined in clear terms.
4. Failing to Schedule Performance Reviews
It’s your decision as to how often your HR team (or you) conducts performance reviews. For example, some companies do this once a year while others opt for a quarterly schedule.
Regardless of the frequency, performance reviews are a must.
Even though many employees feel that performance reviews are ineffective, it’s a must to implement a system for conducting reviews. This can help improve the performance of the employee, as well as the company as a whole.
5. Quick Hiring Decisions
Do you have an opening within your company that must be filled in the immediate future?
Even if you’re under pressure to make a hire, don’t do so without first considering all your options.
It’s imperative to take your time, as making a quick hiring decision could lead you to bring the wrong person into the company.
6. Ignoring Company Culture
It may not appear to be a big deal, but it pays to have a rich company culture.
According to a Columbia University study, job turnover is much lower within companies with a rich culture. This alone is reason enough to focus more time and attention on this detail.
7. Being Cheap with Benefits
Yes, it costs money to provide your workforce with a high level of benefits. However, skimping in this area is never a good idea.
According to Burson-Marsteller, nearly 80 percent of employers believe that offering benefits is a critical component of attracting talent.
So, if you want to attract and retain the best workers, you need to offer the best benefits.
8. Ignoring Employee Morale
A happy worker is one who will go above and beyond for your company. Conversely, an angry worker is one who will do “the minimum amount possible to get by.”
There are steps you can take to improve employee morale, such as offering flextime and stocking your kitchen with food.
Approximately 70 percent of employers are looking for ways to boost employee morale. You don’t want to get left behind.
9. Overlooking Who Makes Up Your Workforce
According to Reportlinker, Millennial employees are looking for different things than those in other age groups.
For example, these workers are most interested in: healthcare benefits, paid family sick leave, and flexible scheduling.
If your company is made up primarily of Millennials, as opposed to Baby Boomers, for instance, your approach must be different.
10. Saying No to Telecommuting
Did you know that telecommuting has increased by 159 percent since 2000?
This is a huge number that is only expected to grow in the future.
As CEO, you shouldn’t slam the door shut on telecommuting. You should learn more about the benefits, such as the cost savings and productivity value, and then decide if this makes sense for some or all of your workforce.
What do you think about these 10 HR mistakes that are commonly made by CEOs? How will you avoid the same in the future?
