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HR mistakes that will cost businesses a lot of money

Unfortunately, there are many situations in which a company's HR departments will fail. It is really important that human resources work as they should. A failure to do this will cost the business money and few businesses actually know that this is happening. They will eventually figure it out when a fine appears but it is always better to take care of problems before they appear. With this in mind, here are some mistakes that have to be avoided at all costs.
Improper hiring speed

It is really common to see HR departments hiring too fast or way too slow. When hiring slower, it will be a problem to find people that are great because they will eventually get hired by someone else. When hiring too fast you will not have the certainty that the people hired will be the best ones possible for the business.

Remember the fact that firing is similar to hiring in the sense that it has to be done at the right time. Do not hurry and do not postpone it. This is really important.

Believing that some laws do not apply to the company

This can lead to so many potentially huge problems for the company. In many cases you can end up faced with some fines that are pretty high. For instance, mandatory medical coverage discrimination can lead to a very lengthy and damaging law suit.

In many cases we see company managers that simply think about equipment used and similar things when referring to laws. This is completely incorrect. For instance, having top medical supplies does not mean that you would be covered by a negligence case that appeared because you hired someone that should not have been hired.

Many HR related laws exist at the moment. The HR department needs to be sure that absolutely all are going to be respected.

Poor employment records

A huge problem that appears with many businesses is having poor employment records. This is especially the case when looking at the I-9 forms. Immigration forms will normally cause many headaches so if you do hire immigrants, be sure everything is properly handled. A simple infraction can cost over $1,000 in fines. That is for only one violation and normally there are many that appear.

You should also be really careful about leave of absence records. That is especially the case when needing to offer a family medical leave. Direct costs are connected with benefits and specific laws have to be respected.

Treating people as favourites

Business managers or owners will surely appreciate one employee more than another. The problem is that this does lead towards the idea of having favorites. In the event that a law suit appears and it was shown that it was perceived that you offered favors to some employees over others, fines and legal problems are guaranteed. Individuals that believe they were mistreated will leave your company and go to an attorney to see if something can be done. The “favorites” problem is one that appears much more often than many believe.

About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as,,, Boris is the founder of and
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