You’re in charge of managing a workforce. Maybe you own the company. Or you could be in human resources. Or another aspect of management. I assume you want to be considered one of the good employers, right?
In that case, here are 5 things you should never do!
1. Date Subordinates
Okay, you know what I’m talking about. But let’s start with what I’m not talking about. Especially if you own or help operate a small business, it’s reasonable that your spouse or longtime partner may also become involved. I’m not strictly advocating “no nepotism” policies. But don’t cross dangerous lines needlessly!
No matter how well you and your direct reports get along, it needs to stay professional, or at most friendly. Dating, where it could become romantic, isn’t worth the risk. Sure, it might work out great. But there are many ways it could go south.
First, advances may be rebuffed. If that happens, then the relationship between the two of you may be permanently tainted.
Second, even if a relationship develops, what are the motives? Is your employee only dating you to keep the job, to get ahead, to set you up? This just isn’t the right way to look for love!
Third, even if the relationship is real and works out, other employees may not like it. They might see it as creating a bias in favor of the employee you’re dating. And, let’s face it, you probably would, even should, be biased in that situation. What happens if the employee’s performance drops below an acceptable level and you have to fire your significant other?
Fourth, sexual harassment claims. By your desired paramour. From other employees. And these could come months or years down the road in some cases. These claims are a big hit for otherwise good employers!
If you nonetheless do find yourself dating an employee that reports to you, figure out a way to minimize the risk. Yes, there are even so-called “love contracts” where both parties make representations in writing to help the employer avoid liability. Hopefully, you don’t have to go that far in most cases. Reassigning the employee may solve, or at least help, the problem. But don’t just assume you can date an employee and have everything go smoothly. It probably won’t.
You don’t have to just take my word for. Get The Scoop on Love Contracts.
2. Keep Problem Employees
Any business with multiple employees over time will eventually end up with a bad one. This doesn’t necessarily mean someone with bad motives, but it can. More often, it’s just an employee who isn’t the right fit for the job for whatever reasons.
Some good employers think they can right the ship no matter what. “I hired this guy . . . I can fix him.” But that philosophy doesn’t always work. Okay, it usually doesn’t work.
Even if you could retrain a chronically underperforming employee, it probably isn’t worth the effort. You could find someone else better out there right now.
And if someone lies to you once or twice, can you afford to give them another chance?
This doesn’t mean you should have a zero tolerance policy in all respects. It just means you need to be realistic. If someone isn’t the right fit now, they probably won’t be in six months either.
Here’s another secret. The longer you employ someone, the more it costs to get rid of them. There are many inputs in this calculation. They may include training costs, severance pay, risk of litigation, etc. Do the analysis earlier rather than later, compare the cost of trying someone else, and make the difficult decision. You’ll be glad you did.
Check out my 5 Tips for Firing Problem Employees!
3. Hire People Like You
We are all predisposed to like people who resemble us. We’re automatically more comfortable and familiar with them. We know how they think, how they behave, and what motivates them. Or, at least we assume we do.
There are two big problems with hiring based on similarities:
The first is a legal concern. Discrimination. If you only hire/promote people similar to you in race, age, gender, etc., then you may be systematically disadvantaging particular classes of candidates. This can mean litigation, legal fees, and settlements or damages awards. Not good, obviously.
The second is a business concern. Do you really need more people like you? You already do you better than anyone else. What you need is a mix of “not-yous” to complement your strengths and weakness.
This doesn’t mean you can or should only hire people who are nothing like you. To be sure, only hiring employees of a different race or sex may also constitute discrimination. But good employers embrace diversity of experience, personality, characteristics, etc., not only because it’s the right thing to do, but because it works for their business too!
While you’re at it, Don’t Ask These Questions During Job Interviews!
4. Ignore Complaints
No one is perfect. Your business is going to make mistakes, or at least the people working for you will. It’s better to foster a culture where people are open about their mistakes so that they can be corrected. Otherwise, they build on themselves, making matters worse.
So, how do you foster this positive culture? First, don’t overreact. Try not to scream or disparage someone when you find out they did something wrong. If this is simply a performance matter, then try to correct it and move on. Obviously, consistent poor performance is another issue, addressed above.
Now, let’s say you find out about a mistake because another person files a complaint. And let’s say this complaint alleges harassment, discrimination, or other mistreatment. Then you have to investigate, but, again, don’t overreact.
Just because someone complains about a co-worker, it doesn’t always mean they want to sue you. Often, your investigation will reveal a misunderstanding that can be remedied. Other times, you may discover that someone has crossed the line. But even then, it doesn’t necessarily mean they meant to. Where possible, correct the mistake and make sure it doesn’t happen again.
Especially in the harassment context (sexual, racial, age-based, etc.), the potential liability often arises once an employer knows of misconduct and fails to act. But acting doesn’t have to mean firing anyone, or even transferring employees. The investigation may be sufficient.
But if you don’t take a complaint seriously or don’t try to get to the bottom of things, then you create a big target if the unwelcome behavior persists. Yes, this often increases the employer’s legal responsibility for this conduct. More importantly, it increases the likelihood that the complaining employee will go outside your organization to seek redress.
Be prepared for these situations in advance. Read my post on Responding to Employment Discrimination Complaints.
5. Forego Overtime Pay
Overtime is a major compensation issue that many employers, including good employers, get wrong. Yes, it’s nice to have employees who are willing to work as much as you need them to. But if you don’t pay them as required, it can cost you tremendously.
Lawyers representing employees are eager to file lawsuits against employers for failure to pay overtime. Not only can they recover handsomely for their clients. They also receive their fees from the employer if they win. Don’t be a target for these lawyers. Do it right!
The basic rule is that employees who work over 40 hours in a week must be paid overtime at time-and-a-half. Some employees can be exempt, meaning they don’t have to receive overtime pay. And, in some cases, different hour thresholds and payment requirements apply.
Here are some of the common mistakes:
- Not accurately recording all hours worked.
- Not paying overtime when earned.
- Providing “comp time” instead of overtime pay, which isn’t allowed for private employers and has specific limits for public employers.
- Improperly classifying an employee as exempt.
- Miscalculating the overtime rate.
Remember, in most cases, employees can’t simply agree not to be paid for overtime. The law requires it, so any such agreement probably won’t hold up. If there is a claim in court or with the Department of Labor, then it’s the employer’s burden to show compliance with the law.
My Most Important Tip for Good Employers Like You!
There are so many traps in the employment law minefield. And the laws and workplace realities simultaneously change all the time. You need to stay up-to-date on what’s going on if you want to remain one of the good employers out there. My free email newsletter can help you be one of the great ones! Sign up here now!