Hiring and firing are an inevitable part of the business world. However, wrongful termination can be quite costly for your company and result in a lawsuit. Similarly, hiring the wrong candidate will have significant ramifications further down the line. Here are the top hiring and firing missteps to avoid:
Some of the hiring mistakes that organizations make include:
Not conducting background checks
One of the most common mistakes employers make when hiring is not carrying out thorough background checks on employees. Background checks will help you get adequate information on the person you are interviewing and intend to hire
Leaving loopholes in employment contracts
As an employer, you should always have a well-drafted airtight contract to avoid future disagreements and legal tussles that may cost you.
Ignoring discrimination laws
Many organizations make this error and subsequently have to face costly lawsuits as a result. Employers of labor must maintain transparent, nondiscriminatory policies, including EEOC guidelines and state and federal law.
When hiring, always ensure not to discriminate based on religion, race, sexual orientation, or gender.
Failure to offer competitive wages
For all potential employees, remuneration is everything. If your wages and benefits are not competitive enough, you'll end up losing top candidates to other companies in your industry. So, review salaries in a timely manner to ensure that benefits and remuneration stay competitive and attractive.
Not having a clear description of roles and required qualifications
Many employers do not clearly define the job description or the required qualifications. In such cases, it's hard to identify the ideal candidate. When hiring, always be very clear about what the role you are hiring for entails.
Common mistakes employers make when terminating are as follows:
Not explaining the reason for dismissal
Firing an employee without adequately explaining the reason for letting them go is a mistake you should always avoid. Not giving that employee a concrete reason can lead to a wrongful termination suit. Avoid appearing biased, and only fire when you have all the reason to.
Not seeking advice before the termination process
Before terminating an employee's job, there is a need to get proper advice and adequate guidance on how to go about it, especially from an attorney's perspective. Seeking advice helps you avoid lawsuits.
Firing as revenge
As an employer of labor, you should never let sentiment get in the way to the extent that you fire in retaliation for some perceived slight. An employer who perceives that you have fired them by way of retaliation can sue you. Such a lawsuit can irreparably damage your corporate reputation.
Failing to assess ongoing performance
You may have all the evidence and a concrete reason for wanting to fire an employee. However, it is essential to carry out regular performance reviews and get feedback from your employees. This way, you can reduce turnover rates, reduce workplace tensions, and encourage underperforming staff to improve rather than fire them outright.
Avoid costly lawsuits with guidance from a business attorney
When it comes to terminating and hiring, getting the right guidance goes a long way to prevent unnecessary lawsuits that will cost your business a lot. We provide business counseling and can also help draft employment contracts that will cover you against future legal tussles. Schedule a consultation with us today.