Helping Business with Human Resource Strategies

"HR gaffes can really damage a company"

Arizona Business Gazetee July 2004

Janna Braun
Arizona Business Gazette
Jul. 8, 2004 12:00 AM

Why HR support?

If you're not spending enough time interviewing potential employees, you may be hurting your company's chances of success.

Nadine Cummins, executive director of HR Support, a Tempe-based human resources consulting firm, says one of the biggest blunders small companies make is hiring the wrong person.

"I've known managers who spend more time picking out a new outfit or pair of shoes than interviewing a potential employee that could ultimately make or break the company," Cummins said.

"People will spend 15 or 20 minutes interviewing a person and hire them. You can't know after 20 minutes with someone if he/she is right for your company."

Most small businesses are unaware of the impact poor human resources practices can have on a company's bottom line, she said.

"HR is all about the management of people," said Cummins, who worked in the field for 25 years. "If that's your largest resource, then it should be your top priority. These are things that are not on the radar screen for most small employers."

Not spending enough time with a potential employee during an interview, asking the wrong questions or failing to check a person's references can contribute to hiring the wrong person.

"In the interview, instead of asking the person a hypothetical question about how they would handle a situation, ask them to describe how they handled a real situation," Cummins said. "The way someone has handled something in the past is indicative of how they'll handle it in the future."

Cummins noted that a potential hire's references should be supervisors who are able to answer questions about the applicant's performance.

"Don't just rely on the interview," she said. "Sometimes people are good interviewers, and they'll fool you that way."

Next on Cummins' list of blunders is not paying overtime correctly.

"If an hourly employee gets a bonus one week and works overtime, the bonus has to be factored into the hourly wages and therefore is also factored into overtime wages," Cummins said. "Unless a company has a very savvy payroll person, you probably don't know about this.

"You could wind up paying back wages over . . . several years if an employee files a complaint with the Department of Labor."

Another mistake Cummins has often seen is business owners not understanding employment laws, including overtime regulations and workplace safety.

"As with most human resource practices, ignorance is not a defense, especially with the law," she said.

Business owners can get help from the Small Business Development Center, which has locations throughout Arizona. It offers a variety of free services to teach people how to run a business, ranging from starting it to managing clients. In addition, Cummins recommended the Arizona Small Business Association, which provides advice and resources, and the Arizona Employers' Council, a non-profit organization. She also recommends taking a course in human resources at a community college.

Amy Greathouse, president of the Arizona Employers' Council, said her organization offers human resource advice when members call with questions.

"We also offer an 'Intro to HR' class for people who are just starting out in HR," Greathouse said. "(In the classes), we do a lot of hands-on things and things that are specific to Arizona."

While there is no one particular industry that is more prone to human resource errors, Cummins says the less business experience a person has, the more likely he or she is to make a mistake.

"If they worked in companies with strong HR experience, they have a better understanding," she said. "But individuals who haven't been in management don't know these regulations and aren't trained in these areas."

Greathouse said the responsibility ultimately falls on the shoulders of human resources personnel.

"Obviously, the better experienced they are, the better decisions they can make," she said. "But you have to be careful. Just because you're a big company doesn't mean you have better HR. It all depends on the work environment."

Doing research ahead of time, Cummins said, can prevent a human resources disaster.

"It doesn't take that much to prevent these (problems) from happening," she said. Taking classes and getting the right advice can head off trouble, Cummins said.