×
First-time login tip: If you're a REBA Member, you'll need to reset your password the first time you login.
28 Jul 2016

4 HR disasters to avoid (and lessons learnt)

You’ve probably had more than a few HR headaches in your time. After all, it’s impossible to please all of the people all of the time.

But there are some companies out there who’ve got it wrong on an epic scale and even hit the headlines for their HR gaffes. 307D-1469524527_gaffe_MAIN.jpg

Recognising and rectifying mistakes before they become serious problems can save you a whole heap of hassle and protect your business against costly legal claims.

We look at some examples of HR calamities from the UK and beyond that businesses can take note of:

1) HMV sackings live tweeted

When the entertainment retailer went into administration in 2013, it was forced to lay off thousands of employees – including the person responsible for the company’s social media output. The disgruntled staff member promptly vented her anger by live tweeting a meeting with HR in which 60 workers were informed they were being sacked.

Using the hashtag #hmvXFactorFiring, she announced that a “mass execution” was taking place. She also revealed that the Twitter account was initially set up by an unpaid intern, and one of the tweets read: “Just heard our marketing director (he’s staying, folks) ask ‘How do I shut down Twitter?’”

  • Lesson learnt – The redundancy process should be as painless as possible for staff when you are forced to make redundancies, but make sure your checklist is thorough, including changing social media accounts and passwords.

2) Abercrombie sued over headscarf

In a case in the US, high-end fashion retailer Abercrombie & Fitch was taken to court after a female employee was sacked from a Hollister store for wearing a hijab. The woman was initially allowed to wear a headscarf in Hollister colours but was later told to remove it and was fired when she refused. The company had argued that diverting from its “look policy” would affect sales, but a judge ruled that the firm violated anti-discrimination laws.

  • Lesson learnt – Your brand is important, but your employees’ rights trump it every time. Check that your anti-discrimination policy is in line with the law.

3) PwC caught up in heels row

There have been several other instances of fashion causing HR problems, and not always for religious reasons. Just recently, a receptionist was sent home from finance company PwC for refusing to wear high heels. When she complained that male colleagues were not expected to do the same, she was sent home without pay. Outsourcing firm Portico said she had signed the appearance guidelines, but pledged to reconsider them anyway.

  • Lesson learnt – Regularly review your dress code policy and make sure it’s fair.

4) Lacoste employee published pay slip

A salesman at the fashion giant said he was given his marching orders after posting a picture of his pay slip on Instagram. Lacoste said he had shared confidential information, but actually the only confidence he broke was his own. The company’s HR department came in for much criticism online over its apparent heavy-handed tactics.

  • Lesson learnt – social media can be a bit of a minefield for companies. It’s best to have a social media policy outlining appropriate conduct when employees might be mentioning their employer.

Is it time to reassess whether your HR policies might fail you?

Stories such as these show problems can soon spiral out of control if they’re not handled well. To avoid costly blunders of your own, make sure you:

1) Update your employee handbook

2) Keep up to date with employment laws and regulations

3) Put in place effective staff motivation and retention policies

4) Regularly measure all employees’ performance with staff appraisals and training

This article was provided by Unum.