Operations Due Diligence: An M&A Guide for Investors and Business

HIRING, FIRING, AND EVERYTHING IN BETWEEN

Defined processes need to be in place for all recurring employment actions and should be followed rigorously for all personnel actions without exception. Many businesses follow a two-person rule and ensure that all personnel actions related to hiring or firing be attended by two people when meeting with the employee. For contentious personnel actions, one of the participants is typically a trained specialist such as another experienced manager or an HR representative. In all cases, notes need to be taken and saved in the employee personnel files. Problems occur when there are exceptions made to the rules, so getting the rules right and then sticking to them is the best way to mitigate these risks. Are ...