Is Your HR Team Protecting Your Business? A Labor Law Attorney’s Guide to Red Flags in Senior HR Personnel

Don’t wait for a costly mistake to reveal gaps in your HR function.

For small and midsize businesses, hiring the right HR leader is critical. The right HR leader helps your company grow, meet organizational goals and minimizes operational disruption. The wrong choice can expose your company to costly risks, compliance issues, and even litigation. Here’s how to spot warning signs in your senior HR personnel—and how partnering with CHRO can help you avoid them.

Key Red Flags in Senior HR Personnel

1. Lack of Escalation or Legal Consultation

A strong HR leader knows when to bring employee issues to your attention or recommend seeking legal advice. If your HR director rarely escalates problems, operates as an island, or claims to “know everything,” it’s a major red flag. Employment law is complex, nuanced and constantly evolving.  What was dogma last year may have several new layers to examine this year—HR listservs rarely provide comprehensive guidance on these changes and complex situations often require an expert’s feedback. A seasoned HR leader knows when to escalate issues, and does so before taking any decisive action that puts the employer at risk.

2. Delegating Critical HR Functions to Untrained Managers

While managers should handle simple, objective misconduct (like tardiness or absences), they shouldn’t be making termination decisions, writing performance improvement plans, or onboarding new hires without HR’s active involvement. Delegating these tasks to untrained managers exposes your business to unnecessary risk and costly employee turnover. It also imposes a significant burden on managers which erodes their job satisfaction and interrupts their focus on core responsibilities.

3. Passive Approach to Management Issues

Competent HR professionals proactively advise management and intervene when they see unlawful conduct. If your HR leader sits quietly or says, “That’s not my place,” they may not understand their responsibility to protect your business. Similarly, an HR leader who capitulates every time management pushes back on advice or feedback is also failing at this core responsibility. Seasoned HR staff know when to bring matters to the executive team’s attention and how to build a trusted advisory relationship with management so they can guide them in addressing complex employee issues.

4. Overly Cautious About Terminations

A seasoned HR leader knows how to document and manage high-risk terminations. If your HR director insists you can “never fire anyone” due to litigation risk, they may lack the expertise to protect your company while enforcing fair discipline. Every seasoned HR leader knows that they will sometimes need to engage in high risk discipline, but they have a history of consistency and documentation to support these decisions.

5. Poor Professional Boundaries

Seasoned HR leaders know the importance of maintaining professional boundaries with all other employees. This is the only way to effectively ensure consistency and fairness in the administration of their duties. If your HR leader is socializing with coworkers outside the workplace, gossiping about employees or openly sharing their opinions about managers and other company leaders, they are not ready to lead your HR function, and their lack of professional boundaries may also pose a serious legal risk.

How CHRO Can Help

Building a superstar HR team takes time and experience. If you notice any of these red flags, don’t rush to replace your HR leader—instead, support their growth with expert guidance.

CHRO specializes in helping small and midsize businesses:

• Develop HR expertise: We mentor your HR team to recognize and manage high-risk employee issues.

• Create compliant processes: We help you build internal procedures that align with labor laws and industry regulations.

• Update policies and handbooks: Our experts draft or revise your employee policies to guide managers, employees, and HR staff.

• Support documentation: We assist in drafting disciplinary documents and performance evaluations for consistency and legal protection.

• Train management: We educate your managers on HR best practices and when to escalate issues.

• Handle HR essentials: From personnel file audits to onboarding, job description reviews, and screening practices, we ensure your HR basics are covered.

  Partner with CHRO today to build a stronger, more compliant HR team that safeguards your business and supports your growth.

  Ready to strengthen your HR function? Review our services or contact us to discuss your unique challenges and discover how we can support your HR Team.

  Your business deserves expert HR leadership—let’s make it happen together!