Issue 28: Today’s Brew: The Hidden Cost of HR Mistakes

☕ Brewed for Leaders Who Care

Espresso & Empathy — Issue 28

By: Shannon Foster

Founder & Senior Consultant, Martin & Foster Consulting

September 10, 2025

Let’s Talk: Why HR Mistakes Hurt More Than the Bottom Line

HR mistakes aren’t just administrative errors. They’re leadership failures that ripple through culture, compliance, and trust.

A missed deadline on required paperwork. An overlooked employee complaint. A handbook that hasn’t been updated in years. These may seem like small lapses—but the consequences can be enormous.

And while penalties, fines, or lawsuits are costly enough, the deeper cost is often unseen: the erosion of trust and credibility with your people.

At Martin and Foster Consulting, we see it all the time. Businesses think they’re “too small” for HR to matter—until a single mistake proves otherwise.

What HR Mistakes Really Cost

When HR processes are sloppy, reactive, or nonexistent, organizations pay in more ways than one:

• Compliance Risks

• Legal Exposure

• Turnover & Morale

• Lost Trust in Leadership

HR Done Right Is Leadership in Action

Strong HR practices aren’t just about compliance—they’re about culture.

• Policies create clarity.

• Processes create consistency.

• Fairness creates trust.

Leaders who invest in HR aren’t “checking boxes”—they’re demonstrating that their people matter and that the organization values doing the right thing.

The Leadership Self-Audit: Are HR Mistakes Costing You?

Ask yourself:

• Have I reviewed and updated my policies and handbook in the last 12 months?

• Are managers trained on consistent documentation and employee relations practices?

• Do we have clear, compliant systems for timekeeping, payroll, and benefits?

• When was the last time I proactively checked for compliance with state and federal laws?

• Do my employees trust HR and leadership to handle issues fairly and confidentially?

If you hesitate on any of these, your organization may be at risk—not just legally, but culturally.

Final Thoughts

The cost of HR mistakes isn’t only measured in dollars—it’s measured in trust, culture, and reputation.

Proactive HR practices protect people and the business. Reactive HR practices expose both.

At Martin and Foster Consulting, we believe HR is more than compliance—it’s leadership in action. Getting it right means creating workplaces where people thrive and organizations succeed.

Because in HR, as in leadership, doing the right thing isn’t optional—it’s essential.