The HR Red Flags You Should Never Ignore
- Feb 8
- 5 min read
Most people problems don’t start with a major incident. They start with small warning signs that during a busy week would be easily looked past - a bit of lateness, a dip in attitude, a couple of customer complaints, or a subtle clash between staff.
Individually, these seem minor, but when ignored, they can quietly grow in the background until they become performance issues, toxic culture problems, safety risks, or full blown Fair Work disputes.
If you run a small business, these red flags matter. You don’t have spare capacity for prolonged conflict or messy HR dramas.
Spotting the warning signs early and then nipping them in the bud before they escalate is your best defence. Here's what to watch out for....
1. Persistent Lateness or Attendance Issues
Lateness might seem harmless at first. Everyone runs late sometimes.
But patterns are what matter.
Why it's a red flag:
Signals disengagement or poor attitude
Frustrates the team
Disrupts workflows, especially in hospitality, retail, trades and healthcare
Often coincides with declining performance or rising conflict
What to do:
Don’t ignore it beyond the second or third instance
Have a quick, calm conversation to understand the reason
Re-set expectations clearly and document the discussion
Monitor improvement over the next couple of weeks
A small conversation here often saves you hours of frustration later.
2. Sudden Mood Shifts or Behaviour Changes
When someone who is normally steady becomes withdrawn, irritable, snappy, overly defensive, or unusually quiet, it's time to take note.
Why it matters:
Could signal burnout, stress, conflict, personal issues, or mental health struggles
Behavioural changes often precede performance drops
Staff may feel unsupported if you don’t acknowledge the change
What to do:
Have a private, supportive check-in, asking “I’ve noticed X, is everything okay?”
Don’t diagnose, just ask, listen and clarify standards
Offer support and remind them of expectations
Document the conversation
In many cases, this simple early check-in often turns things around quickly.
3. Repeated Customer Complaints
If customer complaints start appearing more than once for the same person, you’ve got a pattern and it needs dealing with.
Common examples:
Incorrect orders
Poor service
Rudeness
Lack of care
Safety shortcuts
Slow or sloppy work
Why it’s a red flag:
It directly affects revenue and reputation
It indicates poor performance or attitude
It exposes you to legal risk if safety or privacy is involved
What to do:
Address complaints as soon as they appear
Use real examples (“On Monday, a customer reported…” not “We keep hearing…”)
Clarify expectations and provide coaching
Put a note on the employees file
Escalate if things don't improve
Customer complaints are one of the clearest objective signs of a performance issue.
4. Tension or Conflict Patterns Between Staff
Every team has personality differences. But patterns of conflict - things like eye-rolling, snide comments, avoidance, snappiness - are not “normal” and need looking into further.
Why it’s a red flag:
Unresolved conflict spreads quickly
Culture, engagement, and productivity drop
Good staff leave because of one difficult person
It often escalates to bullying allegations once it goes on too long
What to do:
Don’t let it simmer
Meet with each person individually
Identify the root cause, whether it’s process, communication, or responsibility
Re-set expectations
Document the steps you take
If you ignore conflict, it becomes a culture problem, and culture problems can become expensive.
5. Declining Work Quality or Missed Deadlines
This can often creep up gradually - things like slower output, more mistakes, forgetfulness, or having to chase up things that were once automatic.
Why it matters:
It signals something deeper - disengagement, overwhelm, skill gaps, personal issues, or burnout
What to do:
Give specific examples
Ask what’s getting in the way
Clarify standards
Provide support or training if needed
Monitor progress with weekly check-ins
Performance issues improve fastest when you tackle them early.
6. A Drop in Team Engagement
Look out for these signs:
People avoiding team meetings
No one offering ideas or contributions
Staff complaining more
Passive-aggressive comments
Increased sick leave
A “why bother” attitude
Why it matters:
These are the early stages of a culture problem, and once your best employees start disconnecting, it can be very difficult to bring them back.
Engagement issues don't fix themselves.
What to do:
Ask for feedback
Look at workloads, leadership, communication, and clarity
Make fast, meaningful improvements
Address the negative influences directly
7. A Single High Performer Who Breaks the Rules
Most businesses have one. The person who does excellent work but causes chaos behind the scenes. They’re great at their job, but can be:
Dismissive of others
Resistant to feedback
Inconsistent with policies
Rude to team members
Controlling or territorial
Why this is a red flag:
One high performer with poor behaviour can:
Destroy culture
Cause others to quit
Create psychological safety risks
Trigger bullying complaints
What to do:
Give direct feedback
Set clear, measurable behaviour expectations
Don’t reward performance while ignoring conduct
Hold them to the same standards as everyone else
A high performer who undermines your workplace culture is a liability - not a high performer.
Why Early Action Makes All the Difference
Most issues can be fixed quickly when handled early.
Think of it like driving a car. You're constantly making slight adjustments to the wheel as you go along to keep the car on the road. Leave it too long, and you veer off course, leaving you with a big adjustment to make to avoid ending up in the ditch.
Handling HR issues in your business is no different. Ignore issues too long and they can turn into unfair dismissal claims, bullying allegations, workers comp stress claims, team dysfunction, lost customers, costly legal advice, major turnover, or safety incidents.
Early action isn't harsh. It's simply good leadership and risk management.
An effective feedback framework to use for management conversations is 'Stop - Start - Continue'. It's easy to remember and quick to implement. You can read more about it here.
HR Red Flags - Final Thoughts
Wherever people are involved, there are guaranteed to be HR issues. You just need to act early, communicate clearly, and notice the small warning signs. Every major HR problem starts as a minor red flag. Spot them early and you will save time, money, and a lot of stress.
See what we can do for you, and the HR Support Options available to your business. Let’s make managing HR the least of your worries.
Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225
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The content provided on this website serves as a general information resource on the subjects discussed, and should not be considered tailored to specific individual circumstances or a replacement for legal counsel. While we exert significant effort to ensure the accuracy of our information, HR Consulting TAS cannot ensure that all content on this website is consistently accurate, exhaustive, or current. Recommendations by HR Consulting TAS and any information acquired from this website should not be regarded as legal advice.
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