Running a small business is no joke. Long hours, tight margins, and a million decisions a day make it tempting to think: “It’s my company — I can do what I want.” And you’re right… until you’re wrong.
Because the second you start breaking your own policies to make life easier for yourself, you open the door to a problem far bigger than whatever shortcut you were trying to take.
Precedent Isn’t Just a Legal Word — It’s How You Win or Lose
Here’s the part most business owners don’t realize until it’s too late: precedent decides lawsuits. When you make one “small exception” — like letting a favorite employee cash out PTO without following the written policy — you’re not just being nice. You’re setting a standard. You’re telling your whole company (and every future lawyer you might face), “This is how we operate when it suits us.” And once you create a precedent, you can’t uncreate it without causing serious damage.
Every employee you treat differently knows it. Every future complaint is colored by it. Every termination, demotion, or denial you try to justify is measured against it.
It doesn’t matter if you meant to create special treatment. It doesn’t matter if “it was just once.” It doesn’t even matter if you forgot you did it.
Precedent matters. And in HR, precedent is the sword you fall on when everything unravels.
Changing Policies? That’s Fine. Breaking Them? That’s Fatal.
Businesses evolve. Policies sometimes need updates. That’s normal. But changing the rules because it benefits you in the moment — without communication, consistency, or notice — is like handing your employees a loaded lawsuit and daring them to pull the trigger. You can’t enforce policies strictly one week, toss them aside the next, and expect no one to notice. Employees talk. They always do. Especially when they’re comparing what’s fair and what’s not.
If you’re going to change a rule, change it the right way:
- Communicate it clearly.
- Apply it equally.
- Make sure it doesn’t infringe on anyone’s rights.
Because it’s not just about fairness (although it should be). It’s about survival.
The Domino Effect: How One Bad Call Wrecks Everything
When leaders break their own policies or selectively enforce them, it’s never just one issue.
It’s a domino effect.
Maybe it starts with one employee feeling slighted. Maybe that turns into disengagement… or open resentment. Maybe another employee sees the favoritism and decides it’s not worth working hard anymore. Maybe someone files a complaint. Maybe someone else walks out without notice. Maybe, one day, a lawsuit drops on your desk and suddenly you’re explaining how you “didn’t think it would matter.”
One shortcut now. Years of cleanup later.
If You Lead, You Lead by Example
At the end of the day, policies aren’t made for “them.” They’re made for everyone. Including you. Especially you.
Skipping your own mandatory training? Breaking a policy you wrote? Expecting your team to follow a rule you don’t respect? That’s not leadership. That’s inviting chaos with a smile. Leadership starts with consistency. It starts with honoring the standards you set — even when it’s inconvenient, even when no one’s watching, even when it would be easier not to. If you can’t live by your own rules, don’t expect your team to either.
A Final Word from NevadaHR
Running a business is hard. Running a business without structure, consistency, and credibility is harder — and a lot more expensive. You don’t have to be perfect. You do have to be consistent.
If you’re worried your policies (or your practices) could be setting you up for a nightmare, NevadaHR is here to help. We’re in the business of transforming lives with the power of HR — and that includes protecting the ones who are smart enough to know leadership starts with accountability.
Lead smart. Lead fair. Build something worth standing on — not something you have to dig yourself out of.
Thomas Jepsen, PHR, SHRM-CP
Principal HR Consultant - Founder @ NevadaHR