CSS overlapping arrow

Try this – http://jsfiddle.net/ksNr3/8/

ul {
    margin: 20px 60px;
}

ul li {
    display: inline-block;
    height: 30px;
    line-height: 30px;
    width: 100px;
    margin: 5px 1px 0 0;
    text-indent: 35px;
    position: relative;
}

ul li:before {
    content: " ";
    height: 0;
    width: 0;
    position: absolute;
    left: -2px;
    border-style: solid;
    border-width: 15px 0 15px 15px;
    border-color: transparent transparent transparent #fff;
    z-index: 0;
}

ul li:first-child:before {
    border-color: transparent;
}

ul li a:after {
    content: " ";
    height: 0;
    width: 0;
    position: absolute;
    right: -15px;
    border-style: solid;
    border-width: 15px 0 15px 15px;
    border-color: transparent transparent transparent #ccc;
    z-index: 10;
}

ul li.active a {
    background: orange;
    z-index: 100;
}

ul li.active a:after {
    border-left-color: orange;
}

ul li a {
    display: block;
    background: #ccc;
}

ul li a:hover {
    background: pink;
}

ul li a:hover:after {
    border-color: transparent transparent transparent pink; 
}
​

UPDATED – Made it clickable and minimized the overlapping areas – http://jsfiddle.net/ksNr3/8/