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September 29, 2008
Average Cost of Recruiting
There are no absolute guidelines, but the experience of others is a good indication of the amount you should expect to pay to advertise a position and recruit a person to fill the position. The cost of hiring a new employee should fall somewhere between 8 and 15 percent of the employee's first year's salary. If you use a search firm or work in a high-technology field, it's more likely the cost will be in the 25 to 30 percent range.
September 1, 2008
High Cost of Turnover
AEtna, the insurance company, estimates that it costs 93 percent of a person's salary to hire a replacement employee. This includes finding and training a new person, lost productivity and the supervisor's time added to the current salary. For example, the turnover cost for an employee earning $25,000 is 93 percent of $25,000 which is $23,250.
July 21, 2008
Maintaining Records for Employee Health and Safety
Employers who have 11 or more employees must maintain written or electronic records of employee reports of MSDs, employer responses to the reports, job hazard analyses, hazard control measures, "quick fix processes," ergonomic program evaluations, work restrictions, paid leave time off, and health care provider opinions. These records (except for health care provider opinions) must be available for production to OSHA upon request.
May 26, 2008
Monitor Your Benefit Vendors
Monitor employee benefit vendors. Businesses often "turn over" their employee benefit plan administration to third party vendors and then "forget" about it. Federal law, however, looks to the employer-the plan sponsor-when compliance issues arise. Federal law requires employers to audit and supervise third party administrators to assure compliance with laws and regulations. An employer who truly "forgets" about employee benefit plans will often suffer when audited by the IRS or DOL.
April 21, 2008
Keeping your Files Complete and Current
Keep and maintain proper records. The records an employer keeps and maintains reflect both the employer's mode of decision-making and the employer's intent to comply with the law. Forms I-9, New Hire Reporting, W-4s, Summary Plan Descriptions, Forms 5500s, COBRA and HIPAA notices, and Personnel Evaluations all tell the story of a compliant or non-compliant workplace. Take heed.
April 14, 2008
What Makes Training so Critical?
Like it or not, businesses act through managers and supervisors. Legal compliance, therefore, is only as good as the management and supervisory team make it. What supervisors don't know, they cannot do. Education is the only remedy for ignorance.
March 17, 2008
Distribute Notice of your Policies
Unlike some other situations, with respect to employment laws, ignorance is not bliss. Employers are required to post and disseminate various workplace policies under federal and state law. Failure to post and disseminate policies may be used against the employer as evidence of intentional non-compliance. A finding of intentional non-compliance usually means the imposition of punitive damages or penalties in an enforcement action.
February 11, 2008
Classification of Employees under FLSA
Know the classification of your employees, based upon their job functions. To pay employees within the mandates of the Fair Labor Standards Act ("FLSA"), an employer must recognize which employees perform what functions in the workplace, and then learn how these functions are "classified" with respect to "exempt" or "non-exempt" pay arrangements. A mis-classification can lead to big liability exposure for an employer. Generally, a mis-classification affects more than one employee in a job title and the DOL can assess back wages and penalties for up to three years under the FLSA.
December 31, 2007
Know the Laws that Apply
Know what laws apply to your workforce. Under most employment laws, the number of employees on an employer's payroll dictate whether the laws apply to that employer. For example, a company with 50 or more employees on the payroll 20 or more calendar weeks per year is probably covered by the Family and Medical Leave Act. The enforcing entities under these laws, the DOL and OFCCP, have little patience for employers who don't realize they are covered by the laws and fail to act accordingly.
December 24, 2007
Software License Inventory
Most penalties for use of non-licensed copies of software occur because a dissatisfied employee or former employee leaked word of the violation to the software manufacturer. If you have copies of software on which you haven’t paid license fees, you are holding a time bomb – one of your employees will some day turn you in. The solution has nothing to do with managing the HR function. The HR function simply recognizes human nature. The solution is that software licensing should be carefully monitored, and software use should be strictly limited to the number of licensed copies. Besides, stealing is still wrong. One break is that if a person uses software at the office, it can usually be used by the same person on another computer outside the office for work purposes as well.
December 17, 2007
Your 1st HR Employee
In recruiting for the first human resources position, it is a good idea to look outside the company. You will want someone who already has HR experience and training and will be qualified to manage the growth of the department as the company itself continues to grow. The best candidate for this position will be well-qualified, but not too much so. Be careful not to hire someone overqualified or too much of a “manager”. Your first HR staffer should be experienced in all of the basic functions: employment, compensation, benefits, records, maintenance, employee relations and training and development.
December 10, 2007
When do I Need an HR Department?
In the early stages of development, such matters tend to be handled by principals of the firm or designated staff. As the company grows, the increasing size of the workforce creates pressures for a more professional and consistent approach to personnel administration. To determine whether your company should consider establishing an HR department, think in terms of the ratio that would result. How many HR personnel would be needed to manage your workforce? According to national statistics, the median ratio of HR staff to employees across all industries is one per 100.
December 3, 2007
Criteria for Effective Performance Reviews
1. Review should directly relate to the responsibilities of doing the job. The criteria should be specific, quantifiable and measurable.
2. Review should be reliable, valid and consistent. The elements evaluated should be critical to doing a particular job, and the assessment procedure should be designed so the results are consistent no matter who handles the evaluation.
3. Review should be practical and not terribly time-consuming to administer.
4. Review should be acceptable to all parties involved. Many organizations have found it effective for employees to play in role in developing the criteria for measuring their job performance.
5. Both parties involved should be open to suggestions.
November 26, 2007
Overview of an Effective Performance Review
Performance reviews can be an effective management tool if both parties' interests are upheld. It provides an opportunity to evaluate job performance while clarifying objectives and identifying goals. And, it offers a forum to discuss performance issues and plan steps for improvement. The most successful appraisals are structured so that both the appraiser and the employee see the process as problem solving rather than fault finding.
To conduct an effective performance review that's both informative and fair, it's necessary to establish a set format that covers all applicable job performance areas and includes "next steps" for developmental planning and promotion opportunities.
November 19, 2007
Documenting Your Discipline Policies
Before initiating a program of progressive discipline with an employee, it is important to have written policies defining the procedures to be followed in the event of an unsatisfactory job performance. This gives the employee, in theory at least, the opportunity to prevent the imposition of discipline by performing satisfactorily. The policy statement should state the organization's commitment to progressive discipline, describe the basic steps involved, name the employees responsible for issuing and reviewing disciplinary actions and outline the steps and timelines for employees to file rebuttals and request administrative review.
November 5, 2007
Typical Steps in Progressive Discipline
Step 1: Talk to the employee, explaining the problems and what changes are needed to correct them.
Step 2: If the problems persist, advise the employee, noting any efforts at improvement that may have been made. Then, issue a written statement of the problems.
Step 3: If after the written warning the problem persists, the supervisor should follow through with the discipline spelled out in the company's policy statement.
Step 4: Talk to the employee (and a representative, if requested) before discipline is imposed, and listen objectively to what the employee has to say in his or her defense. Step 5: Once all attempts to improve performance through counseling and discipline have failed, you should inform the employee he or she is being terminated.
Termination is usually effective immediately. Many companies combine immediate termination with two weeks' pay.
October 22, 2007
Employee Counseling as a Learning Tool
There are other good reasons for using progressive discipline. One is that in many cases it results in satisfactory improvements in the employee's performance, and another is that it helps identify any weaknesses in company rules or policies which if corrected will improve employee performance. Through the counseling process, this system also helps supervisors understand how the selection process may have been inadequate, and how it could be improved to ensure a better job fit. And above all, the progressive discipline system is fair and ethical in that it gives employees a chance to change their behavior before being terminated, demonstrating to them as well as their peers that the company is ethical and fair in treatment of its workers.
October 1, 2007
Preparing to Terminate an Employee
Terminating an employee is never a pleasant process, but supervisors can lessen the difficulty of the situation through the principle of progressive discipline, in which employees are alerted to performance problems as soon as they appear and are given regular feedback and counseling with a goal of improving their performance in the problem areas. Should the problems persist despite the feedback and assistance, termination may be necessary. In the event an employee is resistant to being terminated, progressive discipline illustrates the good-faith efforts on the company's part to help correct the problems and documents good faith in the event of wrongful termination lawsuits.
September 17, 2007
Cost of Replacing an Employee
According to the American Management Association, there are many factors to keep in mind, including:
· the cost of hiring a recruiter,
· the cost of your time in lost productivity while searching,
· advertising fees
· and travel expenses both for you and any candidates you bring into town.
Also keep in mind the amount you've already invested in training the current employee and how much it would cost to train a new hire. Aetna estimates that the total cost is as high as 93 percent of the employee’s annual salary.
September 10, 2007
OSHA, EPS, MSD, What Next?
EPS = Ergonomic Program Standard
MSD = MusculoSkeletal Disorders
Employers who have 11 or more employees must maintain written or electronic records of employee reports of MSDs, employer responses to the reports, job hazard analyses, hazard control measures, "quick fix processes," ergonomic program evaluations, work restrictions, paid leave time off, and health care provider opinions.
August 13, 2007
Salaried vs. Hourly – Myth vs. Reality
The argument: "But everybody does it this way!" carries no weight at all with federal or state agency enforcers. Employees are "exempt" or "non-exempt" based upon what they do in their jobs and how much discretionary authority they have, not on what job title an employer gives them, or on what basis they are actually paid. Merely paying an hourly employee a fairly generous "salary" does not relieve an employer from the obligation to require the employee to record the number of hours he or she works every day.
August 6, 2007
Record Keeping Requirements
To ensure compliance with federal employment regulations, employers must keep all employment and personnel records for at least a year. In the case of involuntary terminations, the records of the terminated employee must be kept for one year from the date of termination. If an employment discrimination claim is filed, all pertinent records must be retained until the final disposition of the case. Keep in mind, also, that IRS rules require that many of the employment related record be kept longer, with 7 years being a guide followed by many businesses.
July 22, 2007
Employee Handbook – typical topics
Under the umbrella of company policies and procedures, topics you may wish to cover include: definitions of full- and part-time employment, shifts and hours of work, tardiness issues, lunch periods and break times, vacation scheduling, sick leave policies, work rules, dress and grooming codes, drug policies and testing, emergency and fire procedures, use of company property and email, telephone and Internet use, compensation and benefits, performance evaluations, promotions and job postings, disciplinary procedures and termination.
July 15, 2007
Employee Handbook – keep up the good work
It is all too common for small employers to prepare an excellent employee handbook and then fail to keep it current. Things change – both in company policy and applicable laws and those changes must be reflected in the handbook. It is recommended that employers do a formal review of their employee handbook at least annually. Employees should be given advance notice of changes, all changes should be clearly marked as to effective date and employees should acknowledge that the older version of the handbook is no longer current.
June 18, 2007
Employee Handbook as a Contract
From a legal perspective, requiring that new employees sign a form saying they have received a copy of the handbook can prevent later claims of ignorance of company policies. Increasingly, however, courts and juries are interpreting the employee handbook as a binding contract between employer and employee, and this interpretation places a responsibility on the company to deliver on any promises set forth in its handbook.
Thus, the degree to which the handbook spells out the company's policies and procedures clearly and thoroughly may determine the company's liability, or lack thereof, in resolving any employment disputes.
June 11, 2007
Why Bother with an Employee Handbook?
While there is no federal law requiring employers to publish a handbook for its workers, most employment law experts agree that such a publication helps promote a productive workplace by setting out in writing the company's rules, policies and procedures.
Employees need to know what employers expect of them in terms of performance, attitudes and behaviors, and a handbook sets the stage for a productive relationship between the company and its workers by communicating those expectations in a clear and objective manner.
June 4, 2007
Not Just a Job Description – the Right Job Description
The more time that is invested in gathering data for a job description, the more likely it is to be effective as a recruiting and evaluation tool. Don’t just start writing; apply these data gathering tools to give put the full knowledge base of the company at your fingertips.
· Observation. Most effective in jobs characterized by physical activities
· Review of Records. Especially useful for technical and mechanical jobs
· Desk Audit. Involves going to the workplace and asking for a walk through
· Interviews. Yields higher quality information than written listings of duties
· Questionnaire. Especially useful when interviews are is not feasible
· Diary. Employee notes the frequency with which tasks are performed
· Brainstorming. Useful in gaining the insight of job incumbents
May 21, 2007
Using Benefits to Lure and Keep Employees
In today's dynamic marketplace, the demand for workers outpaces the supply. Unemployment rates are at a 30-year low. To attract and keep top performers, employers must not only offer competitive pay, they must develop additional incentives such as flexible working hours, bonuses and enhanced benefits. Such tactics save employers valuable time and money by preventing high turnover and continual recruiting and training costs. Surveys indicate that the most attractive benefits to employees are strong health insurance and retirement programs, especially those that offer flexible benefits which can be tailored to individual family situations. Next on the list are innovative "voluntary" benefits, which are paid for by the employee, but at attractive group rates negotiated by the employer.
May 14, 2007
Figuring Pay on Shared Jobs
For employers considering a job-sharing arrangement, pay and benefits are key issues. The solution for many is a pro-rated system in which each partner is paid and earns benefits according to the percentage of time worked. (In many cases, vacation, holiday and sick leave can be pro-rated as well, or allocated on a part-time basis if part-time hours apply.) In instances where partners overlap hours so that the total hours worked is in excess of 40 hours a week, the employer is paying more but is also receiving more work for the money.
April 30, 2007
Benefits of Job Sharing
In a tight job market, job sharing increases the pool of available workers, bringing in those with special expertise but time constraints due to family responsibilities. Benefits to employers include reduced downtimes, since partners can generally cover for one another, and enhanced performance by having two sets of ideas, experience and skill-sets. Job sharers report enhanced motivation as a result of effective partnering, and employers say job-sharers tend to stay in the position longer because of the increased convenience of reduced hours.
April 23, 2007
Telecommuting policies
Telecommuting can be a tremendous cost saver, but there can also be landmines. To prevent problems down the line, especially if telecommuting is new, it's important to have a written policy in place and implement written agreements with those who choose to participate. A telecommuting agreement should outline specifically who is responsible for what. This includes equipment and expenses as well as actual job tasks. There should be clearly stated goals. Continuation in the program should require achievement of a high percentage of those goals.
April 9, 2007
Creating Job Descriptions
It's not quite as simple as clicking the shutter of a camera, but creating a job description doesn't have to be a daunting task, even the first time around, if you take an orderly approach. Once accurate job descriptions have been developed for the key jobs in your organization, it is much easier to establish what tasks are being carried out, which of them are desirable and which ones need changing. From there, you are well on your way to an ongoing system of review and analysis that will provide critical information on a range of HR issues.
April 2, 2007
Employee Suits - Retaliatory Treatment
Labor issues often cause hard feelings. There is a natural impulse to hold the leaders of employee actions accountable. However, any actions must be justified and cannot be merely “pay-back” for unpopular statements or activities.
March 19, 2007
Employee Suits – Failure to Grant Tenure
Some positions carry the expectation that upon meeting certain standards of performance or reaching certain employment milestones, that a protective status will be granted. While usually found in the academic world, there are similar instances where a privileged status is commonly granted after a certain period of employment. Failure to grant such status on a consistent basis could result in a discrimination suit.
March 12, 2007
Employee Suits – Adverse Change in Terms
Hiring someone into a management position and assigning them to clean-up detail would make little sense. Employees can reasonably expect their duties and compensation to remain at a level consistent with promises made when they were hired. While there are circumstances that might justify negative changes, such changes should be a red flag to seek a review from counsel.
March 5, 2007
Employee Suits – Wrongful Reference
Employers can be sued for depriving individuals of career opportunity. References must be based on fact, not general impressions. Companies should establish clear guidelines for personnel departments with respect to what information can be shared. Have those guidelines reviewed by counsel and don’t put yourself at risk for no return.
February 26, 2007
Employee Suits – Unjustified Failure to Hire/Promote
The key word here is “Unjustified”. When multiple candidates have the necessary skills for a new position, who gets the job? Find objective means to document your thought processes. Be especially diligent when your decision favors someone with less seniority.
February 12, 2007
Employee Suits – Workplace Harassment
We hear lots of jokes about sexual harassment, but employee harassment of any sort is no joking matter. The potential damages could ruin an otherwise promising enterprise. Consider training for your managers and no-tolerance policies. Have your insurance agent review your operations and determine when employer liability coverage makes sense.
February 5, 2007
Employee Suits – Violation of Specific Laws
Are you subject to FLSA, FMLA, OSHA, ADA or other Federal or State laws governing employment? If so, you need to understand the requirements of those laws and comply with their provisions. Cost is not an excuse. Consult with your attorney and learn what you need to know.
January 29, 2007
Employee Suits – Misrepresentation
Did you embellish the job you offered to a recent prospect? Did you overstate the quality of your benefits package? Did you promise and not deliver on a scheduled salary review? These are some of the many examples of misrepresentation that could lead employees to sue.
January 22, 2007
Employee Suits – Implied Employment Contract
Think you don’t have employment contracts? You could be wrong if you have made oral commitments about job security or you have long-standing procedures for dealing with employee issues. Contracts are not also found on formal documents.
January 15, 2007
Employee Suits – Wrongful Termination
The key to firing someone is planning and documentation. Fire someone – even an incompetent employee – for the wrong reason and you could be looking at significant damages. When in doubt, consult your attorney.
January 8, 2007
Employers at Risk
The small business takes on enormous risk in hiring employees, but the risk is necessary because the business cannot grow without staff to handle the load. Companies are far more likely to be sued by an employee than by an outsider, and the risk with outsiders is greater when employees rather than owners are meeting the public. The point is that HR is more important that most entrepreneurs realize.
December 4, 2006
Using the Performance Review
Both parties involved should be open to suggestions. Managers should be conducive to encouraging optimum employee performance by displaying confidence in the employee's ability and supporting development. Employees should be receptive to suggestions without assuming criticism. A good working relationship is enhanced by a well-designed appraisal because it benefits both the employee and the company.
November 27, 2006
Buy-in on Performance Review Methodology
It should be acceptable to all parties involved. Managers, employees and if the company has them, human resources specialists, should all have a role in the process. Many organizations have found it effective for employees to play in role in developing the criteria for measuring their job performance.
November 20, 2006
Practical Systems for Performance Review
Like almost every aspect of effective communication – remember to keep it simple. Effective performance reviews must be practical. A system that's time-consuming to administer is usually ineffective because managers simply don't have time to deal with it, making it a useless tool.
November 13, 2006
Performance Review Criteria
1. Relate criteria directly to the job.
2. Make the criteria specific, quantifiable and measurable.
3. Criteria must be reliable, valid and consistent.
4. Performance reviews must be simple.
October 30, 2006
Effective Performance Reviews
Performance reviews can be an effective management tool if both parties' interests are upheld. It provides an opportunity to evaluate job performance while clarifying objectives and identifying goals. And, it offers a forum to discuss performance issues and plan steps for improvement. The most successful appraisals are structured so that both the appraiser and the employee see the process as problem solving rather than fault finding.
October 16, 2006
Smooth Handling of Terminations
Termination is usually effective immediately. Many companies combine immediate termination with two weeks' pay. The number of warnings and disciplinary actions will vary, but if in doubt, err on the side of providing extra time and opportunities to the employee. Following these steps will ensure fairness, allow some employees to become satisfactory performers and protect your company from inappropriate litigation.
October 2, 2006
Steps in Progressive Discipline
In progressive discipline, the supervisor moves through increasingly strong phases of counseling and/or training in an attempt to cause or convince the employee in question to bring his or her performance to an acceptable level. The critical components are due notice (comparable to due process in the legal system), a chance to improve and a review process.
September 18, 2006
Preparing to Fire Someone
Terminating an employee is never a pleasant process, but supervisors can lessen the difficulty of the situation through the principle of progressive discipline, in which employees are alerted to performance problems as soon as they appear and are given regular feedback and counseling with a goal of improving their performance in the problem areas. In the event an employee is resistant to being terminated, progressive discipline illustrates the good-faith efforts on the company's part to help correct the problems and documents good faith in the event of wrongful termination lawsuits.
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