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hr.ppt

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  • Welcome. Introduce yourself, your business/role with NJSBDC, and the specific experience or qualifications you have to present this course. Explain and refer to marketing material on Next Stage Series courses. Have participants introduce themselves and their businesses, why they are here, etc. This workshop, and the content therein, to include any and all instructor and participant material, handouts, slides, etc. are the proprietary material of the New Jersey Small Business Development Centers (NJSBDC) network; any replication, distribution, or use of this material is prohibited without prior written consent of the NJSBDC.
  • Talk to slide. This is not a “how to fill out a form” type of workshop. We are dealing with the concepts and philosophies that will help you to take your business to the next level by leveraging your human resources talent through applied principles and programs. Transition to “why establish an HR function, or why be so concerned about something you may not need to be involved with that often?” NEXT SLIDE
  • Why establish a formal program or dept, Or, Why retain or use an outside HR Consultant to handle your Human Resources functions or activities??? Why would you consider a real or virtual HR department?? It’s the right thing to do. It makes sense from a business perspective and a human perspective to pay attention to the most important component of your business. It also encourages proactive rather than reactive behavior; explicit communication of company goals; stimulation of critical thinking; identification of gaps between the company’s current situation and its future vision; identification of HR constraints and opportunities; cooperation of line managers; and the creation of common bonds within an organization. All are tied to what some of you have learned in our “Stepping up to Success” course as being central to Strategic Management and included in the “factors that matter” to observers of business and organization success. Transition to next slide and refresh participants on definition of Strategic Management.
  • As you can see from the definition of strategic management, none of this can take place without the proper human resources. The most successful companies are adept at strategic management because they are focused on having the right human resources. Next slide
  • That same thought is reinforced in this slide that we have taken from “Stepping up to Success”, where having the right people is integral to business success as well as how your business is viewed by the public--in this case---by analysts who follow public companies in the private sector companies. Even if you are not a public company, many if not all of these same measures matter.
  • Another reason to pay important attention to you human resources is because they are the real source of competitive advantage Your human resources will also play a major role in the value of your business if in the future you decide to sell or merge. Transition to next slide.
  • The right HR focus will also help you breed employees who will help breed customers. People who feel good about what they do, how they are treated, and where they work naturally transmit that feeling to your customers.
  • There’s also a more practical side to having a dedicated HR role or function. With so many laws and regulations on the books today, and so many employees filing complaints and suits, even the slightest unintended infraction, deviation, error or omission (ignorance or otherwise) can damage your company’s reputation and cost you plenty in compensatory as well as punitive damages. As we will see when we take a closer look at some of the laws, you as the employer are ultimately liable even if you had no knowledge of an act or a “reasonable person” might suggest that you should not be liable.
  • By paying attention to employees and treating them equitably and consistently and with fairness, dignity and respect, you will lower the chances of employees engaging in or siding with any attempts to unionize your company. As you all know, small businesses and their trade associations and support groups do much to discourage attempts at organized labor in the small business arena. (Over the last 20 years, the majority of unionization has occurred in companies with less than 30 employees). Over the last 20 years, from 1983 to 2003, employment has grown by over 33 million while union membership has declined by 7.2 percent. In the private sector there are more than 3.5 million fewer union members, and membership has declined by half from 16.5 percent to 8.2 percent, mainly due to industrial and occupational shifts resulting from technology and globalization (offshoring, outsourcing, downsizing), which is why labor is going after smaller targets and newer sources for membership.
  • How many employees should a company have before there is a need for an HR Department? As companies grow, there is a need to administer the HR function, but that doesn't necessitate an HR Department. In fact, experience has shown that until the company has at least 50 employees, that "department" -- really a function -- can consist of or be handled by one person. Between outsourcing such things as payroll and benefits,and the initial writing of an employee handbook, and with the plethora of software for HR today, one person should be able to develop and administer the function. Historically, what necessitates an HR Department are the functions and responsibilities which no one else either wants or is capable of doing. From recruiting to orienting new employees, from writing job descriptions to tracking attendance, and from instituting and monitoring policies to monitoring benefits, there has been a need for an HR generalist to assist senior management in both establishing a structure to holding down costs of administration. In fact, the initial title for the HR person could be "Administrative Manager.” In very small companies, this can often be the owner or most senior manager. Whatever the case, for the reasons we talked about earlier, you may want to consider consulting or employing an HR expert to help you and your company meet these very important needs, and make sure you are compliant with major laws and codes, some of which are presented here (*transition to next slide).
  • Here we have just a brief sketch if the major labor laws that apply to your business and are intended to protect your employees (and not your business). Briefly go over acronyms/broad definitions. We will be learning about and referring to many of these as we proceed through the course. But for now, just know that they are dynamic and something your business needs to pay attention to. In fact, I have a video that I wish to show, which will help us understand the impact of HR laws on business. You may notice by clothing and hairstyles that the video is not recent (it was produced in 1990), but the content, for the most part, has not changed. For now, we will show only the first segment of the video (about 13 minutes) and return to it later in Part II. Transition to video - first segment on Labor and employment practices.
  • Get reactions to Video. Use reactions as intro to Part I topics and the course in general. Ask, what was the main reason employees felt a union was necessary?? (Compensation) Explain how this course will help develop a workforce that should be totally satisfied with their work environment, and not feel that a union could do more for them than a proactive and employee focused HR function and programs. Next slide
  • Having the right people in the right job (or as Jim Collins, author of From Good to Great would say, “getting the right people on the bus, the wrong people off the bus, and the right people in the right seats”) begins with staffing, and the process you follow to find and attract the right people. Prior to interviewing or hiring anyone for any type of opening, you will want to follow these steps, which we will discuss for you in detail. Next slide
  • Recognizing the need for the new role. Often, managers realize the need for a new organizational role when employees continue to report being short-handed and mention the same tasks are not being done. Ideally, planning for a new role is done during strategic planning or when a new product or service is added to the organization. Our other Next Stage courses and their focus on financial considerations can also help identify when a new role is needed and how it could be funded. That new organizational role begins life in the form of a Job Description. Next Slide.
  • A job description specifies the general responsibilities of the position along with some of the specific duties to be conducted by the role, the title for the position, and any special skills, training or credentials required. Note which job activities are essential and which are non-essential. Add whom the position reports to and note if the position is full-time or part-time. Determine what the MINIMUM REQUIREMENTS AND QUALIFICATIONS are for someone to perform this job at a satisfactory level. Pay close attention the the KNOWLEDGE, SKILLS AND ABILITIES and the AMOUNT AND TYPE OF EXPERIENCE as well as EDUCATION (be careful not to ask for a College Degree when you know that an equivalent amount of specific work experience is all one needs to perform the role). (An example is pertinent: Too often "Bachelor's Degree required" is written on a job description, and just as often a bachelor's degree is not necessary to do the job. However, three years' experience in the particular position may indeed be necessary. Even then it is suggested that the specification be listed as "3-5 years experience required." Always leave yourself "working room." The former, i.e., B.A., may be "discriminatory;" the latter is acceptable.) Consider if the position requires any special physical skills (this may be important when considering accommodations to candidates with physical disabilities and effects from the Americans with Disabilities Act). Also consider if the position is exempt or non-exempt (exempt from being paid overtime). Usually, highly skilled, supervisory and/or professional roles are exempt, while entry-level positions are non-exempt and must be paid over-time (more on this later).
  • The usual primary reason is to establish wage and salary ranges and grades. Before one can use a salary survey, one must know that apples are compared to apples. Salary surveys are always based on descriptions and specifications. Therefore, we use descriptions to gain equity in compensation, i.e., paying what the job is worth. (Paying what the incumbent is "worth" is a matter of performance evaluation). Because one may reach equity, there is less of a chance for discriminatory pay policies, just one more reason why job descriptions are important. A second use is with performance management and the performance appraisal process. Too often, during a review, an employee will say, "I didn't know that was expected of me." With a job description signed by the employee, that excuse cannot be made. A third major use is that of a staffing and selection tool (for initial hiring as well as internal promotions, transfers and career development). The QUALIFICATIONS AND REQUIRMENT section of the job description should indicate what credentials individuals must have to be considered for the position and then which ones should be interviewed and selected. Scary as it may sound or appear, some managers actually do give the job description to job applicants who are seriously being considered for a position. Here again, the applicant who gets the job can't come back after several months and say that s/he didn't know that that was a responsibility. (Of course, descriptions must be updated as the job changes: in today's electronic age, that may well be every year.) HANDOUT COPY of completed job description. Next Slide
  • At this point, consider if the new position might be filled by a part-timer or full-time employee, or perhaps, even an independent contractor, consultant, intern or volunteer! If the activities associated with the role are highly critical for an extended duration, e.g., over six months, and require both critical and general skills, you may be better off to count on hiring an employee. On the other hand, if the role's activities are entry-level and if you are not sure that the position is really needed for the long term, consider getting a part-timer or contingent worker to fill the role. If the role requires highly skilled personnel for a fixed duration, consider hiring a consultant. In the case of hiring an employee, you must determine whether the duties of the position cause the job to be exempt from overtime, or non-exempt (meaning, time and half must be paid for all hours worked over forty in the workweek). HANDOUT FLSA guide for NJ
  • Estimate the salary range for the new position. Set this range by talking to other organizations with similar products or services, or by scanning classified sections of newspapers with ads for similar roles. Ideally, you will want to compare your job to a similar job or benchmark in a current, published salary survey. (Many of these can be found on the internet. You can also use the BLS surveys for your region). A note of caution: Make sure you are comparing job content, and not titles, as the latter are not universal. One company’s secretary title can be another company’s executive assistant! Finalize how much the position will cost the organization by adding "fringe" to the salary. For planning purposes, fringe might be estimated at 40% of the salary. Fringe includes costs of benefits planned for the new role, including health and dental and life insurance, and retirement benefits, along with required unemployment taxes, worker's compensation and any pension plans. Note that you may be required to pay certain employment taxes for part-time people, often if they are at or over half-time. Next slide
  • Talk to slide
  • Ask for answers. Use this slide as a segue to a short break. And when we come back we will talk about the HIRING PROCESS.
  • It is estimated that above average employees are worth about 40 percent of their salary more to an organization than average employees. That means an above average employee in customer service earning $30,000 would be worth $12,000 more to the organization than an average employee. Over ten years, the above average employee’s added value to the org is $120,000! Poor hiring decisions are likely to cause problems from day one. Unqualified or unmotivated workers require closer supervision and direction as well as additional training and they may never reach required performance levels. They may also give wrong info to customers and damage that relationship, not to mention the liability you may incur as a result of “negligent hiring”. A recent survey found that it costs $4,000 to replace an hourly retail worker. Major turnover costs include Separation processing (exit paperwork); recruitment (advertising, fees); selection (testing, interviewing); Hiring (orientation, training); Productivity (vacancy costs, disruption). The way to help you find and keep the best, is by taking the job description you have for the position, putting it through a process and being consistent in its application. Transition to next slide.
  • Talk to slide We will cover each in detail.
  • Your objective is to hire qualified a pplicants . A job description will help you accomplish this objective. A job description should state the primary duties and responsibilities of a position, as well as requirements and experience. Once the primary duties have been developed, the preemployment process is ready to begin. By taking the time to hire the right employee now, mishaps and headaches can be avoided later. Advertise the position - Post ads in classified sections of local major and neighborhood newspapers, or, as is more popular today, on one of the job search websites on the internet. In the ads, include the job title, general responsibilities, minimum skills and/or education required, whom they should send a resume to if they are interested and by when. Consider having a closing date after which you won't accept resumes. Note that current employees should be able to apply for the job. Considerations in hiring them for the new role will have to include the impact on the organization if the employee leaves behind a critical and unfilled role in the organization. Some organizations may elect to give internal candidates the first shot at the job. Advantage of internal promotion/mobility include increased longevity, lower training costs (maybe), message to others that opportunities for progression exist, etc. Sources for recruiting include: Referrals from current employees; former employees; print and radio advertising; internet and career sites; employment agencies; temporary workers; job fairs; college recruiting; customers. Next slide.
  • When screening resumes, note the candidate's career objective -- or the lack of it. If not specified, the candidate may not have considered what they want to do in the future, which may impact their commitment to your new role. Note if they stayed at jobs long or left quickly. Are there holes in their work history? Note their education and training. Is it appropriate for the new role? Consider what capabilities and skills might be evidenced in their past and current work activities. If you have lots of resumes, it helps greatly to enter in a word processor, the "highlights" and "concerns" information about each candidate; otherwise, after about 10 resumes, they all look the same. Having information on-line helps you keep perspective and you can go back later and have a strong overview of the candidates. Consider routing resumes past key employees to collect their rankings. Interview all candidates that meet the minimum qualifications. (At this point, be sure that you're not excluding candidates because of unfair biases.) Resumes that are not professionally formatted, or that contain errors in spelling or grammar or punctuation, generally are indications of poor work habits or performance deficiencies. There is no excuse for sloppiness in a resume. Next Slide.
  • Consider a short phone interview to narrow down the field of possible candidates. While interviewing candidates, always apply the same questions to all candidates to ensure fairness. All questions should be in regard to performing the duties of the job. Attempt to ask open-ended questions, i.e., avoid "yes-no" questions. Talk for at most 25% of the time -- for the rest, listen. Don't rely on your memory -- ask permission from the interviewee to take notes. Find out when they can start if offered the job. Consider having multiple people at the interview; although this can be intimidating to the interviewee, this practice can ensure them a much more objective and fair presentation. Have the same interviewers in all of the interviews if possible. Consider asking some challenging, open-ended questions, such as "What skills do you bring to this job?", "What concerns do you have about filling this role?", "What was your biggest challenge in a past job and how did you meet it?" Don't ask questions about race, nationality, age, gender, disabilities (current or previous), marital status, spouses, children and their care, criminal records or credit records. Have all interviewers share/record their impressions of the candidate soon after the interview meeting. Explain to the candidate that you'll be getting back to them soon, and always do this. Always check references and share them with the interviewers. Be sure to tell candidates of any relevant personnel policies and terms, such as orientation periods. (The best way to deal with a poor performer is not to hire him or her in the first place). Next Slide.
  • Usually, this is not as easy as one would like because two or three candidates come in close. Have a highly focused meeting with all interviewers. Have each suggest their favorite candidate. If there is disagreement, focus discussion to identify the one or two areas in which interviewers disagree about the candidates. Then have each interviewer explain their impressions. At this point, interviewers usually come to consensus and agree on one candidate. Ask if you can get and check any references. Always check references and share them with the interviewers. (Letters of recommendation are usually the poorest source of reliable reference information). Former employers/supervisors can provide the best. If practical, run a background check to ascertain if they have a criminal record or issue in their pass that would have a bearing on your decision/their employment. - If there does not seem to be a suitable candidate-- Consider if the job requirements are too stringent or are an odd mix. For example, you might not find someone who's highly interested in a certain technical skill or service and who also shows strong interest in general skills. Reconfigure the job so that required skills and training are somewhat similar and the role becomes more standard. Or, consider hiring the candidate who came in closest and plan for dedicated training to bring their skills to the needed levels. Or, re-advertise the position. - You can usually access fit for the job with ability tests or structured interviews. To determine org culture match and attitude, a final round of interviews based solely on Unstructured questions will often reveal disturbing qualities in a candidate who did well on the panel or structured interview. OFFER EXAMPLES - then go to next slide.
  • If they accept an offer, always follow-up with an offer letter confirmation, specifying the compensation, benefits, and starting date and reference an attached job description. Ask them to sign a copy of the offer letter and return it to you. Be sure to state that “this is not a contract” and that employment is contingent upon a background (credit/criminal, etc) check. (Note: background investigation does not take place prior to offer. Employee may actually start work and need to be terminated if problems or discrepancies are later revealed). It’s also a good idea to express salary as a weekly figure, as anything more can make it sound like the employee is guaranteed wages for a longer/more fixed duration (‘X” dollars per year, or per month) in the event you terminate them. Next slide.
  • 1. Before the employee begins employment, send them a letter welcoming them to the organization, verifying their starting date and providing them a copy of the employee policies and procedures manual (if you have one). 2. When the employee begins employment, introduce them to staff, give them keys, get them to sign any needed benefit and tax forms, explain the time-recording system (if applicable), and provide them copies of important documents (an organization chart, last year's financial report, the strategic plan, this year's budget, etc.) 3. Show them the facilities , including layout of offices, bathrooms, storage areas, kitchen use, copy and fax systems, computer configuration and procedures, telephone usage, and any special billing procedures for use of office systems. 4. Schedule any needed training , including use of passwords, overview of software and documentation, location and use of peripherals, and where to get answers. 5. Review any policies and/or procedures about use of facilities . 6. Assign an employee to them as their "buddy” who remains available to answer any questions. Socialization is a big part of the recruiting and selection process and the employee’s success. 7. Take them to lunch on the first day and invite other employees along. 8. Meet with them at the end of the day to hear any questions or comments. 9. Meet with the new employee during the first few days to review the job description again and any specific goals for the position, e.g., goals from the strategic plan. In the same meeting, explain the performance review procedure and provide them a copy of the performance review document. 10. Have one-on-one meetings with the new employee on a weekly basis for the first six weeks , to discuss the new employee's transition into the organization, get status on work activities, hear any pending issues or needs, and establish a working relationship with their supervisor. TRANSITION TO NEXT SLIDE AND DISCUSSION ABOUT COMP ABD BENEFITS.
  • Compensation is the actual salary paid to an employee. Whether intended or not, employee earnings are common knowledge. That is why it is important to develop a structure that promotes fairness, improves morale, and increases productivity. Afterall, the objective is to attract, retain, and motivate qualified employees. Start with a job description, then wage surveys (internal and external). Wage surveys can be obtained from many sources externally. Once each position has been described and compared within your market, rank each position monetarily. Give ranges and allow for flexibility as the company expands. Update at least yearly to stay abreast of any changes. Performance Evaluations should be tied in as well. A compensation consultant can put a program in place for you that can be updated annually at a reasonable cost. Employee benefits typically refers to retirement plans, health insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans. To be competitive and stay in business, do not offer more than you can afford. Today's downsizing of large companies makes the small business look secure. The small business also offers flexibility. Next slide. - key elements of compensation.
  • Exempt and Non-Exempt. The Fair Labor Standards Act of 1938 contains a number of provisions, chief among them, the determining factors that govern which employee jobs are entitled to (or not entitled to [exempt]) from overtime. Transition to next slide
  • The law also prescribes the minimum wage requirements that are to be followed on a national level (states are allowed to set their own provisions, so long as they are more strict than the federal requirements). For example, in NJ, the minimum wage is what (Ask Audience; answer $7.15) and the federal minimum wage is $5.15. Jobs in organizations have two classifications, exempt and non-exempt. Professional, management and other types of skilled jobs are classified as exempt. Exempt jobs get a salary, that is, a fixed amount of money per time interval. It's not uncommon for exempt positions to receive higher compensation and benefits than non-exempt jobs, although non-exempt jobs often can make more money than exempt jobs simply by working more hours (and receiving o/t). Unskilled or entry-level jobs are usually classified as non-exempt. Non-exempt jobs usually get a wage, or an amount of money per hour. Non-exempt jobs also get paid extra for hours worked over 40 hours a week. There are government tests and guidelines to help managers and HR professionals determine the difference between exempt and non-exempt jobs (important, because if a job is merely classified as exempt and paid well to avoid having to keep the employee on the clock or pay him/her overtime, the company can be liable for back pay and fines if found to be non-compliant). Handout FLSA Chart or reference it, if already distributed. Note that chart is Federal mandate. NJ regulations are stricter. Next slide.
  • Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. Most objective way to maintain fairness, consistency and equitable treatment in regards to compensation administration is through a market based salary system. Match your job to survey jobs (similar size/type employers) to develop or slot job into an existing salary grade range structure (or progressive market rate schedule). Give example. Organizations usually associate compensation/pay ranges with job descriptions in the organization. The ranges include the minimum and the maximum amount of money that can be earned per year in that role. Next slide.
  • Compensation is payment to an employee in return for their contribution to the organization, that is, for doing their job. The most common forms of compensation are wages, salaries and tips. Compensation is usually provided as base pay and/or variable pay. Base pay is based on the role in the organization and the market for the expertise required to conduct that role (market pricing discussed in last slide). Variable pay is based on the performance of the person in that role, for example, for how well that person achieved his or her goals for the year. Incentive plans, for example, bonus plans, are a form of variable pay. (Some people might consider bonuses as a benefit, rather than a form of compensation.) Some programs include a base pay and a variable pay. Next Slide - Basic Compensation Programs
  • Talk to slide. Use handout if available showing sample of job titles slotted into salary grade structure. Display and review next slide on Comp Ad model.
  • The premise behind the competitive advantage model is that satisfied customers are the product of satisfied employees (or, satisfied employees produce satisfied customers) and that compensation is one component of a system that can help your company or organization have satisfied employees. In this model, Jobs should be created so that they are challenging and use the full complement of an employee’s skills, talents and abilities. Further, those jobs need to be communicated and the basis for the company’s pay and rewards programs, which must be perceived as being fair, equitable and competitive. Lastly, a performance management system that empowers individuals to achieve high levels of performance and supports their career development and links them to appropriate rewards needs to be implemented and conducted as a process and not merely an annual event. Two way communication that is free and constant is critical to the success of this model. We will return to this model as we talk more about performance in the next segment. Next slide.
  • We can easily spend an entire day on the topic of performance appraisal, and the dimensions of performance that should be measured and managed in order to keep individual employee performance on track and aligned with and in support of overall organizational goals. We can also spend hours on the the most common types of forms and systems. One thing you must recognize is that performance management is an ongoing process and its success is really based on communication--constant feedback to the employee about their results versus your expectations (the best appraisal form in the world will not be effective if you discuss performance or the form only once a year). A good coach should also recognize that optimum performance is the result of ability times motivation. You can have the most skilled employee you would ever want in a position, but if they lack motivation, they are not functioning optimally and chances, are, they will leave your company. So how does a company or coach inspire motivation?? Transition to next slide - what is motivation
  • Talk to slide Motivation Theory There are many theories, but the one that proves to be most salient and to which we can relate is .. Next slide.
  • Talk to slide Frederick Herzberg’s theory of motivation is probably the most popular in explaining the difference between employees who are ordinary versus extraordinary performers. Next slide
  • In the absence of motivators (such as those listed as examples on the slide) employees will probably not be satisfied with their work or motivated to perform up to their potential. Notice that salary is not included in the motivator list. Herzberg contends that pay belongs among the second set of factors TRANSITION TO NEXT SLIDE - which he calls Hygiene or Maintenance factors
  • Talk to slide. The second set of factors is what Herzberg calls Hygiene or Maintenance factors. TRANSITION TO NEXT SLIDE by asking what do you think might be a hygiene or maintenance factor?
  • Talk to slide. You may want to mention here how focus of organized labor has been almost exclusively on Hygiene factors. What Herzberg is saying is that the absence of any one of these hygiene factors can lead to active dissatisfaction and demotivation and, in extreme cases, to avoidance of the work altogether. Transition to next slide for wrap up on Herzberg Theory.
  • Talk to slide. The Motivators, again, include things like “the job itself, opportunities for advancement, responsibility, recognition, achievement. If you recall our graphic on the Competitive Advantage Model (where we showed Jobs in one circle, pay and rewards in another, and performance management in the third) Two Factor theory has two implications for job design: 1. Jobs should be designed with as many motivators as possible, and 2. Making external changes in hygiene factors such as pay or working conditions is not likely to sustain improvement in employee motivation (and thereby performance) over the long run unless internal changes are also made in the work itself.
  • Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans. Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, that is, for doing their job. Some benefits, such as unemployment and worker's compensation, are federally required. (Worker's compensation is really a worker's right, rather than a benefit.) Prominent examples of benefits are insurance (medical, life, dental, disability, unemployment and worker's compensation), vacation pay, holiday pay, and maternity leave, contribution to retirement (pension pay), profit sharing, stock options, and bonuses. (Some people would consider profit sharing, stock options and bonuses as forms of compensation.) You might think of benefits as being tangible or intangible. The benefits discussed previously are tangible benefits. Transition to next slide for Intangible Benefits. Or ask group, What might some examples of Intangible Benefits?
  • Intangible benefits are less direct, for example, - appreciation from a boss, - development opportunities, - likelihood for promotion, - nice office, etc. People sometimes talk of fringe benefits, usually referring to tangible benefits, but sometimes meaning both kinds of benefits. You might also think of benefits as company-paid and employee-paid . While the company usually pays for most types of benefits (holiday pay, vacation pay, etc.), some benefits, such as medical insurance, are often paid, at least in part, by employees because of the high costs of medical insurance. How or where do you start to implement a benefits program? Next slide.
  • To be competitive and stay in business, do not offer more than you can afford. Today's downsizing of large companies makes the small business look secure. The small business also offers flexibility. Most small businesses offer the following benefits: Vacation : one to two weeks after one year of service. ・ Holidays : New Years, Memorial Day, Independence Day, Labor Day, Thanksgiving (some also give Thanksgiving Friday as well), and Christmas. ・ Sick Leave : five to twelve days annually. ・ Health Insurance : employer finances 80 - 100% of employee and family medical coverage. Retirement (if offered): mainly 401K plans. As you may already think or know, none of the above are required to be offered to employees. Those that are, are referred to as mandated benefits (next slide)
  • - Social Security - federal level and applies to all employers. In 2007, Employee contributes 7.65% of earnings (up to a max of $97,500 and the employer matches the funds. Workers' Compensation - at state level. Some states allow a company to opt out and provide their own plan. Benefits are paid to employees with on the job injuries or death Unemployment Compensation - federal and state level, and applies to all employers. Experience ratings determine state fund amount. Therefore, it is important to keep reliable and thorough records to challenge claims. Keep facts on each layoff, termination, and resignation in writing. STD - When an employee needs to be away from work for an extended period - say, for a nonwork-related disability like maternity, illness, or injury - that employee may have access to a short-term disability (STD) program, which helps provide at least partial income protection. NJ is one of five states that makes STD coverage mandatory. COBRA - federal level, applies to companies with 20 or more employees. Allows an employee to continue health insurance under certain circumstances. NJ Ben continuation - mirrors COBRA FOR NJ employeees FMLA - federal level, applies to companies with 50 or more employees. A company must allow an employee up to 12 weeks off for certain medical reasons if an employee has been employed for at least one year or worked 1250 hours. HIPAA - The Health Insurance Portability and Accountability Act applies to all employers who provide a health plan. Employees receive credit for prior health coverage, thereby reducing/eliminating limitations of pre-existing condition when an employee changes employers.
  • Before starting Part II slides and presentation, take a few minutes to hand out and have participants do the True and False quiz or the Case Study (about five minutes for each). Have individuals work in pairs. In either case hold off on giving answers until the end of the Part II session.
  • Talk to slide
  • In addition to the many HR-related laws that have been passed, there have been a myriad of opinions handed down in court cases that have affected the HR legal environment. The legal landscape is changing quickly. Four points in all. Point two on Next slide.
  • Each individual law is accompanied by a set of regulations that can be quite lengthy. Nonetheless, the gist of most HR law is fairly straightforward. Managers should be able to understand the basic intention of all such laws without too much difficulty. Point three on Next slide
  • Society at large, political representatives, employees, and judges, all have different views regarding the best ways to achieve equitable HR laws. Sometime these laws or practices actually are in conflict or are incongruous with each other. For example: Equal employment opportunity aims to ensure that anyone, regardless of race, color, sex, religion, national origin, or age has an equal chance for a job based on his or her qualifications. Affirmative action requires the employer to make an extra effort to hire and promote those in protected groups and includes specific actions designed to eliminate the present effects of past discrimination. Point four on next slide.
  • It is very common for a law, government program, or an organizational policy to have numerous unanticipated consequences, some of which turn out to be quite negative. The challenge to managers is to anticipate and deal with both the intended and unintended consequences of law. Adverse impact - when a seemingly neutral action has a negative effect, especially on a protected class (e.g., credit checks) Adverse impact is discrimination that occurs when the equal application of an employment standard has an unequal effect on one or more protected classes. For example, using aptitude or intelligence tests that are unrelated to job skills is an employment practice that can have a disparate impact on minority applicants. Tests have been challenged on the grounds that members of some racial groups consistently perform worse on them than members of other racial groups. Adverse impact differs from adverse treatment in that it is the result of the application of a standard, and is indirect and unintentional discrimination, whereas adverse treatment is direct and intentional, occurring when an employer treats an employee differently because of his or her protected class status. Next slide.
  • Talk to slide
  • Talk to slide
  • Talk to slide While Title VII clearly covers any race, any color, any religion, etc, as court cases and regulations have developed around this law, so has the legal theory of a protected class. This theory states that groups of people who have suffered discrimination in the past require and should be given special protection by the judicial system. Under title VII, the protected classes are AFRICAN AMERICANS, ASIAN AMERICANS, LATINOS, NATIVE AMERICANS, and WOMEN. While it is not impossible for a non-protected class plaintiff to win a title VII case, it is highly unusual. WE WILL NOW GO BACK TO OUR VIDEO AND SEE HOW SOME OF THESE LAWS PLAY OUT IN THE WORKPLACE. RESUME VIDEO beginning with segment on Laws (Candy Sesko and Equal Pay; Ernie and ADEA; and Title VII)
  • Talk to slide. One of the issues that was not featured in the video is that of sexual harassment. Since the video was made the number of cases of sexual and hostile work environment cases has increased dramatically, simply because of the publicity the law has seen. First definition of Sexual harassment established in 1980 - unwelcome sexual advances, requests for sexual favors, and other verbal and physical conduct of a sexual nature constitute sexual harassment when 1.submission is made either explicitly or implicitly a term of an individuals’ employment; 2 submission to or rejection of such conduct is used as a basis for employment decisions affecting such individual, or; 3. Such conduct has the purpose or effect of unreasonable interfering with an individual’s work performance or creating a hostile, intimidating or offensive working environment. In 1993, the definition of Harassment was expanded to include verbal or physical conduct that denigrates or shows hostility or aversion toward an individual because of his or her race, color, religion, gender, national origin, age or disability, or that of his/her relatives, friends or associates.
  • Talk to slide. As you can see, it appears that only certain specific job related or employment related information should be maintained in the personnel file. Certain other types of personal information should be kept in a secured, separate file. NOTE: The SBDCs have regularly scheduled workshops on documentation and recordkeeping. Transition to next slide.
  • All other items should be kept in a separate confidential file. The information in this file is revealed on a need to know basis. Most are self explanatory. Medical records includes Doctor releases, health insurance information, physicals, injury reports, w/c claims. I-9 form is the Immigration form necessary for all applicants offered a position.. Designed to prevent the hiring of "illegal aliens” HANDOUT - RECORDKEEPING CHART
  • Eighteen states have labor codes regarding an employee's right to have access to documents in his or her personnel files. Certainly, from a fairness and common-sense standpoint, even without a regulation to force the issue, an employee should be able to see all counseling reports and performance evaluations. (Again, there should be nothing in the file that the employee has not already acknowledged or seen. Some states allow employees to copy their entire files (not NJ, allows employee to make notes of things in file). In essence the personnel file belongs to the company, not the employee. Therefore, in states which have no code, the employer has a right to withhold the file. The employee is then forced to request the file in writing and, barring that have an attorney request the file. It might be a good idea to have such a statement in writing, as part of your company policy and procedure manual, or employee handbook, which we will talk about now. Next slide.
  • Take a ten minute break after you mention other courses in Next Stage series.
  • Talk to slide
  • Too much detail can lead to problems, therefore less is best. State the do's and don'ts, leaving room for management discretion. When does a company need a manual? A formal manual may not be necessary, but something in writing is imperative. Protect yourself (company) while instilling trust in employees by providing fair and consistent treatment. Remember this is an employee reference manual, not an implied contract. Seek legal advice to review language and compliance ramifications. A word of caution: If you do not intend to follow the written policy, then do not write it down. A written policy must be implemented in order to be useful. Other reasons: First of all, the handbook is a mix of the positive and negative. Second, it establishes mutual expectations. Third, it communicates information that the employee must know in order to become a valued team member. Fourth, without policies and procedures, you have three choices: let your actions become your policies; have employees constantly asking questions about everything from hours of work to benefits; have employees who are too afraid to ask anything and perform in a vacuum. Start simple--especially if you only have only a few employees--transition to next slide
  • At the very least, a beginner’s manual should include the most important items: Welcome statement ( may also include company history, goals, and/or philosophy). At will statement (allows either party to terminate the relationship at any time for any or no reason at all Acknowledgement form (shows employee receipt of manual and compliance of policies). NOTE: Having a policy manual is no guarantee against problems or pitfalls. In fact, your manual can be a pitfall if not worded properly or if your policies are not implemented carried out as indicated. So what are some of the major pitfalls you need to be aware of and what can you do to be proactive and avoid them??? Transition to next slide
  • While most companies wouldn't think of operating without a bookkeeping function, the majority do not think about putting employment policies in writing until after at least one negative incident involving the behavior of an employee. There are also the laws. It is not just because governments mandate adherence to the laws that smaller companies should have written policies and procedures. There are practical matters to be considered: what are the hours of work? What is considered tardiness? How much absenteeism is the company willing to accept? During the "introductory period?" Does the company provide medical insurance? Sick leave? How much vacation time is accrued and over what period of time? What actions can lead to termination? Has the company established itself in writing as an at-will employer? But be careful in what you say and how you say it. There have been many instances where the language in an employee handbook has been interpreted as an employment contract. This can lead to the smaller business person making promises within policy handbooks. The statement, "We hope you have many productive years with our company" is not the same as, "We know you will be with us many years." Nor is, "We provide benefits as we can" the same as, "You can expect to receive all the benefits here as you would with our largest competitor." These are actually minor compared with explicit contractual statements found in manuals over the years. The admonition is simple: be careful in how much you say as well as what you say in employee handbooks. Next Pitfall (Slide)
  • No one likes to write them, certainly no one likes to keep them updated, but the job description is a valuable tool . It describes the responsibilities of the incumbent in a job. Invariably the first few employees are hired with only a vague notion as to responsibilities. The title "secretary" doesn't sound good in the 90's, so we give the title, "Office Manager." And, what does this Office Manager do? Well, he/she does all the things that a secretary does: computer input, typing letters, greeting people, answering phones and making calls, setting up meetings, and so on. Quite often, we are taken in by titles, titles that we gave. We often think the job is more important than it is and, worse, we often think it should be compensated higher than it should. And that's the second thing a job description can do for you: it can help you give a wage range based upon what other secretaries, office managers, operations officers, sales people...are getting in the industry and location. It’s the heart of the job evaluation process. The basis for market pricing. The job description should also be related to performance appraisal. How can an individual's performance be evaluated if the manager doesn't know what the employee is supposed to be doing? Worse yet, how is an employee expected to know their job (the scope or limits) without a written description? Next pitfall.
  • The Fair Labor Standards Act defines the difference between the two types and gives the criteria which must be met simultaneously for an employee to be exempt in one of three classifications (Executive, Administrative, and Professional) from the Act. Although all criteria must be met, the most important at least in conducting a cursory evaluation -- are that the employee, (1) manage a department or function of the company or supervise two or more employees within the company; (2) use independent discretion and judgment without direct supervision; and (3) has the authority to hire or fire, or whose word will be given weight in hiring or firing other employees. There's more to it than this, of course, but for the purposes of this course, this will suffice. If an employee is exempt from the Act, then the employee is not eligible for overtime. A title is not a criteria for exemptions . Therefore, you might give a title of vice president to the person on the loading dock: s/he is still nonexempt and eligible for overtime. Further, just because you were foolish enough to pay the administrative assistant $65,000 a year does not make that position exempt. In determining whether an incumbent's responsibilities meet the criteria for an exemption, a job description is, once again, an extremely useful tool. Considering the time-and-one-half plus penalties, failure to comply with the law can been very costly indeed. Misclassifying an employee as an independent contractor is perhaps more serious because the IRS usually takes the view that the company had done so as a subterfuge from paying income and employment taxes. There are criteria for truly being an independent contractor . HANDOUT ON INDEPENDENT CONTRACTORS TRANSITION to next slide.
  • Inconsistencies in applying policies and procedures can be the ruination of whatever structure a company has established. While many still adhere to the dictum that "rank has its privileges," sometimes the "privileged" give special consideration to their own subordinates. The VP of Engineering, for example, who allows his or her subordinates to be late while the VP of Accounting wants to dock his or her subordinates for being 10 minutes tardy, undermines all departments' attempts to be equitable in enforcing policy. Furthermore, inconsistencies and preferential treatment such as this can lead to claims of discrimination. Admittedly, it is a tightrope, but it is one which must be walked. Treat all employees fairly and with equity: it is better to be consistently strong than weak. Apply the same standards of performance and conduct to all of your employees. Workers quickly sour on a boss who plays favorites or punishes scapegoats. Successful discrimination lawsuits start when you treat workers in the same situation differently. Next slide.
  • Aside from what normally goes into an employee's file -- and, yes, to reiterate, there should be a file -- be certain that there are the following documents: Application for Employment, any performance reviews and consultation reports, attendance records, and any agreements that have been signed by the employee such as trade secrets or nondisclosure agreements. Any time that an employee must be disciplined should be documented. Initially, the document can be a handwritten note, but if the offense is sufficiently severe, a "formal" warning or consultation report should be completed, a meeting held with the employee describing the specific offense(s), and the form should be signed by the employee. (The employee should be allowed to rebut the report, but always have the individual sign the original even if s/he wants to write in a disclaimer.) If the employee does something positive and worthy of mention that, too, should become part of the file. The combination of such memos, always dated, makes evaluation of performance and positive or negative actions so much easier. Next slide.
  • Besides not giving you the legal defense you may need to justify discipline or termination, without periodic documentation(and performance feedback) two major faults with performance appraisals will appear. These are called the "halo" and "horns" effect. Simply, an employee performs marginally for 11 months and then, just prior to the formal evaluation, does something outstanding. The tendency is to rate the individual as "good" or "excellent" because of this more current behavior, termed the "recency effect" in psychological circles and the "halo effect" in Human Resources. The opposite of the halo is the horns effect in which an individual performs superbly for 10 or 11 months and then errs in one way or another. The overall performance is evaluated as "marginal" or even "unsatisfactory" because of this one event. For these and other reasons, performance should be evaluated and documented, both positively and negatively, on an ongoing basis. Be extremely careful in any policy stating the timing of evaluations. In 2002, there were at least two cases of employees suing for not having been given a review when "promised" in the handbook. While one is admonished to document performance, it is also important that the documentation be clear and without indicating personal bias. One should not write impressions of behavior, i.e., "Joe is a slob," but rather factual incidents of behavior, i.e., "Joe came into work on 12-17-06, unshaven and generally unkempt.” Performance evaluations are your early warning system regarding employment problems -- and your proof that you acted reasonably, in case you end up in court. (In the worst cases, evaluations can be valuable proof in a lawsuit, illustrating that you put a poor performer on notice and gave him a chance to improve.) In the best situations, they can turn a poor performer into a valued worker.
  • Though it is usually in the best interests of a company to see that an employee succeed, there is also a time to cut one's losses. You can limit the company's liability by following a progressive discipline process, but you do not have to go through the three or four normal steps (counseling, probation, suspension, termination) over a long period of time. If you have done everything to "save" an individual, but the behavior remains, it is time to terminate the employment relationship. TRANSITION TO QUESITON ON NEXT SLIDE ABOUT CHRONICALLY LATE EMPLOYEE
  • ASK PARTICIPANTS TO THINK ABOUT QUESTION AND OFFER ANSWERS. You can have several responses. Some solutions: First, advise that the employee be suspended without pay for two or three days and be put on formal notice that continued tardiness could lead to termination. Or, advise that, if this did not correct the behavior, the employee should be terminated. There may even be a response to creating a flex time work schedule for sales staff (which might open up a discussion about precedent and other areas wanting similar treatment). Regardless of how much the "customers love him," implied consent of tardiness has a deleterious effect on other employees. There is never an excuse for not getting up earlier to be at work on time. We all know how difficult it is to fire an employee, but it comes with the territory of management and ownership. In this example, an employee who steals time, steals money. These are some of the ways in which a company can limit its employment liabilities. Succinctly, preventative actions are positive actions. Return to more pitfalls - next slide.
  • All states recognize the concept of "at-will employment," employment that can be terminated by either the employer or employee with or without cause and with or without notice. Too few smaller businesses establish this right -- one of the few protections they might have. Why should a business have to establish the right if the law says that the company has the right? Because the employee must be notified that the company is an at-will employer and allows the individual to terminate his or her employment under the same conditions as the company. At-will is so important that it should be on application forms (which all applicants should sign, including those with resumes), on "consultation" or "warning" reports, and on the first page of any employee handbook. But don't take too much comfort in at-will employment rights. Though it may be stated that the company can and will discharge an employee with or without cause, the truth of the matter is that there should always be some justification for dismissal. If the cause is "poor performance," back it up with a performance review. If the cause is that "the employee's personality just didn't fit in with the company's," one had better have some specifics: claims of wrongful discharge are not dead. Transition to more tips..Next set of slides.
  • Workers who are deprived of dignity, who are humiliated or who are treated in ways that are just plain mean are more likely to look for some revenge through the legal system -- and juries are more likely to sympathize with them. For example, if you march fired workers off the premises under armed guard, publicize an employee's personal problems or shame a worker in public for poor performance, you can expect trouble. Next slide.
  • Adopt an open door policy and put it into practice. This will help you find out about workplace problems early on, when you can nip them in the bud. And it will show your employees that you value their opinions, an important component of positive employee relations. NEXT SLIDE.
  • Just common sense. Make sure that every workplace decision made is guided by job-related criteria -- not by a worker's race or gender and not by a worker's personal life or your personal biases. Making sure that your personnel decisions are business-related, make economic sense and will keep you out of lawsuits for discrimination, violation of privacy and wrongful termination. Next slide.
  • Employers get in trouble when they discipline whistleblowers or workers who complain of harassment, discrimination or unsafe working conditions. Take action to deal with the problem itself, not with the employee who brought the problem to your attention. Next slide.
  • Once an employment problem comes to your attention, resist the temptation to hide your head in the sand. Take action quickly, before it turns into a real mess. Ask for examples or tell a story about a situation you know of. Next slide.
  • Loose lips about employee problems are a surefire way to bring the law down upon your head. An employee could sue you for defamation or could haul you into court for causing him/her emotional distress, for creating a work environment that is hostile toward him/her or for poisoning prospective employers against him/her. The stakes are high, so protect yourself by giving information on a need-to-know basis only. ASK FOR QUESTIONS… TRANSITION TO NEXT/FINAL SEGMENT---ANSWERS TO QUIZ/KNOWLEDGE CHECK QUESTIONS
  • Transcript

    • 1. ATTRACTING, RETAINING AND ENGAGING THE RIGHT PEOPLE FOR THE RIGHT JOB Part I Developed by Edward F. Kurocka, Principal, OnSight Advisors LLC for NJSBDC
    • 2. PROGRAM OBJECTIVES
      • This workshop is aimed at familiarizing business executives with the major components of an effective Human Resources program. It provides small businesses with the information, practices, and tools for maximizing individual performance, optimizing employee satisfaction, and leveraging human resources to gain competitive advantage.
    • 3. WHY ESTABLISH AN HR PROGRAM OR FUNCTION?
      • HR Planning and Strategy is integral to business strategy and success
    • 4. STRATEGIC MANAGEMENT Strategic Management involves developing a game plan to guide a company as it strives to accomplish its vision, mission, objectives and goals, and to keep it on its desired course .
    • 5. Measures That Matter
      • Strategy Execution
      • Management
      • Credibility
      • Quality of Strategy
      • Innovativeness
      • Ability to Attract and Retain Talented People
      • Market Position
      • Management
      • Experience
      • Executive Comp
      • Quality of Major
      • Processes
      • Research Leadership
    • 6. WHY ESTABLISH AN HR PROGRAM OR FUNCTION?
      • HR Planning and Strategy is integral to business strategy and success
      • Help achieve competitive advantage through engaged workforce by maintaining consistency and focus on people, programs and application
    • 7. WHY ESTABLISH AN HR PROGRAM OR FUNCTION?
      • HR Planning and Strategy is integral to business strategy and success
      • Help achieve competitive advantage through engaged workforce by maintaining consistency and focus on people, programs and application
      • Satisfied Employees = Satisfied Customers
    • 8. WHY ESTABLISH AN HR PROGRAM OR FUNCTION?
      • HR Planning and Strategy is integral to business strategy and success
      • Help achieve competitive advantage through engaged workforce by maintaining consistency and focus on people, programs and application
      • Satisfied Employees = Satisfied Customers
      • Mitigate Risk - Avoid bad press and keep you and your company out of court
    • 9. WHY ESTABLISH AN HR PROGRAM OR FUNCTION?
      • HR Planning and Strategy is integral to business strategy and success
      • Help achieve competitive advantage through engaged workforce by maintaining consistency and focus on people, programs and application
      • Satisfied Employees = Satisfied Customers
      • Mitigate Risk - Avoid bad press and keep you and your company out of court
      • Hamper efforts or reasons for employees to organize
    • 10. WHEN IS AN HR DEPARTMENT NECESSARY?
      • Ideal ratio of dedicated HR Generalist to Staff is 1 : 50.
      • Most established companies with policies and procedures already in place can stretch ratio to 1 : 100.
    • 11. Major Federal Labor Laws
      • 1 - 14 employees:
      • Title VII, civil Rights Acts of 1964
      • Equal Pay Act of 1963
      • FLSA
      • IRCA
      • NLRA
      • OSHA
      • HIPAA
      • 15 - 19 employees:
      • ADA
      • 20 - 49 employees:
      • ADEA
      • 50+ employees:
      • FMLA
      • 100+ employees:
      • WARN
    • 12. PART I TOPICS
      • STAFFING
      • COMPENSATION
      • PERFORMANCE MANAGEMENT
      • BENEFITS
    • 13. STAFFING
      • Recognize need
      • Draft the job description
      • Determine status/schedule
      • Research market rates/approximate cost
    • 14. STAFFING
      • Recognize need
    • 15. STAFFING
      • Recognize need
      • Draft the Job Description
    • 16. JOB DESCRIPTION USES
      • Major component of compensation and performance management systems
      • Major tool to assist is hiring, training, career development processes
    • 17. STAFFING
      • Recognize need
      • Draft the Job Description
      • Determine status/schedule
    • 18. STAFFING
      • Recognize need
      • Draft the Job Description
      • Determine status/schedule
      • Research market rates/approximate cost
    • 19. FINALIZE THE JOB DESCRIPTION
      • Be as accurate as possible, because it is the basis for
      • - hiring
      • - determining compensation
      • - conveying role to new employee
      • - conducting regular performance evaluations
      • Date the job description
      • Review and update it annually
    • 20. TRUE OR FALSE
      • Every company must provide rest breaks for its employees as dictated by federal law.
    • 21. THE HIRING PROCESS
      • Why getting and keeping the best makes sense!
      • Added value of above average employees
      • Costs of turnover and poor hiring decisions
    • 22. THE HIRING PROCESS
      • Advertising
      • Screening
      • Interviewing
      • Selecting
      • Communicating
      • Be aware of federal and state employment laws regarding all the above.
    • 23. ADVERTISING:
      • Start with job description
      • Sources - External
      • Internal posting
      • Method and cutoff for submitting resumes and applications
      • Other
    • 24. SCREENING:
      • Look for “qualified” candidates
      • What the pros look for
      • Techniques, etc.
      • Your first major opportunity to avoid potential performance problems
    • 25. INTERVIEWING:
      • Types of questions
      • Interviewing techniques
      • Consistency
      • Fair and Legal
      • Do’s and Don’ts
    • 26. SELECTING:
      • Verify References
      • Consider more than skills, requirements
      • Organization culture
      • Right fit for the job
      • Attitude
    • 27. COMMUNICATING:
      • Phone offer followed by official offer letter
      • Specify compensation, benefits, start date, etc.
      • Attach job description
      • Require letter signed and returned
    • 28. ORIENTING NEW EMPLOYEES
      • Welcome Letter
      • First Day Meet and Greet
      • Facilities walk through
      • Schedule Training
      • Review Policies, Procedures
      • Assign “buddy”
      • Treat to lunch
      • Meet at Day’s End
      • Keep in contact during first few days
      • Meet one-on-one and weekly basis
    • 29. COMPENSATION and BENEFITS
      • Compensation - Direct
      • - Wages, salary, bonus, commission
      • Benefits - Indirect
      • - health and welfare
      • - vacations
      • - stock ownership plans
    • 30. COMPENSATION:
      • Proper job description is key to determining FLSA (exempt/non-exempt) status
    • 31. FAIR LABOR STANDARDS ACT
      • Sets Minimum Wage
      • Overtime Requirements
      • State (NJ) v. Federal Pay Acts
    • 32. COMPENSATION:
      • Proper job description is key to determining FLSA (exempt/non-exempt) status
      • Use published surveys, association, gov’t or industry sources to help determine going rates, salary ranges, etc.
    • 33. COMPENSATION:
      • Proper job description is key to determining FLSA (exempt/non-exempt) status
      • Use published surveys, association, gov’t or industry sources to help determine going rates, etc.
      • Consider merit/performance based program to reward sustained achievement of expectations
    • 34. BASIC COMPENSATION PROGRAMS
      • Supported by current and properly completed job descriptions
      • Designed to be Fair, Equitable, Competitive
      • Some form of job evaluation, salary structure
      • Basis for performance management system
      • “The Comp etitive Advantage Model”
    • 35. COMPetitive Advantage Model JOBS PAY, REWARDS PERFORMANCE MANAGEMENT
    • 36. PERFORMANCE MANAGEMENT
      • Performance Appraisal –
      • The identification, measurement, and management of human performance in organizations.
      • Performance = Ability x Motivation
    • 37. MOTIVATION
      • Can be defined as that which energizes, directs and sustains human behavior
      • A person’s desire to do the best possible job
      • In HRM, it is behavior directed toward a goal
      • Motivation Theory and Practice
    • 38. MOTIVATION THEORY
      • HERZBERG’S Two-Factor Theory of Motivation
      • Identifies and explains the factors that employees find satisfyin g and dissatisfying about their jobs
    • 39. MOTIVATION THEORY
      • HERZBERG’S Two-Factor Theory of Motivation
      • Motivation Factors - are internal job factors that lead to job satisfaction and motivation.
      • Examples - the work itself; achievement; recognition; responsibility; opportunities for advancement.
    • 40. MOTIVATION THEORY
      • HERZBERG’S Two-Factor Theory of Motivation
      • Hygiene Factors - are external to the job and are located in the work environment.
      • Absence of a hygiene factor can lead to active dissatisfaction and demotivation and, in extreme cases, to avoidance of the work altogether.
    • 41. MOTIVATION THEORY
      • HERZBERG’S Two-Factor Theory of Motivation
      • Hygiene Factors include:
      • Company Policy
      • Working Conditions
      • Job Security
      • Salary
      • Employee Benefits
      • Relationships with supervisors, coworkers, subordinates
    • 42. MOTIVATION THEORY
      • HERZBERG’S Two-Factor Theory of Motivation
      • If management provides the appropriate Hygiene Factors, employees will not be dissatisfied with their jobs, but neither will they be motivated to perform at their full potential.
      • To motivate workers, management must provide employees with
      • some of the Motivating Factors.
    • 43. BENEFITS:
      • Tangible - direct
      • - Insurance (medical, life, dental, disability, unemployment, worker’s compensation)
      • - Paid vacation, holiday, leaves
      • - Pension, 401(k), profit sharing, stock options, bonuses
      • - Other perks, reimbursements (tuition, etc.)
    • 44. BENEFITS:
      • Tangible - direct
      • - Insurance (medical, life, dental, disability, unemployment, worker’s compensation)
      • - Paid vacation, holiday, leaves
      • - Pension, 401(k), profit sharing, stock options, bonuses
      • - Other perks, reimbursements (tuition, etc.)
      • Intangible - indirect
      • - Flexible work arrangements
      • - Culture of respect
      • Company-paid v. employee-paid
    • 45. PLANNING AND MANAGING A BENEFITS PROGRAM
      • Most small businesses offer the following:
      • - Vacation: 1- 2 weeks after one year of service
      • - Holidays: Six paid minimum
      • - Sick Leave: 5 - 10 days annually
      • - Health Insurance: shop around for best plans
      • - Retirement: 401(k) mainly. Keep it simple.
    • 46. MANDATED BENFITS
      • Social Security
      • Workers’ Compensation
      • Short Term Disability
      • Unemployment Compensation
      • COBRA
      • NJ Benefits Continuation
      • FMLA
      • HIPAA
    • 47. THANK YOU FOR YOUR PARTICIPATION
      • That brings us to the end of PART I.
      • See you for PART II.
      All titled workshops and the content therein are the proprietary material of the New Jersey Small Business Development Centers (NJSBDC) network; any replication, distribution, or use of this material is prohibited without prior written consent of the NJSBDC.
    • 48. ATTRACTING, RETAINING AND ENGAGING THE RIGHT PEOPLE FOR THE RIGHT JOB Part II Developed by Edward F. Kurocka, Principal, OnSight Advisors LLC, for NJSBDC
    • 49. PART II TOPICS
      • Federal Labor Laws
      • Recordkeeping
      • Policies and Procedures
      • Pitfalls
      • Top Tips
    • 50. CHALLENGES TO LEGAL COMPLIANCE
      • A Dynamic Legal Landscape
    • 51. CHALLENGES TO LEGAL COMPLIANCE
      • A Dynamic Legal Landscape
      • The Complexity of Laws
    • 52. CHALLENGES TO LEGAL COMPLIANCE
      • A Dynamic Legal Landscape
      • The Complexity of Laws
      • Conflicting Strategies for Fair Employment
    • 53. CHALLENGES TO LEGAL COMPLIANCE
      • A Dynamic Legal Landscape
      • The Complexity of Laws
      • Conflicting Strategies for Fair Employment
      • Unintended Consequences
    • 54. MOST SIGNIFICANT LAWS
      • EQUAL PAY ACT of 1963
      • Men and women who do the same work in the same organization should receive the same pay.
      • “ Same pay” means no difference is acceptable.
      • Exceptions: Bondafide Merit or Seniority plans, or Difference in individual qualifications.
    • 55. MOST SIGNIFICANT LAWS
      • AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967
      • Prohibits any form of discrimination against people who are 40 or older
    • 56. MOST SIGNIFICANT LAWS
      • TITLE VII OF THE CIVIL RIGHTS ACT OF 1964
      • Prohibits employers from basing employment decisions on a person’s race, color, religion, sex or national origin.
      • Extends special protection to “Protected Classes”
    • 57. DURING THE VIDEO
      • Make notes of anything you find new or surprising.
      • Write down any questions or comments so that we can discuss and learn from them later.
    • 58. MOST SIGNIFICANT LAWS
      • SEXUAL HARASSMENT
      • Title VII prohibition against sex-based discrimination has also been interpreted to prohibit sexual harassment.
      • Quid pro Quo Sexual Harassment
      • Hostile Work Environment Sexual Harassment
    • 59. RECORDKEEPING
      • Consists of employee data, federal regulations, and time frames. Compile only job-related information in the personnel file.
      • Items include:
      • - Resume/Job Application
      • - Job Performance and Evaluations
      • - Salary Changes
      • - Disciplinary Actions
      • - Transfers
    • 60. RECORDKEEPING
      • In a separate confidential file, keep:
      • Vacation, Leave Requests
      • Pre-employment Evaluations (Subjective items)
      • Reference Checks
      • Medical records, information
      • Legal Actions
      • I-9
      • Payroll Records
    • 61. ACCESS TO PERSONNEL FILES:
      • Some states have their own codes which govern access to employee files.
      • Employees must usually schedule an appointment to review contents.
      • Some are limited to once per year.
      • File should contain no secrets.
    • 62. Time for a commercial break!
          • NJSBDC’s NEXT STAGE
          • BUSINESS GROWTH SERIES
    • 63. POLICIES AND PROCEDURES
      • Need for HR Policies
      • Developing Policies
      • Developing a Manual
    • 64. WHEN DOES A COMPANY NEED A POLICY MANUAL?
      • The sooner you have something in writing, the better.
      • A simple, easy to read summary of major expectations protects the company and communicates a sense of trust and fairness to employees.
    • 65. MANUAL CONTENTS
      • Welcome Statement
      • EEO Statement
      • Work hours/week
      • Pay periods
      • Benefits (including holidays, vacations, worker’s compensation)
      • Disciplinary Procedure/Actions
      • Anti-harassment Policy
      • At-will Statement
      • Acknowledgment form
    • 66. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
    • 67. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • -Absence of job descriptions.
    • 68. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
    • 69. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
      • - Inconsistent policy application. Preferential treatment.
    • 70. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
      • - Inconsistent policy application. Preferential treatment.
      • - Lack of documentation.
    • 71. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
      • - Inconsistent policy application. Preferential treatment.
      • - Lack of documentation.
      • - Not evaluating performance.
    • 72. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
      • - Inconsistent policy application. Preferential treatment.
      • - Lack of documentation.
      • - Not evaluating performance.
      • - Waiting too long to discharge an employee.
    • 73. PITFALLS
      • "I have an employee, one of the best in our sales force, who is late at least twice a week. It doesn't affect his work. Our customers love him. I've counseled him, but he keeps coming into work late. What can I do to get him into work on time?"
    • 74. PITFALLS
      • The most common hazards in Small Business HR/Employee Relations are:
      • - Lacking policies and procedures, or, saying too much in handbooks.
      • - Absence of job descriptions.
      • - Misclassified Exempt/Non-exempt employees.
      • - Inconsistent policy application. Preferential treatment.
      • - Lack of documentation.
      • - Not evaluating performance.
      • - Waiting too long to discharge an employee.
      • - Not publicizing the “at-will employment”doctrine.
    • 75. OTHER TIPS
      • Treat your workers with respect
    • 76. OTHER TIPS
      • Treat your workers with respect
      • Communicate with your workers
    • 77. OTHER TIPS
      • Treat your workers with respect
      • Communicate with your workers
      • Make job related decisions
    • 78. OTHER TIPS
      • Treat your workers with respect
      • Communicate with your workers
      • Make job related decisions
      • Don’t punish the messenger
    • 79. OTHER TIPS
      • Treat your workers with respect
      • Communicate with your workers
      • Make job related decisions
      • Don’t punish the messenger
      • Take action when necessary
    • 80. OTHER TIPS
      • Treat your workers with respect
      • Communicate with your workers
      • Make job related decisions
      • Don’t punish the messenger
      • Take action when necessary
      • Be discreet
    • 81. KNOWLEDGE CHECK
      • How well did we do on our True and False Questions, or our Case Study?
    • 82. WRAP UP
      • Questions?
      • More Resources available through your SBDC and “Next Stage Growth Series” courses
      • Thank you for attending!
      • Best Wishes for continued success. We look forward to seeing you again.
      All titled workshops and the content therein are the proprietary material of the New Jersey Small Business Development Centers (NJSBDC) network; any replication, distribution, or use of this material is prohibited without prior written consent of the NJSBDC. Developed by Edward F. Kurocka, NJSBDC Consultant for NJSBDC
    • 83. BIBLIOGRAPHY
      • DelPo, Amy & Gueerin, Lisa, “Top Tips for Avoiding Legal Trouble With Employees,”
      • Nolo.com
      • Gomez-Meja, Luis R., Balkin, David B., Cardy, Robert L., “Managing Human Resources,”
      • Fifth edition, Pearson/PrenticeHall
      • McNamara, Carter, MBA, PhD, “Human Resources Management,” Managementhelp.org , 1999
      • Richter, Gina, “Small Business HR Page, user.txcyber.com/~gena /, 2006
      • Winning, Ethan A., “Labor Pains: Employer and Employee Rights and Obligations,” Ewin.com , 2006