PRESENTING: AGENDA/TOPICS TO BE COVERED THE GOOD THE BAD THE UGLY ◦ Overview of ◦ Discipline ◦ Compliance Having ◦ Violence ◦ Lawsuits Employees ◦ Harassment ◦ Penalties for ◦ Hiring Non- ◦ Conflict ◦ Retaining compliance ◦ Termination ◦ Training
THE GOOD Why have employees Why build a company with loyal employees What would happen if you didn’t have employees Hiring Smart Retaining the “Stars” Training for excellence
HIRING - What isThe New Art of Hiring Smart System? 1. Identify Hiring Needs and/or Problems 2. Quantify the Cost of Turnover 3. Understand What You Are Recruiting for 4. Use Innovative Prospecting 5. Prepare and Conduct a Winning Interview 6. Do Background Checks 7. Assess Applicants for Job Match
PREPARE FOR AND CONDUCTA WINNING INTERVIEW A. Review the Job Description B. Review other Job Requirements C. Develop Lead Questions D. Build a File 1. Resume 3. Lead Questions 2. Application 4. Release Documents
DO BACKGROUND CHECKS A. Reference Checks B. Education Credentials C. Credit Report D. Criminal History E. Past Employers F. Driving Record Report G. Social Security Verification
INDEPENDENT CONTRACTORS Independent Contractors are not covered under Workers Comp. Understand who is an employee and who is an independent contractor to avoid liability under a variety of laws: IRS (Federal income tax withholding and SS) State Unemployment compensation laws State WC Laws Federal and State wage and hour laws Federal and State discrimination laws
INDEPENDENT -- CONTINUED Improper categorizing of a worker can be quite serious. Thereare specific guidelines that help employers define who or what is an independent contractor. Ingeneral, the main difference is the amount of control the employer can exercise over the details of the work.
HIRING SUMMARY… Turnover is a major expense. Traditional hiring methods are not effective. Government regulations are demanding change. Competition is forcing a closer examination of those we employ. People must match their jobs and fit the company culture. People are our number one resource.
RETAINING – Keep your “Stars”“In these days of Talent Wars, the best way to keep your stars is to know them better than they know themselves -and then use that information to customize the career of their dreams” Timothy Butler & James Waldroop “Job Sculpting” Harvard Business Review September-October 1999
TRAINING There are basically three places to “fix” people problems: ◦ Selection Process ◦ Coaching & Training Changing Behavior ◦ Replacing the Employee
TOOLS OF THE JOB If you don’t care enough to train your employees, they might not care enough to provide you with their best efforts. Share with your employees your goals and they will respond better.
THE BAD Employers don’t want to deal with difficult issues, such as: Discipline Violence in the workplace Harassment Conflict But, “the bad” comes with the good and must be dealt with swiftly and firmly in a consistent manner.
DISCIPLINE Employers need a consistent and understandable means to communicate important information. Policies – are broad guidelines developed to guide the organization decisions Procedures – provide further explanation and more details on how the policy is to be applied Work Rule – states what employees may or may not do to follow the policies of the organization
DISCIPLINARY PROCEDURES There are times when disagreements happen and when the employer must take some form of disciplinary action. While organizations work at preventing the need for disciplinary action, if needed, the employer should follow their established policies and procedures very carefully. Providing proper feedback insures that the employee is not surprised.
PERFORMANCE REVIEWS Reviews offer the best method for consistently providing feedback to the employee. The frequency and timing of reviews can be whatever the employer decides – it just needs to happen consistently.
VIOLENCE Workplace violence occurs when an employee with poor behavior control becomes highly stressed. Stress may or may not be work related but is usually set off by an incident at work. Employers need to be aware of employees exhibiting signs of possible violent behavior and take steps to prevent its occurrence.
HARASSMENT There are two forms of sexual harassment: Quid pro quo is a legal term which means “this for that”. Quid pro quo harassment, therefore occurs when an individual asks for sexual favors in return for a favorable employment action. Hostile work environment is defined as one in which an individual or individuals are subjected to unwelcome verbal or physical conduct “when submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment or work performance.”
CONFLICT AND RESOLUTION Conflict can happen whenever people work together. It can affect relationships between individuals or groups and covers a wide range of intensity levels. Resolution is a process of developing strategies for resolving issues and maintaining or rebuilding effective working relationships.
DEFINING CONFLICT Conflict in the workplace is a fact of life. 85% of employee’s terminate due to conflict with their boss. Managers spend about 1 month a year dealing with personality conflicts. Peoplehave different goals and needs and believe they are “right”. It is impossible to avoid conflict but it is productive to handle conflict.
PREVENTING CONFLICT“If you can’t go around it, over it, or through it, you had better negotiate with it.” -- Ashleigh Brilliant
PEOPLE DON’T LEAVE COMPANIES.THEY LEAVE PEOPLE.
THE EVIDENCE IS EVERYWHERE Poor productivity Low levels of engagement Poor morale Turnover Are largely attributed to conflicts in the supervisor/employee relationship.
THE EVIDENCE IS EVERYWHERE Research indicates that 85% of employees terminate due to conflicts in the boss/employee relationship. Executives were found to spend a minimum of one month per year dealing with personality conflicts. Source: Robert Half International
THE EVIDENCE IS EVERYWHERE 50% of an employee’s work satisfaction depends on the relationship the employee has with his/her supervisor Source: The Saratoga Institute The length of an employee’s stay on the job is largely determined by his/her relationship with their manager. Source: The Gallup Organization
NO ONE BLINKS A typical American holds more than eight different jobs between 18 and 32 alone. 85% of American workers expect to be employed by a new company within 12 months. Ten years ago, recruiters and employers would have balked at a candidate with three jobs in the last five years. Source: Forbes magazine, April 2007
COST OF TERMINATION Termination is expensive. It is estimated that turnover and termination can cost an organization 3 times the annual salary of the individual being replaced.
THE UGLY Compliance Issues Laws and Regulations Lawsuits
COMPLIANCE ISSUES – WHAT TO DO Know the laws of the land and their importance in running your business. Develop policies & procedures to minimize the opportunity for litigation. Be fair with your employees. Document, document, document
OVERVIEW – SHRM LIST OF POSSIBLENEW BILLS Employee Free Choice Act of 2009 Fair Pay Act of 2009 Secret Ballot Protection Act Title VII Fairness Act WARN Modifications Labor Relations First Contract Healthy Americans Act Negotiation Act of 2009 Healthy Workforce Act Public Safety Employer/Employee Emergency Retiree Health Benefits Cooperation Act Protection Act Worker Protection Against Executive Compensation Combustible Dust Explosions Additional Tax on Bonuses from TARP Family-Friendly Workplace Act Family Fairness Act (comp time) FMLA Changes (25 employees) Society for Human Resource Management HR Congressional Monitor of various Bills
WHERE HAVE WE BEEN? By 1900 By 1940 By 1980 By 2000 Case Law NLRA ADEA FWPCA IRCA USERRA Common Law FLSA OSHA CWHSSA TMRA ADA FICA ERISA SWDA FMLA EPPA RLA VEVRAA CERCLA DFWA TEFRA IRC MOSCA EPA WARN JSIA Davis-Bacon COBRA SOWA MSPA FWPCA Local Law PDA LMRA CRA CWHSSA State Law FMSHA CAA ADEA SWDA Case Law FUTA ADA (AGE) OSHA CERCLA Common Law CCPA LMRDA ERISA SDWA ERA CRA VEVRAA LMRA JSIA REHAB ACT MSPA CAA TSCA IRC PDA ADA (AGE) NLRA Davis-Bacon FMSHA EPA FLSA Local Law FUTA MHPA FICA State Law CCPA FCRA RLA Case Law LMRDA HIPAA Common Law ERA Miller Act MDSCA NMHPA COBRA ECPA TEFRA OWBPA TSCA CCRA NLRM HMOA FLSA PRWORA FICA INRA RLA IMMACT REHAB ACT Davis-Bacon IRC Local Law PCA State Law VAWA Case Law Common Law
IMPORTANT LAWS TO KNOW ABOUT Title VII of the Civil Rights Act (Title VII) Age Discrimination in Employment Act (ADEA) Americans with Disabilities Act (ADA) Immigration Reform and Control Act (IRCA) Fair Labor Standards Act (FLSA) Equal Pay Act (EPA) Occupational Safety and Health Act (OSHA)
LAWS - CONTINUED Family and Medical Leave Act (FMLA) Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) Health Insurance Portability and Accountability Act 1997 (HIPAA) Drug Free Workplace Act Patient Protection and Affordable Care Act (PPACA)
LAWSUITS Employment lawsuits are among the most common lawsuits in which companies will find themselves involved. Its a factor of business itself and one that must be reckoned with. The costs to employers for lawsuits can be substantial and can include: ◦ Penalties ◦ Back pay ◦ Attorney costs ◦ Time ◦ Lost productivity ◦ Bad press
PENALTIES Non-compliance with Healthcare Reform laws Responsibilities of employers COBRA FMLA
SUMMARY So, the question is, “Where do we go from here?” Good Employees – Bad Employees Good Benefits – Bad Benefits Understand the Good, The Bad, and The Ugly.
Lola Kakes Founder, EffortlessHR, Inc.Author, “If You Don’t Own a Circus … You Shouldn’t Be Hiring Clowns!” www.effortlesshr.com 520.546.3947