The document discusses several common myths about small business employment practices. Myth 1 is dispelled by explaining that while money can motivate employees, other non-financial factors like challenging work, recognition, autonomy, teamwork, and communication are also effective motivators. Myth 2 is addressed by noting that employers are generally required to pay non-exempt employees for any work performed, including after hours access of work email on a personal device. Myth 3 is rebutted by outlining the conveniences and cost savings of direct deposit over paper paychecks for even small businesses.
The softer side of mergers acquisitionsDebi Barnes
A survey of executives involved in M&A deals conducted by Mercer revealed that 75% cited “harmonizing culture and communicating with employees” as the most important factors for successful post-merger integration. This is what I refer to as the “softer” side of M&A, i.e. people…specifically employees… “yours and theirs”… “us and them.” This is the part of M&A that can negatively impact the success of an acquisition over the long term financially, strategically and reputationally. Sometimes it is immediately obvious, but many times the consequences are manifested a few years down the road.
Initial Training of Managers is very necessary as almost 60% of new managers fail due to lack of training. I have tried to help new managers in a simple way.
Converting human capital data in to actionable management informationManoj Kumar
Cover story article from Business Manager Magzine - An interview with Manoj Kumar on Converting human capital data into actionable management information.
Customers are the lifeline of any business, regardless of size or industry. Saying "thank you" to them can go a long way in preserving your company's reputation and the perceived value of your products and services. This presentation gives ideas (and real life examples) on how to create mutually beneficial relationships with your customers.
How To Use H.R. Processes to Avoid the Peter Principle - Bad PromotionsEquilibria, Inc.
The Peter Principle: "In a hierarchy, every employee tends to rise to his level of incompetence". This presentation introduces a tried and tested method for avoiding the risks and costs with making bad promotions (avoiding the Peter Principle. It includes a detailed Q&A session with two H.R. experts as well as process improvement tips from our founder, an expert in process design and engineering for small businesses. There's also a link on the last page to a full blog article that explores this topic in more detail.
The softer side of mergers acquisitionsDebi Barnes
A survey of executives involved in M&A deals conducted by Mercer revealed that 75% cited “harmonizing culture and communicating with employees” as the most important factors for successful post-merger integration. This is what I refer to as the “softer” side of M&A, i.e. people…specifically employees… “yours and theirs”… “us and them.” This is the part of M&A that can negatively impact the success of an acquisition over the long term financially, strategically and reputationally. Sometimes it is immediately obvious, but many times the consequences are manifested a few years down the road.
Initial Training of Managers is very necessary as almost 60% of new managers fail due to lack of training. I have tried to help new managers in a simple way.
Converting human capital data in to actionable management informationManoj Kumar
Cover story article from Business Manager Magzine - An interview with Manoj Kumar on Converting human capital data into actionable management information.
Customers are the lifeline of any business, regardless of size or industry. Saying "thank you" to them can go a long way in preserving your company's reputation and the perceived value of your products and services. This presentation gives ideas (and real life examples) on how to create mutually beneficial relationships with your customers.
How To Use H.R. Processes to Avoid the Peter Principle - Bad PromotionsEquilibria, Inc.
The Peter Principle: "In a hierarchy, every employee tends to rise to his level of incompetence". This presentation introduces a tried and tested method for avoiding the risks and costs with making bad promotions (avoiding the Peter Principle. It includes a detailed Q&A session with two H.R. experts as well as process improvement tips from our founder, an expert in process design and engineering for small businesses. There's also a link on the last page to a full blog article that explores this topic in more detail.
16 Ways to Retain Technical Staff - Don't Lose Them to Your CompetitionBMDS3416
How can you keep your technical staff engaged and avoid losing them to your competitors? Find out how Paul Vesely, Founder & CEO of Blue Mountain Data Systems Inc. has been able to maintain his excellent technical staff since 1994.
Answers by Husky to a few Auto-Enrolment questions. Basic autoenrolment questions answered. Easy to understand, no jargon, plain English around the topic of autoenrolment for small employers. Understanding what is needed
Emaar PJSC has been facing the problems of higher attrition rate for the past couple of years. My team and I had done a role play of Emaar HR Managers and tried coming up with a few alternatives and both short term/long term plans for the company.
Assembling Your Staff
The practice of medicine is by far one of the most important fields in which people can work. Taking care of peoples health is such an important profession that it should have only employees who take pride in their job and want to come to work each week
A guide for retaining skilled professionalsSeth Miller
There is always room for improvement for the on-boarding process for new hires. Some solutions are simple and require little effort while others may require extensive coordination and resources. This article written with the information technologist in mind but applies in general to any skilled professional.
Good day,
Please find attached the October 2017 edition of our very informative Newsletter. Apologies for the tardiness.
We look forward to your continuing support and comments. Please send all comments and suggestions to training@kawmanagement.com or training.kawmgmt@candw.ag.
Happy reading.
When stakes are high, Employees need something more than their salary and usual tea-snacks... they need Engagement and Motivation (read it as INSPIRATION)
Seven steps to small business success Life Cycle MarketingTony Puckerin
This is lifecycle marketing. It consists of seven steps that every small business needs to embrace to be truly successful. It includes
• attracting traffic
• capturing leads
• nurturing prospects
• converting sales
• delivering and satisfying
• up selling your customers
• getting referrals.
These seven steps create the core of every successful business. During this presentation, we will go through each step individually so you can embrace and understand why each step is so important to your business.
See demo https://crm.infusionsoft.com/go/viewdemo/a45460/
16 Ways to Retain Technical Staff - Don't Lose Them to Your CompetitionBMDS3416
How can you keep your technical staff engaged and avoid losing them to your competitors? Find out how Paul Vesely, Founder & CEO of Blue Mountain Data Systems Inc. has been able to maintain his excellent technical staff since 1994.
Answers by Husky to a few Auto-Enrolment questions. Basic autoenrolment questions answered. Easy to understand, no jargon, plain English around the topic of autoenrolment for small employers. Understanding what is needed
Emaar PJSC has been facing the problems of higher attrition rate for the past couple of years. My team and I had done a role play of Emaar HR Managers and tried coming up with a few alternatives and both short term/long term plans for the company.
Assembling Your Staff
The practice of medicine is by far one of the most important fields in which people can work. Taking care of peoples health is such an important profession that it should have only employees who take pride in their job and want to come to work each week
A guide for retaining skilled professionalsSeth Miller
There is always room for improvement for the on-boarding process for new hires. Some solutions are simple and require little effort while others may require extensive coordination and resources. This article written with the information technologist in mind but applies in general to any skilled professional.
Good day,
Please find attached the October 2017 edition of our very informative Newsletter. Apologies for the tardiness.
We look forward to your continuing support and comments. Please send all comments and suggestions to training@kawmanagement.com or training.kawmgmt@candw.ag.
Happy reading.
When stakes are high, Employees need something more than their salary and usual tea-snacks... they need Engagement and Motivation (read it as INSPIRATION)
Seven steps to small business success Life Cycle MarketingTony Puckerin
This is lifecycle marketing. It consists of seven steps that every small business needs to embrace to be truly successful. It includes
• attracting traffic
• capturing leads
• nurturing prospects
• converting sales
• delivering and satisfying
• up selling your customers
• getting referrals.
These seven steps create the core of every successful business. During this presentation, we will go through each step individually so you can embrace and understand why each step is so important to your business.
See demo https://crm.infusionsoft.com/go/viewdemo/a45460/
Is your business currently on Instagram? It needs to be…especially if you want to reach the 18 to 34-year-old age bracket.
We are about to give you the top 10 things your small business MUST know when using Instagram so you don’t look out of place, and even worse alienate your products and services from those you want to reach most. You don’t want to end up like McDonald’s in our slide deck! Find the full article at bit.ly/AYBslideshareINSTAGRAM
32 Ways to Profit - Small Business SuccessDon Osborne
What ways are you using to profit in your small business? View 32 you need to consider. Download the 32 WAYS CHECKLIST. Put these 32 ways to work for you now.
This is the underlying formula behind my own entrepreneurial success. Behind the startup stories of two successful and consecutive exits: STI Internet, Brazil's 4th largest ISP, and hpG, the world's largest free web hosting service in the portuguese language during the "first wave" of the internet.
A wave where we had no investors, no grants, no incubators, no accelerators, no demo day, no mentors, no board of advisors, no startup ecosystem..NOTHING.
Just pure #GWIT!
Success!!
Rodrigo Martinez ("RMentrepreneur")
Andrew Griffiths shares his ideas on what it takes for small business owners to be successful as we rocket towards 2020. With 7 very clear and definitive strategies, Andrew has presented on this concept,with extraordinary response, around Australia.
Mindset: the biggest barrier to agilityFlavius Stef
Presentation from Optional Conference (Budapest).
Some agile transitions fail due to the mindset of the people affected by the change. Your mindset is characterized by how you answer these three questions: 1) What do you believe about people?; 2) How should social systems be organized?; 3) Who is our customer?
See more at: http://flaviusstef.wordpress.com/2014/04/07/is-your-mindset-blocking-your-agile-transformation/
This deck features tips about way to grow your small business and position it for success from Brian Ward- Senior Director for Experian Business Information Services, Meredith Wood- Editor-in-Chief for Fundera, Gerri Detweiler- Head of Marketing Education for Nav, Ebong Eka- C.P.A., Business Coach, Strategist and Bestselling Author of Start Me Up, Tom Gazaway- President of LenCred.
Why Most Startups Fail and Here’s How Not toAbhishek Shah
There will always be special individuals who find exceptional ways to kill their business, like setting fire to your parent’s garage, destroying the code as well as the backups. But the majority of startups fail in far more mundane ways.
Here are the key reasons I’ve seen startups fail… and ways to avoid making the same mistakes
Five Business Trends To Watch In 2016 -- No Matter How Or Where You WorkFaisal Hoque
From big data to the gig economy, 2016 may be the year that familiar buzzwords start having real, mainstream impact.
1. The Gig Economy Creates More Opportunities
2. Big Data Gets Even Bigger
3. Social Selling Goes Mainstream
4. Lean Businesses Will Win
5. Generation Z Comes Into Focus
Depending on the sort of entrepreneur, employee, freelancer, or company leader you might be, the year ahead holds varying degrees of promise and pitfalls. Some of the changes afoot are already affecting some more than others.
But optimism is itself a strategic asset—as long as it's backed up by a strong grasp of the facts. With that in mind, here's a look at some of the business trends that seem most likely to impact professionals of all stripes in the year ahead.
How to achieve small business success with seven targeted sales & marketing s...CoachCameron Roberts
Seven strategies to achieve small business success in any economic environment. This presentation is the document version of a live online presentation we conducted for our diamond clients. If you'd like a live version: you can request on by completing one of the forms on http://salesandnegotiations.com/
Wondering why so many small businesses fail in India? Biz2Credit explores major reasons for Small Businesses failures and helps you tackle the challenges lying in the path of success.
4 Ways Outsourcing Payroll Could Help Your Small BusinessRalfHeyer
It’s no secret that payroll compliance requirements can be complicated, and that managing payroll using an in-house team can be demanding at the best of times. Even for businesses with a smaller workforce, payroll must still be accurate, and always processed in a timely and efficient manner; get it wrong and your employees will soon let you know about it!
6 Effortless Ways to an Efficient Payroll Process Enhancing Employee Retention!Cogneesol
Employee retention is a significant concern of every business, whether large or small, and active payroll services are critical to it. Explore the best ways illustrated here and implement the most suitable ones into yours.
Employee Retention Strategies to Survive the Great ResignationKashish Trivedi
Onboarding reflects what your company is and ultimately leaves the first impression on new employees. A report indicates a 2.6 times increase in job satisfaction among new employees when they have a positive onboarding experience.
You can rely on learning management tools that streamline difficult or time-consuming procedures for companies to hire new employees. Leveraging a comprehensive learning platform allows you to create personalized onboarding experiences for new employees.
Extra steps need to be taken to make sure employees joining remotely feel integrated into their team. To achieve this, you could implement a virtual onboarding program that may utilize internal bots to help facilitate a more seamless connection within your team. Check for chatbot pricing and integrate an employee engagement bot within your onboarding activities to encourage icebreaker conversations.
5 Common Payroll Problems and How to Solve Them.pptxRalfHeyer
Payroll can be incredibly complex, even if you only employ a small number of people, and without professional intervention and assistance, mistakes can easily occur, and problems can quickly build up.
We help Aussie fitness pros get their business into better shape and performing better every week.
Check out our blog:
http://bit.ly/fitness-business-mistakes
Almost everyone wants to dabble in a home business at some point in
their lives. Today however for most people it is becoming a very viable
option to garnering some healthy amounts of revenue. However in
considering such an option the individual needs to be informed of all it entails. Get all the info you need here.
Running Head Staffing Plan For A Growing Business 1Runni.docxagnesdcarey33086
Running Head: Staffing Plan For A Growing Business 1
Running Head:Staffing Plan For A Growing Business 3
Staffing Plan for a Growing Business
Student’s Name
Instructor’s name
Affiliation
Course
Date
Starting a small business like an in-home day care business from start-up to success is similar to parenting. After you have worked hard to get customers in the door, you find that you have more work than the current staff can handle. Growth of a small business like this one requires having the right people and staff at the right time. Since the business needs to expand, the challenge is to adopt staffing strategies that not only meet current staffing needs but also keep the channel full. However, by the creation and use of the correct staffing model, a small business like the day care business can be able to maximize efficiency by ensuring it is staffed with the right number of people, possessing the relevant skill sets to meet critical business needs at the proper time. Unlike large businesses, where gaps in employment can be covered by other areas and overstaffing can be absorbed until attrition occurs, the day care business is just small and one employee represents a major percentage of the total staff ( Bechet, 2008).
An efficient staffing model makes one understand how workforce is acquired, deployed and retained. The hardest task for any growing business is deciding the most appropriate staffing model since it will dictate all other steps that follow thereafter. Collareri (2003), states that no single staffing model, they work in combination. Before deciding which model to use for the daycare business, it’s important to note the major elements of the staffing models-staffing quantity and staffing quality. Staffing quantity basically entails having enough people to conduct the business. On the other hand staffing quality is concerned with the types of people brought into, moved within, and retained by the organization.
One of the staffing models that can be used in the day care business is Staffing Quantity Levels model. This model attempts to match the staffing level of the organization with the, projected staffing availability and the staffing requirements, creating a balance between overstaffing and understaffing (Heneman & Judge, 2015). As the business is growing we don’t want to overstaff as it can result in employees standing around with nothing to do. However, it can also result in better customer service in terms of quantity and quality. We want to avoid understaffing as I can result in projects not being completed in a timely fashion or in projects being done in haste by an inadequate number of staff people in order to meet strict deadlines.
Another model would be Staffing Quality Person/job match. This construct seeks to match employee personality and talents with the requirements and of specific tasks for the accomplishment.
INTRODUCTION Home based businesses Inside this book, you will discover for yourself everything you need to take a step forward
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2. 1 Myth 1
Money is the only effective
way to motivate employees
to improve performance.
3 Myth 2
I do not have to pay employees
who access work email on their
mobile device after they have
clocked out for the day.
4 Myth 3
Paper paychecks are for small
businesses; direct deposits are
for big companies.
6 Myth 4
As a small business owner,
I do not have to pay interns who
receive credit from their school.
7 Myth 5
All employers must provide final
pay to employees on their last
day on the job.
8 Myth 6
A business is not required
to pay prospective candidates
for working interviews.
9 Myth 7
Small businesses
don’t need workers’
compensation insurance.
10 Myth 8
My business is too small
to need an employee handbook.
Table of Contents
Small Business | Myth Busters
3. Challenge and Train Them
Bored workers are less effective workers. A business
owner or supervisor can motivate staffers by giving
them a variety of tasks that allow them to learn
new skills. Employees can also take on “stretch
assignments,” in which high goals are set. Coaching
and cross-training programs can be effective, too.
The more employees learn while they are in one job,
the better-prepared they will be to take on higher
positions within the company. This, of course, benefits
both the worker and the business.
Make Them Feel Appreciated
If an employee is doing a particularly good job,
verbal or written recognition can lead to continued
strong performance. Something as simple as a
“Thank You” email or note, or perhaps an announce-
ment in a company meeting, can make an employee
feel appreciated.
Give Them Some Autonomy
An employee who feels micromanaged may also
be less motivated. Everyone wants to think they are
trusted to do their jobs well. While it’s important they
understand their goals, workers should be allowed
to reach them in their own way (within reason).
Their methods may even turn out to be better than
long-established company ways of doing things.
Create Winning Teams
As much as employees can feel motivated by
self-sufficiency, they also may thrive by working on
strong teams. Assigning team projects or arranging
group activities can help foster a collaborative spirit
that energizes the workforce.
Align Their Goals with the Company’s
Workers want to feel they are a key part of their
company’s success. If they understand how their
individual goals are tied to the business’s overall
performance, they are more likely to feel like
important players.
Talk to Them
Employees don’t want to work in a vacuum. Holding
regular company meetings where issues affecting the
business (both good and bad) are discussed can help
them understand how the company is performing and
which goals are – and are not – being met.
An employee suggestion program lets them
know their input is valued. Employee satisfaction
surveys also allow workers to have a voice,
while giving business owners insight into
company morale.
Myth 1
Money is the only effective way to motivate
employees to improve performance.
Raises and bonuses certainly are ways businesses can motivate
employees to work harder and better. But, cash isn’t the only way to
encourage workers to improve their performance. Some studies have
shown it is not even the best way. Helping employees feel satisfied
can create a more fulfilled and productive workforce, while also
saving money.
Small Business | Myth Busters
1
4. Money is the only effective way to motivate employees to improve performance.
Small Business | Myth Busters
Be Flexible
Life circumstances and family responsibilities can
make it difficult for some employees to work a 9-5
schedule. Some workers may also require a remote
working situation. Whenever possible, a business
should allow for flexibility so employees can enjoy
a healthy work-life balance.
Give Them Time Off
Businesses should consider paid time off a necessity,
not a luxury. Burnt-out employees are not beneficial
to any company. Businesses should develop time-off
programs that allow workers to recharge, both
physically and mentally.
Be Fair
Employees should feel they are being treated fairly
compared to their coworkers. All supervisors should
be trained to apply company policies with consistency.
For other small business insights go to
www.adp.com/smallbusiness
Myth 1
2
5. Nonexempt Employees
The answer to this particular compensation question
is — it depends. Companies are obligated to pay
“nonexempt” employees for any time spent working.
This includes accessing or responding to work-related
materials outside of standard business hours, such as
simply checking an email or phone message, even if
they don’t respond. These rules fall under the
Fair Labor Standards Act, as well as various state laws.
The rules apply even if employees are using their
own mobile devices. Additionally, if an employee
incurs any kind of expense while using their personal
device for a work-related task, they may be entitled
to reimbursement.
Recordkeeping
Consider having your employees use an online
timekeeping system to record all time worked.
Your employees can then officially record the time
they are working by logging in and out. If this isn’t
possible, you can provide employees with hard
copies of timesheets on which they can record all
work done during these off hours. You should let
employees know that they are required to maintain
these records.
Playing by the Rules
Some businesses have policies that strictly forbid
a nonexempt employee from working outside of
business hours. A company is allowed to set these
rules (company policies included in an employee
handbook are a good way to help make sure
your employees understand them). That said, if a
nonexempt employee defies the policy, he or she is
still entitled to compensation for all work performed.
The business can, however, discipline an employee
for abusing the rules.
For other small business insights go to
www.adp.com/smallbusiness
I do not have to pay employees who access work
email on their mobile device after they have
clocked out for the day.
We live in a hyper-connected world where employees are reachable
essentially all the time. It isn’t unusual for staffers to write emails
over the weekend, check phone messages late at night or send
work-related texts while on vacation. But are business owners required
to pay employees who perform work duties using their mobile devices
while off the clock?
Myth 2
Small Business | Myth Busters
3
6. What Is Direct Deposit?
Direct deposit is a system by which employers
directly funnel funds into an employee’s bank account.
This is also known as an automated clearing house
(ACH) transaction. Companies can also process payroll
through payroll cards to employees who don’t have
bank accounts.
Direct Deposit Has
Several Advantages:
Convenience
Consider a four-employee business owned by a
husband and wife. It would be easy enough for them
to just hand out checks, right? But what happens if
the owners travel for business or enjoy an extended
vacation? Their employees must still be paid. It would
certainly be easier to pay them automatically from
afar than to worry about issuing physical checks.
The same goes if it’s your employee who is away for
an extended period of time. With a direct deposit
system, no one has to worry about missing a payday.
Reduced Security Risk
Paper checks can be lost, stolen or even counter-
feited. For businesses that use industry-recognized
security safeguards to help protect personal and other
sensitive data, direct deposit funds are more secure.
Using this method, business owners can avoid having
to take the time or expense to issue new checks when
they are lost or deal with cases of fraud involved
with theft.
Faster and Easier Bookkeeping
Along with a reduced security risk comes an easier
bookkeeping process. When funds are electronically
distributed, they are immediately paid to employee
accounts. Thus, your books won’t be affected by
employees who wait several weeks to cash checks.
This is not to mention the savings of time and money
and reduced paper use when you no longer have to
cut and sign a series of paper checks. Your employees
can also use an app on their mobile device to view
their pay stubs at any time, rather than collecting
physical stubs that can be misplaced.
Cost-Effectiveness
The costs for setting up a direct deposit account,
as well as related fees, vary by state and financial insti-
tution. A 2014 white paper from Bank of America says
it costs 92 cents more to issue a paper check vs. direct
deposit. ElectronicPayments.org, a site sponsored
by NACHA - The Electronic Payments Association,
estimates small businesses can save as much as
$19,000 annually by adopting a direct deposit system.
Paper paychecks are for small businesses;
direct deposits are for big companies.
Your business may be small, with just a few employees, but that doesn’t
mean you can’t mimic big companies when it comes to issuing paychecks.
If you’re still distributing paper checks to your employees, you may want to
consider the advantages of switching to the electronic payment model.
Myth 3
Small Business | Myth Busters
4
7. Paper paychecks are for small businesses; direct deposits are for big companies.
Small Business | Myth Busters
Joining the Big Leagues
In a 2013 survey by National Payroll Week, only
2.8 percent of respondents said they were receiving
paper paychecks. Smaller companies are joining larger
ones in offering this convenient and cost-effective way
of compensating employees. Businesses that do this
may still be small, but evolving with the times in this
area can make them feel a bit bigger, while offering a
convenience employees like.
For other small business insights go to
www.adp.com/smallbusiness
Myth 3
5
8. As a small business owner, I do not have to pay
interns who receive credit from their school.
Some business owners believe college students seeking summer intern-
ships can provide free labor in exchange for school credit. It’s become
something of a tradition. After all, these businesses are often helping stu-
dents gain valuable career experience. That should be enough, right?
Well, in most cases – no. And this misperception, other than in rare situa-
tions, can violate the Fair Labor Standards Act and various state laws. It
also puts your business at risk. There have been several lawsuits brought by
unpaid interns against high-profile corporations over the past few years.
Myth 4
Small Business | Myth Busters
Interns = Employees
If interns are performing work duties on location
for your business, they will likely be considered an
employee, just like the other staff members on your
payroll. In the majority of cases, a business must pay
an intern at least the minimum wage, as well as over-
time, if applicable.
Internship Criteria
The Department of Labor provides businesses with
guidelines to help them navigate the intern issue.
This is in the form of a six-part test; if all six criteria
are met, an intern can remain unpaid.
1. The internship — even though it includes actual op-
eration of the facilities of the employer — is similar
to training that would be given in an educational
environment.
2. The internship experience is for the benefit
of the intern.
3. The intern does not displace regular employees
but works under close supervision of existing staff.
4. The employer that provides the training derives
no immediate advantage from the activities of the
intern; and, on occasion, its operations may actually
be impeded.
5. The intern is not necessarily entitled to a job at
the conclusion of the internship.
6. The employer and the intern understand that the
intern is not entitled to wages for the time spent
in the internship.
It’s important to note that this list applies to
“for-profit” businesses. Unpaid internships in the
public sector and for not-for-profit charitable organiza-
tions, where the intern volunteers without expectation
of compensation, are generally permissible.
For other small business insights go to
www.adp.com/smallbusiness
6
9. All employers must provide final pay to employees
on their last day on the job.
Some business owners are required to provide a final paycheck on an
employee’s last day with the company. Whether that is true depends on the
state in which your employee is working.
Under federal law, a final paycheck must be furnished by the next regular
payday. However, laws differ at the state level. When the last paycheck is
due can depend on who initiated the termination.
Myth 5
Small Business | Myth Busters
States that require a final paycheck be given immedi-
ately to an involuntarily terminated employee include
California, Massachusetts and Hawaii. In addition,
some states that have an immediate paycheck rule
offer some wiggle room for employers. In Montana,
for example, in situations where an immediate
paycheck is required, an employer can have a written
policy that extends the time to the next scheduled
payday or within 15 days from separation, whichever
occurs first. Small business owners should be familiar
with the rules in their jurisdiction, so they can provide
the last paycheck according to the proper laws.
(See the full table of individual state laws at
FindLaw.com.)
Vacation Time
Whether or not an employee’s final paycheck will
include accrued, unused vacation time also varies by
state. Some states require all unused paid time off to
be added to the final paycheck amount. Other states,
however, allow businesses to adopt a “use it or lose
it” policy and may require an employer to notify an
employee of this policy in advance.
Once business owners are familiar with the laws in
their state, they should communicate the policy to all
employees, ideally in an employee handbook (read
Myth 8 for why it’s a good idea to have an employ-
ee hand-book). This will eliminate the chances of an
unpleasant surprise for an employee during a termi-
nation process that may already be difficult. On the
business end, small business owners are already deal-
ing with several difficult tasks before, during and after
the termination. Providing clarity ahead of time on the
items that will be of most importance to a terminat-
ed employee should help prevent additional pain on
both sides.
Deducting Costs
Some employers may wonder whether they can
deduct costs of equipment damaged or broken by
the terminated employee from the final paycheck.
This differs by state and also by the classification of
the employee. If the employee is exempt under the
federal Fair Labor Standards Act (FLSA), the employ-
er generally may not reduce the paycheck amount
for damage to the equipment. Nonexempt employ-
ees, however, generally may see their final paycheck
amount reduced, as long as the pay does not drop
below the minimum wage and applicable overtime
isn’t affected. While it may not be required, it’s best
for a business to obtain written confirmation from
employees that they understand they are responsible
for paying for damaged or unreturned equipment.
For other small business insights go to
www.adp.com/smallbusiness
7
10. A business is not required to pay prospective
candidates for working interviews.
Working interviews can be beneficial to both prospective employees and
employers. When interviewees spend a few hours or days embedded in
a workplace environment, they get a real-world glimpse of what it might
be like to report there every day, while interviewers can observe whether
potential employees would be a good fit for the role and their organization.
No matter how long the working interview lasts, the candidate must
be paid for time spent working.
Myth 6
Small Business | Myth Busters
Working Interview = Actual Work
Once a business has a candidate work for it,
federal, state and local enforcement agencies
generally consider the candidate to be an employee,
even if just for one day. Thus, employers should pay
at least the minimum wage for the hours worked,
overtime where applicable, withhold taxes and
comply with all other applicable employment laws
for the period, the individual performs work. The
candidate may be unaware of the laws concerning
working interviews, so the interviewer should
communicate to the interviewee compensation
and other employment requirements before the
interviewee begins to work.
Exception
A business is generally not required to pay if a
candidate simply observes operations for a set period
of time. As long as there is no work that includes any
kind of training, the interviewee is not considered an
employee. However, in limited circumstances, candi-
dates may be issued a 1099 for expenses reimbursed
by the employer.
Is It Worth It?
Small business owners should consider whether it’s
worth it for the business to hire employees for a
working interview. Having a working candidate on-site
can be disruptive, particularly if it turns out to be a
poor fit. A working interview is advisable only if it’s a
strong candidate who seems genuinely interested in
the position.
For other small business insights go to
www.adp.com/smallbusiness
8
11. Small businesses don’t need workers’
compensation insurance.
No matter how small your business, it’s not just in your best interest to
obtain workers’ compensation insurance – it’s also required in most states.
All small business owners should familiarize themselves with their state’s
laws, as they vary widely across the country. If mandated by your state,
you must have coverage in place when your first employee is hired.
The penalties for not having this insurance can be substantial. Business
owners must renew coverage annually and ensure they pay premiums in
a timely manner so coverage doesn’t lapse. Even if your business operates
in a state where workers’ compensation requirements are less stringent
(Texas, for one, allows it to be elective), the benefits of purchasing this
coverage should be fully understood.
Myth 7
Small Business | Myth Busters
What Is Workers’ Compensation?
Workers’ compensation insurance protects employers
and employees when workplace accidents or illness-
es occur. Coverage generally encompasses medical
treatment and rehabilitation, partial replacement
of lost wages, retraining costs and death/burial
benefits paid to the spouse and minor children for
fatal incidents.
No-Fault System
A company typically must honor a claim even if the
employee is at fault for an injury. There are excep-
tions, however. For example, a business can require
employees to submit to drug or alcohol testing.
Claims may be denied if it’s found an employee was
under the influence at the time of the injury.
Who Is Covered?
Different state rules apply regarding covered em-
ployees, but W-2 workers are always eligible. Sub-
contractors paid through a 1099 are often covered,
unless they provide written evidence of a Certificate
of Insurance. Business owners may believe they and
their officers are not eligible for coverage, but this
also varies by state.
Therefore, owners or officers should check their health
insurance policy before electing to forgo coverage.
How to Buy Coverage
In most jurisdictions, a business can buy a policy
from a private insurance company. Some locations,
however, require a company to purchase through a
state-operated fund. In certain states, coverage may
be elective if an employer has fewer than a specified
amount of employees. Some business owners may
choose a self-insured plan, which means they pay
claim costs out of pocket. This is generally reserved
for larger businesses that maintain a certain level of
funds to pay claims.
High-risk businesses such as construction, trucking
and manufacturing often have a tougher time
obtaining coverage. Their premiums can also be
much higher. The assigned-risk market, which is
state-operated, can help these businesses get
insured when traditional companies refuse to
provide coverage.
For other small business insights go to
www.adp.com/smallbusiness
9
12. My business is too small to need an
employee handbook.
Some small business owners may feel their business is too small to benefit
from an employee handbook. Even though companies are not required by
law to create and distribute an employee handbook, it can be extremely
helpful for both business owners and their staff to have one place where
employees can access the company’s policies and procedures. Having such
information in writing can also help demonstrate the company’s commit-
ment to complying with applicable employment laws. Here are some key
items business owners should have in its employees handbook.
Myth 8
Small Business | Myth Busters
At-Will Statement
An at-will statement states the employer or the
employee can end the professional relationship at any
time, for any reason, as long as the reason is a lawful
one. Other than Montana, all U.S. states recognize
the at-will employment relationship (employment laws
differ by state; if a business has staffers located in
multiple states, the handbook should reflect that).
A Description of Benefits
It’s a good idea to include a section on general bene-
fits for employees. The handbook doesn’t need to go
into great detail about benefits, and employers often
refer employees to summary plan documents for more
information. Federal- or state-mandated leave, as well
as holidays, vacation and other time-off benefits, in
particular, should be explained in a handbook. When
explaining benefits, make sure to state that the com-
pany has the discretion to make changes as needed.
A handbook should also plainly state what constitutes
full-time, part-time, exempt or nonexempt classifica-
tions, so employees are aware of their eligibility for
certain benefits, which may include overtime pay.
Employees always want to know when they are
getting paid, so payday policies should be included.
If a company has a specific method of timekeeping
to record employee work hours, this should
also be included, along with attendance and
punctuality policies.
A handbook should include policies on meal and
break periods (including lactation breaks for new
mothers). Check federal as well as applicable state
law to ensure compliance.
Employee Safety and Code of Conduct
Employees should feel safe in all respects at work,
and a handbook should feature a company’s safety
and security policies. This means statements on its
compliance with the Occupational Safety and Health
Administration’s (OSHA) laws, where applicable, on
issues including workplace injuries and health and
environmental hazards.
Anti-harassment and discrimination policies are
tremendously important to include; employees must
know a complaint they make will be taken seriously.
Consider including policies on standards of conduct,
drug and alcohol use, confidentiality and potential
related disciplinary action.
10