Tag: HR Management

HRInsights Weekly Lightbulb 02-02

This Week’s HRI “Lightbulb”  – Fair Job Perks

Valentine’s Day is a time for amour and passion with your love dove, AND it is also a great time for small business owners and managers to remember to reiterate the company’s policy on sexual harassment.  It is good HR practice to remind employees about this important issue once a year.  Don’t forget to have them sign acknowledgement forms.  And, HRInsights says if you have the meeting on this “love”ly day, you may want to skip the wine, but chocolates would be nice!


Employee Files: Basic Training for Small Business Owners

You have your employee’s I-9 Forms over on the cabinet and their W-2′s in a manila envelope marked “Tax Stuff” near your printer and in between the new ink cartridges and paper stock. Yesterday, Sandra, your office administrator stapled her fingers together, and went home “sick”. You’re sure that she has used up all of her medical leave by now, but you cannot find the records. Sound familiar? The value of properly maintained Employee Files can be easily measured by the cost of not doing so which can range from as little as a day’s pay all the way up to tens of thousands of dollars in government fines.

An Employee File is a living document that records a history of a person’s work experience, and is constructed of 6 folders, which are labelled as follows and include the noted information:

    1. Personnel – employment application, date of hire, salary and position/promotion history, performance reviews, emergency contact information, and a Jury Duty log.
    2. I-9 Form (or Employment Eligibility) - only the Form, which should be reviewed once a year to update expiring documentation and changes in marital status.
    3. Payroll - copy of the I-9, State & Federal tax forms, date of hire, salary and position/promotion history, insurance forms, and a business travel log.
    4. Medical – insurance forms, emergency contact information, and a medical leave log.
    5. Attendance - individual logs for Jury Duty, medical leave, business travel and vacation.
    6. Disciplinary – performance reviews, and disciplinary action records.

This is pretty straight forward stuff. However, the Personnel Folder should be considered a stand-alone document, which could be shared. Therefore, there are certain documents which the small business employer should keep in the Employee File but specifically NOT in the Personnel Folder. These include:

  1. Medical information such as doctor notes or correspondence and disability paperwork. These should only be kept in the Medical Folder.
  2. Personal and/or informal notes or thoughts on an employee’s performance. These should only be kept in the Disciplinary Folder.
  3. Historical insurance information such as claims, claims adjustments, and/or disputes. These should only be kept in the Medical Folder.

You just saved yourself some money! Sandra has used up all of her medical leave, so you dock her one day’s wages. You also have found out that she got divorced a few months ago, and you amend the marital status section of her I-9 Form. That easy mistake could have cost you $1,000 during a routine HR audit.

HRInsights FACT: Properly maintained Employee Files reinforce compliance and adherence to company policies which help you avoid costly mistakes and errors.

Smokers and Fat People Need Not Apply

Employers are heading down a slippery slope by banning employees from smoking not just on the job but at any time.  More specifically, there is a growing rank of employers won’t even hire applicants whose urine tests positive for nicotine.  While these companies are typically hospitals or other organizations in the healthcare industry, Alaska Airlines is now on the roster of those anti-smoker employers.  Such tobacco-free hiring policies are designed to reduce insurance premiums for all workers.  Makes sense.  But beware!  Selective hiring as such, if it is embraced, could mean that overweight or obese people are next on the “Do Not Hire” list.

Each year, smoking or exposure to secondhand smoke causes 443,000 premature deaths and costs the nation $193 billion in health bills and lost productivity.  Okay, I get it!  If a company does not hire smokers, then the logic is that overall employee insurance premiums go down, because overall healthcare costs for the company go down.  Another victory for the non-smokers, and insurance companies!  Let’s just hope that these nicotine-free employees are not fat, too.

In 2008, medical costs associated with obesity were estimated at $147 billion, and the medical costs paid by third-parties for people who are obese were $1,429 higher than those of normal weight.  All trends point to obesity becoming an increasing healthcare issue.   About one-third of U.S. adults (33.8%) are obese, and this population is “growing”.  But, wouldn’t this be discrimination?  Aren’t obese employees covered by the Americans with Disabilities Act (ADA)?  Not really.

The EEOC’s position is that the ADA covers morbid obesity (defined as having a body weight more than 100% over the norm) and obesity caused by a physiological disorder.  Courts don’t have to follow the EEOC’s lead, however.  Some have rejected the view that morbid obesity, in and of itself, is an ADA impairment.  For example, the 6th Circuit Court of Appeals has ruled that “…to constitute an ADA impairment, a person’s obesity, even morbid obesity, must be the result of a physiological condition.”  (EEOC v. Watkins Motor Lines, Inc., 6th Cir., No. 05-3218, 2006).

So, out with the smokers and fat people! Taken to an extreme, the least expensive solution for employers would be to have DNA screens of all applicants to weed out those other people with propensities to develop Alzheimer’s and particularly costly cancers.  Hmmm.  If we think hard enough here at HRInsights, we could probably come up with a good reason to not hire people with tattoos, too.

Effective Interviews Weed Out The Jerks

Barclays Bank Chief Executive, Bob Diamond, said that he has imposed a “no jerks” rule for the U.K. bank. In an interview with The Times newspaper of London, Mr. Diamond said the rule applies to bankers considered to be prima donnas, those that are too greedy and too ostentatious, or failures as team players. Mr. Diamond went on to tell The Times, “If someone can’t behave with their colleagues and can’t be part of the culture, it doesn’t matter how good they are at what they do, they have to be asked to leave”. Does this imply that Barclays was comfortable with arrogant, self-serving jerks in the employee ranks before? Hopefully, it does not.

Small businesses should not underestimate the disturbance and discord a jerk employee can cause. However, smaller organizations are more likely to quickly identify outliers and weed them out before causing any permanent damage. Why? Jerks cannot hide for long. But, how can small business owners prevent hiring a jerk in the first place?

An effective interviewing technique helps avoid the “bad hire”, but it is also often undervalued, overlooked or disregarded. The best techniques always start with PREPARATION; prepare for the interview by identifying 3 to 4 questions within the following key job dimensions:

  1. Teaming- Building win/win relationships with peers and others. Facilitating communication, conflict resolution, and group processing.
  2. Flexibility - Championing change efforts. Helping others to adjust to and implement change.
  3. Customer Satisfaction- Understanding customer needs. Generating enthusiasm for meeting customer needs and holding others accountable for meeting customer needs.
  4. Focus on Results- Monitoring performance against plan to ensure that commitments are met. Balancing the needs of profitability with customer satisfaction and employee needs.
  5. Interpersonal Skills- Able to use diplomacy in dealing with others. Able to effectively write and verbalize information in individual or group settings. Willingly cooperates and assists others.
  6. Problem Analysis / Solving & Decision-Making- Analyzing and solving problems and making sound decisions.
  7. Job Knowledge Aptitude- What technical or job-related skill sets does a candidate possess? How have they used them successfully in the past?

HRInsights recommends that you have your questions typed out on paper with space afforded for taking notes on the candidate’s responses. Furthermore, creating a permanent template with defined questions will facilitate cross-comparison of potential employees. Therefore, with just a small amount of preparation and diligence throughout, the interview process will lead to more correct evaluations of potential new employees. Weeding out the jerks will be a piece of cake, and will save the small business owner time, money, and many future headaches.

Social Media Policy

Even just a few years ago, many company managers rightly assumed that a Social Media Policy was all about limiting employees’ use of the internet. The priority was to prevent workers from spending company time buying on-line, conducting personal business on-line and, truth be told, watching pornography. It was all about e-mail and personal internet use. Now however, with the growing importance of the internet to a company’s marketing efforts and even now as a distribution and sales channel, it is prudent for small businesses to clearly articulate and communicate their Social Media Policy.

HRInsights would ask you to consider the following 4 subjects when developing your small business Social Media Policy. For those old enough just take out the word “social”, and you might see a rough version of the company’s former Media Policy.

1. Confidentiality:

  • No employee or other compensated representative of the company is able to speak on behalf of the company to any outside individual or organization, whether they be a partner, supplier, competitor, customer, or member of the press without his/her manager’s permission. If you are approached, please refer the inquiring party to the General Manager or other person who has been designated to handle outside inquiries.
  • No employee or other compensated representative of the company can share or otherwise publish confidential and/or proprietary information about the company. This includes but is not limited to information about employees, existing products, new products, services, trademarks, strategies, financial information, and any information that has not been publicly shared by the company.

2. Company References:

  • Inform your manager if you intend to develop a site or a blog where you mention and/or provide opinions and perspectives about the company, its employees, partners, competitors, customers, or current or future products.
  • Company logos, artwork and trademarks are not allowed to be used in employee personal communication in the internet, blogs, or in other social media unless otherwise approved in writing by your immediate supervisor.

3. Competitive activities:

  • Employees or compensated representatives of the company are prohibited from selling, distributing and/or promoting the sale of products and/or services that compete directly with the company’s products and service.

4. Privacy Rights:

  • Employee communications over the internet, in blogs and other social media must show respect to the company, its products and services, other employees, suppliers, customers, distributors. Wrongful statements or misrepresentations of any above-mentioned constituent which is not viewed favorably by management can result in disciplinary actions up to and including termination.
  • Employee communications over the internet, in blogs and other social media must identify the author as an employee of the company and must contain an appropriate disclaimer that his/her views are personal and not intended to represent those of the company and its employees.
  • Out of respect for privacy, it is always good practice to get written permission from those parties and/or individuals who are mentioned in communications published over the internet.

What is HR If You Are Not Open to Feedback?

Feedback is a gift!  And a true HR Professional actively requests feedback.  That’s exactly why HRInsights has installed a new Feedback and Support Forum on its website.  Consistent with our desire to provide simple and accurate HR solutions for small businesses, HRInsights wants it clients to have an easy way of telling us how we can provide better service!

In the lower right-hand corner of every page, an orange “feedback and support” button appears just waiting for your feedback.  Click, type and send!  HRInsights will immediately receive your comments, and we will follow-up personally.  HRInsights can only do better if you tell us how!

Holiday Party, No Holiday Party. What is Your Vote?

Emily Bryson York, reporter for the Chicago Tribune, covers the topic of holiday party plans in a recent edition.  Front and center is a survey result where 68% of companies plan to have a holiday party which, while up slightly over 2009 and 2010, is significantly down versus the 90% that held holiday parties in 2007 (SOURCE: Challenger, Gray and Christmas Inc. survey of 100 human resource professionals).  For small businesses, the decision to host a holiday party may not be as touchy given that the expense is not one that will likely break the bank.  However, the question is worth thinking about.  What’s your point-of-view?

Clearly, the economy has caused businesses to rethink the expense of holiday parties.  As Ms. Bryson York writes, “Just like the millions of American households that have felt the economic pinch, companies have adjusted their holiday plans, opting for simpler, smaller celebrations.”  Or, none at all.  Are holiday parties a waste of money?  Arguably, in some cases, they are not.  Consider those industries where client relationships are part of their bread and butter, like PR firms or organizations focused on the hospitality industry.  Holiday functions are a natural event to solidify and to drum-up new business.

Small businesses might be wise to consider the following questions: 1) does the party include spouses and partners to reflect its gratitude to all who are impacted by the job, 2) would employees rather have the cost of the party dropped into their paychecks and spend the extra time with their families, and 3) is holding the party consistent with your business’ other approaches to purchasing, eg. is the expense reviewed carefully to control costs?  We at HRInsights want to know, is there a right answer?  Tell us.

HRInsights Weekly Lightbulb 12/5

This Week’s HRI “Lightbulb”  – Special Employee Treatment

Dilbert continues to provide fodder for the HR professional.  On Sunday, December 2nd, Dilbert highlights small differences in how employees may be unknowingly treated differently by management, at least from the perspective of other employees.  For example, take the carpooler who is excused early from the meeting by the CEO to catch his ride.  So, why do carpoolers get to leave early?  Not sure.  Why do smokers get all those free 5-minute breaks?  Why does it seem that Sara and Jerry are always lingering around the coffee pot rather than doing their jobs?  Bob is sure that Samantha always takes 35 minutes for her lunch break instead of 30.  Small differences in the enforcement of office rules can fester among employees and create hidden resentment.  Fair or not, we at HRInsights think that small business owners can better maintain a productive atmosphere when these “differences” are addressed openly.

HRInsights’ Weekly Lightbulb 11/29

This Week’s HRI “Lightbulb”  – Workplace Charity

The Holiday Season often brings thoughts of supporting those less fortunate.  Office collections for charitable causes are commonplace and represent genuine initiatives for a greater good.  However, keep in mind, employee contributions can be a very personal and private matter.  Even in small organizations, employees do not often share personal circumstances that may make it problematic to give at this time.  So, HRInsights recommends that you make any workplace charity drives completely voluntary and anonymous.

Is Wally the Only Employee Who Can Program Your Zeberpupin?

If so, you may need a mini-succession plan.

In Dilbert this past weekend, the CEO wants to fire Wally.  Unfortunately, Wally is the only employee who can program the company’s Zeberpupin System.  What a pickle for any company to be in; where an employee who has unique skills and knowledge resigns, goes on long-term medical leave or faces termination.  Business could come to a standstill.

Small businesses face this situation frequently.  Technology as it applies to business systems and communication has become intricate and customizable.  All too often, specific positions require school education and further “on-the-job” mastery.  Employees in unique positions can end up developing unique knowledge, which can be wittingly or unwittingly hijacked from the business by a single departing employee (or contractor).  Really! Take for example the IT guy who has kept your company’s account planning system running by making his own little adjustments and fix-its to the code.  He’s just decided to dubstep his way to a career as a DJ [Ed. Note: Someone at HRInsights just recently discovered dubstep] with the information on how he made all those changes trapped in his head.

Don’t let high unemployment levels lull you into a false sense of security.  There is no quick and dirty replacement for unique knowledge.

What do you do? Have a plan B – prepare to prevent disruption.  Create a mini-succession plan.  Big organizations do this as a rule and so should small business owners.  That is, for each employee and position, have the answers to these questions:

  1. How do I find a replacement?
  2. Where do I find a replacement?
  3. How long will it take to get a replacement?
  4. Who can fill this position in an emergency?

If your company has answers to these questions, then great!  In all likelihood, however, you do not.  Begin the process and you are well on your way to keep the company up and running if any employee leaves for whatever reason.  Just a tip – review your succession plan once a year to keep it up to date.