Contract Employees

In case you missed it, USA Today recently reported on the rise in litigation associated with misclassified workers. The number of worker class-action lawsuits claiming that employers misclassified employees as independent contractors rose 50% this year. That's an increase to a record 300+ cases.

Let's talk about the financial impact. The Department of Labor forced employers to pay $6.5 million in back wages to over 5,000 employees in fiscal 2010. That's a sharp increase from the $2.6 million owed to over 2,000 employees last year.

Companies increasingly use contractors to meet peaks in demand and complete short-term projects. According to Barry Asin, president of Staffing Industry Analysis, the portion of contingent workers in the labor force is up to about 10% from 8% five years ago. Using contingent workers usually cuts labor costs (unemployment taxes, workers' compensation, health care and other benefits) by about 30%. However, when you look at the number of lawsuits and related penalties, misclassification is a serious issue.

Whatever title used, the issue at hand is whether a worker is an employee or an independent contractor. The answer is determined by the level of control the employer has over the activities of the individual.

Texas Workforce Commission offers an Independent Contractor Test based upon the IRS "Twenty Factor" test. The test determines the amount of control the employer has over the individual. An independent contractor is self-employed, bears the responsibility for his or her own taxes and expenses and is not subject to an employer's direction and control. The IRS has recently attempted to simplify and refine the Twenty Factor test. The test has been reduced to eleven main tests and organized into three groups; behavioral control, financial control and type of relationship.

If you have difficulty in determining the status of an individual, always consult a knowledgeable labor and employment law attorney.

The Quicker You Let Go Of Old Cheese, The Sooner You Find New Cheese

In 1998, an amazing little book was published. Titled “Who Moved My Cheese?” the book was a business fable that dealt with four typical reactions to change in work and life. Whether you are a “Sniff” who anticipates change early, or a “Scurry” who scurries into action and adapts, change impacts us all.

The American Institute of Stress estimates that stress in the workplace costs U.S. corporations over $300 billion annually, or more than ten times the cost of all strikes combined. That’s significant.

Change becomes a major stressor for employees no matter what form it takes. It could be reorganization, takeover, merger or downsizing. If there is a change in structure, or in the management, the change threatens the emotional security of the employees. The less control an employee has over his/her situation, the greater his/her stress.

But why is stress a result of change? Well, most people are resistant to change. Be honest; when change happens, people prefer to stay in their happy little comfort zones. One of the reasons that change is often viewed as a stressor is that people tend to view change negatively. People, naturally, have a tendency to prefer stability and security. We are afraid of the unknown and oftentimes the response to change is visceral. “I don’t want to deal with this change, so where’s the closest exit?”

The Global Business and Economic Roundtable on Addiction and Mental Health released a survey on work-related stress. Two of the top ten items causing employees stress are lack of communication and lack of control. As stated above, the less control an employee has over his/her situation, the greater his/her stress. Yes, I repeated myself.

What can we do to lessen the negative impact of change? As an employer, make the employees part of the change and allow them to assume some ownership within the change process.

• As a manager, you need to communicate – to create understanding of the change. However you decide to communicate, communicate that you are committed to the change and seeing it through.
• Convey the message that you are confident the “team” will make it through the changes and that you need their input to make it work.
• Recognize, and admit, that the change may negatively impact some people.
• Understand the various personalities of the people involved as different people react differently to change.
• Provide information that will reduce uncertainty and ambiguity about the change. Change needs to be understood and managed in a way that people can cope effectively with it. Help the employees focus on the big picture.
• Allow the employees to communicate their reactions and concerns to you. Request their input, utilize their suggestions. Involve the employees and lead them through the change.


It is often said that “the only constant is change.” So, prepare yourself.

Dedicated to Gary Toche.
Your leadership will be missed. Bon Voyage

Employee Absenteeism, The "Lighter" Side

CareerBuilder’s 2010 annual survey on absenteeism provided some very unusual excuses that people gave for missing work. I thought I would provide us all with a laugh and celebrate the “ingenuity” of our co-workers.


• Employee said a chicken attacked his mom.
• Employee’s finger was stuck in a bowling ball.
• Employee had a hair transplant gone bad. (I had a co-worker call in one time because her “hair coloring” was all wrong!)
• Employee fell asleep at his desk while working and hit his head, causing a neck injury (Workers' Compensation?)
• Employee said a cow broke into her house and she had to wait for the insurance man.
• Employee’s foot was caught in the garbage disposal. (There has to be a real story here!)
• Employee called in sick from a bar at 5 P.M. the night before.
• Employee said he wasn’t feeling too clever that day.
• Employee was in a boat on Lake Erie, ran out of gas and the coast guard towed him to the Canadian side.


And to celebrate our upcoming holiday:

• Employee called in the day after Thanksgiving because she had burned her mouth on pumpkin pie.

Happy Thanksgiving!!!!

Employee Burnout

As a result of the weak economy, employers downsize, oftentimes creating a "domino effect" that is easily visible to organization and employee both. In response to the loss of personnel, the organization reassigns job duties. The existing employee experiences an increase in the workload. Hand in hand with the increase in workload comes stress and burnout for the employee. The organization experiences reduction in work hours due to increased employee absenteeism, tardiness and reduced productivity. Additionally, employee burnout can be visibly felt by other employees thereby lowering team morale.

Stress in the workplace can be hurtful to both employees and organizations as employees loose interest in their jobs, feel tired and depressed. Morale can be the fuel that drives an organization forward or the fuel that feeds the fires of employee discontent, poor performance, and absenteeism (Ewton, 2007).

CareerBuilder’s annual survey on absenteeism shows 29% of workers have played hooky from the office at least once this year. Let's be honest. Yes, we have all done it. The survey states that 27% of employers think they are seeing an “increase in bogus sick excuses from employees due to continued stress and burnout caused by the weak economy.”

Here's how employers are responding:

• 29% reported they have checked up on an employee who called in sick.
• 16% said they’ve fired a worker for missing work without a proven excuse.
• Of the employers who checked up on an employee, 70% said they required the employee to show them a doctor’s note.
• 50% called the employee at home.
• 18% had another worker call the employee, and,
• 15% drove by the employee's house or apartment.

To help employees avoid burnout, insist employees use their vacation / PTO time. Try to reduce overtime. If overtime is required, try to give as much advance notice as possible. Give the employee a "mental health day."

Email Communication & "Netiquette"

During the drive into work this morning I was, as always, listening to my favorite radio station. This morning a listener phoned in with a rather unique dilemma. She had received (erroneously) an email from her Corporate Human Resources Department with an attachment that contained the salaries of all her co-workers. Ouch. (And shame to HR!) It seems as though she shared the same last name as the intended recipient. This issue aside, do you practice email “Netiquette?”

Ninety two percent of Internet users in the United States use email. That's a huge number since 73% of those living in the U.S. use the Internet (Information Please® Database, Pearson Education, Inc., 2008). At 92%, the potential for workplace email faux pas is tremendous. So what can you do to avoid potential errors?

1. Avoid being quick on the trigger. Remember that you can’t recall an email that has been sent in haste. It can’t be “unsent.”
2. Re-read your emails before sending them out, it could be a life-saver in the end.
3. Fill in the “to” section last to avoid sending the email prematurely or to the wrong party.

A couple of other email issues come to mind:

Is it possible for the message to be lost in a cloud of “fluff?” Yes! Try to be concise and clear with the message you wish to convey. Is the information that you mean to include in the email actually there? Did you answer all the questions thereby pre-empting further questions?

Can someone be offended by your “tone” in an email? Yes! Intent and meaning are hard to convey since the recipient receives only the words. They have no clue as to your frame of mind, or mood, at the time you wrote the email. And please, do not write in CAPITALS, no one wants to hear you SCREAM.

Is it possible to be too casual in an email? Yes! Avoid using the texting shorthand that has become so popular. Written communications are becoming short and abbreviated due to the increase in texting, Twitter, etc. This texting shorthand is a language tailored more for IM'g than email. Also, please use a salutation in your email, and maybe a closing. A courteous greeting may make your email less demanding and terse.

My rule of thumb has always been that, if it’s a business email, be professional. Avoid those little smiley faces. And, use spell check! Remember, your correspondence says a lot about you. Good or bad!

Pre-Employment "Testing"

There are personality tests and aptitude (cognitive) tests. There are personality tests that tell you "which side of the brain you use more." Reportedly they “minimize the high cost of employee turnover”.

Career Builder offers career and personality testing such as The Job Discovery Wizard - “discover what jobs are a match for you based on your skills with the Job Discovery Wizard.” The Career Planner Quiz - “Get a snapshot of jobs that are a fit for you. Use this insight for planning for a career or if you are considering switching jobs.” There is also the Career Planner Report and the Job Satisfaction Quiz.

My question to you - are these tests truly an effective measure of a person’s mental ability or potential?

Now there is another test for use in the pre-employment process, the Color Career Test. It uses color preference to determine which career path will be successful for an individual.

I poked around on one website. It was rather entertaining and provided a rather unique perspective. Before you read any further, take a look at the color options below and choose the one that best fits your personality!

1. Orange
2. Gold
3. Green
4. Blue
5. Red

Now that you have picked your "personality" color, read the below to see what the professionals say about you.

Orange:
The color is related to energy, strength and power. Your preferred choice of orange shows you are a fighter. You love to win (okay – who doesn’t?). You are a competitor. You are considered more suitable for careers in sports, architecture and engineering. Color personality tests term you as an energetic motivator.

Gold:
Represents loyalty and responsibility. If it’s your primary choice, you are an organizer. You love a peaceful environment. You value work and service-oriented tasks. You have a greater degree of performance, stability and orderliness.

Green:
Represents persistent, decisive and resistant state of mind. You are considered assertive. You care very little for feelings and focus on the available information before making a decision. They consider you to be suitable for careers in science, research, accounts and auditing.

Blue:
Calmness. With it as your primary color, you are considered creative, balanced and harmonious. You avoid too many conflicting opinions. You are peaceful and possess a developed aesthetic sense. You are considered suitable for careers in art, music and literature.

Red:
The color excites. It is associated with enthusiasm, strength and competitiveness. You love and hate with a certain degree of intensity. You are courageous. You are considered better for careers in surgery, emergency medical services, athletics, etc. You can communicate well and tend to be talkative. When you start listening to others, you can solve problems with others.

Aren't we better judges of our career choices than a psychological instrument?

What do you think?

The "No Asshole Rule" Part II

The Ivey Business Journal (November/December 2003) defines workplace bullying as "status-blind interpersonal hostility that is deliberate, repeated and sufficiently severe as to harm the targeted person's health or economic status".

While I hate to do this, let's remove the "people" from the equation for a moment and focus on the economic impact to the organization. The Orlando Business Journal cited an estimated cost of $180M in lost time and productivity to American businesses each year. The Workplace Bullying Institute estimates that between turnover and lost productivity, a bully could cost a Fortune 500 company an astounding $24,000,000; then add another $1.4 million for litigation and settlement costs.

Employers have begun to consider the impact of negative emotional behavior on work productivity. When people feel mistreated and are dissatisfied with their jobs, they are unwilling to do extra work (discretionary effort) to help their organization. Employees experience a significant loss of motivation. Employers see increased absenteeism and turnover, expend time reorganizing departments, interviewing, recruiting and training the replacements for the victims and/or bullies that are no longer with the company. Then there's the potential legal costs; settlement fees, legal fees associated with counsel. Increased health insurance or worker's compensation as a result of stress, EAP's, etc.

In The No Asshole Rule, Robert Sutton sites a study completed by Frank J. Smith in the late 1970s. The industrial psychologist demonstrated the power of work attitude on "discretionary effort" in a study of three thousand employees at the Sears headquarters in Chicago. "Smith found that attitudes didn't predict which employees were absent from work until the day a crippling snowstorm hit Chicago. On that day, when employees had a good excuse to stay home, employees who were more satisfied with their supervision and other parts of the job were far more likely to make the tough commute into work than those that were dissatisfied. When I am stuck working for, or with, a bunch of assholes, I don't go out of my way to help, But when I admire my superiors and colleagues, I'll go to extreme lengths."

Oftentimes bullying is poorly understood. But face it, it affects the overall "health" of an organization. Eliminate bullying in your organization. Have your managers and supervisors examine their own behavior to ensure they aren't engaging in inadvertent bullying behavior. Communicate to your employees that bullying will not be tolerated. Tell employees who are being bullied to report it to management immediately.

The "No Asshole Rule"

The title is rather eye-catching isn't it? I was browsing the business section of Barnes & Noble Bookseller recently, specifically looking at books relating to Human Resource issues, and I ran across this little gem. Curious, I picked up the book and read the inside cover. It's "the definitive guide to working with - and surviving - bullies, creeps, jerks, tyrants, tormentors, despots, backstabbers, egomaniacs, and all the other assholes who do their best to destroy you at work."

Bullying in the workplace has become a hot topic over the past few years. It's something that no longer happens in just the schoolyard. Bullying can be covert or overt as described by Tim Field (see the "Serial Bully"). "Bullies are deeply prejudiced but at the same time sufficiently devious to not reveal their prejudices to the extent that they contravene laws on harassment and discrimination."

On July 30, 2010 at the University of Virginia, the 52 year old managing editor of the Virginia Quarterly Review committed suicide. Co-workers said they had "warned" university officials about his growing despair over workplace bullying.

Is this an isolated incident? Perhaps not. Workplace Bullying is a problem because it has invaded the life of 37% adult Americans. It disrupts the persons' immediate job and career. In its more severe forms, it can trigger stress-related health complications. Complications such as hypertension, auto-immune disorders, depression, anxiety and even PTSD.

As an employer, how do you identify Workplace Bullying? Workplace Bullying is defined as repeated, health-harming mistreatment of one or more persons (the targets) by one or more perpetrators that takes one, or more, of the following forms: verbal abuse, offensive conduct/behavior (including nonverbal) which are threatening, humiliating or intimidating. And, last but not least, work interference - sabotage - which prevents work from getting done.

There is a grass-roots movement in many states to pass anti-bullying laws. "Workers' rights advocates have been campaigning for years to get states to enact laws against workplace bullying, and in May they scored their biggest victory. The New York state senate passed a bill that would let workers sue for physical, psychological or economic harm due to abusive treatment on the job. If New York's Healthy Workplace Bill becomes law, workers who can show that they were subjected to hostile conduct - including verbal abuse, threats or work sabotage - could be awarded lost wages, medical expenses, compensation for emotional distress and punitive damages." (Time Magazine, July 21, 2010)

Are the courts taking notice? Yes. In 2008, the Indiana Supreme Court struck a blow against workplace bullying when it upheld a $325,000 verdict against a cardiovascular surgeon. A medical technician who operated a heart and lung machine during surgery accused the surgeon of charging at him with clenched fists, screaming and swearing. The formal legal claims were intentional inflection of emotional distress and assault, but the plaintiff argued it as a bullying case, and had an expert on workplace bullying testify at trial.

Check back with me for Part II!

Social Networking Sites & Recruiting

On August 25, 2010, the Associated Press reported that a German law has been drafted making it illegal for prospective employers to spy on applicants' private postings. This draft law is the government's latest attempt to address privacy concerns about online services including networks. Under the proposed law, employers will still be allowed to run a search on the web on their applicants. Posting on networks specifically created for business contacts such as Linkedin won't be prohibited. But in contrast, it "will become illegal to become a Facebook friend with an applicant in order to access private details."

According to CareerBuilder, out of more than 2,600 hiring managers, 45% reported using social networking sites to research job candidates' backgrounds. The hiring managers either verified, or supplemented, information provided on the resumes. Social media's integration into the workplace is a growing trend. Job boards are growing and the social media is being used as an extension to the recruiting process. Companies are looking for new, cost-effective ways to recruit new talent.

But there are legal pitfalls in using social media in the recruiting process. While readily available, social media and the information available to employers has the potential to lead to discriminatory hiring practices. Laws prohibit bias based on race, color, religion, sex, nationality and age, as well as prohibit employment discrimination against qualified individuals with disabilities.

Social media such as Facebook provides a basic profile on all users. Easily accessible in the profile is personal information that you can't ask in an interview - race, religion, sexual orientation, relationship status, etc. The accessibility of this information creates a multitude of compliance issues. You have found the information on the internet. It's public knowledge. Now that you have the information, what do you do with it? Once you, as an employer, become aware of this information, how do you eliminate the protected information from the hiring decision? Does this information impact your decision?

Some companies recognize the potential misuse of the information and are taking steps to safeguard the integrity of their recruiting process. In 2009, Amegy Bank of Texas developed a policy prohibiting the use of social networking sites during the hiring process. To enforce the policy, Amergy's internet system blocks all social networking sites.

A report, Jobvite Social Recruiting Survey 2010, is based on an online survey by 600 participants between May and June. The social networking site most used by companies for recruiting is Linkedin (78%), followed by Facebook (55%).

Facebook? Obviously social media's involvement in job recruiting is more than just hype.

But the debate continues regarding the use of social networking sites during the hiring process. Is it possible to filter the information that is visible on an individuals' social networking site? Can you prove that you did not use protected information in the hiring decision.

Reinventing Human Resources

Employees are often confused by exactly what HR does, or is supposed to do. Managers transfer employees to the HR department because they don’t know what to do with the “bad” employees. HR runs to the handbook for everything. HR is the “hammer.” HR is the “bad guy.” I think I have heard it all. Realistically - HR is viewed as a pain in the butt. All those rules, regulations and policies. Sorry, we’re not here to make your life hard. But I guess it looks that way.

Human Resources has traditionally been a tactile, administrative function with responsibilities such as benefits, payroll, recruiting and lots and lots of paperwork. This is all secondary to enforcing policies and procedures. While one of the roles is to represent employees, HR additionally keeps the best interests of the organization in mind.

But the role of HR is changing. The HR department in most companies now has a more active, strategic role in an organization. However, HR needs to maintain that “customer service” frame of mind to truly meet the needs of both the organization and its employees.

So let’s talk about reinventing your HR department.

Step One:
Begin to look at employees and managers as your business partners/customers and Human Resources as a service center. Know who your customers are – people are the key to the success of any organization. Know the key areas of improvement that are required in your organization. If you don’t know – you are not in touch with your customers! Have group discussions with the departments and/or teams and ask one single question: “How can HR be your partner?” Remember, you are there to deliver service whether it’s to an employee, a manager or a supervisor. You’re running a business, a “people” business.

Step Two:
Human Resources should be viewed as a friendly, helpful department, so make any interaction a positive experience. Hold yourself accountable for improved “customer service” for the organization. Be accountable for what you said you would do. Regularly assess the attitudes of the organization’s managers and employees. Follow up with your customers on a timely basis. Ensure that each individual feels he/she are valued by the organization.

Step three:
Become an advocate for the managers in your organization. Managers are given the most vital resource in the organization – its people. Mentor, coach and support the managers, assisting them to become leaders to the people they work with. So many problems with workplace productivity can be traced back to management issues and/or lack of management training. Managers are often overworked and stressed out. As a result, they may overlook the needs of their own staff. HR can assist both the employees and the manager in forming healthy departments and developing enhanced communication.

Step four:
Be proactive versus reactive. Head problems off before they become problems. Yes, this may require a bit of creativity on your part – but use common sense. And communicate. Use face-to-face meetings, emails, whatever it takes. There are so many ways to ensure that good clear communication happens. Be out there and foster communication within the organization. By maintaining open lines of communication with your business partners, you will be able to create trust and credibility. Remember to always, always follow-through on your commitments.

Step five:
Make the change and ensure that the change has a positive effect on the organization. Change is often hard to sell. While you may have a seat at the table, make sure you have earned it. Make sure you know the business, know your customers. Connect with both! Talk and walk company values and assist the managers and employees in aligning with those values.

I read the following line somewhere. I don’t remember where, but I’d like to borrow it for this blog: “Build a relationship first, do business second.”

My on-going thanks to Mrs. Emily McGowan for her proof-reading services.

The Emotional Impact of Unemployment

Unemployment statistics focus on the number of individuals comprising the ranks of the unemployed. There is a world of information available regarding the dos and don’ts of interviewing, resume structure, what should and shouldn’t go in a cover letter, how to dress for an interview, and what interview questions to ask and/or not ask. But, what about the people behind those numbers? Has anyone addressed the emotional impact of unemployment? What about the isolation the unemployed feel? The anxiety, depression, insomnia, even anger over their unemployment?

Having been on the other side of the desk in the past and having to terminate an employee, I have seen emotional reactions ranging from shock and disbelief to anger and resentment. For many individuals, oftentimes work is a central component of their identity. Their self-worth is connected to their titles and what they have accomplished through their jobs. In a single moment, unemployment has reduced their self-worth.

With today’s high unemployment rates we all personally know someone that has been affected by a layoff, company closure, etc. These individuals now all have one single, sole objective in mind: to find a new job.

Initially the individual puts 100% effort into finding a new job. Looking for a job becomes a full-time job. The individual spends long hours in front of a computer, networking and scanning multiple job boards for that small glimmer of hope referred to as a “job posting.” A job that may match the skills and experience the individual has to offer. With all the time spent in front of a computer, the search becomes a mind-numbing process. Application after application is submitted electronically and maybe, just maybe, the individual receives an automatic response letter.

In this day and age the job search has been reduced to an “inhuman process.” With the majority of the job search process done electronically, how often does the individual actually interact with another live person? Because of the lack of interaction, the individual begins to feel isolated from the world. Compound the isolation with the lack of responses to the multiple applications the individual has submitted, a lack of motivation occurs due to a perception of “rejection.” The individual begins to focus more and more on the pain of their current situation. After a period of time, this all takes toll on the individual’s attitude.

Rejection (and being ignored) is a common experience during a job search. The number of applicants far outweighs the available positions. Not being chosen for a job can be discouraging and rejection can erode confidence, positive attitude and motivation. Applicants should not personalize the rejection. The need to maintain a positive attitude is critical to the job-seeker’s chances of success.

We all agree that finding a job is the #1 priority and it does take a significant amount of time. But an individual can’t look for a job 24 hours a day. There needs to be a diversion from the stress of the layoff, and the individual must avoid isolation.

To maintain motivation in the job search, I recommend:

• Get out of the house strengthen and expand your network.
• Enroll in classes to assist you in developing new employment skills.
• Strengthen the connection you have with family and friends. You may need them for emotional support.
• Also, try to maintain a regular schedule as if you were still employed. Set a schedule and stick with it!
• Develop goals and stick with them.
• Most importantly - Keep a positive attitude!

Effective Communication

If you’re employed or seeking employment, one skill that employers demand is effective communication. Whether written or verbal, effective communication is key to an individual’s success in the business world. We communicate and interact with each other daily and how we communicate says WORDS about us.

Let’s focus on the written word. With the ever-increasing use of computers, email and other electronic forms, the need for competent writing skills is necessary. For companies, oftentimes the business relationship with customers and vendors is maintained through the use of electronic written communication. We forget that this communication is a reflection of your company. Communication that is consistently riddled with spelling and grammatical errors will reflect poorly on your business. For an employee, your writing will form the reader’s opinion about you, your personality and abilities. Additionally, in many organizations the performance appraisal process will address an employee's written and verbal communication skills. No matter who you are, your communication style can create either a positive or negative impression.

Always proofread your work – even if spell check says there are no errors! Oftentimes you have read your document so many times that your mind “sees” what should be there versus what actually is. If you can, put the document aside for a couple of days then come back to it with fresh eyes. Alternatively, having someone else read your work is always a good move (thank you Emily)!

Being clear and concise is a common quality in any form of effective written communication. Sometimes, no matter how hard we try, we miss the mark. The below are a couple of actual letters that are being provided to you in their natural state. With the exception of eliminating the company name in one of the automatic response letters, I have not made any changes to the verbiage, structure or spelling.

Keep communicating, people!


Automatic Response Letter #1
Further to our earlier email acknowledging your application for the above post, I regret to inform you that, on this occasion, you have not been successful

Automatic Response Letter #2
If you do not hear back from us within 4 weeks then on this occasion you can assume your application was unsuccessful.

Automatic Response Letter #3
Friday, April 09, 2010Dear XXXXXX:Thank you for your interest in XXXXX International. We appricaite your application and wish you the best in your job search. All selected candidates will be contacted by a company representative shortly.Thank You

Candidate submission #1
I have three years on hands of experience In the HR field and I am seeking for challengeable opportunity which inspires me to put my comprehensive resume in your good hands as I believe that I strongly fit your expectation.

Candidate submission #2
Also, I played a respected role in the public work, so you will find me to be quick-learner, well-spoken, energetic, excellent computer user, confident, and presentable, the type of person on whom your company will rely. I also have a wide breadth of experience of the type that gives you the versatility to place me in a number of contexts with confidence that the level of excellence you expect will be met.

HR as a Business Partner

Human Resource professionals have long been requesting a “seat at the table” when it comes to strategic and business planning. However, HR has a history of being viewed as an "overhead" department. Just an expense, like the electric bill, necessary to keep the business running. Oftentimes the HR department is understaffed or staffed by employees with little expertise in the field. “Top management frequently thinks that anyone, regardless of background and experience, can do HR management, as long as he or she has an IQ in at least the double digits. Consequently, whenever top management has an executive manager that is no longer useful, they will throw him over to the HR department-after all, what harm can he do there?”

Do I need to point out that HR reaches and impacts every department every day? Whether it be in sales, administration, customer service, or finance, HR is responsible for the entire “human resources” of the organization. HR recruits the employees, hires them and trains them. HR ensures that the best performers are retained to ensure profitability is maintained. HR provides the organization with the human “resources” necessary to successfully run the organization, thereby having a direct impact on the bottom line of the organization.

Break the Cycle.
Human Resources needs to be respected by upper management in order to be viewed as a true business partner and not an inefficient staff function. This respect has to be earned by being a high-performing department, demanding respect for its performance and expertise.

To be a business partner, Human Resources needs to be an active participant in running the organization. This can only be done by understanding the business goals of the organization and aligning with those goals. Human Resource departments are only taken seriously when their activities are related to bottom line results. The function of Human Resources is not only to help and take care of employees, but also to align the people with the strategic plans of the organization. The HR department and its functions must continue to evolve to meet the challenges of today’s business, technology, and workforce.

When this is done, Human Resources is truly a business partner.

Why Do Talented People Leave Companies?

There’s a war for talent out there. The caliber of a company’s talent increasingly determines success in the market place. Having great talent is not only important, but critical. Employee retention, especially of your best, most desirable employees, is a key challenge in organizations today. An employee's expectations of developmental, financial and psychological rewards he/she gets from his/her work are way up. Switching jobs has little, if any, stigma associated with it. High performers are likely to leave companies where they feel underdeveloped, undervalued, and underpaid. Remember, workers are not fixed assets. They are free agents.

Talented employees may leave a company for a variety of reasons. Employers often feel that the primary reason for an employee to work for any organization is money, but the employees may also leave a company even if the pay is good. The employee may be burned out, may not fit into the culture or may leave for personal reasons such as illness, family obligations, etc.

Sometimes you may have to look below the surface.

The pay may be good, the hours are right and the location is good. While people may chase the money thinking it will bring happiness, money is only a maintainer, not a motivator. Notwithstanding financial rewards such as bonuses, performance incentives, etc., employees need recognition, promotion and progression up the management ladder. If employees are not able to accomplish this, they may leave in spite of the good salaries.

"People leave managers not companies," write the authors Marcus Buckingham and Curt Coffman. If you're losing good people, look to their immediate boss. The immediate boss is the reason people stay and thrive in an organization, and the reason why people leave. When employees leave, they take knowledge, experience and contacts with them, straight to the competition.

Ask the right questions. Do the managers create the right opportunities for the employees? Is there a lack of training and/or development opportunities? Is there recognition for employee contributions? Do the employees get along well with their manager? Do employees have the support of their manager? Do employees have the trust of their manager? Do your managers need training? Do managers have open communication with their employees? Do they develop their subordinates?

Top talent is bombarded by recruiters and peers at other organizations with opportunities to make a move. The result is that top talent is always evaluating their current situation vs. alternatives, not only in terms of dollars, but also with respect to work environment, growth opportunities, etc. So if the company forgets to value their top performers every day, that could be the day that another opportunity wins.

There is nothing worse than an employee who doesn’t feel appreciated.

Survey your current employees often. Ask them why they stay.

Keep communicating people.

My continuing thanks to Emily McGowan for proof-reading services on this blog.

What's In Your Employee Files?

Let’s face it. Human Resources will never be able to make the move to a “paperless” environment. In the hiring process alone there are new hire approval forms, applications, resumes, W-4’s, I-9’s, etc. So, as an employer, where do you retain all this documentation?

First, employee privacy rights require that all personnel files are kept in a secure location, preferably under lock and key. There should be only one official set of personnel files. If you have a Human Resources department, the files should be housed there. Please bear in mind that access to personnel files should be limited to those individuals with a bona fide need to know the information in the file.

At a minimum there should be two employee files, the personnel file and the medical file. Oftentimes an employer will additionally maintain a payroll file for its employees.

The personnel file should contain job-related documentation (information relevant to the employee’s employment only) such as:

• Employment application
• Offer letter
• Acceptance letter
• Job description
• Development records such as training, education and degrees
• Performance appraisals
• Commendation letters
• Emergency contact information
• Documentation regarding compensation history
• Acknowledgement for the receipt of the employee handbook and other policies.
  

The federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires employers to protect and treat medical records as confidential and to maintain them separate and apart from other business records. Information that should be maintained separate from the personnel files and retained in a confidential medical file are:

• Health insurance application
• Life insurance application
• Request for medical leave of absence
• Personal accident reports
• Workers compensation report of injury or illness
• OSHA injury and illness report
• Any other document/form containing private medical information
• Drug test information and information concerning drug or alcohol rehabilitation
  

Last but not least, let’s talk I-9 documentation. Employee I-9s, and their supporting documentation, should be retained in a separate file and location. It is recommended to retain the I-9s in a three-ring binder. Remember to review the file annually and to obtain updated support documentation when necessary.

My on-going thanks to Mrs. Emily McGowan for her proof-reading services!

An Incomplete Education?

In 2008 a friend gave me a book titled “An Incomplete Education.” The book contains “3,684 things you should have learned but probably didn’t.” It’s a delightful book full of information ranging from the trivial to the significant. The title of the book captures your attention immediately. And, it makes you think. When is an education “complete?”

In every organization, employee-related and legally-related (risk management) training such as harassment, safety, etc. is mandatory. This training, when properly presented, helps reduce the risk of inappropriate behavior in the workplace and the potential, resulting lawsuits. Another standard reason an organization provides an employee with training and/or development is when a performance appraisal indicates improvement is needed.

But let’s step away from the subject of mandatory training and discuss training as an “investment” in your employees.

The education and development of employees have a large ROI for the employer. With proper training, employers may see increased productivity, increased efficiencies in processes and reduced employee turnover. Employees may experience increased job satisfaction. Additionally, an increase in skills and knowledge leads to better pay, promotions and positions. Properly trained employees can carry out their work responsibilities with greater effectiveness and efficiency. `

When the decision is made to move forward with a training program, there are many things for the employer to consider:

• Identify the employee to be trained.
• Ensure that the training is relevant to the employee's job (conduct a needs assessment).
• Does the employee see the connection between his/her job and the training so that he/she understands the value?
• Consider the employee's ability to learn the material and use it.
• Is the training program designed with the employee in mind (identify the training process)?
• What will be the method of training? Will the training be "on" or "off" the job? If "on the job" training what technique will be used (mentoring, job rotation, coaching)?

As adults, many employees are motivated by training and continuing education that may provide a future reward rather than immediate satisfaction. Well trained employees are the key to your success!

Employee Handbooks

Employee handbooks and policies allow employers and employees to avoid miscommunication and/or misunderstandings. If an employee does not have access to written policies, how can he/she know when he/she is non-compliant? Oftentimes too late, the employer finds that the employee did not know that their action (or inaction) violated a company policy. When written properly, policies are a valuable resource and guide for both the employer and employee.

Although written policies are not legally required, if properly written they can provide the framework within which the employer can communicate his/her expectations to the employees. The handbook may contain general information such as company benefits, pay policies, holidays, vacation, sick time, attendance, etc.

Employers with 15+ employees should have written policies as they are covered by federal discrimination laws such as Title VII and the Americans with Disabilities Act. The Family Medical and Leave Act requires covered employers (50+ employees) to provide written information relating to employee rights and employer obligations.

When developing a company handbook always remember the three “Cs” of Content, Clarity and Consistency.

• Content: What to include in the handbook.
• Clarity: Make the handbook simple and concise. The key is "readability." If an employee can't understand what he/she is reading, how can he/she be compliant?
• Consistency: Selective application of policies is an open invite for litigation. Policies must apply evenly to all employees. Remember that lawsuits = inconsistency.

Put policies in place. Review them on an annual basis. Educate your employees and supervisors.

Keep the lines of communication open everyone!

Undercover Boss - What lessons can be learned?

On February 7, 2010 CBS premiered Undercover Boss. No, I don’t watch it (nor do I follow other reality programs) but the premise intrigued me.

On the off-chance you have not heard of the program, the format is as follows: A high-ranking executive or owner of a corporation goes undercover in his own company as an entry-level employee (after altering his appearance, assuming an alias and a fictional back-story). With a camera crew in tow, the executive is followed on his day-to-day activities while being filmed as “part of a documentary” about workers in that particular industry. (All hype aside, how many employees are going to really be themselves in front of a camera crew? Sorry, I’m off target here.)

If you went undercover in your own organization, what would you discover? What would your employees say? Would they speak highly of the organization? Or poorly? Would they take pride in their jobs? Would they feel that their contributions were being recognized?

In the business world there are CEOs that have worked his/her way up through the ranks of the organization. He/she understands the business, the people, the processes, the policies and the problems. On the other side of the coin there are CEOs that have not had the opportunity to grow with the organization he/she now runs. Lacking that background and experience, oftentimes there is no true understanding of the company and its employees.

For an executive to go undercover in the workplace it offers him/her the opportunity to see first-hand how the company, from the bottom-up, functions. Stepping from the corner office down into the trenches allows him/her to see how changing policies, restructuring, job consolidations, etc. impact the organization and the people. The executive can take what he/she has learned from the experience and create positive change in the workplace. 99.9% of the time his/her perception of the business is different from that of the front-line employees. He/she can experience first-hand what is working and what isn’t, discovering where and who the true company “resources” are. Identify the talent – know who those individuals are - and cultivate them.

The same approach can be said for the HR Directors, managers and generalists in the workforce. TAKE a proactive look at the organization and people you support. TAKE the opportunity on an on-going, regular basis to fill the role of a front-line employee. I had the privilege on a couple of occasions to work side by side with the employees in the bindery department of a commercial printing company. It provided me with a better understanding of the roles these individuals played within the organization, the challenges they faced, and assisted me in developing a deeper appreciation of the contribution of each and every employee.

Are there lessons to be learned? Yes, I believe there are.

You Know You're Rude When . . .

I had thought about blogging on one issue that bothers me most in the business world: the lack of common etiquette while at work. Then I ran across this 2009 article featured in HR Morning. My kudos to Jim Giuliano, the author.

YOU KNOW YOU’RE RUDE WHEN. . . .

Some say the workplace these days suffers from lack of civility – but of course not by you. Still, you may want to take this workplace-rudeness test (or give it to someone you know).

According to CareerBuilder.com, you know you’re rude when. . .

You have that habit of interrupting others. That suggests – dare we say “screams” – that your time and ideas are more important than everyone else’s and that you have no interest in listening to what they have to say. A rare offense is forgivable, but habitual interruption is problematic, according to professional coach Susan B. Wilson. “Some folks interrupt incessantly, whether you are on the phone, in a meeting, deep in thought or in another conversation.”

You don’t say “please” and “thank you.” In a 2002 Public Agenda survey, 48% of workers said that only “sometimes” they encountered others who made an effort to say “please” and “thank you,” and another 16% said they saw such behavior “practically never.” A few words to show gratitude can put someone in a good mood – or at the very least can keep someone out of a foul mood.

You don’t clean up after yourself. Lack of housekeeping manners, especially in a workplace communal kitchen, marks someone as a slob, as well as a rudenik. If you’ve worked out a deal where your mom is going to come in and clean up after you, then it’s OK. Otherwise, it’s rude.

You’re LOUD! In the world of cubicles, a loud conversation or one on a speakerphone quickly becomes an entire floor’s business. Never mind how annoying it is to hear a conversation you’re not a part of; think how bothersome it is to try to concentrate on work when someone’s blathering away loudly. Rather than force your call on the whole department, invest in a headset or just hold the receiver in your hand. Or just talk softly.

You treat everyone like a stranger. You’re walking down the hall and a co-worker is walking toward you. Now, a bear hug or a kiss is probably asking too much (especially if the other person is the CEO). Still, it doesn’t kill anyone to smile and nod to let others know they exist in your world. Too busy for a quick “hi?” No, you’re not.

In closing, we have each experienced one or more of the above scenarios in the past. Whether it’s that individual who habitually interrupts a conversation, or that individual who doesn’t say “hi” in the hallways, we have experienced it. My word of advice is respond to the situation with politeness. As my mother always says, “you catch more flies with honey than with vinegar.”

Good manners NEVER go out of style.

In keeping with the above theme, thank you Mrs. Emily McGowan for your proof-reading services on this blog!

Competition for IT talent to heat up in 2010

Following is a recent article featured in HRMorning.com that I'd like to share.

With the economy starting to rebound, competition for talent could heat up. Your company’s IT department could feel the biggest impact.

Nearly one-third (32%) of IT employers plan to increase hiring this year, according to a recent CareerBuilder survey. That could cause retention difficulties as IT staffers weigh offers from other companies.

The best way to avoid a mad rush for the door? For employers that can’t afford to increase pay, the answer may lie in increasing no-cost benefits. Of the businesses surveyed by CareerBuilder, many plan to increase benefits such as:

- flexible scheduling (73%)
- telecommuting options (67%), and
- compressed work weeks (36%).

What steps would you take to retain your valuable "human resources?"

Employer / Employee Communication

When an employee resigns, oftentimes the employer asks “why?” What is the individual’s primary reason for leaving? Did something trigger his/her decision? What does the new company offer that the old one doesn’t? With so many unanswered questions many companies conduct exit interviews asking questions such as:

- What is your primary reason for leaving?
- What was most satisfying about your job?
- What was least satisfying about your job?
- Were you happy with your pay, benefits and other incentives?

There are thoughts that holding an exit interview with the departing employee will allow a company to promote positive “PR” with the departing employee. The value to the company is that it may receive feedback from the departing employee encompassing compensation, working conditions, management, etc. Perhaps also uncovering employee concerns and details about what they enjoyed most, and least, about the organization. If the company actually uses the information collected in an exit interview, the exit interview process can be useful to the company.

However, the best time for an employer to discuss the concerns of the employee is when the individual is an employee – not when the individual is on the way out the door.

Communication is a two-way process, yet typically companies are most efficient at communicating downward. Getting the flow of communication to change direction and move upwards is a bit of a challenge! In situations where employees feel that information is being kept from them, the rumor-mill will take over. Lack of communication with employees will create a level of mistrust and negative perceptions will be developed. To minimize this, a company must develop ongoing, open communication with employees.

If a company restricts communication to the evaluation process only, the company must improve the process to allow the collection of the information in a timely fashion. Waiting to have a meaningful conversation with an employee on an annual basis only will not allow the company to respond to issues in a timely manner. In that scenario it may be too late to make changes and valuable human “resources” will be lost. Adjust your evaluation process to encompass conversations on a quarterly basis. Managers must take steps to improve their listening skills and to encourage ongoing, meaningful interaction with their team members. Managers must listen to employee concerns and be prepared to act on them.

To promote better communication with employees, there are other options:

- Obtain employee feedback through employee satisfaction surveys. Allow the employees anonymity to provide more candid feedback. Look for trends in responses.
- Hold monthly or quarterly “town hall” meetings and promote open communication with your employees.
- Hold informal luncheons to allow employees an opportunity for more “informal” communication.
- Develop “suggestion boxes” and then openly address the suggestions with your employees.

Remember, sometimes an employee’s decision to leave a company is personal. But sometimes, just sometimes, that decision may have been different.

Negligent Hiring Doctrine and Criminal Background Checks

The negligent theory is premised on the unreasonable conduct of an employer in placing a person with certain known propensities for criminal or tortuous behavior in an employment position where the individual poses a threat to others. The negligent hiring theory of liability has been recognized in a number of states, including Texas. Basically, it occurs when the employer fails to properly screen the employee, resulting in the hiring of an individual that has a history of violent or criminal acts. The doctrine addresses and “punishes” the employer for creating a risk by exposing its employees, customers and/or public to a potentially dangerous individual.

Most negligent hiring lawsuits arise after an employer’s worker harms or injures an individual while acting within the course and scope of employment, and that person sues for the harm or injury. Typically a lawsuit will maintain that if the employer had conducted an appropriate investigation into the employee’s background, information would have been discovered that indicated the employee had a potentially violent or abusive nature. As a result, the employer becomes negligent for hiring the individual and placing him/her in a position where he/she would pose a threat to others.

“EEOC and the courts generally recognize that some background material may have some bearing on the applicant’s suitability for the job. In the most obvious instance, for example, you wouldn’t be expected to hire a convicted embezzler to handle cash. There are other situations that apply — contact with customers, driving company vehicles, dealing with minors, etc. You’re on safer ground if you can show those correlations between background checks and suitability.” HR Morning. Recruiting: EEOC Warns About Background Checks. January 6, 2010.

EEOC statistical evidence shows that more minorities than non-minorities have had criminal history (or financial problems) in the past. Taking adverse job action based upon such factors has a disproportionate and unfair impact. The EEOC expects employers to do an individualized job-relatedness determination prior to turning someone down for a job. Always remember that the EEOC’s position is that an arrest per se cannot be considered by employers, because it does not prove guilt. The EEOC agrees that conviction records “could be cause for rejection if their number, nature and proximity would cause the applicant to be unsuitable for the position.”

In the decision-making process the employer should consider the following:

- When was the offense?
- What was the offense?
- What was the punishment?
- What affect on the position?

“In some industries, recruiters are using criminal and credit screening as a quick and easy method for culling the ever-larger pile of applications. But this growing reliance on screening is on a collision course with new legislative restrictions, legal challenges and mounting evidence that such results are poor predictors of behavior and performance.” Workforce Management. Recruiters’ Use of Criminal and Credit Checks Colliding with Legislative Constraints. October 20, 2009.

A small number of states have laws limiting the use of conviction records in the employment context. At this time, Texas is not one of them.

Sexual Harassment in the Workplace

Let’s talk Sexual Harassment. What is sexual harassment? We could talk about the legal definition. Is there a specific action or actions that define sexual harassment? Is there a “best way” to handle this inappropriate behavior in the workplace? What about those situations where the behavior doesn’t quite cross the line of harassment and discrimination?

Men and women view sexual harassment differently. A 2008 survey by the research group Novations asked working women if they had noticed an increase or decrease in the number of inappropriate sex-tinged comments in their workplaces. The results? Women reported that the number had doubled from 2006 to 2007. The men reported almost no increase in such comments. Clearly there is a problem in the working world. Or is there?

The perception of sexual harassment can also be complicated when different cultures are involved. Different cultures = different behaviors. In some cultures, actions such as kissing co-workers, standing close while speaking, touching, patting and intimate conversations are acceptable. While those behaviors may be permissible in other cultural circles, they are certainly not tolerated in the American workplace. For example, we Americans tend to require more personal space than other cultures. Cultural norms vary regarding what constitutes appropriate and inappropriate behavior. If you employ people from other countries you can avoid misunderstandings by recognizing cultural differences such as communication style.

Whatever the situation, sexual harassment is real and managers admit that it can negatively impact their staff. Communication and awareness of company policies are often the key to resolving these issues. As an employer, take the following steps:

1. Ensure that all employees are treated equally (and consistently) when addressing any policy issues.
2. Know enough about sexual harassment and about your people to help them work well together.
3. Have a strict approach to your sexual harassment policy – zero tolerance. Zero tolerance allows for absolutely no level of tolerance or compromise for violations of the rule in question.
4. Create a respectful working environment and support HR in the efforts to train employees in sexual harassment.

My on-going thanks to Mrs. Emily McGowan for providing proof-reading services on this blog.

The Use of Credit Reports in the Recruiting Process

A large number of employers examine the credit history of potential applicants. The rationale? People with big debt and/or credit problems can’t handle their own funds; therefore they’re more likely to steal or commit fraud.

People that manage their credit are better workers? What? Employers should bear in mind that there are other reasons for individuals having bad credit such as divorce, personal bankruptcies resulting from medical crisis, student loans, family death, identity theft, etc. Even simply the loss of income while between jobs. Many of these events occur normally which negatively impact the candidate's finances and therefore credit ranking.

As employers we need to recognize that in today’s struggling economy people have lost their homes, their cars, and can not meet the financial obligations that, prior to their job loss, weren’t a problem!

For the employee candidate it’s a Catch-22. They’ve lost their job. Because they’ve lost their job, they’ve fallen behind on their bills. Now there’s a potential that they can’t get a new job because they’ve fallen behind on their bills and have a poor credit report.

Validex Employment Screening Services states “A candidate’s credit history is often a reflection of his or her current financial habits and, therefore, can be valuable information in hiring for positions requiring financial responsibility or aptitude. This information gives you insight into an applicant’s tendency to meet financial obligations and his or her current financial pressures. The way people handle their own funds is often a reflection of how they will handle company financial responsibilities and assignments.” This is verbatim from their website. How accurate is the statement?

While a credit check provides the prospective employer with information about the candidate's credit score, payment history and other financial information, are they really an accurate portrayal of the candidate’s work ethic or trustworthiness?

My question: Are credit checks an accurate predictor of job performance? There is nothing to support the validity of the claims that individuals with poor credit are poor performers.

The Fair Credit Reporting Act requires companies to get a candidate’s consent before getting the credit report. If the candidate is not hired because of information in the credit report, the candidate has the right to see the report and be told how to get his/her own version of it. A credit check is helpful if the employee candidate is applying for a job in which he/she is handling cash or exercising financial discretion, as well as being entrusted with property of substantial value. Such investigation on behalf of the employer will allow the employer to avoid issues relating to negligent hiring. However, is the credit check necessary for positions other than those referenced above?

Prior to denying employment to the candidate, do you, the employer, allow the potential hire to have an opportunity to explain the circumstances of the debt? How, as an employer, can you conclude that the credit history has a negative impact on the candidate’s ability to perform the duties of the position?

The winds of change are blowing. Two states, Hawaii and Washington , now limit the use of credit histories in pre-employment screening. This hot topic is receiving increasing exposure as more and more Americans are impacted by the struggling economy.

Up for discussion is a 2009 bill in Congress - H.R. 3149 (Equal Employment for All Act). This national bill will bar employers from using credit reports in hiring or promotions. It will allow, however, the use of a consumer report in the following situations:

1. When the consumer applies for, or currently holds, employment that requires national security or FDIC clearance.
2. When the consumer applies for, or currently holds, employment with a state or local government agency which otherwise requires use of a consumer report.
3. When the consumer applies for, or currently holds, a supervisory, managerial, professional, or executive position at a financial institution.
4. Or where otherwise required by law.

A key highlight to the law is employers would be prohibited from asking applicants to voluntarily submit to credit checks.

On February 28, 2010, MSNB addressed this issue. “Bad credit sidelines some jobless workers.” It’s an article worth reading! http://www.msnbc.msn.com/id/35512038/ns/business-eye_on_the_economy//

Please chime in and let me know your thoughts!

My on-going thanks to Mrs. Emily McGowan for providing proof-reading services on this blog.

Why Employers Should Drug Screen Their Employees

Recently a former co-worker of mine expressed a concern that her current employer did not drug test employees. Having recently moved from an organization that maintained a drug-free environment, she was surprised to discover her new employer lacked this basic policy.

While the company in question is small, in light of the equipment that is used in their particular industry the need for drug testing is greatly increased. Drugs can impair a worker’s judgment and coordination, leading to an increased risk of drug-related accidents and injuries. Employee performance indicators of drug use can be excessive absenteeism or tardiness, lower productivity, missed deadlines and / or deteriorating work quality.

To directly quote OSHA, “. . . research indicates that between 10 and 20 percent of the nation's workers who die on the job test positive for alcohol or other drugs. In fact, industries with the highest rates of drug use are the same as those at a high risk for occupational injuries, such as construction, mining, manufacturing and wholesale.”

The federal government estimates that 71 percent of illegal drug users are employed, most working for small businesses. The U.S. Department of Labor estimates that drug use in the workplace costs employers $75 – 100 billion annually in lost time, accidents, health care and workers’ compensation costs. According to the U.S. Department of Health and Human Services, substance abusers are six times more likely than their co-workers to file a workers’ compensation claim. Additional surveys have revealed that drug users are involved in 2 to 3 times as many industrial accidents!

The above statistics indicate that the problem of drug abuse in the workplace is widespread and pervasive. The lack of a drug-testing program can be devastating to your bottom line and your employee safety. It can lower your productivity, increase your likelihood for workplace accidents / fatalities, and have the potential to increase your workers’ compensation costs. With this knowledge in hand, employers are taking steps to end this problem by implementing drug testing for the purposes of reducing thefts and accidents and excessive absenteeism.

As an employer, create a company culture that is drug-free and that will allow you to attract and retain quality employees by:

1. Implement a policy
2. Educate your supervisors, managers and employees

For more information on Workplace Substance Abuse please visit http://www.osha.gov/SLTC/substanceabuse/index.html.


My on-going thanks to Mrs. Emily McGowan for providing proof-reading services on this blog.

Top 5 Employer Concerns of 2010

A recent CareerBuilder survey of 2,700 employers uncovered employers' top five concerns:

• Providing competitive compensation (34%)
• Maintaining productivity levels (33%)
• Retaining top talent (31%)
• Worker Burnout (30%)
• Providing employees with opportunities to move up in the organization (25%)

To keep employees happy, employers plan to:

• Offer more flexible work arrangements (28%)
• Provide more training (21%)
• Promise future benefits, like raises or promotions (18%)
• Performance based-incentives (16%)
• Provide higher title without a salary increase (7%)

What Worries You the Most About Interviews?

A job interview, while considered one of the most useful tools for evaluating potential employees, is a stressful experience for anyone. Whether considered a behavioral, stress or technical interview, they are "stressful". Below are the statistics from a February 10, 2010 poll (507 votes) titled "What Worries You The Most About Interviews?"


· 15% Being nervous
· 4% What to wear
· 10% They won’t like me
· 63% Answering questions well
· 5% Arriving on time / getting lost

Employee Performance Reviews

Employee performance reviews (or appraisals) have several purposes. For the employee, they often determine raises, promotions, and sometimes whether they get to keep their job. For the manager, a proper performance review will assist in developing the employee and improving employee and company performance.

According to the article, "How to Do an Employee Appraisal," the goal of an appraisal should be to "increase communication, establish clear expectations, reinforce good performance, improve unsatisfactory performance, and foster a spirit of cooperation and teamwork."

The use of an employee performance review will allow an organization to outline the specific standards that an employee is expected to accomplish. These standards should be measurable, understandable and achievable. The employee should have goals and objectives outlined with an established timeframe for completion. Depending on the role of the employee, the goals should address the quality of their work, the quantity (how much work the employee is expected to produce or services expected) and timeliness. Effective and timely feedback addressing the employee’s performance is an essential component of a successful program.

For a performance review to be effective, reviews should be held throughout the year, not just once a year. As a manager, you should have frequent, regular conversations with your employee, encouraging frequent feedback in the form of informal evaluations. There should be no surprises during the performance review for the employee. Remember - If the employee doesn’t receive feedback to know that the performance or behavior needs to be corrected, then to the employee, such performance or behavior is acceptable.

As a manager, you should continually monitor the employee’s performance throughout the year. Document all successes and failures (compliments and complaints) of the employee over the course of the appraisal period. Maintain a file containing pertinent data that you have gathered. This data will jog your memory when developing the review and assist you in avoiding some of the more common rater errors such as Recency Bias. This data allows you to ensure that specific examples can be provided to the employee during the appraisal and the employee receives a full “picture” of their performance over the appraisal period.

Remember to focus on the employee’s work performance, not on personal interactions you’ve had with the employee. Do not confuse poor performance with differing opinions. Taking your personality out of the performance review process allows you to assess your employee's skills fairly. Additionally, encourage the employee to participate in establishing the performance review process for their position. In allowing employees to participate in this manner the employee gains a better understanding of his/her role and how the role contributes to the success of the organization. Employees can participate in a number of ways, one of which is allowing them to write or define critical elements of their performance review.

Use the same measurement standards and criteria for all employees who have the same job descriptions. Do not evaluate an employee in areas that go beyond his/her job description.

Follow up on each performance review. Provide the employee with training and development opportunities. Assist the employee in strengthening his/her job-related skills. Assign special assignments to provide the employee with an opportunity to learn as well as to broaden his/her understanding of the organization.

If you have an ongoing performance review process, use the employee’s last review as a benchmark standard for the next review. If you are a new supervisor and you don’t have six months of observation time with the employee, ask the former supervisor for help in the assessment. If unavailable, ask for feedback from other supervisors who may have interacted with the employee or who may have observed the employee’s work.

You can't motivate employees! Motivation is a choice. But, the performance review process can assist with either motivating or de-motivating the employee.


My on-going thanks to Mrs. Emily McGowan for providing proof-reading services on this blog.

Resume Cover Letters

There’s a lot of discussion out there among recruiters and HR professionals alike regarding the use of resume cover letters. Are they, or aren’t they, of any value? The field appears to be split on that particular decision. Let’s discuss some pros and cons.

Pros

• The cover letter will be the first thing the recruiter sees.
• You can indicate what position you are applying for (this is invaluable as the recruiter won’t have to read your resume in an effort to ascertain the position you are applying for) .
• When written properly, it can be used as a way to “seduce” the recruiter into reading the resume.
• It will give the recruiter insight into your strengths, your communication skills, your individual writing skills.
• It will give you an opportunity to provide examples why you FIT the role, and where you have experience relevant to the role.

Cons

• With the age of on-line recruiting and systems that use an ATS to scan resumes, most on-line systems don’t scan cover letters at all or forward them with the resume.
• Hiring managers receive hundreds of unsolicited resumes a week. Oftentimes they will scan the resumes – totally disregarding the cover letter.

In closing, this is a highly debatable topic between recruiters. Most will tell you cover letters are absolutely necessary, but there are some who will openly admit that they always look at your resume first. If you submit a cover letter, take the time to tailor the letter to the position you are applying for. This will show that you have taken the time to research the company and the role.

Good Luck!

My on-going thanks to Mrs. Emily McGowan for providing proof-reading services on this blog.

Blogs to Come!

Several suggestions for the blog have been thrown at me recently. With that being said I will be addressing two issues:

• Resume Cover Letters: Pros & Cons
• Sexual Harassment: Separate discussions for the Employee and the Employer.

Stay warm people.

Interview Process Failure: Company A

I recently had the pleasure of experiencing and observing the interview process of one of the largest used car dealerships in the U.S. Company A, as I will refer to them, is recognized within the automotive industry for both its culture and the value it places on its employees. As other car dealerships have suffered financially in this unstable economy, Company A has experienced continued growth. Continued growth means recruiting talented personnel.

While Company A’s ongoing goal is to ensure that their practices and company culture remain consistent from one location to another, I feel that their interview process needs a new model. I watched employee candidates, 4 of them, walk away with bewildered looks on their faces upon completion of their interviews.

Company A’s interview process appears to be in two parts. The first deals with what Company A terms the “assessment”. However, the assessment doesn’t deal with job related skills or qualifications. The assessment deals with whether the applicant has ever been convicted of any crime and / or ever engaged in criminal activity (from age 18 on). The completion of the assessment is mandatory for employment and failure to provide complete or truthful responses are grounds for rejecting the application. (Before 1998, FCRA prohibited criminal record investigations from going back more than seven years unless the applicant would earn over $75,000 annually. While the 1998 amendment removed this time limitation, typically criminal record checks are limited to the past seven years.)

As I move on with this blog please note that Company A has no formal Human Resources Department on site. The hiring function is handled by the administrative assistant who initially greets you and sets you up for the assessment.

Post the completion of the assessment, two company representatives meet with the candidate to review the assessment responses. They introduce themselves by their first names only and don’t provide any indication as to their respective roles within Company A. Obviously this is confusing to the candidate. After the first representative reviews the assessment responses, with the other representative acting as a witness, the candidate is asked to sign off on the hard copy. Taking into consideration the rise in employment-related lawsuits under the theory of “negligent hiring” the need for such “assessment” by the employer is necessary. However, Company A and its representatives could handle it with a bit more professionalism and sensitivity.

The candidate is also asked to authorize a pre-employment background check including criminal background check, employment verification, social security verification, driving record, etc. Again, highly sensitive information handed off to who-knows-who with little regard for the candidate’s privacy concerns.

The candidate then meets with a third representative who again provides a first name only and no indication of his role within the company. This representative reviews the job position that the applicant is applying for, asks the candidate a single interview question, and the interview is over.

What happened? Was this the interview? One question does not an interview make. To be effective the interviewer must focus the interview on obtaining information about the applicants’ ability to perform the job. In order to do this, it is important that the interviewer know beforehand the specific requirements of the job for which the applicant has applied.

If the purpose of this initial meeting was to obtain the background information on the candidate only, then the candidate should be advised of such prior to the meeting.

In closing, there were several confused applicants that walked out of Company A’s building that day. It is with great sincerity that I hope Company A takes constructive criticism regarding its interview process well.

(I wrote this post approximately 5 days ago. Today I spoke with a business colleague who has a very close relative that experienced the same interview process at Company A.)

So You Didn't Get The Job - Don't Beat Yourself Up!

You applied for a job you felt you were reasonably qualified for. You made it through the phone screen and an initial face-to-face meeting. You dressed for the interview, researched the company, stressed over the behavioral interview, answered their questions to the best of your knowledge, and asked (you thought) the right questions in return.

After all of this you didn’t get the job. But neither did the 498 other individuals that also applied for the position.

But your question is “Why?”

If you are lucky enough to get an answer to the “why” it is probably the standard response that the company is moving forward with another candidate that is a better fit.

You have the right qualifications, training, experience, education, potential – why aren’t you the right “fit”? Unfortunately sometimes the right “fit” is something other than having the right qualifications for the position. But you won’t hear those comments from the employer!

Have you ever had that interview where you didn’t feel a connection with the interviewer? Sometimes the final decision comes down to whether or not the interviewer “liked” you. Perhaps you are an excellent candidate and in the recruiters mind “a threat to my position”. Hey, it happens! Perhaps you are “too qualified” and the employer feels that once the economy turns around you will head to greener pastures. The employer will lose any equity they have in you. Remember, there are always two agendas to an interview. Your agenda and the agenda of the company.

The job market has changed and there’s a lot of competition out there. Find the job that you want and that’s a good fit for your talents. Stay positive. It will happen!

How HR Fails in Recruiting

“The government is telling us that the economic stimulus is working and the recession is over.” Explain that to the numerous unemployed professionals here in Houston. Well, whether you believe that the recession is over or not, let’s talk about the recruiting process from the applicants standpoint.

Recruiters (and HR Departments) are overwhelmed by applicants. For every open position there are numerous qualified applicants. I repeat, qualified. Using either traditional or non-traditional avenues the applicant has found a position that they feel they are a fit for. And it’s yours. The applicant submits his/her application for the job, oftentimes an online lengthy process taking a great deal of patience.

Now what? Numerous individuals have submitted applications, resumes, references for that one, single, lonely position.

If the applicant is lucky they receive a phone screen from your recruiter or the HR representative. They walk the applicant through a series of “canned” questions in an effort to separate one high potential from the other of dozen applicants in their stack of potential employees. At the conclusion of the phone call the recruiter indicates that they’ll get back with the applicant by a specific date to set up a face-to-face interview. So the applicant waits. And waits. And still waits. What happened?

Notwithstanding the fact that recruiters may be swamped and rushed by the company they represent to develop the “shortlist” - what happened to common courtesy? On the candidates end, this lack of follow-up creates a poor impression of the organization.

Lets be civilized – polite. Have a communication policy. If you want your company to have a positive reputation in the community, take a moment out of your day to close out the interview process with the applicant. So they didn’t make your shortlist. While they may be disappointed - they will be appreciative of the closure.