HR professionals are like the Coach for the Patriots. Every time there is a pending organizational change, the HR team has the responsibility to creating the playbook.
Merger or aquisition can be scary words to your employees. HR professionals play a critical role in handling organizational change and defending the pass. Workforce reduction or department dissolution are a fact of today's workplace, and if displaced employees are not handled correctly, it can poison the team.
There are 3 critical components that HR pros must be aware of when dealing with any organizational changes. These include:
1. Communication. Just as the Patriots have symbols that are conveyed to the players to everyone knows which way the team will run, so do HR professionals act as the the educators and communicators of any game change plan. Like the football team, the employees NEED to know the details - when and why the change is taking place and how they will be affected.
2. Knowldege. Before the game, the competition is assessed and a game plan is created. So too, must the HR department assure that the business aspects of the change are shared. As the HR team, your role is to assist the employees with understanding how the change may impact them in order to avoid misperceptions and alleviate fears.
3. Morale. Before each game, the Patriots have a pep talk, and they enter the field with enthusiasm. When there is a massive change to be made, it's better when HR shares the changes and the plan. Uncertainly causes fear. To avoid uncertainty, the lines of communciation should be open, the plan should be conveyed and the HR team becomes the counseling team to both management and line.
Organizational change can be very emotional. HR's role as the "quarterback", facilitates communication throughout the organization and leading the team to success.
For questions or more information about HR Outsourcing and its value please contact www.hrknowledge.com or 508-339-1300
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Mon, Sep 26, 2011 @ 03:47 PM
With the recent rash of bad weather, including Hurricanes, tornados and even earthquakes, what is our liability to pay employees when we had to close our offices?
Full Question:
Weather related business closure: We closed our offices recently due to the hurricane. Do we have to pay our employees for the day we told them not to report?
Response:
Under federal law an employer cannot penalize exempt employees for employer-mandated closures of less than one week. Exempt employees must be paid for any days missed when the employer closes for less than a week due to inclement weather.
When an exempt employee is ready, willing and able to work and the employer does not make work available, the employer must compensate the employee.
This means that if the employer closed its office for just one day, exempt employees must be paid for it. If the closure is for a full week, however, and exempt employees perform no work, the employer has no duty to pay them for that week barring a contract that otherwise requires compensation in this situation.
Non-exempt employees, are a different matter. If there isn't a contract in place that defines the situation to the contrary then non-exempt employees may not have to be paid. Typically, non-exempt employees are only paid for time actually worked, so if they didn't work, they don't receive pay.
As the employer, you can require all employees to use accrued paid time off benefits during a business-mandated closure if it is consistent with company policy and past practice. This approach is not recommended because it can result in negative employee relations issues, particularly for employees who may have wanted to use their accrued paid time off benefits at another time.
Many employers elect to give employees the option to use paid time off benefits during a business-mandated closure.
You can read more in depth information in this US Department of Labor Opinion Letter on the subject.
For more information please contact www.hrknowledge.com or call us at 508-339-1300, Jeff Garr.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Thu, Sep 22, 2011 @ 04:26 PM
Human Resources Departments struggle to handle the ebb and flow of business. When business is booming, there is increased demand for qualified candidates. When the economy falters and business is slow, retaining the most qualified employess becomes critical and there is increased scrutiny of performance appraisal methods.
Why are so many HR departments within companies struggling? Here are 7 of the top reasons:
- Feast. With the economic downturn, employers have been faced with a deluge of job applicants and the vast majority of these applicants are not suited to those job positions. Best HR practices include screening applicants in a way that won't overwhelm your HR department, and which effectively filters applicants for the best candidates.
- Famine. Skilled people are still hard to find, even in this economy. Many positions go unfilled simply for a lack of qualified candidates, particularly in many skilled trades. Finding those employable gems may include new approaches to recruiting, including social media and job postings on forums such as Linkedin.
- Fewer “job changers”. Many people are risk averse in today’s economy and would rather play it safe and stay with a current employer than risk a job move. Understanding what the market is, and how to approach candidates who are risk averse with a cost effective benefits and salary package is even more important than ever.
- Benefits costs are soaring. An increasing number of employers are deciding to put off hiring or rely on temporary workers to avoid such uncertainty. Using staffing agencies to help fill voids may actually be more cost effective in the long run than quick hiring decisions.
- Reluctance to fill vacant positions causing increased employee stress. With companies reluctant to hire, the workload of existing employees, with regard to the scope of responsibilities and total number of hours worked, is increasing noticeably. This can result in employees becoming demotivated or taking more sick days to compensate for being stressed with greater work load.
- Increase in litigation by the unemployed. When faced with the loss of employment and income, people are much more apt to seek legal redress than when jobs are plentiful. Having an HR policy that's written and which states clear expectations can help reduce liability.
- Low levels of employee commitment and productivity. Studies suggest that employee loyalty is at an all time low, due largely in part to the prevalance of downsizing. Such feelings generally result in decreased productivity; reduced attention to the quality of work and increased risk for customer dissatisfaction.
One cost effective way to deal with these staffing challenges is retained searches. These days, retained searches are typically conducted for only the highest levels of staff, namely the CEO, CIO and CTO. There seems to be a reluctance to use retained searches for non-senior staff. The argument being that qualified applicants may be found by employee referral or via Craigslist and similar mediums.
Or, maybe less technology, more “hands on” is the answer. Could it be that the candidate selection process depends too much on technology and companies are inadvertently eliminating qualified candidates solely on the basis of not having enough “key terms” listed in their electronically submitted resumés?
Thankfully, a few of the staffing problems we mentioned should resolve on their own in time as the economy improves. We should start to see an improvement in employee productivity and loyalty; people who are more willing to change jobs and a decrease in employee stress as vacancies are filled and the workload is redistributed.
In the interim, there are some tangible steps you can do to avoid employee burnout and limit liability. We'll address these in a future article. In the meantime, we're curious if you are seeing any of these staffing issues within your company? If so, how are you handling them?
By Jeff Garr, CEO and Frank Zych, Director of HR Services, HR Knowledge, Inc.
To read more, visit http://www.bus-ex.com/article/operations-human-resources.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Tue, Sep 20, 2011 @ 02:34 PM
Q: It's that time of year again - Open Enrollment.
How can employees better determine the benefits coverage they need to protect themselves and their families?
A: This is a great question. Far too often, employees make mistakes in their benefits coverage decisions which can cost them a lot more money in the long run or even influence their health care decisions when their coverage is insufficient. Two of the most common mistakes are not meeting deductible amounts and failing to contribute enough to their flexible spending accounts.
Typically, when it comes to health insurance, employees rarely have a thorough understanding of what their policy covers. A benefits consultant or broker, who not only has a thorough understanding of the various providers and plans, but knows the most common mistakes employees make, can help employees better navigate the insurance selection process.
Communication is key. Employees cannot be expected to make informed decisions about insurance when overwhelmed with information during the hiring process or at open enrollment. A benefits consultant or broker will take the time to understand the needs and preferences of employees and advise them accordingly. Not only will employees be able to make an educated decision about their benefits coverage, but ultimately, they will be well-protected and more satisfied overall with their benefits coverage.
FSA's can be either very complicated to understand or if explained properly can be easily understood. We recommend an Open Enrollment Meeting for all employees to help them better understand all of their options with benefits.
For more comprehensive guidance, contact HR Knowledge, Inc.at Sales@hrknowledge.com or call at 508-339-1300
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Fri, Sep 16, 2011 @ 05:18 AM
Can You Spot Someone Committing Fraud at Your Company?
Believe it or not, someone committing corporate fraud, or "cooking the books" is not that difficult to spot, once you know what to look for. According to the study "Who is a Typical Fraudster?" developed and based on analysis of corporate fraud by KPMG International’s member firms, "fraudsters" typically meet the following critera:
- 36-45 year old male in finance related role
- 10+ years longevity with the company
- Rarely takes vacations
- May only want to work with certain vendors
- Stressed-out most of the time
Also, their behavior is suspect:
- They cut corners
- They may have poor performance or make mistakes
- They tend to hire "Yes men" who will go along with whatever they say or do
- They seem to live well beyond their means
- They may exhibit signs of alcohol or substance abuse
Although this information is designed to give you an overview of someone most likely to commit fraud, it's imperative that you refrain from profiling. HR execs must take measures to protect not only the company, but the employee.
During the hiring process please make sure you perform a background check on the people you hire, often times there can be a history in their past that might demonstrate some or all of the following:
- Criminal activity in the past
- Financial trouble for late payments to vendors
- Bankruptcy
- Employer Lawsuits for Workers' Compensation or an Employment Practice Lawsuit for Wrongful Termination
Checks and Balances in the workplace are vital to assist in prevention of fraud. Always have a different person reviewing and balancing the checking accounts and monitor all cash and check writing capabilities.
For more comprehensive guidance on all things HR, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Fri, Sep 16, 2011 @ 05:03 AM
Age Discrimination and Compliance (ADEA)
The current economy and the changing roles of older family members are just a couple of reasons why older Americans are re-entering or remaining in the workforce. Because of this, it's imperative that those who are hiring have a good understanding of age discrimination. The Age Discrimination in Employment Act (ADEA) prohibits age discrimination in employment with respect to hiring, firing, layoff, promotion, transfers, compensation, benefits, job assignments and training of anyone age 40 or older.
Age discrimination includes:
-Hiring only younger workers.
-Providing younger workers with better employment terms or conditions.
-Younger workers are the only ones promoted or offered better job opportunities.
-New training intiatives exclude older workers.
-During layoffs or restructuring, younger workers are retained while older workers are not.
During the interview process, be aware of questions that are potentially discriminatory, such as:
-How old are you?
-What year did you graduate from high school?
-Are you a Social Security recipient?
Older workers will more than likely have more experience and/or education than their younger counterparts. How do you address the "overqualified" during the interview process to ensure that the person would be a good hire? Questions that are "safe" to ask may include:
“How will you be challenged in this role?” and “What are your salary expectations?”
For more information about hiring, compensation or benefits please feel free to contact Jeff Garr, CEO at HR Knowledge www.hrknowledge.com or Call 508-339-1300.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Sat, Sep 03, 2011 @ 04:13 PM
Our most recent hire worked for almost a full week before it was discovered that she failed to meet I-9 eligibility criteria. How are we supposed to pay her?
It is a challenge to pay someone for work performed when there is no proper documentation, but she must be paid, period.
The Department of Labor’s (DOL) states “work not requested but suffered or permitted to be performed is work time that must be paid for by the employer…The reason is immaterial. The hours are work time and are compensable.”
And, regardless of her I-9 status, the Internal Revenue Service (IRS) expects you to withhold payroll taxes.
There's really only one way to avoid this type of situation and that is by planning carefully. Here are some tips to follow in order to ensure there is no violation of the Fair Labor Standards Act or IRS rules:
- Pay the employee to ensure you fulfill the requirements of DOL and IRS. You may pay the wages owed the employee in cash or by check (via the company's payroll system) minus the amount deducted for taxes.
- When hiring, be sure to require work authorization PRIOR to the commencement of work
- Obtain and complete ALL paperwork on new employees BEFORE any work is performed, which of course includes the I-9. And, be sure Payroll has a copy of the employee's Social Security card on file
For more comprehensive guidance, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.
Posted by
Jeff Garr on Sat, Sep 03, 2011 @ 04:12 PM
HR professionals play an essential role in organization's change process. Whether the change is of a more "positive" nature, such as in an expansion, or a "less than positive" nature (which is what we're seeing more often in today's economy) and the result of acquisition, workforce reduction or dissolution, change initiatives must be communicated well so that employees understand their role and how it relates to the company's objectives.
HR professionals are the educators and communicators of any change plan. Employees NEED to know the details - when and why the change is taking place and how they will be affected.
Since management is going to concentrate on the business aspects of the change, it's the job of HR to focus on the human aspects by bringing employees up to speed and keeping them informed in order to avoid misconceptions, alleviate fears and preserve morale.
HR must take these important steps:
- Strive to create an understanding among employees that management will share information as it becomes available, but that during the change process, the future may be just as uncertain for them as it is for employees.
- Work with senior management to hold employee meetings where employee questions are encouraged and management provides honest, straightforward responses.
- Present any information regarding changes in employee benefits or compensation in an easy-to-understand manner.
- It's imperative that management maintain a high level of trust among employees. It's HR's responsibility to help cultivate that trust.
Organizational change is a very emotive event for all involved. It's the role of HR to act as the organzation's "quarterback", facilitating communication between management and employees and successfully leading the team through the change process.
For questions or more information about HR Outsourcing and its value please contact www.hrknowledge.com or 508-339-1300
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.