EffortlessHR Blog » Employee Issues

Understanding Employee Turnover

Lola Kakes — Wed, 28 Jul 2010 16:59:40 +0000

Many employers are facing turnover issues that they may not have had to deal with in the past. Some of the turnover is downsizing due to a tough economy. That type of turnover is not the common turnover that employers deal with consistently. It is usually a one time issue and hopefully will go away as the economy turns around.

The turnover I’m talking about is the “revolving door” of employees being hired, staying for a little while, and then leaving. This type of turnover can be symptomatic of a deeper, organizational problem. Some employers say, “So what. Turnover is inevitable and if the employee doesn’t want to stay, they should leave.” These employers don’t seem to understand how costly turnover is or care about the reasons for the turnover – which can also be costly.

Turnover affects your bottom line, whether you see it or not. Turnover is a silent but effective profit killer.

There are two areas of costs associated with turnover – Hard Costs and Soft Costs. Some of the hard costs that you can fairly easily identify are:

Wages of employee that is leaving
Cost of advertising
Cost of benefits of departing employee

But there are also other hard costs associated with the departing employee:

Employee’s supervisor/manager pay rate (they will most likely be covering for the departing employee)
Administrative staff pay (they are spending time filling out paperwork, answering questions, completing the termination process)
Coworker’s pay rate (they may be called on to work overtime to cover the departing employee or temporary workers may be contracted to cover the work)
Interviewing (takes a lot of time to conduct a series of interviews and you need to pay the interviewer – no matter what staff member(s) are conducting the interview)
Reference checking (either you do your own reference checking and pay your staff a wage or outsource and pay the outsourced company – there are fees involved)
Drug testing (if applicable there are fees for drug testing)
Orientation and on the job training (someone conducts the orientation, prints manuals and forms, answers questions, trains the new employee)

These are examples of hard costs associated with turnover. There are also soft costs, which may be more difficult to quantify but need to be addressed, including:

Loss productivity of employee (usually the exiting employee performs at 50-75% of norm)
Loss productivity of coworkers (time spent gossiping or taking on additional work load which may upset them)
Loss productivity of supervisor/manager (having to spend time dealing with employees and answering questions)
Productivity lost if position remains vacant (may increase overtime, temporary services, time spent filling in, supervisor/manager time spent on scheduling issues)
Lost productivity during training (new employee requires support and direction, existing employees may be distracted, supervisor/manager spends time with new employee)

If you look at the true cost of turnover, you may be surprised at just how costly it is to your bottom line. If you haven’t hired smart and there is not a good match between the company and the employee, you will eventually be a statistic – a company with high turnover. The old adage really is true – employees don’t leave companies, they leave managers. Look at why the turnover is happening and hopefully you will be able to put a stop to the Hard and Soft costs of turnover.

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Understanding Employee Turnover

Understanding Diversity in the Workplace

Lola Kakes — Tue, 08 Sep 2009 21:52:03 +0000

As a business owner, consultant, and entrepreneur I have been told by many small business owners that “diversity” is really only applicable to larger businesses. When asked what diversity means to them (the small business owner), many respond it is about differences in race or gender. It is not about making the workplace a better place in which to work, but more about following the law.

I believe that diversity is really about being open to the global community and being prepared to respond to inquiries and ideas from a diverse community. If one truly understands the diverse culture we all bring to the table, we will have more open communication, better understanding, cultural and economic agreement, and less conflict.

By bringing diversity to your workplace, you can help to build a stronger organization and provide broader profits and capabilities to your customer base. As technology makes our world “smaller” , bringing cultures together, forcing us to work if not live together, diversity is undeniable and must be managed.

Let’s start by defining “Diversity”.

Diversity is bringing together a diverse group of people to work and communicate effectively and efficiently. Diversity is not just about race and gender, but also about diverse thoughts on religion, areas of the country, age, disability, and any other issue where more than one individual working, living, and communicating with another individual brings different thoughts together. Diversity can even be how different people learn, how they communicate (language), and how they perceive a problem or issue. Diversity is defining the differences we all have.

Look at your family dynamics. The family unit is made up of several types of individuals – for example, maybe different genders, possibly different age groups, different backgrounds and belief systems, different values, different up-bringing and different thought processes. If there was not a desire to learn about one another or to be a part of one another’s life, the family unit would not be there. It is only with the development of understanding between the primary individuals that the family will develop.

The same is true in a business. Diversity begins at the top, with the primary contact person understanding and looking for individuals that work well together, communicate with one another, and fit the culture of the company. Will there always be agreement? No, and in fact you don’t want blanket agreement. If you always agree about everything, you become stagnant and boring and you won’t move forward.

Diversity is understanding the differences we all bring to the table and being able to respond to those differences in a positive manner. Grow your business and yourself through association with diverse individuals. You and your business will be glad you did.

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From Employed to Engaged

Cathy Baniewicz — Tue, 21 Oct 2008 16:27:26 +0000

Mary Weather is one of your key employees. The customers ask for her by name and she is one of your best team leaders. Today she comes into your office and tells you that she has accepted an exciting opportunity. You are taken aback. What happened, you ask yourself? Of course, you’ll have an exit interview, but it’s too late to save Mary,

Turnover is costly:

At least one and a half times an entry level employee’s salary – much higher for management level staff.
Affects other employees – someone will have extra work until the new person is hired
Delays the company in meeting its goals
Upsetting for the customers – they don’t like to “train” new people

The latest buzz word with regard to employee retention is “engaged”. Will we recruit another body to be “employed”, or do we want someone committed to the organization, “engaged”?

What are the characteristics of an engaged employee?

They love with they do – job content is the key
Engaged employees are leaders as well as team players
They have a positive attitude – enthusiastic for new opportunities
Engaged employees understand the importance of customer service
They are committed and will go the extra mile
Engaged employees are less likely to leave the company

What is the secret to building and maintaining an engaged workforce.

1.) Recruit carefully

Define the job – know what you’re looking for
Determine performance criteria
Don’t hire in haste! Leave the position open until you find the right fit.

2.) Make “Onboarding” meaningful

Appoint a coach or mentor to ease the new employee’s transition into the workplace
Communicate what is expected during the introductory (probationary) period and who the employee can go to for assistance
Little things mean a lot – have all the basics in place like computers, office supplies, business cards, etc.

3.) Provide opportunities

Employees will leave a job if it doesn’t offer career development and challenges
If you are a small company and promotions are not readily available, important project work that provides for skill development should be considered to keep employees motivated.
Offer opportunities for continued professional development, i.e., seminars, membership in professional organizations, etc.
Where possible, offer flexible work schedules/telecommuting. Today’s diverse workforce faces challenges regarding child care, elder care, etc. A flexible employer is an employer of choice.

4.) Get the Wrong People Off the Bus!

From Good to Great: Why Some Companies make the Leap…and Others Don’t by Jim Collins

advises employers to get the right people in the right seats, and to get the wrong people off the

bus.

People get frustrated with co-workers who do not pull their weight. Companied who tolerate

poor performance will drive off the good employees

5.) Senior Management

Needs to “walk the talk”. So often it’s do what I say, not what I do.
Make a decided effort to know the employees on an individual basis.
Identify and weed out poor supervisors
Communicate on many levels, not exclusively by e-mail and text messages.

6.) Also Important

Reward employee contributions – do this in creative ways and do it often!
Recognize the generational differences and provide opportunities for employees of all age groups to work together.
Conduct period employee surveys – CAUTION – do not ask for suggestions if you have no intention to do anything with the feedback. This doesn’t mean you must act upon every suggestion, but surveyed employees need to have their input acknowledged.
Make certain that your salaries and benefits are competitive.

Strive for an Engaged Workforce. Your turnover will be lower, your customers will be more satisfied and your profitability will increase!

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Source: Effortless HR Software's HR Blog | From Employed to Engaged

Political Discussions in the Workplace – Danger Zone

Cathy Baniewicz — Thu, 02 Oct 2008 13:00:10 +0000

Discussions regarding the Presidential Campaigns seem impossible to avoid. The media is bombarding us with information as this election year there are many “firsts” in our history. Freedom of speech is our right – but is it right to discuss politics in the workplace?

Politics, personal finances and religion are topics that are best avoided in the workplace. You cannot assume that because a person may share your views on sports, entertainment, books, etc., that they also share your political views. If you are unsure of your colleague’s views, it is best to avoid political discussion

Most companies do not have a formal policy for political discussions in the workplace. However, business owners, executives, managers and supervisors need to be particularly careful about debates and communicating their political views. Members of the management team should not put themselves in a position that could leave them vulnerable to discrimination lawsuits.

If a supervisor observes a discussion getting out of hand, he/she must manage the conflict before it escalates.

Do not campaign at work. If you are in management, it puts the employees in an awkward position, fearing retaliation if they don’t share your beliefs.

Do not base any employment decisions on a subordinate’s political beliefs.

Make sure employees understand that you expect everyone to honor diverse opinions, and beliefs. Many include the phrase “political affiliations” in their harassment policies.

Employees who repeatedly attack or scorn the political, religious or other beliefs of coworkers should be subject to progressive discipline.

Freedom of expression is a good thing. However, the discussion of politics, religion and differing beliefs must not be allowed to develop into workplace conflict.

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Source: Effortless HR Software's HR Blog | Political Discussions in the Workplace – Danger Zone

Privacy Compliance – Disclosing Health Information Has its Consequences

Cathy Baniewicz — Thu, 18 Sep 2008 18:12:48 +0000

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Some businesses are unsure how to handle privacy compliance in regards to HIPAA regulations.

The Health Insurance Portability and Accountability Act of 1996 has created more work for businesses in that they have to spend endless hours researching HIPAA regulations, training employees, rewriting contracts, internal documents, patient forms and policy and procedure manuals. If office administrators, practice managers or physicians are unsure how to handle privacy compliance, then there could be consequences which can include hefty fines.

The types of business entities that are affected by the law include, health plans, health care clearing houses, and those health care providers who conduct financial and administrative transactions (e.g., electronic billing and funds transfers) electronically. In order to ensure the security of personal health information, there needs to be privacy safeguard standards in place.

Entities may have the flexibility to design their own policies and procedures to meet regulatory standards. The requirements are flexible and scalable to account for the nature of each entity’s business, and its size and resources. Covered entities generally will have to:

Adopt written privacy procedures. These include who has access to protected information, how it will be used within the entity, and when the information may be disclosed. Covered entities will also need to take steps to ensure that their business associates protect the privacy of health information.
Train employees and designate a privacy officer. Entities will need to train their employees in their privacy procedures and must designate an individual to be responsible for ensuring the procedures are followed.

There are specific boundaries to keep in mind, and with some help businesses can learn to comply. For example, there must be accountability for the use and release of medical records, and companies need to ensure that health information is not used for non-health purposes. Penalties for entities that misuse personal health information include:

Civil penalties. Civil penalties are $100 per violation, up to $25,000 per person, per year for each requirement or prohibition violated.
Federal criminal penalties. Under HIPAA, Congress also established criminal penalties for knowingly violating patient privacy. Criminal penalties are up to $50,000 and one year in prison for obtaining or disclosing protected health information; up to $100,000 and up to five years in prison for obtaining protected health information under “false pretenses”; and up to $250,000 and up to 10 years in prison for obtaining or disclosing protected health information with the intent to sell, transfer or use it for commercial advantage, personal gain or malicious harm.

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The Past, Present and Future Workforce

Lola Kakes — Tue, 02 Sep 2008 16:21:55 +0000

As a “seasoned” Human Resource generalist, it is interesting to listen to all the pundits and professionals talk about the generational differences in the workforce. That is not to belittle the fact that there are generational differences, but I believe most of those differences could be captured and utilized effectively if organizations would look to the past and the present to determine how they will get to the future.

According to business surveys, there are currently 4 generations in the workplace. Those born before 1945 (called Veterans), those born between 1945 and mid-1960 (called Boomers), those born between 1965 and 1980 (known as Gen Xers), and those born after 1980 (either Nexters or Gen Yers). This creates a minimum age span difference of at least 35 years.

This may not seem to be significant by itself, but I remember when I turned 21, I thought 35 was ancient. Now that I am a part of the seasoned generation (also known as the middle of the road between the Veterans and Boomers), 35 is a youngster. What I believe business owners need to understand is how the past that employees and clients bring to the marketplace influences the present and which in turn will influence the future.

The life span of the average individual is much longer today than it was 100 years ago. Moreover, some experts say it is not beyond the realm of possibility that the life span over the next 50 years will increase from the current 75 or 80 years to 100 to 120 years. What does this mean to the workforce of the future? Most likely, it means that individuals will be extending their work years, so the workforce may include not just the 4 generations of today, but 5 generations working together.

If, we as business owners, can prepare our businesses and our staff for the changes in the workplace, the impact on our revenues, our hiring, and our client retention will be better understood. I believe we get to this understanding by remembering where we came from.

The Past

The Veteran generation came out of the depression era and a world war. It was a time when radios ruled the airwaves, telephones were party-lines that you shared with your neighbors, where reading was the norm, and communication was through writing letters. In an office, typewriters were the predominate office equipment and there were no copiers, you made carbon copies when you typed a document. Telephones where managed through the cord systems and most jobs were held by men. Few women worked and usually only before they married. Self-sufficiency was the norm as you learned to make due with what you had. I grew up “poor” but I didn’t know it because everyone else was in the same boat.

The war (WWII) brought the first major changes to the economy and to the workforce. With the men off fighting the war, women became a predominate feature of the workplace. They found they could do the same jobs as the men they replaced and still be a wife, mother, sister, etc. They were the start of the multitasking need in the workforce. WWII and its aftermath brought other changes, such as television, time saving appliances like refrigerators, electric stoves and ovens, washing machines and dryers, mixers, etc. Why were these important? They gave the homemaker free time and with that time came the need to do something – like work. I asked my Mother, on New Year’s Eve 1999, “What was the most important invention of the 20 Century?” I thought the answer would be the computer, microwave, or air travel. Her answer surprised me, as she believed it was the invention of the electric washer and dryer. Laundry day used to be an all day chore with ironing and hand washing. The electric washer and dryer freed up time for the busy homemaker to pursue other avenues, such as working outside the home. Thus the Boomer generation was born.

The Boomers came from a more affluent time, when technology was starting to blossom and that technology brought more time for work and more time for leisure. Vacations, education, and volunteering were a part of the landscape, where they were only for the rich and famous before. This time also brought unrest. Civil rights, politics, assassinations, and riots were also part of the scene. Changes in music – from the Andrews Sisters and Glenn Miller to Elvis made it difficult for parents and children to communicate. Flower Power was in – much to the dismay of many parents. Reading was still important, but television and movies were there to bring the stories to life. Writing letters was still important to the communication process, however.

In the workplace, the Boomers brought technology to a high place – electric typewriters made life much easier, copiers provided instant renditions of documents without the pain of multiple carbon copies. The old cord switchboards were replaced with PBX systems and at the outer fringes was the unknown computer.

From about 1965 to 1980 saw the biggest technological changes since the Industrial Revolution. These changes are still being felt today. Not only did we set foot on the Moon, we started to look at our quality of life – both in the home and in the office. It was the start of the “Instant” or “Now” generation. We had instant coffee, instant juice, instant news.

The era from 1980 to the new Century brought huge changes – both in our home and work lives. At home, we saw both parents working so the youngsters became self-sufficient and in some cases, selfish. Fast food and fast music became a part of their generation. The technological advances included cell phones, video recorders, television 24 hours a day and most important, the immergence of the computer as a staple in our lives and the introduction to the Internet.

Reading was not as important, as we became a more visual society with block-buster movies and made for TV dramas. Moreover, the art of writing became lost with the use of text messaging and email and Internet websites. This generation of workers saw more family disharmony, less family togetherness and thus, in my estimation, became more self-centered. They wanted to know what was in it for them. They also wanted more “free” time to do what they wanted to do while not at work. Work was not as important to them as having the freedom to take a trip when they wanted. They saw companies lay-off and let go their long-term employees without any obvious concern so they decided they wouldn’t care either.

In the workplace, technology also changed the landscape. Now, typewriters are outdated and computers sit on every desk. Even in the manufacturing environment, computer kiosks are available to check policies, benefits, and other company information. Voice mail and automated telephone systems now rule and even sales clerks in department stores are now Service Centers where the customer goes to get help instead of the sales clerks/representatives seeking the client out to help them.

The Present

All of these generations bring us to the here and now – the Present. How we interact with one another, both from a family perspective and from a work perspective, are part of what generation we are coming from. Veterans and Boomers are more inclined to tell stories and listen carefully. GenXers and Yers are more self-centered and independent. One generation wants to tell the other generation how to do something (like it use to be done in the past) and the new generation doesn’t want to take advantage of the past history – they want to do it themselves.

The biggest problem is that while the new generation will probably find their way to get it done, and will get it done beautifully, if they would just take time to listen to the older generation they might get it done more timely and efficiently.

The present workplace is full of technological advances. These advances have allowed workplaces to become more flexible and to even provide opportunities for working from home (in some cases). The Internet has changed our approach to sales and marketing as more and more people use the Internet for their personal shopping mall. It has also brought frustration in that you can find it difficult to speak to a real person as you keep pushing numbers to try to get customer satisfaction.

Because of the generational differences in the home and workplace, there doesn’t seem to be as much loyalty as there was during the Veterans and Boomers era. Employment during those years was for life, while the average time with a company today is anywhere from three to 5 years. Workers today may have as many as three different careers in their life. There is more emphasis put on the work/life balance than ever before.

The workers of today are more concerned about the environment and what they and their organization need to do to go green. While we are not in a worldwide war, we are in conflicts around the world. Both sets of parents probably still need to work, but the care of the children and the home are being shared by the parents.

The Future

The education of the youth of today, who will become tomorrow’s workforce, is in dire need of an overhaul. The reading, writing and arithmetic philosophy need to be reestablished. Text messaging a report in the office will not cut it. Technology will continue to change the environment in which we live and work. However, in order to succeed, the generations need to stop and talk to one another and to understand where they are coming from.

Business owners need to be able to identify the different skills that the generations have and to utilize them more efficiently and effectively. This will not only benefit the organization, but will help the workers get along better and thus be able to help one another adjust to the changes they encounter.

The GenXers, GenYers and the Newbies (those born after 2000 that are not yet in the workplace) have to keep in mind; someday they too will be the seasoned worker, dealing with those pesky youngsters. And, those pesky youngsters will have the opportunity to learn from the past as they deal with the present and get ready for the future.

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Source: Effortless HR Software's HR Blog | The Past, Present and Future Workforce

Age Discrimination Lawsuits Carry Great Financial Penalties

Cathy Baniewicz — Tue, 26 Aug 2008 14:00:16 +0000

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The Supreme Court’s ruling in Smith v. City of Jackson, Mississippi, has upheld the notion that persons who sue for age discrimination do not need to prove that an employer intentionally discriminated based on age. Instead, a person only needs to show that a workplace policy has a disparate impact on older workers. Due to the gray areas within this ruling, additional litigation has surfaced. Plaintiffs sue for emotional distress caused by age discrimination, and the typical age-bias cases average $150,000, while state law wrongful discharge lawsuits can run upwards of $1 million. Age discrimination lawsuits carry great financial penalties because the damages are based on the earnings of the plaintiffs and the time that they are out of work.

The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older from employment discrimination based on age. The ADEA‘s protections apply to both employees and job applicants. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment — including, but not limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.

It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on age or for filing an age discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the ADEA.

The ADEA applies to employers with 20 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government.

Certain state laws tend to include employers with fewer than 20 employees, so small businesses might have to comply with state law even if they are not covered by the Federal Age Discrimination in Employment Act (ADEA).

Businesses need to be proactive and extra vigilant in educating themselves to prevent age bias claims. There is no time like the present to evaluate current employment policies. Simple solutions can include keeping abreast of all record keeping requirements and reviewing business policies to ensure they are age neutral. Other solutions include, retaining payroll and benefit plan records for all terminated employees and having an organized and safeguarded system to retrieve important documentation.

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Age Discrimination Lawsuits Carry Great Financial Penalties

Sexual Harassment Suits – Not Just Limited to Big Business

Cathy Baniewicz — Tue, 19 Aug 2008 18:37:40 +0000

The liabilities of a sexual harassment suit are not just limited to big business. Employers of 15-100 employees can be liable for up to $50,000 in compensatory and punitive damages, and management personnel can also be sued personally for sexual harassment violations.

Here are the facts:

Employers with 15 or more employees are covered by Title VII of the Civil Rights Act of 1964. In 1991, Congress amended Title VII to permit victims of sexual harassment to recover damages, including punitive damages, under federal law. In 1993, the U.S. Supreme Court broadened the reach of this law by making it easier to prove injury.

The Equal Employment Opportunity Commission (EEOC) expects to double its cases of sexual harassment over the previous year. When investigating allegations of sexual harassment, the EEOC looks at the entire set of circumstances, such as the nature of the sexual advances, and the context in which the alleged incidents occurred. A determination on the allegations is made from the facts on a case-by-case basis. There is a clear and present danger to businesses who are not aware of the sexual harassment law and have yet to put policies and practices in place to avoid expensive litigation. Having a system in place to ensure proper employee education, and implementing procedures in regards to complaints can help avoid costly lawsuits.

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Source: Effortless HR Software's HR Blog | Sexual Harassment Suits – Not Just Limited to Big Business

Top 10 List to Avoid Litigation

Lola Kakes — Wed, 13 Aug 2008 18:31:37 +0000

Many employers are looking for tips and advice to survive the maze of employment issues that come with having employees. While there are many important factors to consider, the following is my Top 10 List of ways to avoid litigation.

Take a good hard look at your employment application, as well as all other employment work related documents that an outsider may look at and say the documents seem to be biased or slanted.
Your applications and any offer of employment should not only outline the job but should be signed, so make sure you have the candidate sign both of them.
Do not hire over-qualified individuals as they will most likely become bored and will probably not stay engaged. On the flip side, don’t hire under-qualified individuals if you don’t have a way to bring them up to the standards you are working at or if you cannot train them effectively.
Insure against charges of “I was never told” by requiring every new employee have an orientation that includes the reading of the company employee manual and the signing of an acknowledgement form.
Let employees know that you want to hear their complaints and want to resolve any problems in a timely manner by letting them know the company communiction process .
Put in place a formal review program and commit to it. Don’t rush through the process and hand out ineffective evaluations, but be honest and help develop the employee’s performance.
If it becomes necessary to discipline or terminate an employee, make sure you review his or her personnel file and look at length of service, other infractions, how their evaluations have been in the past, and how serious is the infraction they are being disciplined for now.
Be especially careful if you are going to be laying off employees. You need to consider the age, sex, or race of those being laid off and if your company is of a certain size (100 employees) you may be required to follow government layoff requirements, also known as WARN.
Respect and courtesy go a long way in fending off litigation. Treat your employees the way you wish to be treated.
When in doubt, get professional assistance from an employment lawyer. Most offer free or reduced fee consultations and may be able to help you in your quest to stay out of court.

There are probably many more tips. If you have more, please share them with us.

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Source: Effortless HR Software's HR Blog | Top 10 List to Avoid Litigation

Avoiding Layoffs in a Down Economy

Cathy Baniewicz — Thu, 07 Aug 2008 16:12:36 +0000

Everyone is feeling the pain of the poor economy, particularly small businesses. Keeping your valued employees is especially critical at this time. You can’t afford to alienate your customers by eliminating employees and diminishing customer service.

Consider the following before passing out the “pink slips”.

Eliminate nonessential meetings and travel. Critical training should not be eliminated, but consider local resources and on-line seminars.

Audit your office supply expenses. Employees need the tools to get the job done, but do you need 12 different colors of post-its and 6 different kinds of pens

Ask your employees for their input on how you can save money. Employees are more likely to “grin and bear” the necessary cuts if they have a say in how it is done.

Institute a hiring freeze. Ask for help in reassigning the job duties if someone leaves the company.

Consider a reduction in the work week for everyone.

If pay cuts are an option, be sure they begin with the owner and managers. Start by eliminating bonuses.

Request employees to take an unpaid vacation.

Become more economical when it comes to company luncheons, holiday parties, etc.

Remember to be upfront and honest with your employees. Layoffs should be the last resort for the business owner.

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Source: Effortless HR Software's HR Blog | Avoiding Layoffs in a Down Economy

Employee Handbook Essentials

Lola Kakes — Fri, 11 Jul 2008 16:31:40 +0000

As a Human Resource consultant, I have been asked, “How important is it to have an employee handbook/manual” And the add-on question is, “What goes into an employee handbook”

The first question can be pluses and minuses to a business owner – employment lawyers, consultants, and managers of organizations all disagree on the value of employee manuals. This disagreement comes from whether or not a manual is considered by the courts to be a contract for employment. Also, if not written correctly, the manual may inadvertently guarantee job security.

However, on the plus side, a handbook or manual can help increase morale. This is because when your employment practices are in writing, your employees feel they are being handled consistently and fairly. A well-written manual can save time because the employee know they can get the information they need about benefits, policy, procedures, etc. without interrupting their manager. In addition, handbooks and manuals provide the company with documentation that they are in compliance with important laws and regulations, that if not actively placed in the manual might be ignored (due to not knowing about it) or might prove to be unenforceable as you had not informed your employees about it.

So, the essentials of what goes in your manual would be:

Compliance with all the applicable laws and regulations – both federal and state and in some instances local.
Although it may be helpful to review other handbooks for ideas and layout, you need to customize the manual to your company and include the policies that are part of your organization. Someone Else’s handbook may not be appropriate to your organization.
Only include policies in your handbook that you can support and follow. It will do you more harm if you put a policy in place and don’t follow it.
It is okay to have disclaimers. Content for disclaims vary due to state regulations, so check those state requirements before adding a disclaimer.
Make sure the disclaimer you use is clear and placed to be noticed.
Where appropriate, leave room for your managers and supervisors to handle violations of policies. Be able to allow them flexibility based on their judgment and experience.
Always require a signed acknowledgement that the employee has reviewed and received the manual. This signed document should be placed in their personnel file with a copy to the employee for their records.
Date any revisions and have the employee place them in their manual with a new acknowledgement signed and filed.

Remember, an out of date handbook is not only useless but may also create a risk to your company. Stay current on laws and regulations and keep your manual up to date.

An example of a not-so-great but funny employee handbook can be found over at the Punk Rock HR Blog

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Source: Effortless HR Software's HR Blog | Employee Handbook Essentials

Domestic Violence Doesn’t Remain at Home

Cathy Baniewicz — Tue, 08 Jul 2008 06:19:57 +0000

A study of domestic violence survivors by The Commonwealth Fund in New York * found that 74% of employed battered women were harassed by their partner while they were at work. Homicide was the second leading cause of death on the job for women in 2000**

Domestic violence does not stay at home. If follows the victim to the workplace where a woman is harassed by threatening phone calls, absent due to injuries or loss of productivity due to anxiety and stress. While anyone can be a victim of domestic violence, women are five to eight times more likely than men to be victimized by an intimate partner.***

Under the Occupational Safety and Health Act (OSHA) of 1970, employers are responsible for providing a safe and healthy workplace for their employees. OSHA’s role is to promote the safety and health of America’s working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual process improvement in workplace safety and health.

What Should Employers Do?

Provide education and training to all employees regarding domestic violence

Develop a policy that specifically addresses domestic violence

Allow victims of domestic violence to take time off from work to appear in court, seek legal assistance and get help to insure their safety. Note: Many states have laws mandating that employers allow victims time off to attend court proceedings. Check the law for your state.

Assist victims in obtaining restraining/protection orders

Provide information

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Source: Effortless HR Software's HR Blog | Domestic Violence Doesn’t Remain at Home

Understanding HR Recordkeeping

Lola Kakes — Thu, 26 Jun 2008 21:22:39 +0000

Recordkeeping has been a major obstacle for many companies who don’t know what to save, where to save the files, how long they need to save them, or what to do with them once they are created. More importantly, they don’t know who has access to them or how to destroy them.

While there is no federal or state requirement that an employer maintain personnel files, employers are required to keep certain records to comply with various laws and regulations. The overriding concern is to balance employee privacy and the employer’s need to know while still managing to keep good records.

According to the Society for Human Resource Management (SHRM) standard operating procedures, the following items should be kept in separate files:

• Medical Records—the Americans with Disabilities Act requires employers to keep all medical records separate. Many states have privacy laws to protect employees. All medical records including physical examinations, medical leaves, workers’ compensation claims, and drug and alcohol testing must be kept separate. (See Glossary for a detailed definition of this act.)

• Equal Employment Opportunity—to minimize claims of discrimination, it is important to keep source documents that identify an individual’s race and sex in a separate file. Additionally, if internal/external charges are investigated, it is also recommended that these files be maintained separately.

• Immigration (I-9) Forms—it is recommended that these forms be maintained chronologically by year. Keeping this information in a separate file reduces the opportunity for an auditor to pursue and investigate unrelated information. (See Glossary for more information and a definition of I-9.)

• Invitation to Self-Identify Disability or Veterans Status—this information is required to be maintained by federal contractors. Laws prohibit employment decisions based on certain protected classes; however, managers have the right to access an employee’s file for a number of operational issues. Unless there is a need to know for accommodation purposes, these files should be maintained separately to reduce a potential source of bias.

• Safety Training Records—Occupational, Safety & Health Administration (“OSHA”) may audit a company’s training records; keeping this information separate will protect the employer from an auditor pursuing and investigating other information in the personnel file.

Remind all employees that personnel records contain information that is very confidential and/or sensitive and should be handled very carefully.

Penalties for not following record retention guidelines can vary, depending upon the law or regulation they cover as well as the information they protect.

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Source: Effortless HR Software's HR Blog | Understanding HR Recordkeeping

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