ATTRACTING, RETAINING AND ENGAGING THE RIGHT PEOPLE FOR THE RIGHT JOB Part I

1
ATTRACTING, RETAINING AND ENGAGING THE RIGHT
PEOPLE FOR THE RIGHT JOBPart I

• Developed by
• Edward F. Kurocka, Principal, OnSight Advisors
  LLC
• for NJSBDC

2
PROGRAM OBJECTIVES

• This workshop is aimed at familiarizing business
  executives with the major components of an
  effective Human Resources program. It provides
  small businesses with the information, practices,
  and tools for maximizing individual performance,
  optimizing employee satisfaction, and leveraging
  human resources to gain competitive advantage.

3
WHY ESTABLISH AN HR PROGRAM OR FUNCTION?

• HR Planning and Strategy is integral to business
  strategy and success

4
STRATEGIC MANAGEMENT
Strategic Management involves developing a game
plan to guide a company as it strives to
accomplish its vision, mission, objectives and
goals, and to keep it on its desired course.
5
Measures That Matter

• Strategy Execution
• Management
• Credibility
• Quality of Strategy
• Innovativeness
• Ability to Attract and
  Retain Talented People

• Market Position
• Management
• Experience
• Executive Comp
• Quality of Major
• Processes
• Research Leadership

6
WHY ESTABLISH AN HR PROGRAM OR FUNCTION?

• HR Planning and Strategy is integral to business
  strategy and success
• Help achieve competitive advantage through
  engaged workforce by maintaining consistency and
  focus on people, programs and application

7
WHY ESTABLISH AN HR PROGRAM OR FUNCTION?

• HR Planning and Strategy is integral to business
  strategy and success
• Help achieve competitive advantage through
  engaged workforce by maintaining consistency and
  focus on people, programs and application
• Satisfied Employees Satisfied Customers

8
WHY ESTABLISH AN HR PROGRAM OR FUNCTION?

• HR Planning and Strategy is integral to business
  strategy and success
• Help achieve competitive advantage through
  engaged workforce by maintaining consistency and
  focus on people, programs and application
• Satisfied Employees Satisfied Customers
• Mitigate Risk - Avoid bad press and keep you and
  your company out of court

9
WHY ESTABLISH AN HR PROGRAM OR FUNCTION?

• HR Planning and Strategy is integral to business
  strategy and success
• Help achieve competitive advantage through
  engaged workforce by maintaining consistency and
  focus on people, programs and application
• Satisfied Employees Satisfied Customers
• Mitigate Risk - Avoid bad press and keep you and
  your company out of court
• Hamper efforts or reasons for employees to
  organize

10
WHEN IS AN HR DEPARTMENT NECESSARY?

• Ideal ratio of dedicated HR Generalist to Staff
  is 1 50.
• Most established companies with policies and
  procedures already in place can stretch ratio to
  1 100.

11
Major Federal Labor Laws

• 1 - 14 employees
• Title VII, civil Rights Acts of 1964
• Equal Pay Act of 1963
• FLSA
• IRCA
• NLRA
• OSHA
• HIPAA

• 15 - 19 employees
• ADA
• 20 - 49 employees
• ADEA
• 50 employees
• FMLA
• 100 employees
• WARN

12
PART I TOPICS

• STAFFING
• COMPENSATION
• PERFORMANCE MANAGEMENT
• BENEFITS

13
STAFFING

• Recognize need
• Draft the job description
• Determine status/schedule
• Research market rates/approximate cost

14
STAFFING

• Recognize need

15
STAFFING

• Recognize need
• Draft the Job Description

16
JOB DESCRIPTION USES

• Major component of compensation and performance
  management systems
• Major tool to assist is hiring, training, career
  development processes

17
STAFFING

• Recognize need
• Draft the Job Description
• Determine status/schedule

18
STAFFING

• Recognize need
• Draft the Job Description
• Determine status/schedule
• Research market rates/approximate cost

19
FINALIZE THE JOB DESCRIPTION

• Be as accurate as possible, because it is the
  basis for
• - hiring
• - determining compensation
• - conveying role to new employee
• - conducting regular performance evaluations
• Date the job description
• Review and update it annually

20
TRUE OR FALSE

• Every company must provide rest breaks for its
  employees as dictated by federal law.

21
THE HIRING PROCESS

• Why getting and keeping the best makes sense!
• Added value of above average employees
• Costs of turnover and poor hiring decisions

22
THE HIRING PROCESS

• Advertising
• Screening
• Interviewing
• Selecting
• Communicating
• Be aware of federal and state employment laws
  regarding all the above.

23
ADVERTISING

• Start with job description
• Sources - External
• Internal posting
• Method and cutoff for submitting resumes and
  applications
• Other

24
SCREENING

• Look for qualified candidates
• What the pros look for
• Techniques, etc.
• Your first major opportunity to avoid potential
  performance problems

25
INTERVIEWING

• Types of questions
• Interviewing techniques
• Consistency
• Fair and Legal
• Dos and Donts

26
SELECTING

• Verify References
• Consider more than skills, requirements
• Organization culture
• Right fit for the job
• Attitude

27
COMMUNICATING

• Phone offer followed by official offer letter
• Specify compensation, benefits, start date, etc.
• Attach job description
• Require letter signed and returned

28
ORIENTING NEW EMPLOYEES

• Welcome Letter
• First Day Meet and Greet
• Facilities walk through
• Schedule Training
• Review Policies, Procedures
• Assign buddy

• Treat to lunch
• Meet at Days End
• Keep in contact during first few days
• Meet one-on-one and weekly basis

29
COMPENSATION and BENEFITS

• Compensation - Direct
• - Wages, salary, bonus, commission
• Benefits - Indirect
• - health and welfare
• - vacations
• - stock ownership plans

30
COMPENSATION

• Proper job description is key to determining FLSA
  (exempt/non-exempt) status

31
FAIR LABOR STANDARDS ACT

• Sets Minimum Wage
• Overtime Requirements
• State (NJ) v. Federal Pay Acts

32
COMPENSATION

• Proper job description is key to determining FLSA
  (exempt/non-exempt) status
• Use published surveys, association, govt or
  industry sources to help determine going rates,
  salary ranges, etc.

33
COMPENSATION

• Proper job description is key to determining FLSA
  (exempt/non-exempt) status
• Use published surveys, association, govt or
  industry sources to help determine going rates,
  etc.
• Consider merit/performance based program to
  reward sustained achievement of expectations

34
BASIC COMPENSATION PROGRAMS

• Supported by current and properly completed job
  descriptions
• Designed to be Fair, Equitable, Competitive
• Some form of job evaluation, salary structure
• Basis for performance management system
• The Competitive Advantage Model

35
COMPetitive Advantage Model
36
PERFORMANCE MANAGEMENT

• Performance Appraisal
• The identification, measurement, and management
  of human performance in organizations.
• Performance Ability x Motivation

37
MOTIVATION

• Can be defined as that which energizes, directs
  and sustains human behavior
• A persons desire to do the best possible job
• In HRM, it is behavior directed toward a goal
• Motivation Theory and Practice

38
MOTIVATION THEORY

• HERZBERGS Two-Factor Theory of Motivation
• Identifies and explains the factors that
  employees find satisfying and dissatisfying about
  their jobs

39
MOTIVATION THEORY

• HERZBERGS Two-Factor Theory of Motivation
• Motivation Factors - are internal job factors
  that lead to job satisfaction and motivation.
• Examples - the work itself achievement
  recognition responsibility opportunities for
  advancement.

40
MOTIVATION THEORY

• HERZBERGS Two-Factor Theory of Motivation
• Hygiene Factors - are external to the job and are
  located in the work environment.
• Absence of a hygiene factor can lead to active
  dissatisfaction and demotivation and, in extreme
  cases, to avoidance of the work altogether.

41
MOTIVATION THEORY

• HERZBERGS Two-Factor Theory of Motivation
• Hygiene Factors include
• Company Policy
• Working Conditions
• Job Security
• Salary
• Employee Benefits
• Relationships with supervisors, coworkers,
  subordinates

42
MOTIVATION THEORY

• HERZBERGS Two-Factor Theory of Motivation
• If management provides the appropriate Hygiene
  Factors, employees will not be dissatisfied with
  their jobs, but neither will they be motivated to
  perform at their full potential.
• To motivate workers, management must provide
  employees with
• some of the Motivating Factors.

43
BENEFITS

• Tangible - direct
• - Insurance (medical, life, dental, disability,
  unemployment, workers compensation)
• - Paid vacation, holiday, leaves
• - Pension, 401(k), profit sharing, stock
  options, bonuses
• - Other perks, reimbursements (tuition, etc.)

44
BENEFITS

• Tangible - direct
• - Insurance (medical, life, dental, disability,
  unemployment, workers compensation)
• - Paid vacation, holiday, leaves
• - Pension, 401(k), profit sharing, stock
  options, bonuses
• - Other perks, reimbursements (tuition, etc.)
• Intangible - indirect
• - Flexible work arrangements
• - Culture of respect
• Company-paid v. employee-paid

45
PLANNING AND MANAGING A BENEFITS PROGRAM

• Most small businesses offer the following
• - Vacation 1- 2 weeks after one year of service
• - Holidays Six paid minimum
• - Sick Leave 5 - 10 days annually
• - Health Insurance shop around for best plans
• - Retirement 401(k) mainly. Keep it simple.

46
MANDATED BENFITS

• Social Security
• Workers Compensation
• Short Term Disability
• Unemployment Compensation
• COBRA
• NJ Benefits Continuation
• FMLA
• HIPAA

47
THANK YOU FOR YOUR PARTICIPATION

• That brings us to the end of PART I.
• See you for PART II.

All titled workshops and the content therein are
the proprietary material of the New Jersey Small
Business Development Centers (NJSBDC) network
any replication, distribution, or use of this
material is prohibited without prior written
consent of the NJSBDC.
48
ATTRACTING, RETAINING AND ENGAGING THE RIGHT
PEOPLE FOR THE RIGHT JOBPart II

• Developed by
• Edward F. Kurocka, Principal, OnSight Advisors
  LLC,
• for NJSBDC

49
PART II TOPICS

• Federal Labor Laws
• Recordkeeping
• Policies and Procedures
• Pitfalls
• Top Tips

50
CHALLENGES TO LEGAL COMPLIANCE

• A Dynamic Legal Landscape

51
CHALLENGES TO LEGAL COMPLIANCE

• A Dynamic Legal Landscape
• The Complexity of Laws

52
CHALLENGES TO LEGAL COMPLIANCE

• A Dynamic Legal Landscape
• The Complexity of Laws
• Conflicting Strategies for Fair Employment

53
CHALLENGES TO LEGAL COMPLIANCE

• A Dynamic Legal Landscape
• The Complexity of Laws
• Conflicting Strategies for Fair Employment
• Unintended Consequences

54
MOST SIGNIFICANT LAWS

• EQUAL PAY ACT of 1963
• Men and women who do the same work in the same
  organization should receive the same pay.
• Same pay means no difference is acceptable.
• Exceptions Bondafide Merit or Seniority plans,
  or Difference in individual qualifications.

55
MOST SIGNIFICANT LAWS

• AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967
• Prohibits any form of discrimination against
  people who are 40 or older

56
MOST SIGNIFICANT LAWS

• TITLE VII OF THE CIVIL RIGHTS ACT OF 1964
• Prohibits employers from basing employment
  decisions on a persons race, color, religion,
  sex or national origin.
• Extends special protection to Protected Classes

57
DURING THE VIDEO

• Make notes of anything you find new or
  surprising.
• Write down any questions or comments so that we
  can discuss and learn from them later.

58
MOST SIGNIFICANT LAWS

• SEXUAL HARASSMENT
• Title VII prohibition against sex-based
  discrimination has also been interpreted to
  prohibit sexual harassment.
• Quid pro Quo Sexual Harassment
• Hostile Work Environment Sexual Harassment

59
RECORDKEEPING

• Consists of employee data, federal regulations,
  and time frames. Compile only job-related
  information in the personnel file.
• Items include
• - Resume/Job Application
• - Job Performance and Evaluations
• - Salary Changes
• - Disciplinary Actions
• - Transfers

60
RECORDKEEPING

• In a separate confidential file, keep
• Vacation, Leave Requests
• Pre-employment Evaluations (Subjective items)
• Reference Checks
• Medical records, information
• Legal Actions
• I-9
• Payroll Records

61
ACCESS TO PERSONNEL FILES

• Some states have their own codes which govern
  access to employee files.
• Employees must usually schedule an appointment to
  review contents.
• Some are limited to once per year.
• File should contain no secrets.

62
Time for a commercial break!
NJSBDCs NEXT STAGE BUSINESS GROWTH SERIES
63
POLICIES AND PROCEDURES

• Need for HR Policies
• Developing Policies
• Developing a Manual

64
WHEN DOES A COMPANY NEED A POLICY MANUAL?

• The sooner you have something in writing, the
  better.
• A simple, easy to read summary of major
  expectations protects the company and
  communicates a sense of trust and fairness to
  employees.

65
MANUAL CONTENTS

• Welcome Statement
• EEO Statement
• Work hours/week
• Pay periods
• Benefits (including holidays, vacations, workers
  compensation)

• Disciplinary Procedure/Actions
• Anti-harassment Policy
• At-will Statement
• Acknowledgment form

66
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.

67
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• -Absence of job descriptions.

68
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.

69
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.
• - Inconsistent policy application. Preferential
  treatment.

70
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.
• - Inconsistent policy application. Preferential
  treatment.
• - Lack of documentation.

71
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.
• - Inconsistent policy application. Preferential
  treatment.
• - Lack of documentation.
• - Not evaluating performance.

72
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.
• - Inconsistent policy application. Preferential
  treatment.
• - Lack of documentation.
• - Not evaluating performance.
• - Waiting too long to discharge an employee.

73
PITFALLS

• "I have an employee, one of the best in our
  sales force, who is late at least twice a week.
  It doesn't affect his work. Our customers love
  him. I've counseled him, but he keeps coming into
  work late. What can I do to get him into work on
  time?"

74
PITFALLS

• The most common hazards in Small Business
  HR/Employee Relations are
• - Lacking policies and procedures, or, saying
  too much in handbooks.
• - Absence of job descriptions.
• - Misclassified Exempt/Non-exempt employees.
• - Inconsistent policy application. Preferential
  treatment.
• - Lack of documentation.
• - Not evaluating performance.
• - Waiting too long to discharge an employee.
• - Not publicizing the at-will
  employmentdoctrine.

75
OTHER TIPS

• Treat your workers with respect

76
OTHER TIPS

• Treat your workers with respect
• Communicate with your workers

77
OTHER TIPS

• Treat your workers with respect
• Communicate with your workers
• Make job related decisions

78
OTHER TIPS

• Treat your workers with respect
• Communicate with your workers
• Make job related decisions
• Dont punish the messenger

79
OTHER TIPS

• Treat your workers with respect
• Communicate with your workers
• Make job related decisions
• Dont punish the messenger
• Take action when necessary

80
OTHER TIPS

• Treat your workers with respect
• Communicate with your workers
• Make job related decisions
• Dont punish the messenger
• Take action when necessary
• Be discreet

81
KNOWLEDGE CHECK

• How well did we do on our True and False
  Questions, or our Case Study?

82
WRAP UP

• Questions?
• More Resources available through your SBDC and
  Next Stage Growth Series courses
• Thank you for attending!
• Best Wishes for continued success. We look
  forward to seeing you again.

Developed by Edward F. Kurocka, NJSBDC
Consultant for NJSBDC
All titled workshops and the content therein are
the proprietary material of the New Jersey Small
Business Development Centers (NJSBDC) network
any replication, distribution, or use of this
material is prohibited without prior written
consent of the NJSBDC.
83
BIBLIOGRAPHY

• DelPo, Amy Gueerin, Lisa, Top Tips for
  Avoiding Legal Trouble With Employees,
• Nolo.com
• Gomez-Meja, Luis R., Balkin, David B., Cardy,
  Robert L., Managing Human Resources,
• Fifth edition, Pearson/PrenticeHall
• McNamara, Carter, MBA, PhD, Human Resources
  Management, Managementhelp.org, 1999
• Richter, Gina, Small Business HR Page,
  user.txcyber.com/gena/, 2006
• Winning, Ethan A., Labor Pains Employer and
  Employee Rights and Obligations, Ewin.com, 2006