Compliance

Plan First, Improvise Later.

Another update from the Jungle…

unnamedNo plan survives first contact with the enemy. This military maxim is credited to many famous military leaders, including Field Marshal Erwin Rommel. Rommel was famous for improvising on the battlefield. But he always started with a plan.

In World War II, Rommel led the Africa Corps in what is now eastern Libya as it attacked British forces in Egypt. In every battle, Rommel’s forces were outnumbered by the British troops they were attacking. That meant that Rommel needed to make real-time changes to his plan of attack as the battle developed in order to exploit weaknesses in the enemy line. He was remarkably successful at it.

Rommel’s true improvisational skills were demonstrated at the battle of El Alamein. Rommel designed a plan to attack the British forces in Egypt. The ultimate goal of the plan was to defeat the British and advance to the oil fields in Iraq. Before Rommel’s plan could begin, the British forces attacked with overwhelming numbers and equipment. (The British had broken German military codes using Enigma and knew of Rommel’s plan.)

The Africa Corps was overwhelmed and fell back toward Libya. Rommel continuously fashioned makeshift defensive lines to save his troops from destruction. Ultimately, he was successful but it was the beginning of the end for the Axis powers in North Africa.

So what does all this mean for your company? Every company faces crises and no matter how well your company plans, an actual crisis will always present new problems that were not covered in the crisis plan. The key is to have a plan and then to improvise real-time solutions from that plan as the crisis develops.

Think back to the Great Flood of 2010. Thousands of businesses were literally under water and they lacked a plan (a disaster plan and a business continuity plan) to handle the crisis. Meanwhile, businesses with a disaster plan and a business continuity plan could improvise a solution in real-time as the crisis developed. Companies with a plan were back in business while their unprepared competitors were still floundering.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented. To learn more about Field Marshal Erwin Rommel in his own words look at The Rommel Papers, edited by Sir Basil Liddell-Hart (WWII exploits) and Infantry Attacks (WWI exploits). Among his many biographies is Knight’s Cross, by David Fraser (1993).

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Improving Morale While Lowering Costs.

 Another update from the Jungle…
image031Doug is the plant manager of a factory that makes car parts. His boss transferred him from a nearby facility with instructions to improve operations and lower costs at the factory. It didn’t take Doug long to figure out that the high costs were due to low employee morale and a high incidence of on-the-job injuries.

Some of the worker compensation claims defy common sense. One worker wrenched his ankle after ignoring warning signs and walking across newly laid floor tiles before the glue had set. Another employee lost a finger in a machine because he ignored the safety protocols for using the machine.

Doug hopes to simultaneously increase safety, reduce worker comp claims and improve employee morale. First, he wants to create a new safety training program. Then he wants to implement a drug-free workplace program. This program will have the added benefit of lowering premiums on the worker comp policy through the mandatory discount offered to companies with drug-free workplace programs.

Doug knows that safety training and a zero tolerance for drugs are only the beginning. He believes morale will improve when employees realize they can get bonuses and wage rises by improving safety. But he must also revise the factory’s HR policies to reflect a more enlightened approach of rewarding good behavior rather than punishing bad behavior. All the changes will contribute to a rise in productivity. Doug knows he needs help to accomplish all these ambitious goals.

What should Doug do next?

  1. He should ask his insurance agent what steps he needs to take to implement the new drug-free workplace program. One of those steps must include identifying a company certified to administer the drug-testing.
  2. He should hire an OSHA-certified trainer to teach the new safety classes.
  3. He should outsource the task of revising the HR policies since he lacks the on-site HR staff to handle this responsibility.

The above scenario is based on actual worker comp claims. If your company is struggling with similar issues consider the following resources. USA Mobile Drug Testing of Nashville can help administer a drug-free workplace program. Corporate Compliance Risk Advisor can help create HR policies and procedures appropriate for your company’s size.

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This week I guest blogged on USAmdt Nashville’s blog, check it out here and follow them on Facebook & Twitter!

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I’m In Over My Head.

Another update from the Jungle…
image017Cindy is the HR director for her company because she is a good listener and she can handle obnoxious people. She got the job because the owner hates conflict (and he’s one of the obnoxious people, although no one likes to mention this). Cindy listens patiently to her distressed co-workers, dispenses Kleenex and aspirin as needed, and generally puts an optimistic spin on the worst calamities.

The company is a manufacturing facility that is still fairly low tech. Most of the employees are God-fearing, gun-toting, self-described “rednecks”. They are good people but the stress of living paycheck to paycheck means there are often conflicts. As the company has grown, employee conflicts have multiplied.

Just this morning, Cindy rushed to the women’s bathroom to break up a fight between two employees. The women were fighting over the shift mechanic who has been trysting with both of them. Cindy arrived in time to see one of the women flashing a pocket knife at the other woman. The employee who pulled a knife has to go immediately. Cindy and the shift supervisor escort her off the premises. The other employee must be suspended for fighting at work.

Cindy feels overwhelmed. She has no formal training for her HR duties and she worries that she may violate employment laws due to lack of training.

What are Cindy’s options?

  1. She can continue to worry about her lack of HR training and hope for the best. After all, she’s good at putting a positive spin on dire circumstances.
  2. She can ask the owner to reimburse her costs to take HR training classes so that she has the appropriate certifications to do her job. The training will be beneficial in the long run but have no effect on her immediate concerns.
  3. She can ask the owner to hire an HR consultant to review their existing policies and practices to identify areas that need to be improved to avoid violating the law. This will fix the short term concerns she has.

The above scenario is a composite of actual situations I faced while working at several former employers. If your company is struggling with similar issues, Corporate Compliance Risk Advisor can help. Corporate Compliance Risk Advisor can create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Sex & the Business Woman.

Another update from the HR jungle….

Julie is a woman of a certain age. She steadily climbed the corporate ladder until she reached the C suite. She likes her job but it’s all gone a bit flat lately since she attained the goal she set years ago. She feels entitled to reward herself for all the hard work.

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A few months ago, Julie met Javier at a business networking event. He’s a young man with gleaming teeth, a good body and he laughs at all her jokes. She tells her husband that she has to work late and then skips off to meet Javier.

Julie pays for their dates since her income is considerably higher than his. But sex on the side costs a lot of money, so Julie resorts to padding her business expense account and sometimes uses her company credit card for personal expenses.

Now Julie has been served with divorce papers by her angry and vengeful soon-to-be ex-husband. At the same time, Julie is trying to convince her employer to allow her to reimburse the company rather than face termination for cause with a possible criminal charge for theft. Worst of all: Javier won’t return her phone calls.

What could the company have done to avoid this employee theft?

  1. The company could change how it reimburses expenses of senior executives, requiring more documentation or oversight.
  2. The company could set tighter limits on the use of company credit cards, such as a maximum dollar limit per day.
  3. The company could do more random internal audits of company expenses to spot patterns of fraud earlier.

Julie resorted to employee theft to cover the cost of her love life. She engaged in the fifth motivation for employee dishonesty which is to pay for a boy toy or mistress.

All employee theft comes down to one of the following five motivations: (1) greed, (2) revenge, (3) gambling habit, (4) drug or alcohol habit and (5) having a boy toy or mistress. If your company is struggling with this issue, Corporate Compliance Risk Advisor can help you create internal controls and HR policies that mitigate your risk.

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In Lieu of a Pay Raise, I’ll Take What I Want.

Another update from the HR jungle…. 
image025Howard works for a small manufacturer that makes steel-toed work boots and fancy stitch cowboy boots. He’s been with the company about six years and worked his way up to the lowest rung of management. That’s where his career stalled.

Howard is convinced that his advancement is stalled because he’s not family. The husband and wife owners use the company to ensure that assorted children and relatives will never be a burden on the unemployment insurance fund for the state. Howard knows this because over the years he’s trained most of the family idiots only to see them get pay raises and promotions ahead of him.

Howard threatened to quit a couple of times, but the owners begged him to stay and made promises that they haven’t kept. So Howard has decided to get even. A couple of times a week he helps himself to some of the leather which he uses in his side business making customized knife and gun holsters. The supply closet has helped him set up his home office and he sometimes uses the office postage machine to cover his mailing expenses.

Lately the owners have complained about rising costs but Howard’s not really worried about being caught. He knows he’s not the only one raiding company property. Besides, the owners treat the business like their personal piggy bank.

What could the owners have done to avoid this employee theft?

  1. They could create an inventory of company property and periodically update the inventory through audits.
  2. The owners could initiate internal controls such as requiring authorizations to take leather from the store room or supplies from the supply room.
  3. They could reconsider some of their employment practices which are causing employee dissatisfaction.

These owners are learning a hard lesson about employee relations. The second most common motivation for employee theft is revenge. Employees who believe their contributions are ignored or undervalued can wreak havoc before they finally leave for the last time.

Need help with HR issues? Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff when the policies are implemented.

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I Was Going to Pay It Back….Honest!

Another update from the HR jungle….

image021Sam leads the IT department for his company and is the head of their internal security team.  As part of his duties, Sam has administrative rights to all electronic and computer-based systems at the company.  He ensures that new employees are issued security clearances to use the company computers. He sets the dollar limits on company-provided credit cards as authorized by the owners of the company.

But Sam has a problem. He likes to gamble. It started years ago quite innocently when he participated in a sports betting pool with co-workers at a former employer’s office. Then he started spending his weekends at casinos. Sam began using his company credit card to get cash advances at the ATM in the casino.

At first, he paid off the credit card balance each month and no one discovered what he was doing. When he couldn’t pay the credit card balance, he raised the credit limit on the card using his administrative rights as the head of internal security.

Sam’s basically a decent guy and the stress of his situation has finally gotten to him. This morning he walked into the owner’s office and confessed all. As he sat sobbing and promising to reimburse the company, the owner stared at him, stupefied with shock.

What could the owner have done to avoid this employee theft?

  1. The owner could have regularly reviewed all company expenses, including credit card charges, to ensure they were used only for valid company business.
  2. The owner could have required regular reports from Sam’s department showing the authorized limits on all company credit cards.
  3. The owner could have hired an outside auditor to do an annual audit of the company’s financial records in the hopes that the fraud would have been uncovered.

Employee theft arises from five basic motivations, including a gambling habit. Another closely related motivation is a drug or alcohol habit. Employees experiencing any of these addictions may decide to steal an employer’s property in order to feed their habit.

Need help with HR issues? Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff when the policies are implemented.

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Seasonal Slush and the Office Party

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Another update from the HR jungle….

Patricia likes to offer plenty of perks to her employees, including free coffee and tea, catered lunches each quarter, a pool table and a workout room. There’s only one perk that concerns Patricia: the office holiday party. She can’t afford a repeat of last year’s fiasco.

Last year some employees enjoyed the wassail and eggnog recipes a little too much. One employee filed a worker comp claim after she fell and broke her arm while trying to dance on the pool table. Another employee fixated on a colleague’s smile and made a highly improper suggestion of how they could spend the rest of the evening. A couple of designated drivers slipped some rum in their cokes and she had to chase them across the parking lot to confiscate their car keys.

Patricia wants her employees to enjoy the season, but there’s a limit to what she can tolerate and what her insurance will cover.

What options are available to Patricia?

  1. She can cancel the office holiday party based on last year’s excesses.
  2. She can try to limit her company’s liability by requiring all attendees to sign a waiver of liability before attending the party. (She should consult an attorney about this option).
  3. She can build in safeguards, such as limiting the number of drinks allowed to each attendee or holding the event at a hotel and reserving rooms for those who over indulge.

Has your company faced similar problems and struggled for a solution? Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff when the policies are implemented.

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Complying With the ACA Is Making Me Feel Sick!

Another update from the HR jungle….

Marilyn is the HR director for her company. She’s spent a couple of years trying to figure out what the Affordable Care Act (ACA or Obamacare) means for her company. They have 80 employees so she knows they are a “large” employer and could be subject to the employer penalty if the employee group health plan doesn’t meet the minimum standards set in the ACA.

Trying to sort through the details of the ACA, while keeping up with her regular duties is making Marilyn feel sick. She knows that she has to track each employee’s weekly hours to verify who is eligible for the group health plan. Under the ACA, a full-time employee works an average of 30 hours a week.

She knows that the ACA allows employers to use two different counting methods to count employee hours. The counting methods are the Monthly Measurement Period and the Look Back Measurement Method but she isn’t sure which method to use.

What options are available to Marilyn?

1. She could read the IRS regulation explaining how to count each employee’s weekly hours using the Monthly Measurement Period and the Look Back Measurement Period.
2. She could ask for assistance from the insurance agency or broker that sold the group health plan to her company, assuming they provide such assistance.
3. She could hope that the employer penalty will be delayed yet again so that she has another year to figure out what to do.

Is your company struggling to understand how the ACA will affect the employee group health plan? Corporate Compliance Risk Advisor can help you grasp the basics of the ACA and how it affects an employer of your company’s size.

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We Need Employees….But We Have No Employee Policies

Another update from the HR Jungle…

Abigail and Bob started their business five years ago after being downsized from corporate jobs. Until recently they were the only employees, working long hours and outsourcing specific tasks to free-lancers (a/k/a independent contractors).

Now they want to add employees to prepare for several new customers. They believe replacing the free-lancers with employees will allow them to streamline processes, speed up response times and become more profitable.

As refugees from corporate America they want to avoid bogging down in bureaucracy but they also know they need some administrative structure. Hiring employees involves creating human resources policies to ensure that all employees are treated the same.

What should Abigail and Bob do next?

1. They should identify all the tasks to be performed by the newly hired employees so that accurate job descriptions can be created.
2. They must decide the details of everything from a dress code to what benefits should be offered.

Abigail and Bob are smart, educated individuals who can research HR issues and create an HR department from scratch. Or they can delegate this activity in order to free up their time to focus on growing their business. Corporate Compliance Risk Advisor can help them create their HR department and then serve as a resource for the HR manager.

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How Can My Business Grow With All These Distractions?

Another update from the HR Jungle….

Sondra’s business grew rapidly in the past 18 months as she expanded product lines. She added three new employees last quarter when she opened a second store. With two retail locations and a constantly expanding line of products, Sondra can’t keep up with the details.

She is constantly bombarded with employee requests for time off from work. Yesterday several employees came to work with ripped jeans and t-shirts which is not the image Sondra wants to present to her customers. The employees say they thought the dress code was casual. This morning she spent an hour sorting out a dispute between two employees.

One of the new employees at the new store is not working out and should probably be fired. Sondra needs time to read the store manager’s notes to verify the grounds for terminating employment. Then she needs to hire a replacement. But first she needs to revise the job description to ensure the next employee has the qualifications she needs.

What are some of the tasks on Sondra’s “to do” list?

1. An employee handbook that explains dress codes, time and attendance, and leave policies (among many other things) would answer many employee questions, saving time for her and her employees.
2. A procedure for resolving workplace disputes could ensure that future employee disputes don’t escalate like the situation this morning.
3. Job descriptions may need to be revised to better match the evolving duties of each employee.

Sondra’s been delaying taking action because she hates these administrative tasks. But she also knows her business is getting stuck because she’s stuck making up the rules as she goes. Sondra can outsource these tasks to an HR consultant leaving her free to continue building her business.

Corporate Compliance Risk Advisor can help Sondra and other business owners in similar situations.

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