Employees

Avoiding the Bastille Moment

Another update from the Jungle…
Yesterday, July 14th, was the 226th anniversary of the storming of the Bastille fortress in Paris, France. Americans should take a special interest in Bastille Day because there is a direct causal connection, as a lawyer would say, between the founding of the U.S. and that event.

France is our oldest ally, supporting us in the American Revolution. It wasn’t that the French liked us; it was more about their government policy to oppose the British. Unfortunately, France went bankrupt since running a war at sea and on land with Atlantic Ocean-wide supply lines is not cheap. So in 1789, Louis XVI called a meeting of the Estates General, a legislature consisting of clergymen, aristocrats, and wealthy property owners. Louis wanted them to agree to new taxes.

The Estates General hadn’t met for over 100 years and during that time economic power had tilted in favor of the middle class but this change was not reflected in the political process. The middle class demanded constitutional changes that would give them political power to match their economic importance. By late June the king had caved in to their demands.

The legislature celebrated by changing its name to the National Assembly (still the name of the French legislature). Then they began plotting more radical changes. The king, aristocrats and the church fought to preserve their privileges. By early July, rumors were circulating that the military planned a coup to counteract the changes sought by the National Assembly.

On July 14th, a Parisian mob attacked the Bastille fortress trying to steal the gunpowder and weapons stored there so that they could defend themselves against the coup. The storming of the Bastille is now considered the start of the French Revolution. It represents to the French what our July 4th means to us.

So what can business owners learn from Bastille Day? Tin-eared responses to demands for change are bad for business. Employees who feel mistreated or unappreciated will leave for other employment opportunities. Customers who are treated poorly will trash the company on social media and buy from competitors. To avoid a Bastille moment, business leaders need to stay attuned to changes in their workplace and their market.

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.

Download my FREE eBook today! Click here!

Click here to join the HR Compliance Jungle.

Not Quite Good Enough

Another update from the Jungle…
Shelly owns a small company that is growing rapidly now that the economy as a whole has perked up. She’s hired several new employees and is pleased with how well they are doing. She just promoted one of the new hires, Zach, to a management position that makes him her second in command. She hopes to take a real vacation this year now that she has someone dependable to cover for her.

Shelly would love to celebrate her good fortune but there’s a fly in the ointment. Claudia was the first employee Shelly hired. Claudia is detail-oriented and in many ways, she is responsible for Shelly’s success because she did all the tedious, time-consuming work in the office. That freed up Shelly’s time to market the company and increase sales.

Unfortunately, what worked for a small, new business isn’t working so well now. Claudia wants to use old record-keeping methods that are no longer efficient for the company. It takes her forever to complete specific tasks and co-workers are complaining about Claudia’s slow pace is slowing them down.

Claudia feels threatened by the others, particularly Zach, who is now making decisions that she and Shelly used to make together. Claudia feels like her contributions are ignored and it’s obvious she’s afraid she’ll be replaced. Shelly sympathizes because she knows what she owes to Claudia but she also sees Claudia’s limitations. The fact is that Claudia isn’t quite good enough; her skills don’t match what the company needs.

Shelly’s been struggling for months to figure out what to do about Claudia. Shelly no longer has time to spend hours helping Claudia agonize over every decision or listening to her complain about Zach. Shelly never realized how whiny Claudia can be and her patience is wearing thin.

What are her options?

She can fire Claudia and give her a huge severance package as a going away present. A couple of glasses of wine will ease Shelly’s qualms about doing what needs to be done for the good of the business.
She can hire an HR manager and delegate responsibility to listen to whiny employees, like Claudia. After all, why else would a boss hire an HR manager?
She can create a job specific to Claudia in recognition for Claudia’s contribution to the success of the company, but that shunts her aside so that she doesn’t slow down co-workers.

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He’s Great at Sales, Lousy With People

Another update from the Jungle…
Helen handles HR issues for her company. She has an open door policy to encourage employees to talk to her because it’s a great way to take the pulse of the workforce. If bad (or she can only hope, good) things are happening, she’ll hear about it before it first.

For several months now, she’s been hearing disturbing news through the grapevine about Sam. He’s the leading salesman for the company and he won last year’s salesman of the year award. The company owners and his immediate supervisor love him because he’s boosted company sales noticeably. But his co-workers hate Sam.

Sam talks loud, usually over the conversation of others, because he always wants to be the center of attention. He is rude to lower level co-workers unless he wants their help; although he never acknowledges their help when praise is handed out. His comments to female co-workers are often outrageous but can’t really be labeled sexist since his comments to male co-workers are often outrageous, too. There’s a rumor going round that some of the women are pricing deadly weapons and bidding on the chance to administer the attitude adjustment to Sam.

In short, Sam is great at his job but the collateral damage he causes to office morale makes Helen wonder if he’s really worth the hoopla. Yesterday, Sam yelled at the sales department’s administrative assistant who then hid in the bathroom to cry. This morning, before Helen finished her first cup of coffee, the admin assistant’s in her office complaining about Sam.

What are Helen’s options?

She can meet with Sam to explain (again) that the company has a no-bullying policy and won’t tolerate his behavior. Since that hasn’t worked before, she’s mentally reserving the right to join the women’s bidding pool on the attitude adjustment.
She can ask Sam’s supervisor to join her and Sam for the meeting to discuss the progressive disciplinary action that needs to be taken.
She can research the cost of hiring an executive coach who can help Sam learn to play well with others and then submit the proposal to the owners and Sam’s supervisor for approval.

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I’m In Over My Head.

Another update from the Jungle…
Cindy 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?

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.
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.
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.

Join the HR Compliance Jungle today. Click here!

Visit us: http://www.complianceriskadvisor.com/

Classifying An Evolving Workforce.

Another update from the HR jungle…
Tom owns a construction business doing renovations and remodels. In the early days he classified all his workers as independent contractors. All the workers had years of experience, brought their own tools and Tom mostly just matched a worker with a homeowner. The worker did the job and Tom billed the homeowner.

As the years have gone by and his revenue has increased, Tom rented warehouse space with an office and storage space for equipment and supplies. The business now owns most of the tools and equipment used on the job, some of it donated by older workers who retired.

Tom also switched from experienced workers (too many retired on him) to hiring inexperienced workers. He pairs the young workers with an experienced older worker for training purposes. The younger workers generally use the tools and equipment owned by the business. All this means is that Tom is beginning to wonder if his old independent contractor classification still fits his workforce.

What are Tom’s options?

He can continue classifying his workers as independent contractors and hope for the best.
He can hire an HR consultant to help him do some general review of the IRS and DOL criteria for differentiating independent contractors (1099’s) from employees (W-2’s). Sometimes the facts make it obvious which classification applies.
He can retain an employment law attorney to provide a legal opinion on whether his workforce consists of 1099’s or W-2’s if the facts are unclear and he wants added assurance of his legal obligations.

The above scenario is a composite of several actual situations faced by prospective and actual clients. In those situations, the prospective client chose the first option and the clients chose the second option. I recommended that one of the clients move directly to the third option and they retained an attorney. If your company is struggling with this issue, Corporate Compliance Risk Advisor may be able to help.

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I Was Going to Pay It Back….Honest!

Another update from the HR jungle….

Sam 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?

The owner could have regularly reviewed all company expenses, including credit card charges, to ensure they were used only for valid company business.
The owner could have required regular reports from Sam’s department showing the authorized limits on all company credit cards.
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.

Join the HR Compliance Jungle today. Click here!

Visit us: http://www.complianceriskadvisor.com/

The End is Near…for 2015 Open Enrollment.

Another update from the HR jungle….
Walter owns a restaurant and catering business with 25 employees, most of them part-time. The hours can be brutal and the pay is low. Walter wishes he could pay more but in the competitive market he faces that’s not an option.

He can’t afford a group health plan for even his handful of full-time employees. Instead, he has encouraged his employees to sign up for coverage through the Exchange, also called the Marketplace. He thought some of his employees would qualify for a subsidy to help pay their premiums. Last year many of the employees decided not to buy individual health policies for a variety of reasons, including needing the money to pay bills. Now these employees will be assessed the penalty because they also didn’t try to qualify for an individual exemption.

Walter knows that he has no legal obligation to help his employees with health insurance. But he wants to help his employees because it’s the right thing to do. Walter is thinking about how to make one last effort to encourage his employees to sign up for coverage before open enrollment closes on February 15^th.

What options are available to Walter?

Walter can remind his employees that open enrollment closes in about 2 weeks. He can encourage them to go on-line to healthcare.gov or see an insurance agent.
Walter can invite a health insurance agent to his restaurant to meet with his employees before or after their work shifts to sign up for coverage.
Walter can remind his employees that they may be able to qualify for an exemption from the penalty, such as a hardship exemption due to low income.

Join the HR Compliance Jungle today. Click here!

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Boxed in by Box 12 on the W-2

Another update from the HR jungle….
Maryann handles payroll questions for her employer. She and her coworkers have been scrambling for a couple of years to ensure they comply with the Affordable Care Act (ACA). Last year was all about finding a software program that would allow the company to track the hours of its temporary employees.

This year, Maryann is looking at box 12 on the W-2. That’s the box where employers need to plug in the cost of the medical plan for the employee. Filling in this information is mandatory only for employers who filed at least 250 W-2’s in the previous tax year, meaning in 2013. Maryann’s company filed 170 W-2’s in 2013, so they aren’t required to complete box 12 for the 2014 tax year.

She knows that this January her company will issue 200 W-2’s covering the 2014 tax year. She thinks that number will rise to 250 during 2015. Maryann wants to get a head start on figuring out box 12 after some of the past fiascos in trying to comply with the ACA.

What should Maryann consider?

Maryann knows that the “cost” or “value” of health coverage refers to the premium paid for medical coverage in the health plan, known as “major medical”. She needs to verify what other costs, such as FSA contributions and dental and vision premiums, may need to be included.
Maryann can consult her company’s CPA firm for assistance on completing box 12.
Maryann can do some research in the ACA section of the IRS website during her spare time.

Join the HR Compliance Jungle today. Click here!

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And Now…The New Year’s Resolutions.

Another update from the HR jungle….

Last year, while on her Christmas cruise, Sue, the HR director developed a brilliant plan to do something for her company and something for herself.

Her company has grown rapidly in the past two years and will grow even faster as the economy continues to improve. To continue growing smoothly, Sue knows that the company’s HR policies and procedures must also grow to ensure the company complies with applicable labor and employment laws. As the number of employees increases, so does the number of laws that apply to the company.

Sue also thinks about what she wants for herself. She decided to enroll at a local community college to obtain a 2-year degree in human resources administration. This degree will give her a theoretical framework for her on-the-job knowledge and it will validate what she has learned on the job. The degree will also enhance her chances of being promoted to more responsibility as the company grows.

What steps can Sue take to reach these goals?

1. Sue must create a list of the HR policies that need to be updated. Then she must create a budget calculating the estimated time and cost required to complete the updates based on her prior experience updating individual policies. She also needs to prioritize the order of the updates in case her boss decides to delay some due to budgetary constraints (i.e., lack of money).
2. Sue needs to gather information from the community college website about enrollment deadlines and tuition costs. The class schedules are designed for working adults, so the hard part will be setting aside time to study while working full time. Sue also needs to speak with a faculty advisor to see if she can get class credit for some of her real world experience. Credit for real world experience may allow her to get a degree in less than 2 year saving her time and money.

Join the HR Compliance Jungle today. Click here!

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Be Kind, Not Nice.

Another update from the HR jungle….

“Be kind, not nice” is a favorite saying of one of my friends. Consider what that means for employers and their employees.

Leslie’s company has less than 50 employees, so the Family Medical Leave Act (FMLA) does not apply to her company. This fact became important yesterday when Beth revealed that she has breast cancer and needs extended leave while she undergoes treatment. Beth also says that she wants to return to work full-time after completing her initial treatment.

Leslie counts Beth as a personal friend as well as an employee and wants to help. Beth was one of the first employees she hired and has always been a stellar performer. But Leslie knows that if Beth is granted extended leave, other employees will demand the same treatment later. She also worries that her staff is too small to cover for an employee who is absent for an extended period of time.

Leslie considers her situation and how she can be kind, but not nice to Beth. What options are available to Leslie?

She can be kind to Beth by offering support as a friend and accommodating Beth’s treatment schedule as much as reasonably possible without disrupting the company’s work flow.
She can protect her company by documenting the business reasons for making an exception to the leave policy for Beth. For example, Beth’s work performance and length of service could justify making an exception to the leave policy.

Distinguishing kind from nice may not be easy particularly when creating HR policies. Corporate Compliance Risk Advisor can help you separate kind from nice in your employee practices with HR policies that are appropriate for your company.

Join the HR Compliance Jungle today. Click here!

Visit us: http://www.complianceriskadvisor.com/

	Mae on Halloween Horror
	Mae on Freedom from Rules
	Genie Herron on Where Is He?
	Norma Shirk on Whose Side Are You On?
	Pat Brewer Hairston on Whose Side Are You On?

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