Small Business

New Job; Old Baggage

Another update from the Jungle….
image029Betty started a new job about six months ago but already the old patterns are starting to repeat. Betty’s last job became so unbearable that she quit. Now she seems to be headed down the same path again.

At her last job, a clique of female co-workers proved that Heathers don’t get nicer as they grow up; they just get older. They made Betty miserable. They invited her to lunch during her first week on the job for the apparent purpose of mocking her interests and lifestyle. That was the beginning of a long campaign of passive aggressive behavior aimed at undermining Betty.

When Betty complained about misplaced files or sabotaged resources, her clueless boss labeled her a complainer. Betty didn’t want to be best friends with the clique but in a small office it meant she was isolated and alone. Betty’s confidence eroded and her performance suffered. When her performance review assessed her as “not a team player”, Betty took the hint
image031 and found her current job.

Unfortunately, the old baggage came with her. She knows some of her new co-workers think she’s a snob for declining lunch invitations and not participating in the monthly office birthday parties. But Betty’s cautious of getting to know her new co-workers because she’s afraid of meeting a new group of Heathers.

Today, an HR rep asked Betty to stop by. At their meeting, the HR rep asked Betty how she liked her office, her workload, and how she was getting along with her colleagues. Betty gave a non-committal answer. Then the HR rep asked Betty if she would like to participate in a new mentoring program which was created to help new employees integrate into the company.

What should Betty do next?

  1. She can decide based on her past experiences that she will “fail” at this job so she should quit now and join a commune in Alaska.
  2. She can start looking for another job hoping that things will be different next time.
  3. She can accept the invitation to join the mentoring program, increasing her chances of having a satisfying career with her current employer.

In the actual case, the first employer had no mentoring program because the owners were not convinced that touchy-feely programs contributed to the bottom line. Consequently, they experienced a high level of employee churn and were eventually acquired by a competitor.

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.

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I’m Not His Employee

Another update from the Jungle….
image011Addison works for Rob, who has a consulting business. (We met Rob in last week’s post.) The work is sporadic and project-based but she likes it that way because she’s a free spirit. Addison worked for large corporations for many years and is happy to be on her own now.

She does project-based work for several businesses, including Rob’s, and also has a few clients of her own. She dislikes sales and prospecting for clients because she prefers to focus on the work. She likes working for Rob because he pays quickly and the projects allow her plenty of scope for imagination.

Today when she stopped by Rob’s office to discuss the next project, she found him in a strange mood and slightly hung over from overindulging in Gentleman Jack. Rob began talking about financial problems. At first Addison thought he was telling her that he was insolvent. Then she realized he was talking about some new policy of the U.S. Department of Labor (DOL).
image015The DOL recently said that it would no longer use the “control” test to determine if a worker is an independent contractor (1099 worker) or an employee (W-2 worker). Instead, the DOL plans to use an “economic reality” test. This new test has a number of factors but can be summed up by saying that if a worker is economically dependent on the employer, then the worker is a W-2 and not a 1099.

Addison accepts Rob’s offer of a shot of Gentleman Jack, although she prefers Buffalo Trace, and they sit in a gloomy silence as they contemplate what the new test means for each of them. Addison dreads the idea that she could again be classified as a W-2 because she likes being free to work at her pace and only on things she enjoys doing.

What should Addison do next?

  1. She can explain to Rob that she has other clients in addition to the work she does for him and so she thinks that she truly is an independent contractor.
  2. She can incorporate her business now that she has the money to do so rather than continuing to operate as a d/b/a. Incorporating is additional proof that she is running her own business.
  3. She can wait to make any changes until she has more information.

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 today.

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3 Keys to Hiring the Right Employee

Another update from the Jungle…
image029
Renee owns a small bakery that is growing rapidly but still needs to plow the profits back into the business to ensure its long term success. She knows the long term success of the bakery depends on the quality of the employees.

She learned through trial and error that she needed to be clear about what she was looking for in a new employee. One early hire, Debra, was great at baking muffins but seemed to hate people. Customers would dash out the door if they saw Debra at the counter waiting to serve them. Renee eased Debra out the door so that she could go be successful with a different employer. Then Renee revised her job descriptions to focus on all the skills, not just baking, that she needs.

Renee also realized that hiring the right employee is not enough. New hire Marta didn’t know how to use a convection heat oven and her first batch of cookies were harder than hockey pucks. After
image027the smoke cleared and the hockey pucks were trashed, Renee decided to assign an experienced employee as a mentor to train Marta on using equipment. Marta now bakes cookies using her grandmother’s recipes that are the hottest sales items in the store.

Of course, assigning a mentor was not enough either. Cherie had a mentor but wasn’t making progress in learning how to use kitchen equipment or the cash register. A quick investigation revealed that Cherie was intimated by her mentor and never asked questions. The mentor admitted that she is a perfectionist and isn’t comfortable trying to teach new hires.

This mismatch taught Renee that she needed to more closely monitor the progress of each employee. So every week she meets with each employee to answer questions and to ask for suggestions on improving the business. It’s a huge time commitment for Renee but in the past year, turnover among all employees has dropped dramatically and would-be bakers now beg her to hire them.

What are Renee’s 3 keys to hiring the right employee?

  1. Know what you want and clearly state it in the job description so that you hire the right person for the job.
  2. Have a good “onboarding” process to integrate the new employee into the workforce that includes training the new person on equipment and business processes.
  3. Monitor progress of all employees to match skills to opportunities to increase job satisfaction and the chance of retaining each employee.

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 today.

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Classifying An Evolving Workforce.

Another update from the HR jungle…
image010Tom 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?

  1. He can continue classifying his workers as independent contractors and hope for the best.
  2. 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.
  3. 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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Can a Screw Up be Fixed?

Another update from the HR jungle….

mistakeBob recently bought a business that has one small retail location. He spent weeks fixing up the store to make it more visually appealing. He also researched the store’s records to identify former customers and then contacted them to introduce himself as the new owner.

While he will sell products to anyone with money, he really wants to build sales to other businesses since that will generate more revenue in the long run. So when he’s not behind the counter, he’s at a business networking event. Since he can’t afford to hire an assistant yet, a retired friend babysits the store while he’s at an event or running errands.

Two weeks ago, Bob invited another business owner that he met at one of the B2B networking groups to stop by the store so they could get better acquainted. Today, the other business owner showed up at the appointed time and was greeted by Bob’s friend. When Bob returned to the store hours later he realized he’d screwed up; he forgot the appointment.

What options are available to Bob?

  1. He can wait for the other guy to contact him, but that’s not really fair since Bob’s the one who forgot the appointment.
  2. He can ignore the screw up leaving a bad first impression on the other business owner who may think all sorts of evil thoughts about Bob’s business acumen.
  3. He can immediately call the other business owner, apologize for screwing up, and ask if it’s possible to reschedule the appointment.

What does this sort of screw up have to do with HR? Imagine how Bob’s employees (when he can afford to hire them) will feel if he blows off obligations that are important to them while holding them to a high standard of performance.

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!

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