WageWatch Ibrief Blog

Login

Blog Archives

WHITE COLLAR THRESHOLD CHANGES ON JAN 1, 2020

White Collar

On September 24, the U.S. Department of Labor’s final rule released the final rules increasing the minimum salary level for the Fair Labor Standards Act (FLSA) “white collar” exemptions from $455 to $684 per week.   Effective January 1, 2020:

  • The salary threshold for “white-collar” raises to $684 a week or $35,568 (up from $455 a week or $23,660).
  • For highly compensated employees (HCEs), it raises the annual compensation to $107,432 (up from $100,000 per year).
  • The rule allows employers to use nondiscretionary bonuses and incentive payment (including commissions) paid at least annually to satisfy up to 10% of the standard salary level.
  • Revises the special salary levels for workers in U.S. territories and the motion picture industries have been revised to $455 and $1043, respectively.

It will be important for employers to analyze the status of employees who earn below the new salary threshold but were previously exempt.  Employers will have to consider whether to reclassify those employees as nonexempt hourly workers or give them raises to bring them up to the new threshold.  If employees now classified as exempt are reclassified as nonexempt workers, employers should make sure the newly reclassified employees know what is expected of them as hourly workers.

The quiz below was developed by the law firm, Pautsch, Spognardi & Baiocchi Legal Group.

Answer each question as TRUE or FALSE:

  1. Under the new DOL rules, if an employee makes over $35,568 per year, it is permissible to pay the employee on an hourly basis and not pay that employee overtime.
  2. To be considered exempt under the “white collar” exemptions, under either the new rules or the old rules, the employee must supervise at least two other individuals.
  3. Under the new rules, if an employee holds a professional degree, they can be classified as exempt even if they are not paid a salary of at least $35,568 per year.
  4. Under the new rules, exempt employees, who are paid a salary of over $35,568 per year, can be “docked” pay on an “hour-by-hour” basis as long as careful records are kept and they have forms of paid leave to use for the docked time periods.
  5. The FLSA has an overtime exemption for “inside sales” employees that remains unaffected by the new rules.
  6. The FLSA has overtime and minimum wage exemption for “outside sales” employees that remain unaffected by the new rules.

ANSWERS:

  1. FALSE, each of the “white collar” exemptions (“professional”, “administrative”, “executive”) from overtime require that the employee be paid on a “salary basis” in addition to the “duties” standards set for each. As noted below, the “salary basis” test does not apply to “inside” and “outside sales” exemptions.
  2. FALSE, this is true and required for the “executive” exemption, but not for the “administrative”, “professional” and “inside” and “outside” sales exemptions.
  3. FALSE, to qualify for the “professional” exemption, the employee must meet both the “salary” level test (now $35,568) and the “duties” and status requirements of the “professional” exemption, i.e., that the employee holds a professional degree and perform that work as their primary duty.
  4. This can be done lawfully, but it may be inadvisable to do so as it may cause morale problems and can lead to suits if situations occur if “docking” occurs when the paid leave bank has been depleted.
  5. Under federal law, the inside sales exemption applies to employees who earn more than 150% of the minimum wage, derive at least 50% of their income from commissions, and work within the “retail and service industry” as defined under the FLSA.
  6. Under federal law, an employee who qualifies for this exemption is exempt from both the minimum wage and overtime premium requirements.  The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer and the employee must be customarily and regularly engaged away from the employer’s place or places of business.  The salary requirements of the regulation do not apply to the outside sales exemption.

Spognardi Baiocchi LLP, a law firm dedicated to partnering with companies of all sizes to find solutions for labor, employment, human resources, and general business needs.  www.psb-attorneys.com.

WageWatch offers accurate, up-to-date benefit surveys, salary surveys and pay practice data that will allow you to stay current.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, please call WageWatch at 888-330-9243 or contact us online.

MERIT BUDGET ALLOCATION

Merit Pay

 

 

 

 

A primary goal of any compensation program is to motivate employees to perform at their best.  Most organizations have to pay for performance at least in the form of a merit pay system.  An accurate, reliable, and credible performance-appraisal program that is aligned with company goals, core values, and industry best practices is the foundation of a successful merit pay program.  Performance measures should be tailored specifically for the organization and its jobs with clear outcomes that minimize bias and misinterpretation.  Consistency, manager training, effective communications, and a periodic review are also essential for success.

The merit pay budget has two aspects to it:  1) determining the size of the budget and 2) allocating the budget to organizational units and its employees.  Determining the size of the budget will be based on competitive trends, the organization’s financial situation and other factors that may impact pay such as minimum wage and cost of living changes.  For the past several years merit budgets have been small and therefore it has been a challenge to adequately reward top performers as well as those that are rated ‘Good’ and ‘Average’.  Employees with performance ratings of ‘Good’ and ‘Average’ can be the largest percentage of employees and therefore the backbone of the workforce.  These employees should not be overlooked but raises for these employees often do not keep up with the cost of living.  Also, the differentials between performance levels may not be large enough to motivate and retain employees.  These factors reduce the motivational potential of the merit pay program.

Using a merit increase matrix may help to maintain internal equity but may not properly reward top performers.  You want your reviewing managers to be engaged in the merit award process and to give appropriate thought and consideration to their pay decisions.  A certain amount of guidance and training is needed but the merit matrix can be too structured and rigid as well as make it too easy for reviewing managers to simply follow the formula rather than spend the time and effort for a thorough review.  Greater rewards for top performers and a greater deviation of awards between good and average performers can be accomplished by providing zero increases to employees whose performance falls below average.  Providing broad increase guidelines in lieu of a matrix to your reviewing managers using factors such as performance rating, time in position, and position in salary range can eliminate the rigidity of the merit matrix and drive a more thoughtful approach to the merit award process.  Once tentative award amounts are determined, reviewing managers should perform an analysis of the awards looking at the whole department and at each individual award using these and other factors as well as any unique or special circumstances.

Annual pay increases not only help keep employees’ pay at market, providing awards that are accurately linked to performance are important in retaining employees, especially your best ones.  Compensation frequently emerges as a driver of retention, and when pay increases aren’t provided regularly and fairly, it will negatively impact job satisfaction.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives and that your pay practices are fair, equitable and non-discriminatory. We can provide your business with compensation surveys and salary reports to help you establish a budget for your merit pay program, including bonuses and incentives. Our innovative company is a leader in the collection of data for surveys and salary reports, which allows us to provide services to a wide range of industries in both the private and public sector. To learn more about our compensation surveys, salary reports, and other services please call 480-237-6130 or contact us online.

ALIGNING COMPENSATION WITH COMPANY CULTURE

Comp - Culture

Many organizations today are focusing on their company’s culture including determining their culture, deciding what it should be, aligning with strategic goals, and transitioning to the desired culture.  Culture is important because it reinforces the values of the organization, which in turn shapes team members’ behavior.  There are many success stories of companies with cultures that are aligned to their business goals including Google, Zappos, and Patagonia.  These companies have not only developed a culture that supports their business but they have fully embraced their culture.

Organizational culture is the collective behavior of the people who are part of the organization and has important effects on the morale and motivation of the organizational members.  It includes the values, norms, systems, beliefs, attitudes, and habits of the organization which impacts the interactions of the employees with each other, and with customers.  Even before you define it, you know it is there and that it has an impact on your business. This is why it is so important to internalize the culture and understanding when company activities are in sync or not in sync with the culture.

Once the company values and desired culture are defined, compensation can support and help drive the values and corporate culture.  The role of compensation in an organization and the compensation strategy need to be well-defined.  For example, where does the organization want to set pay levels in comparison to the competitive market?  Perhaps the organization’s culture is strong in training and developing its employees, acknowledging their successes and offering advancement opportunities. This, in turn, may allow the organization to set lower pay levels than what is paid in the market.  Of course, when recruiting it is important to align the compensation strategy to support the values of the culture through highlighting performance management, performance appraisals, and the goal-setting process for each team member.

Once values, business objectives, and desired behaviors are determined then compensation plans can be put in place to support the culture.  For example, if the business objective is innovation and the desired behavior is risk-taking, then short term incentives may be the compensation strategy.  If the goal is for a highly trained workforce and the behavior is learning and upgrading skills, then skill or competency-based pay may be the compensation strategy.

Corporate culture is about people’s behaviors – how goals are accomplished – so to establish a culture that drives company success, organizations should link a significant component of their compensation systems to behaviors.

At WageWatch our compensation consultants can assist with your organization’s compensation needs and help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online .

 

 

2019 U.S. HOTEL CORPORATE EXECUTIVE COMPENSATION SURVEY–NOW AVAILABLE

Execs

WageWatch conducted a National 2019 U.S. Hotel Corporate Executive Compensation Survey.  Participants invited to participate in the survey included WageWatch U.S. Hotel Survey Customers as well as other U.S. Hotel Companies.

The final report is NOW AVAILABLE for purchase.  The price of the report is $1,000, with a 50% discount to WageWatch Survey Customers.  Survey respondents received a complimentary copy of the report in exchange for their participation.

The report is designed to provide you with current and credible compensation information for Senior-Level Executives.  It is a useful tool that provides valuable information when making investment decisions tied to attracting and retaining high-performing executives.  The survey report includes Hotel C-Suite, top Executive positions in all disciplines, and Regional Executive positions.  All compensation elements were included in the survey i.e., base pay, incentives, stock, medical, and retirement benefits.  Participant and proxy data included in the report is based on a total of 31 U.S. Hotel Companies.

The data in the report complies with DOJ anti-trust regulations.  Compliance includes the information being aggregated to protect the identity of the underlying sources, and sufficient sources are aggregated to prevent competitors from linking specific data to an individual source.

WageWatch appreciates the opportunity to serve its customers across multiple industries including hospitality, gaming/tribal gaming, healthcare, golf course/country club, and higher education.  Since 2001, our customers rely on WageWatch to provide them with consistent, reliable, and up-to-date compensation survey statistics for their industry on a local, regional, and national level.

To receive a copy of the report, contact us by phone:  888-330-9243, or by email:  custserv@wagewatch.com.

GET MORE OUT OF YOUR TURNOVER METRIC

Turnover

Most HR departments miss an opportunity when it comes to measuring and reporting turnover.  The goal of any HR metric is to provide information on how to improve the measured item.  As Peter Drucker said, “what gets measured gets done.”  Reporting turnover as simply a percentage of the workforce can be made more meaningful and more useful by diving down into the detail and adding data and information that quantifies the cost and provides insight on root causes and how to make improvements.  Some examples of this are:

  • Along with your company’s turnover rate, add the turnover rate of competitors, giving a baseline or something to compare against
  • Add the percentage of turnover that was top performers or top salespeople, the percent of turnover in each department and for each manager, the percent in high impact jobs and hard to fill jobs
  • Add the percentage of turnover in the first year of employment, which can be linked to possible employee dissatisfaction
  • Add how long it takes to fill positions, the recruitment cost of filling the positions, and how long before they are up to the minimum productivity level
  • Add exit interview information such as how many went to work for competitors and which competitors. Exit interviews may also indicate whether turnover was preventable, which may, in turn, provide managers with information needed for improvement
  • Add the dollar impact of lost sales where applicable, i.e., sales turnover, which can be directly linked to revenue and economic impact on the company

The involuntary turnover metric is also important.  It can indicate that the company is keeping low performers which can also be costly.  With this additional information, conclusions are now more easily drawn and the cost of turnover is more tangible (i.e., the cost of losing individuals in key positions is likely higher than losing individuals in low-impact positions).  If losing hard to fill jobs, the job market may be tight and replacing these employees could be expensive.   Losing individuals with strong reputations within the industry can impact stock analysts’ assessments of your firm.  It can also send negative signals throughout your firm and the industry, which can, in turn, lead to more turnover.

Some additional information that can be helpful when included with the turnover report, include:

  • Leading causes of preventable turnover
  • Satisfaction or frustration levels of those who left which could impact the company’s external image
  • Lowest turnover rates within the firm which can provide a target for managers to aim
  • The likelihood that the person that left will take others with them

Today’s world moves fast, and as an employer, you should constantly be monitoring and adjusting your business operations to meet the ever-changing wants and needs of your employees.  At WageWatch, we offer accurate, up-to-date salary survey reports and pay practice reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including market compensation data, benefits survey data and salary reports, please call WageWatch at 888-330-9243 or contact us online.

OREGON—8th STATE TO PASS FAMILY/MEDICAL LEAVE

Family Med Leave

Oregon officially became the most inclusive law in the country, with respect to paid family and medical leave, when Governor Katy Brown signed the bill into law last week (July 1, 2019).

  • The law covers 12 weeks annually, to new parents, victims of domestic violence, and people who need to take care of an ill family member or themselves; an extra two weeks is given for those giving birth (New Jersey is the only other state which includes domestic violence victims in paid leave legislation)
  • Family is defined to include “any individual related by blood or affinity whose close association with a covered individual is the equivalent of a family relationship”
  • Oregon will be the first to pay low-income works 100% of their wages when they’re off, with weekly benefits capped at around $1,215 (you must earn at least $1,000 in wages a year to qualify)
  • The law will be funded through a payroll tax (not to exceed 1% of employee wages)
  • Employees pay 60% of the total rate and employers will cover the remaining 40%
  • Employers with less than 25 employees will not pay into the program
  • The program will start taking contributions in 2022, and people will be able to start using it in 2023
  • Research suggests paid family and medical leave improves participation rates for new mothers in the labor force, with corresponding benefits in pay equality, infant and child health, and lowers poverty rate
  • The program will take a few years to get started because it’s a new social insurance program, just like unemployment insurance or workers compensation.

The additional states that have adopted a paid family and medical leave policy include the following (along with the effective date):

    • California (2004)
    • New Jersey (2009)
    • Rhode Island (2014)
    • New York (2018)
    • District of Columbia (2020)
    • Washington (2020)
    • Massachusetts (2021)
    • Connecticut (2022)

Paid leave is on the national legislative agenda with new momentum.  This new law in Oregon represents the eighth state, along with the District of Columbia, to adopt a paid family and medical leave policy.  Full wage compensation for American workers in poverty will likely motivate more employees to take advantage of paid leave benefits.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives and that your pay practices are fair, equitable and non-discriminatory.  We can provide your business with compensation surveys and salary reports to help you establish a budget for your merit pay program, including bonuses and incentives.  Our innovative company is a leader in the collection of data for surveys and salary reports, which allows us to provide services to a wide range of industries in both the private and public sector.  To learn more about our compensation surveys, salary reports, and other services.  Please call 480-237-6130 or contact us online.

HUMAN RESOURCES: THE GATEKEEPER FOR COMPANY ETHICS

Gatekeeper - HR

Business ethics are important to every business and are often a component of a company’s core values.  However, that doesn’t mean that the organization is ethical.  To build an ethical organization, leadership must establish, and model the company’s core values.  Ethics must be woven into the fabric of the organization, fully supported by leadership and integrated into the company’s philosophies, values, policies, procedures, and practices.  HR departments represent employees, their concerns, and deal with fairness issues.  HR’s role in ethics management should be central to ensure real benefits for the organization and the employees.  Human resources deal with a variety of ethical challenges that if not handled properly can damage a company’s reputation, lead to serious legal issues, and lead to a potentially high-cost impact on an organization.  For example, discrimination issues, sexual harassment, and unfair employment policies that can damage a company’s reputation as well as lead to a severe financial impact.

However, HR departments should not be expected to manage ethics initiatives on their own.  For ethical behavior to become part of an organization, there needs to be a collaborative effort that also includes Legal, Audit, the top management team, and the board of directors.  HR should have a primary role in the development and integration of ethics programs into key organizational activities, such as the design of performance appraisal systems, management training, and disciplinary processes.

The first step to include ethics in company policy and strategies is to put ethics on the agenda, make it part of the conversation.  This can begin the process of ethics to become part of the organization’s culture, business plan, and goals.  HR professionals can help leadership define ethics for the organization.  For example, what are the specific types of ethical issues that impact your organization, your competitors, and your industry?  This process of defining what ethics means to your organization can help determine safeguards that can be included in policies and processes such as recruiting, onboarding, and leadership training.  Ensure ethics policies are in place for issues such as discrimination, sexual harassment. and employee fair treatment.  Establish and communicate expectations for your employees to ensure each employee understands their role.  Communications surrounding ethics and other core values should be on-going.  HR professionals are in leadership roles and employees look to leadership to guide their own behavior.  Organization leaders need to set the example by engaging in legal and moral behaviors, and by showing their respect for the employees and for the organization.  It is critical to creating a supportive environment of trust and transparency.  Employees need to see fair treatment across all levels and need to trust in order to come forward regarding ethical concerns.  Ethics panels can be created for the review of issues and violations.

Treating employees ethically can bring tremendous benefits to an organization.  It can earn long-term employee trust and loyalty.  Loyal employees gain more experience, and master processes, and become more vital to the success of the organization.  Loyal employees are happier employees and can also translate into increased productivity and efficiency as well as minimize recruiting and training costs.  Putting a Code of Ethics in place and encouraging leaders to model desired behaviors are important first steps toward creating an ethical organization.  Holding ethics high as a core company value is key to a company’s success and longevity.

Having the appropriate employee fairness policies and processes in place is critical to maintaining an ethical organization.   But it is equally important that these policies and processes are supported by fair and competitive compensation practices.  For the good of your employees, it is helpful to analyze benefits survey data, compensation surveys, and salary reports.  Having this information at hand allows you to plan a budget, including competitive employee salaries and benefits, which will help you to hire and retain a happy, talented team.  At WageWatch, our expert evaluators provide businesses in a large range of industries with accurate and beneficial benefits survey data, compensation surveys, and salary reports to ensure that payment and benefits plans are on par with those in the industry.  For more information on market compensation data, please call WageWatch at 888-330-9243 or contact us online.

 

PAY EQUITY ANALYSIS

Pay Equitu

To manage the risk of pay discrimination, organizations should conduct periodic pay equity analysis.  The goal of a pay equity study or analysis is to identify problems and ensure compensation practices are fair and equitable.  The study should look for trends that identify the disparate impact on wage rates.  Data elements to include in the analysis are hire dates, hire rates, performance rating, merit increases, age, ethnicity, gender, and promotion dates and increases.  Group the data in job classifications and departments by the hierarchy as well as grouping comparable jobs across departments.  Sort the data by the various data elements to see what emerges.  This analysis can identify wage inequities as well as explain some of the differences in pay among comparable employees.  A thorough analysis is important for managing the risk associated with pay discrimination claims.

Differences in knowledge, skill, ability, effort or responsibility provide a legitimate basis for differences in pay among employees doing the same work. However, these factors can be difficult to validate or prove, and therefore you will need to rely on the data that is readily available including:

  • Job title or grade
  • Time in current job or grade
  • Job duties including the degree of responsibility
  • Job status (Full or part-time, exempt or non-exempt, etc.)
  • The location where the employee lives and works
  • Company service time
  • Education
  • Prior experience
  • The market value of a job
  • Performance Review documenting effort in terms of quantity and quality of work

Pay equity issues can occur over time as a result of flaws in a compensation process including:

  • Insufficient training of Managers regarding performance, merit and other increases
  • Inefficient and inconsistent merit pay processes
  • Decisions being made in “silos” and without consistent checks such as HR/Compensation approval
  • Making decisions without market or internal data for guidance
  • Reactive hiring decisions relative to “hot” jobs
  • Poorly maintained salary structures that have not kept step with the market
  • Failure to reclassify jobs as changes in responsibility occur

A pay equity study will involve the input an experienced compensation analyst and/or specialist as well as HR information systems and may involve appropriate legal counsel.  Once pay inequities are discovered, HR will need to determine a timeline and the funding for the pay equity adjustments.

In 2009, President Obama signed into law, the Lilly Ledbetter Fair Pay Act which increased organizations’ exposure to pay discrimination claims by overturning a rule that workers must sue for pay discrimination within 180 days after the original pay decision was made.  As a result of the Act, each paycheck now resets the clock and employees can file lawsuits for perceived discriminatory pay decisions even if the pay decision occurred years earlier.  So, it is more important than ever for employers to carefully document all pay decisions and stay on top of pay equity in their organizations.

In 20016, the Obama administration announced executive action which requires companies with 100 employees or more to report to the federal government how much they pay their employees broken down by race, gender, and ethnicity.  It is hoped that this transparency will help to root out discrimination and reduce the gender pay gap.

On March 27, 2019, the U.S. House of Representatives voted to pass the Paycheck Act, an act designed to amend and strengthen the existing federal Equal Pay Act.  The Act further provides that the “bona fide factor” justifying gender-based pay disparities would only apply where “the employer demonstrates that such factor is: 1) not based upon or derived from a sex-based differential in compensation, 2) is job-related with respect to the position in question, 3) is consistent with business necessity; and 4) accounts for the entire differential in compensation of issue.”  The Paycheck Fairness Act has been moved to the Senate for consideration and voting.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives and that your pay practices are fair, equitable and non-discriminatory.  We can provide your business with compensation surveys and salary reports to help you establish a budget for your merit pay program, including bonuses and incentives.  Our innovative company is a leader in the collection of data for surveys and salary reports, which allows us to provide services to a wide range of industries in both the private and public sector.  To learn more about our compensation surveys, salary reports, and other services.  Please call 480-237-6130 or contact us online.

TO CHECK OR NOT TO CHECK: A BACKGROUND CHECK PRIMER

Background CheckThere are many types of background checks available to HR professionals that can be conducted in-house or externally by vendors who specialize in employment screenings.  HR professionals should take a strategic view of onboarding as a process.  By doing so, several layers of checks and screenings are implemented to best reduce new hire risks.  It is the old adage that the result is more than the sum of its parts.

New hire selection process starts with the job advertisement or announcement.  The announcement needs to be designed to attract specific skills and behaviors while discouraging those without the requisite skills.  Posting in the advertisement that the position requires a drug test or criminal background check is a potent deterrent.  Those still interested should be directed to a job application that captures information that will form the groundwork for the pre-employment screenings in the next recruitment phase.

The EEOC enforces Title VII of the Civil Rights Act; Age Discrimination Act; Title I of the Americans with Disabilities Act; Equal Pay Act; and Title II of the Genetic Information Act.  Employers are welcome to use all manner of pre-employment screenings if they comply with EEOC standards.  None of these Acts directly prohibit employment discrimination based on credit information, conviction records, previous employment, education, or psychological/behavioral profiles.  However, the EEOC has a published a Compliance Manual and provides guidance on a number of pre-employment scenarios, because of the disparate impact facially neutral policies can have on these numerous protected classes.

This is the tightrope that causes many HR professionals to gloss over background checks out of fear of inadvertently triggering an EEOC investigation.  What you don’t know, can hurt you.  HR has a duty to the company to traverse this tightrope and understand the often gray and contradictory playing field (between state and federal guidelines) in which they conduct pre-employment screenings.

Criminal Background Checks – Treat each criminal record individually in the context of the job sought, work environment and conditions, and risk to the organization.  Ask the candidate about the situation. Deliberate omission and lies can be used a basis to disqualify the candidate.

Credit Check – Most commonly used for positions that have are executive level, have financial responsibility, or have access to confidential information such as social security numbers to reduce the risk of theft or embezzlement.  Allow candidates the opportunity to explain negative results as some reasons, such as medical bills, are protected.

Physical/Medical Exam – This screening is allowed only after a conditional offer of employment is extended and is used in specific jobs that require a proof of fitness in order to safely perform duties.  All candidates in the job category are required to have the same medical examination.  The candidate medical history is confidential and must be kept separate from employment records.  HR professionals need to keep in mind that the medical examiner does not make the final hiring decision.

Motor Vehicle Record – This is a critical check for positions that are required to operate a company vehicle as part of the job requirement.  In some states, DUI convictions are kept with the DMV not the criminal court system.  There are vendors that make multi-state verification easier by consolidating searches.

Work & Education History – Past performance is a strong indicator of future performance.  The goal of the work history and education background check is to establish that the glowing resume represented to the recruiter is factual and accurate.  On education, check with the governing body on the authenticity of the degree.  We recommend asking for full transcripts for recent graduates with a short work history.

As a company, it is important for you to understand the new regulations set forth by the EEOC and implement them in your hiring and workplace practices.  Additionally, for the good of your employees, it is helpful to analyze benefits survey data, compensation surveys, and salary reports.  Having this information at hand allows you to plan a budget, including competitive employee salaries and benefits, which will help you to hire and retain a happy, talented team.

At WageWatch, our expert evaluators provide businesses in a large range of industries with accurate and beneficial benefits survey data, compensation surveys, and salary reports to ensure that payment and benefits plans are on par with those in the industry.  For more information on market compensation data, please call WageWatch at 888-330-9243 or contact us online.

EFFECTIVE JOB DESCRIPTIONS

Job Describe

Job descriptions describe the major duties and responsibilities of a position or job and are an essential part of hiring and managing employees.  They are tools to help your applicants and employees understand their roles and accountabilities.  They can be used to establish a training checklist for new incumbents, as guideposts in the performance appraisal process, and as market benchmarks for compensation surveys.  Job descriptions are not required by law however, they can provide evidence of the essential functions of a job for purposes of complying with federal employment laws.  They can also be used for disability and worker’s compensation claims.  It’s good practice to get legal advice to ensure that your job descriptions are compliant.  Below are some of the legal requirements to keep in mind while writing your job descriptions.

  • Fair Labor Standards Act (FLSA):  Exempt or Non-exempt classification should be included in all job descriptions.
  • Occupational Safety and Health Act (OSHA) and the Americans with Disabilities Act (ADA):  Working conditions and any required physical activity should be noted in all job descriptions.
  • Equal Employment Opportunity Commission (EEOC):   Include, “we are an equal opportunity employer” in all job descriptions.
  • Age Discrimination in Employment Act (ADEA):  Job descriptions should not indicate age preference.

The first steps in writing job descriptions are the data collection and job analysis processes which begins with questionnaires and/or interviews with both the supervisors and current employee incumbents to gather and determine the key facts about the job.  You will need to collect information that will later be summarized in your job description template.  Generally, the data  will include Job Title, Immediate Supervisor, Department, Pay Grade, Working Hours, and Travel Requirements, FLSA Status, Mission/Summary, Essential and Non-Essential Tasks and Responsibilities, Supervisory Responsibility, Job Requirements (education, skills and experience required for the job), Working Conditions, Physical Demands, Equipment Usage, and Disclaimer for Management Ability to Modify.

A job description should be practical and summarize the key elements of a job in a clear, concise manner.  Be specific and avoid using subjective adverbs or adjectives such as “frequently,” “some,” “occasional,” and “several.”  It’s important to build flexibility into a job description and ensure that it is dynamic and functional.  Flexible job descriptions will allow your employees to evolve within their positions as processes, technology, and organizational changes occur.  A well-written job description will require an investment of time and effort to accurately reflect your organization and unique jobs.

The duties list should contain each essential job duty or responsibility that is critical to the successful performance of the job.   The list should be prioritized with the most important listed first down to the least significant.  Do not include tasks that comprise less than 5 percent of the overall time.  Each Essential and Non-Essential Duty should be assigned a percentage of time and all duties together should total 100 percent.  Each duty should be described in one to three sentences; the first sentence should begin with an action verb.  Generally, there are one or two non-essential duties that total five to ten percent of the total time and are duties such as “Assist in special projects as required” or “Any other task assigned by the supervisor.”   This provides flexibility to change duties over time and captures occasional and unforeseen needs that arise.

At WageWatch our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online .