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EFFECTIVE NEW HIRE ORIENTATION

New Hires

An employee’s experience during their first few days will affect the rest of their tenure.  It is critical, to begin with an effective, positive, and fun new hire orientation for the future success of your new employees.  Even before the employee’s hire date, you can make a positive impact with a call to the employee two or three days before their start date, welcoming them, letting them know what time to arrive, and what they can expect during their first day and first week on the job.  Studies show that a well-planned orientation can contribute to the length of employment, better work attitudes, more effective communication, and fewer mistakes.  Your new hire orientation is your chance to set a positive tone for a long-lasting and mutually beneficial relationship.

A new hire’s early experience is highly influenced by his peers, managers, subordinates, HR team members, and the organization’s top management.  Ensure that new hires are welcomed by their team members.  Plan a welcome breakfast meet and greet for their first morning on the job.  The new hire’s immediate supervisor should schedule daily meetings with the new employee at least for the first week, then at least weekly for the first month or two.  Schedule informational meetings with key people in the department and in other departments to provide the new hire with the general knowledge that they will need to perform their job.  Include an office tour in the orientation process that includes introductions.  Be sure to include introductions to top Executives, Human Resource personnel as well as receptionists, administrative assistants, and copy/mail room attendants.

An effective orientation program will put emphasis on the new employee, their individuality and what they have to offer rather than focusing solely on the company’s culture and how the new employee can fit in.  You are probably hiring in part to get new ideas into the organization.  Make sure to capitalize on that.  Make your orientation meetings fun and be sure to provide a meal or at least snacks.  Keep it interesting and not too long.  Too much information will be boring and will not be retained.  Orientation should reflect culture through interactive activities.  One way to make it memorable is to present the company’s goals, mission, and values in an activity form rather than simply providing the information.  Allow the new hires to get to know each other on a personal basis, not just professional – go around the room and have them tell one professional and one personal thing about themselves.  You can also turn this into a game by writing one thing about each person on a piece of paper.  In the end, state items one at a time, out of order, and have people guess who said what.

Promote communication with a team-building activity such as learning the employee handbook through a scavenger hunt.  For example, divide the orientation group into teams and see which team can answer the most handbook questions in a set amount of time.  Cover company ethics to let them know what is expected, and also include ‘unwritten rules’.  Don’t end there!  After orientation, schedule follow-up meetings with each new hire to elicit their feedback and answer any follow-up questions they may have.

Don’t forget the basics.  Provide them with all the office supplies they will need to start their job, include contact information they will need.  And let them know how to get additional office supplies.  Teach them how to use the phone, how to forward calls, set up and change voice mail, and how to do a conference call.

Today, many companies are adding programs such as flex-time, telecommuting as well as accommodating and encouraging alternative work styles in an effort to provide a work environment where employees are happier and thriving.  Therefore don’t neglect or underestimate how impactful beginnings are, and provide your new hires with an orientation program that is effective and unique to your company and its culture.

Implementing the above suggestions will help your company to build a culture that encourages the retention of employees, which in turn will attract top talent.  In addition to providing a great work environment that respects employees and provides opportunities for learning and growth, it is also important that they receive a solid compensation and benefits package.  At WageWatch we offer 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.

DOCKING EXEMPT EMPLOYEE PAY

The application and rules for the federal FLSA salary basis test are often misunderstood and not administered accurately or consistently.

First, let’s understand what the term “salary basis” means.  An exempt employee that regularly receives a predetermined amount of base salary each workweek is paid on a “salary basis”.  This applies to employees who are determined to be exempt under the federal FLSA exemption tests including both the minimum salary test and qualifying under one of the duties tests (i.e., administrative, executive, professional, outside sales, etc.).  The minimum weekly salary that must be paid to ‘exempt’ employees under the federal rules is $455.  Please refer to your federal and state wage and hour for exceptions to the salary requirements.  In 2018 many states increased the minimum wage and, at the same time increased the minimum weekly salary of ‘exempt’ employees.  The salary basis pay requirement for exempt status does not apply to some jobs (for example, doctors, lawyers, and schoolteachers are exempt even if the employees are paid hourly).

Now let’s talk about the Salary Basis Test.  An employee’s ‘exempt’ status can be jeopardized if the salary basis test rules are not followed.  The Salary Basis test provides rules regarding what pay deductions can and cannot be made to exempt employees’ weekly base salary.  Generally, the predetermined weekly salary cannot be reduced because of variations in the quality or quantity of the employee’s work.  Except for a few permissible deductions, an exempt employee must receive the full base salary for any workweek in which the employee performs any work, regardless of the number of days or hours worked.  This includes any work done remotely such as checking email and voicemail.  An employer cannot make deductions from an employee’s predetermined base salary, because of a business slowdown or lack of available work.

The FLSA salary basis test applies only to reductions in monetary amounts.  Requiring an employee to charge absences from work to leave accruals is not a reduction in “pay,” because the monetary amount of the employee’s paycheck remains the same.

Full Day deductions from pay are permissible when an exempt employee:

  • Is absent from work for one or more full days for personal reasons other than sickness or disability
  • For absences of one or more full days due to sickness or disability, if the deduction is made in accordance with a bona fide sick leave or PTO plan, policy or practice of providing compensation for salary lost due to illness
  • To offset amounts employees receive as jury or witness fees, or for military pay
  • For a partial week worked during the initial or terminal week of employment
  • For weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act,
  • Deductions in pay are also permitted for intermittent FMLA leave when the weekly base salary is reduced to coincide exactly with the reduced workweek
  • When an exempt performs no work for a full workweek.

For the following two permissible deductions, you should have communicated formal policy(s) detailing disciplinary procedures:

  • For penalties imposed in good faith for infractions of safety rules of major significance
  • For unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions

It is important that as an employer, you have a clearly communicated policy permitting or prohibiting improper deductions from exempt employees’ base salary including a complaint mechanism and reimbursement to employees when improper deductions are made.  You should also have a clearly communicated policy for your exempt employees stating that under no circumstances should work be performed during unpaid time off.   The exempt status of your employees will be safe as long as you have clearly communicated policies in place, make good faith efforts to comply with the salary basis test and can show that willful violations have not been made.  For full details regarding federal FLSA, visit http://www.wagehour.dol.gov and links to your state labor department can be found at http://www.dol.gov/whd/contacts/state_of.htm.

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. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data 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.

EFFECTIVE NEW HIRE ORIENTATION

An employee’s experience during their first few days will affect the rest of their tenure. It is critical, to begin with, an effective, positive, and fun new hire orientation for the future success of your new employees.  Even before the employee’s hire date, you can make a positive impact with a call to the employee two or three days before their start date, welcoming them, letting them know what time to arrive, and what they can expect during their first day and first week on the job.  Studies show that a well-planned orientation can contribute to the length of employment, better work attitudes, more effective communication, and fewer mistakes.  Your new hire orientation is your chance to set a positive tone for a long-lasting and mutually beneficial relationship.

A new hire’s early experience is highly influenced by his peers, managers, subordinates, HR team members, and the organization’s top management.  Ensure that new hires are welcomed by their team members.  Plan a welcome breakfast meet and greet for their first morning on the job.  The new hire’s immediate supervisor should schedule daily meetings with the new employee at least for the first week, then at least weekly for the first month or two.  Schedule informational meetings with key people in the department and in other departments to provide the new hire with the general knowledge that they will need to perform their job.  Include an office tour in the orientation process that includes introductions.  Be sure to include introductions to top Executives, Human Resource personnel as well as receptionists, administrative assistants, and copy/mail room attendants.

An effective orientation program will put emphasis on the new employee, their individuality and what they have to offer rather than focusing solely on the company’s culture and how the new employee can fit in.  You are probably hiring in part to get new ideas into the organization.  Make sure to capitalize on that.  Make your orientation meetings fun and be sure to provide a meal or at least snacks.  Keep it interesting and not too long.  Too much information will be boring and will not be retained.  Orientation should reflect culture through interactive activities.  One way to make it memorable is to present the company’s goals, mission, and values in an activity-based form rather than simply providing the information.  Allow the new hires to get to know each other on a personal basis, not just professional – go around the room and have them tell one professional and one personal thing about themselves.  You can also turn this into a game by writing one thing about each person on a piece of paper.  At the end of the game, state items one at a time, out of order, and have people guess who said what.

Promote communication with a team building activity such as learning the employee handbook through a scavenger hunt.  For example, divide the orientation group into teams and see which team can answer the most handbook questions in a set amount of time.  Cover company ethics to let them know what is expected, and also include ‘unwritten rules’.  Don’t end there!  After orientation, schedule follow-up meetings with each new hire to elicit their feedback and answer any follow-up questions they may have.

Don’t forget the basics.  Provide them with all the office supplies they will need to start their job, include contact information they will need.  And let them know how to get additional office supplies.  Teach them how to use the phone, how to forward calls, set up and change voicemail, and how to do a conference call.

Today, many companies are adding programs such as flex-time, telecommuting as well as accommodating and encouraging alternative work styles in an effort to provide a work environment where employees are happier and thriving.  Therefore don’t neglect or underestimate how impactful beginnings are, and provide your new hires with an orientation program that is effective and unique to your company and its culture.

Implementing the above suggestions will help your company to build a culture that encourages retention of employees, which in turn will attract top talent.  In addition to providing a great work environment that respects employees and provides opportunities for learning and growth, it is also important that they receive a solid compensation and benefits package.  At WageWatch we offer 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.

FAMILY MEDICAL LEAVE ACT (FMLA) AND JOINT EMPLOYMENT

Joint employment exists when an employee is employed by two or more employers who both benefit from the employee’s work and are sufficiently related or associated with each other.  The analysis for determining joint employment under the FMLA is the same as under the FLSA.

Joint employment can exist when employers have the arrangement to share the employee’s services or when one employer acts in the interest of the other in relation to the employee.  Joint employment is based largely on the degree of association between the employers and how the employers may jointly control the employee.

Factors key to determine joint employment include:

  1. Do the employers have any overlapping management or share control over operations?
  2. Is supervisory authority over the employee shared and/or do they share clients or customers?

According to the Department of Labor’s fact sheet, employees who are jointly employed by two employers must be counted by both employers in determining employer coverage and employee eligibility under the FMLA, regardless of whether the employee is maintained on one or both of the employers’ payrolls.

When joint employment is determined, one employer will be deemed primary and one will be secondary.  The employee’s worksite which the employee is assigned and reports to is the primary employer.  However, if the employee has physically worked for at least one year at a facility of a secondary employer, the employee’s worksite is that location.

Under the FMLA, the primary employer is responsible for following and administering the FMLA for the employee including 1) providing required notices, 2) providing FMLA leave, 3) maintaining group health insurance benefits during the leave, 4) restoring the employee to the same job or an equivalent job upon return from leave, and 5) keeping all records required by the FMLA with respect to primary employees.

The secondary employer, whether an FMLA-covered employer or not, is prohibited from interfering with a jointly employed employee’s exercise of or attempt to exercise his or her FMLA rights or from firing or discriminating against an employee for opposing a practice that is unlawful under the FMLA.  The secondary employer is responsible in certain circumstances for restoring the employee to the same or an equivalent job upon return from FMLA leave and they must keep basic payroll and identify employee data.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark  Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey. With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals. For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.

 

INCENTIVE PLAN ESSENTIALS

Well-designed and well-implemented incentive plans can be an important tool for overall company success, but they also have the potential to be ineffective and even damaging if not carefully thought out.  Poorly designed incentives can have too much discretion, too much complexity or just too many measures that can undermine their power and advantage, and they can become just another way to distribute pay.

Before you even consider incentives, make sure you know the company’s strategy and the critical measurements of success.  You will need to know the specifics regarding what you want to achieve, what kinds of improvements, behaviors and outcomes do you want; why aren’t these improvements happening now and what’s preventing them from taking place; what obstacles to the outcomes will employees face, how will employees respond to and try to overcome these obstacles, and is this what you want; Do employees have the skills, experience, systems and support they need to overcome these obstacles and if not, what is lacking?

The potential incentive must be big enough to get the employees’ attention.  Incentives can create a focus on results, but you have to first get the employee’s attention.  Because the opportunity for financial rewards motivates some more than others, your incentive plan will have a greater chance of success if you carefully define what the size of the opportunity must be in order to get the majority of your employees’ focus.

The performance or results required to earn the incentive must be within the employees’ control or significant influence and should be perceived as achievable with some extra effort or stretch.  It should be easy to see and understand the relationship between one’s effort, the results of that effort and the reward.   The incented performance needs to be perceived as a desirable, stretch goal to get and keep the employee’s attention. The payout must be worth the effort required to “stretch.”  The actual payout after the final measurement is made needs to justify the attempt that was made to achieve the full objective.

Develop robust tools for performance reporting so that the employee participants always know where they stand in relation to their goals and payouts.  The payout should be forecast as the performance period proceeds in order to keep the employees’ focus on the desired outcome.   Too much subjectivity in the measurements will turn a Plan into a surprise bonus.   The sources of the measurements should be available to every participant on a regular basis and calculations for determining payouts must be simple and easy to understand.

Incentive plans will also be more valued and accepted by employees when they are a compliment to an already competitive base salary plan.  Incentive plans are not meant to remedy non-competitive pay issues.  Finally, critical factors for a plans success lie in keeping it simple and ensuring good plan communications.

Incentive plans, or any other reward vehicles, cannot drive the performance-improvement bus alone. Unless you identify and remove the barriers to performance, and create the setting in which performance improvement is possible and even likely, throwing incentive money at the problem will likely have little positive impact and could produce some very real negative consequences.

WageWatch offers accurate, up-to-date HR metrics, 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. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  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.   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.

WHY ORGANIZATIONS ARE FINDING VALUE IN EMOTIONAL INTELLIGENCE (EI)

Emotional Intelligence (EI) is about being able to control your own emotions and the emotions of others.  Having emotional intelligence means being emotionally aware, able to identify, harness and apply those emotions to tasks like thinking and problem solving. Emotionally intelligent people will also have the ability to manage their own emotions and the emotions of others.  For example, having the ability to cheer someone up or calm someone down.

Emotional Intelligence impacts one’s attitude and outlook on life.  It can lesson mood swings, depression and ease anxiety.  People with high EI are better at conflict resolution and can be better negotiators as they are better able to understand the desires and needs of other people.  Relating to others in a positive way, understanding their motivations and building strong, sold bonds with co-workers ultimately allows those with higher emotional intelligence to be stronger leaders.

In today’s workplace, it is important to have open communication, team work, and a mutual respect among employees and their supervisors.  Employees do not check their emotions at the door when they come to work.  Interactions with people in the workplace will involve emotions.  Managers who possess emotional intelligence can better understand and motivate the employees that they supervise.  Employees with higher emotional intelligence can overcome minor indifferences and focus on what needs to be achieved for the greater good of the team.

Human Resources can help create a more emotionally intelligent workforce by hiring employees who exhibit a high EI, by evaluating employees using EI criteria, integrate EI into performance management systems and offer training to improve emotional competence.  During the interview process, employers can look for certain traits such as:  People Skills, Self-Awareness, Empathy, Self-Management, and Motivation.

Emotionally aware staff can assimilate into the workplace with greater ease than those who are simply competent at their job.  Emotional Intelligence can strengthen organizational culture, increase resiliency and flexibility, ultimately leading to a greater competitive advantage in the market.  An emotionally intelligent organization where employees share strong connections and are able to work more effectively with each other should result in greater productivity.

Managers and business owners can’t let themselves lose sight of the fact that their employees are people, with real lives and emotions that impact how they think, feel, and act. Managers with emotional intelligence understand that their staff members are people first and workers second.  Incorporating emotional intelligence into your personal and organizational management philosophy may be the best way to retain key employees and help with overall organizational success.

WageWatch offers accurate, up-to-date HR metrics, 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. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  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.   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.

INCENTIVE PLAN ESSENTIALS

Well-designed and well-implemented incentive plans can be an important tool for overall company success, but they also have the potential to be ineffective and even damaging if not carefully thought out.  Poorly designed incentives can have too much discretion, too much complexity or just too many measures that can undermine their power and advantage, and they can become just another way to distribute pay.

Before you even consider incentives, make sure you know the company’s strategy and the critical measurements of success.  You will need to know the specifics regarding what you want to achieve, what kinds of improvements, behaviors and outcomes do you want; why aren’t these improvements happening now and what’s preventing them from taking place; what obstacles to the outcomes will employees face, how will employees respond to and try to overcome these obstacles, and is this what you want; Do employees have the skills, experience, systems and support they need to overcome these obstacles and if not, what is lacking?

The potential incentive must be big enough to get the employees’ attention.  Incentives can create a focus on results, but you have to first get the employee’s attention.  Because the opportunity for financial rewards motivates some more than others, your incentive plan will have a greater chance of success if you carefully define what the size of the opportunity must be in order to get the majority of your employees’ focus.

The performance or results required to earn the incentive must be within the employees’ control or significant influence and should be perceived as achievable with some extra effort or stretch.  It should be easy to see and understand the relationship between one’s effort, the results of that effort and the reward.   The incented performance needs to be perceived as a desirable, stretch goal to get and keep the employee’s attention. The payout must be worth the effort required to “stretch.”  The actual payout after the final measurement is made needs to justify the attempt that was made to achieve the full objective.

Develop robust tools for performance reporting so that the employee participants always know where they stand in relation to their goals and payouts.  The payout should be forecast as the performance period proceeds in order to keep the employees’ focus on the desired outcome.   Too much subjectivity in the measurements will turn a Plan into a surprise bonus.   The sources of the measurements should be available to every participant on a regular basis and calculations for determining payouts must be simple and easy to understand.

Incentive plans will also be more valued and accepted by employees when they are a compliment to an already competitive base salary plan.  Incentive plans are not meant to remedy non-competitive pay issues.  Finally, critical factors for a plans success lie in keeping it simple and ensuring good plan communications.

Incentive plans, or any other reward vehicles, cannot drive the performance-improvement bus alone. Unless you identify and remove the barriers to performance, and create the setting in which performance improvement is possible and even likely, throwing incentive money at the problem will likely have little positive impact and could produce some very real negative consequences.

WageWatch offers accurate, up-to-date HR metrics, 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. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  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.   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.

Posted in Uncategorized on October 12th, 2016 · Comments Off on INCENTIVE PLAN ESSENTIALS

WHY ORGANIZATIONS ARE FINDING VALUE IN EMOTIONAL INTELLIGENCE (EI)

Emotional Intelligence (EI) is about being able to control your own emotions and the emotions of others.  Having emotional intelligence means being emotionally aware, able to identify, harness and apply those emotions to tasks like thinking and problem solving. Emotionally intelligent people will also have the ability to manage their own emotions and the emotions of others.  For example, having the ability to cheer someone up or calm someone down.

Emotional Intelligence impacts one’s attitude and outlook on life.  It can lesson mood swings, depression and ease anxiety.  People with high EI are better at conflict resolution and can be better negotiators as they are better able to understand the desires and needs of other people.  Relating to others in a positive way, understanding their motivations and building strong, sold bonds with co-workers ultimately allows those with higher emotional intelligence to be stronger leaders.

In today’s workplace, it is important to have open communication, team work, and a mutual respect among employees and their supervisors.  Employees do not check their emotions at the door when they come to work.  Interactions with people in the workplace will involve emotions.  Managers who possess emotional intelligence can better understand and motivate the employees that they supervise.  Employees with higher emotional intelligence can overcome minor indifferences and focus on what needs to be achieved for the greater good of the team.

Human Resources can help create a more emotionally intelligent workforce by hiring employees who exhibit a high EI, by evaluating employees using EI criteria, integrate EI into performance management systems and offer training to improve emotional competence.  During the interview process, employers can look for certain traits such as:  People Skills, Self-Awareness, Empathy, Self-Management, and Motivation.

Emotionally aware staff can assimilate into the workplace with greater ease than those who are simply competent at their job.  Emotional Intelligence can strengthen organizational culture, increase resiliency and flexibility, ultimately leading to a greater competitive advantage in the market.  An emotionally intelligent organization where employees share strong connections and are able to work more effectively with each other should result in greater productivity.

Managers and business owners can’t let themselves lose sight of the fact that their employees are people, with real lives and emotions that impact how they think, feel, and act. Managers with emotional intelligence understand that their staff members are people first and workers second.  Incorporating emotional intelligence into your personal and organizational management philosophy may be the best way to retain key employees and help with overall organizational success.

WageWatch offers accurate, up-to-date HR metrics, 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. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  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.   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.

Posted in Uncategorized on October 5th, 2016 · Comments Off on WHY ORGANIZATIONS ARE FINDING VALUE IN EMOTIONAL INTELLIGENCE (EI)

JOB ANALYSIS AND JOB EVALUATION PROCESSES

The Job Evaluation Process consists of a broad spectrum of activities which begins with the Job Analysis Process. Though two separate processes, Job Analysis data will be needed and used during the Job Evaluation process. Job Analysis is a comprehensive process while Job Evaluation is a comparative process. Job Analysis is done to develop a job description, while Job Evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Complete scrutiny of jobs and their roles in the organization is done in both processes.

An organization undertakes the task of job analysis and evaluation for one or many purposes such as designing new organizational roles and jobs, aligning roles and pay to organizational changes, managing succession in organization, reviewing existing pay structure, auditing legal compliance of pay policies or implementing benchmark pay structures.

During the Job Analysis process an in-depth examination is performed to gather information about every minute detail of a job. Information collected during the job analysis process will be used to write the job description.  You will need to collect data regarding the tasks performed by the job, the education and experience required, the working conditions, responsibilities and authorities, and the skills and abilities needed to perform the job. Job data can be collected using an open-ended questionnaire, checklist, or by interviewing incumbents and/or supervisors.

Job Evaluation is the process of determining the importance of a particular job in relation to the other jobs of the organization. Job Evaluation takes place early in the process of creating a salary structure for an organization. Job factors such as skill, effort and decision making authority are assigned a weight, or points, according to how much of that particular factor is present in the job. This determines the relative worth of jobs and their respective position or grade in the salary structure. Jobs with more worth are compensated more than jobs with lesser worth.  Ranking the jobs in order of worth after a thorough job evaluation creates a structure for the assignment of salary ranges.

Job Analysis and Job Evaluation are important to an organization to ensure a sound organizational structure, internal pay equity and external market competitiveness.  The data and analysis resulting from these two processes will be critical for other human resource processes such as recruitment and selection, training and development, performance appraisal, as well as various compensation processes.

WageWatch offers accurate, up-to-date HR metrics, 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. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  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.   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.

Posted in Uncategorized on September 27th, 2016 · Comments Off on JOB ANALYSIS AND JOB EVALUATION PROCESSES

HOW TO AVOID PERMANENT ACA HEADACHES WHEN WORKING WITH TEMPORARY EMPLOYEES

Guest Author, Alan Hahn, Davis & Gilbert LLP

Just about every employer has them in their workforce—employees who are not quite “regular” employees.  They can be called one of several names, including the following:

  • freelancers;
  • project-based employees;
  • on-call employees;
  • interns;
  • consultants;
  • seasonal; and (perhaps most common of all)
  • “temporary.”

Historically, employers used these labels to identify employees who were not eligible for benefits and other employment perks. This was oftentimes an acceptable practice as long as benefit plan documents were amended appropriately and certain other steps were taken. Now, however, with the advent of the Affordable Care Act (ACA), additional concerns may apply in respect of temporary employees, specifically where temporary employees may occasionally (or not so occasionally) work a full time schedule.  This article provides a quick run-down on why your temporary employees may give you a permanent ACA headache in 2016.*

The ACA employer mandate

As is well known by now, the Affordable Care Act (ACA) requires “large” employers to offer affordable health care coverage to full-time employees or be taxed. A large employer is generally one that has 50 or more full time employees (including full time equivalents). Employers between 50 and 99 full-time employees (including full time equivalents) generally have an extra year to comply with the ACA, although they must comply with the IRS “information reporting” requirements (new IRS Forms 1094 and 1095).

Under the ACA, affected employers will need to identify any employees who are full-time under the ACA (including temps) and report them to the Internal Revenue Service (IRS). Moreover, employees identified as full-time can trigger an ACA tax on the employer if medical benefits are not offered at the right time.

Who is a full-time employee?

Full-time generally means someone who is working at least 30 hours per week (130 hours of service in a month is generally treated as the monthly equivalent of at least 30 hours of service per week). The ACA does not have a “temporary employee” classification. Instead, the treatment of temps depends on how the employer complies with the ACA in respect of the rest of its workforce under one of the following two methods.

There are generally two methods for complying with the ACA:

  1. Monthly Measurement Method: Under the monthly measurement method, an employer looks at its workforce each month and determines who it must offer benefits to and for whom it must pay an ACA tax for not offering benefits.  It’s a clunky method for any employer that has temporary employees that might work full-time in some months but not others, since temporary workers tend to have hours that fluctuate or vary from month to month.  Thus, an employer may have an obligation to offer benefits or pay a tax in any month in which a temporary employee works full-time (or offer benefits all the time, after 90 days of employment, if the employer is concerned the temp may be full-time in any month). This method can be useful to some employers, but many employers seem to be using some form of a look-back method, at least so far.
  2. Look-back Method:  This method allows an employer to test its ongoing workforce in a prior period (e.g., 2015) to determine who is eligible for benefits in a subsequent period (e.g., 2016).  For new employees who are classified as full-time, benefits must be offered following hire (generally, a three month waiting period can be accommodated).  For new employees who can be classified as “variable hour” or “seasonal,” an employer can wait some period of time (generally, up to a year) and then see if the employee worked full-time hours during this “initial measurement period.”  Thus, under this method, it is possible that a temporary employee can be classified as variable or seasonal.  If they can be so classified, the temp would need to actually work full time over an initial measurement period to then become eligible for benefits thereafter.

Which employees are “variable”?

This question is where the rubber meets the road for many employers and their temps, as the determination is not so straight-forward in many instances.  The regulations define variable as, “[b]ased on the facts and circumstances at the employee’s start date, the employer cannot determine whether the employee is reasonably expected to be employed, on average, at least 30 hours of service per week during the initial measurement period because the employee’s hours are variable or otherwise uncertain.” This sounds like many temps, although this is not always the case.

Somewhat helpfully, the regulations provide factors to consider including:

  • Is the employee replacing a full-time employee?
  • Are employees in the same or comparable positions full-time?
  • Was the job advertised, or otherwise communicated to the new hire, or otherwise documented (for example, through a contract or job description), as requiring 30 (or more) hours of service per week?

In addition to dealing with the issue of temps paid on an employer’s payroll, many employers are grappling with their ACA obligations in respect of temps sourced and paid through third party staffing agencies. In that case, it may be unclear as to who is responsible for ACA compliance—the staffing agency or the client/employer. The answer under the regulations is that the entity that is the “common law” employer is responsible for ACA compliance with respect to that worker, even if someone else is paying them.  However, it is not always clear who that common-law employer is.

Checklist: evaluating ACA exposure when it comes to temps:

  • Identify your non-regular staff, including any staffing firms that pay your temporary workers
  • Consider if you should use the ACA monthly measurement method or look-back method
  • Examine your use of “variable” and “seasonal” labels
  • Consider amendments to employee offer letters to bolster your ACA approach
  • Evaluate client service agreements with staffing agencies (get a strong indemnity)
  • Review the new information reporting requirements (IRS Forms 1094 and 1095)
  • Respond to notices from the Exchange that may be coming in 2016
  • Work with legal counsel on an evaluation of your compliance approach in 2016
  • Amend plan documents, as appropriate

*The article is necessarily brief; therefore, important information on ACA compliance may be omitted or stated in summary fashion

Alan Hahn is a partner in the Benefits & Compensation Practice Group of Davis & Gilbert.  His practice is devoted to advising clients in the design and implementation of creative, unique and tax-effective employee benefit plans and programs.  For more information, Mr. Hahn may be reached at 212.468.4832 or ahahn@dglaw.com.

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Posted in Uncategorized on May 5th, 2016 · Comments Off on HOW TO AVOID PERMANENT ACA HEADACHES WHEN WORKING WITH TEMPORARY EMPLOYEES