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Inflexibility will only encourage sick employees to report to work when
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office.  Read entire Article: http://tinyurl.com/H1N1policy

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Loaded questions, firing Baby-Boomers, and banning hats in the office: How to protect against discrimination suits with a comprehensive EEO policy

FACT: There were nearly 100,000 claims filed with the Equal Employment Opportunity Commission (EEOC) in 2008. With recent increases in the number of out-of-work Americans, this figure is likely to rise in the coming years; meaning that no business—even yours—is fully immune to discrimination claims.More and more disgruntled employees are alleging discrimination in situations where they may have been passed up for another candidate, they were fired for poor performance, or they weren’t promoted as quickly as they thought they should be. To protect against claims like these, it’s necessary to have a solid, and consistently applied, policy on equal employment opportunities.

Consider these seemingly innocent actions taken by you and members of your staff:

• A manager asks an interviewee, “What year did you graduate high school?”
• To give the company a more professional feel, you issue a policy banning hats in the workplace
• You terminate a 60-year-old woman whose performance has been declining
• You tell several male employees that they “can bring their wives” to the company picnic

Intentions aside, if the employees in the above situations feel that the underlying reason for these or subsequent actions is not based solely on job-related and performance issues, they can claim discrimination based on age, religion, or family/marital status. You would then be left to prove to the court that your actions were not based on personal characteristics, but rather valid job-related circumstances.

Don’t become another statistic: Use the following 8 key considerations when drafting an anti-discrimination policy:

1. Define the purpose. The purpose of your anti-discrimination policy, which is to provide equal employment and advancement opportunities to all individuals, should be clearly defined from the start. As such, employment decisions must be based on merit, qualifications and abilities, without regard to an employee’s (or a potential employee’s) race, religion, sex, national origin, age, or disability.
2. Identify protected groups. Clearly define which groups are protected from discrimination, and keep in mind your state’s civil rights laws when doing so. For example, discrimination with regards to gender identity and sexual orientation is prohibited in certain states, but is not currently protected under federal law. Employers should check their state-specific requirements in order to ensure compliance with the law, provide for appropriate employee protections, and demonstrate the company’s commitment to non-discriminatory practices.
3. Provide examples. Provide examples of the types of employment decisions that are made without regard to one’s protected characteristics. These include decisions relating to selection, job assignment, compensation, discipline, termination, and access to benefits and training.
4. Identify a contact. Let employees know who they can seek out if they have questions or concerns about the company’s EEO practices. Employees with questions or concerns should be encouraged to bring these issues to the attention of their supervisor or the human resources department.
5. Include an anti-retaliation clause. Employees should know that they are protected from retaliation. As such, it’s important to clearly state that no employee will be discriminated against, or discharged, for bringing about a complaint of discrimination or for assisting in an investigation into discriminatory practices.
   

6. Describe the consequences. Clearly describe the consequences for engaging in discriminatory behavior. Anyone found to be engaging in unlawful discrimination should be subject to disciplinary action, up to and including termination of employment.
7. Communicate your policy. All employees should be aware of your company’s policy on discrimination. Hold staff meetings distribute memos, and post the policy in breakrooms so that the severity of the issue hits home. It’s important to not only communicate the policy to your staff, but to stand by it as well. Doing so will demonstrate that you value, and strive for, a discrimination-free workplace.
8. Follow company policy. Having an EEO policy in place is important for communicating the company’s commitment to preventing discrimination in the workplace. However, failing to follow it can leave you susceptible to legal claims. To limit liability you must follow your policy consistently and demonstrate that you exercised necessary care to prevent and correct discriminatory behavior.

By using caution and adhering to the above-mentioned considerations when drafting your anti-discrimination policy, you will be communicating to your employees that discrimination will not be tolerated and that you are committed to providing equal opportunities. And should a discrimination claim arise, employers that follow their policy consistently are demonstrating their due diligence in protecting against unfair employment practices.

A simple joke, a late night text, a post on a co-worker’s Facebook page: Defining what “crosses the line” with a policy on sexual harassment

Now that we’ve covered some employee handbook basics, including how to write and implement your policy manual, let’s get into the specifics: the considerations for writing those ever so critical policies. We’ll start with one of the most important policies in your employee handbook: a policy prohibiting sexual harassment.

Before the age of technology, sexual and other unlawful harassment in the workplace was a lot easier to identify: a quid-pro-quo proposition; an unwelcome lingering hug; sexually suggestive comments following a weekly staff meeting; a loud, obscene joke in the break room.

But times have changed, and so has the outlet for harassment. In today’s culture of ever-present communication technology, the opportunity for potentially harassing actions is there 24/7 at the click of a button. And even though many actions may take place outside of normal working hours, that doesn’t mean the employer is no longer responsible for addressing the situation.

Consider this:

• A male employee sends a text message to a female employee asking if she would like to have dinner with him.
• A female employee sends out a vulgar email; her co-workers laugh and no one says they find it offensive.
• A male employee attending an out-of-state conference makes a middle-of-the-night phone call to the hotel room of a female co-worker also attending the conference, asking if they can meet for a drink.
• A female employee leaves a message on her coworker’s Facebook wall about how nice she looked today, and includes a “wink” at the end of the note.

Would any of these behaviors constitute sexual harassment? A clear policy defining sexual harassment will help to answer these, and other related questions, as well as set the foundation for how to respond to potential harassment. It’s important to remember that even though the means by which harassment occurs may now be different, the process for handling the situation remains the same.

Preventing sexual harassment is best achieved by establishing a zero-tolerance policy that includes the following points:

1. Prohibit sexual harassment. The foundation of any sexual harassment policy should be prevention. Clearly indicate that actions, words, jokes, comments, or any other conduct related to one’s sex, race, ethnicity, age, religion, or any other legally protected characteristic will not be tolerated.As obvious as it may be, clear language prohibiting sexual harassment is important for demonstrating the severity of the issue and your company’s commitment to preventing inappropriate behavior.

2. Define sexual harassment. Some employees may think their jokes are harmless or that their actions don’t offend co-workers, but in reality their behavior is quite offensive. To combat ignorance and ensure all employees understand what constitutes sexual harassment, it’s important to clearly define it. So, what is it exactly? Sexual harassment involves: basing an employment decision upon an employee’s submission to unwelcome sexual advances; or creating an intimidating, hostile or offensive working environment through physical actions or by using vulgar, joking or demeaning language. It’s also important to note that conduct doesn’t need to occur between a male and a female for it to be considered sexual harassment; sexual harassment can occur between individuals of the same sex as well.
   

3. Provide examples. It’s important to be specific when defining what constitutes sexual harassment and to use examples whenever possible. Examples may include sending sexually explicit emails, telling offensive jokes, sending unwanted text messages, posting sexually explicit pictures, and making unwanted sexual advances. Be sure to indicate that the examples provided are only intended to demonstrate the types of actions that are prohibited and is not an exhaustive list.

4. Set standards for after-hours conduct. It’s also important to explicitly state that your policy not only applies to employee conduct during normal business hours, but it applies whenever employees are in contact with one another, such as at company parties, off-site conferences, or an impromptu happy hour get together. It also applies when an employee makes an unwanted phone call or sends a text message, email, or other communication on social networking sites like Facebook to a co-worker, whether during business hours or not.

5. Define management’s responsibility. Your policy should inform managers that they have a responsibility to promptly alert the human resource department, or other appropriate party, immediately upon becoming aware of potentially harassing behavior. Protocol for handling harassment claims should be incorporated into your company’s sexual harassment training.
   

6. Describe your complaint procedure. Your policy should indicate the individual or department to whom employees should report harassing behavior. This is usually their supervisor or the human resources department. However, depending on the identity of the alleged harasser, the employee may not feel comfortable going to their direct supervisor to report a claim. As such, it’s important to note alternatives for reporting harassment, such as going to other department supervisors in order to file a compliant.

7. Uphold confidentiality. Disclosure of information about complaints should be limited to those with a legitimate involvement and a “need to know”. Your policy should insist that parties to complaints and investigations refrain from discussing the matter with others and that information about complaints will be held in confidence to every extent possible.

8. Describe the investigation process. Your policy should clearly specify that any and all complaints will be investigated and that if the company has reason to believe harassment is occurring, it is committed to investigating the situation, even if no formal complaint is filed. State that all employees are expected to cooperate with an investigation and that giving false information during the course of an investigation is grounds for disciplinary action, up to an including termination of employment.

9. Include an anti-retaliation clause. Employees should know that they are protected from retaliation if they file a complaint or participate in an investigation claim. Clearly state that no employee will be discriminated against, or discharged, for bringing about a complaint of sexual harassment or for assisting in an investigation.

10. Follow your policy consistently. Having a policy in place is important for communicating how the company responds to harassment claims and for describing the company’s position on the issue. However, failing to follow the policy, including not investigating claims or making it difficult for employees to report violations, can leave you susceptible to legal claims. To limit liability you must follow your policy consistently and demonstrate that you exercised reasonable care to prevent and correct harassing behavior.

Although it may be impossible to eliminate sexual harassment, employers can take proactive steps to minimize harassing behavior by adopting and promoting a zero tolerance policy. To be effective, the policy should not only prohibit sexual harassment, but should also communicate formal complaint and investigation procedures.

C’mon you’re almost there: 10 simple strategies for getting your handbook across the finish line

The end is in sight: You’ve taken our consultants’ advice and worked diligently to avoid the most common employee handbook mistakes, you’ve chosen practical policies that align with your business needs, and you’ve kept in mind those critical policy writing do’s and don’ts. The result: a legally sound and valuable communication tool known as the employee handbook.If you’re like many of our clients, at this point you’re probably thinking, “I’m finally home-free!” Well, not so fast: Remember the company we told you about who spent all that time and money creating an employee handbook, just to let it sit on the shelf and collect dust? Failing to implement your handbook after exerting so much time and energy creating it would be like quitting a marathon with only a mile left to go. Surprisingly, this is one of the most common employee handbook mistakes.

Your last hurdle, handbook implementation, is one of the most important steps in the process. But that doesn’t mean it has to be difficult. To ensure your handbook gets the mileage it deserves, follow these 10 simple strategies for implementing it:

1. Decide on a medium. The most traditional means for distributing an employee handbook is through print. While it may look pretty, the major disadvantage of having a paper copy occurs when changes to the handbook need to be made. One change can affect the pagination of the entire document, resulting in increased administrative time as titles, tables and page numbers need to be updated and multiple copies of handbooks reprinted. To simplify handbook maintenance, many employers are now making their handbook available electronically, on the company’s intranet or internal server. Depending on the size of your company, electronic handbooks have the potential to save you hundreds on printing costs. 

Cost-saving tip: Why not save some extra cash by hosting your handbook online? With the Employee Handbook Wizard™, you can create a secure handbook portal customized with your company logo, colors and welcome message and give your employees 24/7 access. Plus, any time you edit your policies, it’s automatically updated and posted to your online portal, saving you reprinting costs.

2. Train your managers. Prior to distributing the handbook to your employees, meet with company supervisors and educate them on the policies included within the handbook, the purpose behind each policy, and how the policies are to be enforced. After you are confident that supervisors understand the ins and outs of each of the policies, you can then meet with employees to go over the handbook.

3. Introduce to your employees. Never assume that your employees will become familiar with your company’s handbook on their own. You should demonstrate the handbook’s importance as a communication tool by setting aside time to discuss its contents and to answer any questions they may have. Employees may have some apprehension with regards to the sudden implementation of a handbook. Inform them that the handbook is intended to protect staff as well as the company. But more importantly, it is designed to ensure everyone is aware of company procedures and that employees behave in a manner consistent with company rules and regulations.

4. Require acknowledgment. After reviewing the handbook, all employees should be required to sign an acknowledgment form, verifying that they have read and understand the handbook’s contents. By signing this form, employees agree that they are subject to the guidelines of the handbook and that the handbook is not intended to be a contract of employment. And of course, be sure to retain signed acknowledgments in employee personnel files.

Time-saving tip: You can streamline the process with paperless employee acknowledgments, included with the Employee Handbook Wizard™. This allows you to quickly send mass acknowledgment requests from your own email program, track who’s completed their e-signatures, and store completed acknowledgments online in downloadable PDF format.

5. Don’t forget about new employees. Not only is the initial introduction of an employee handbook important, but so is the on-going introduction of the document to new employees. A review of the handbook should be incorporated into your company’s orientation process. This will serve to establish company expectations from the get-go while providing new hires with a sense of the company’s culture.

6. Integrate within your culture. Refer to your company’s employee handbook regularly and make it a living document within your organization. Utilize it as a constant resource when employees, including supervisors, ask questions. By visibly using the handbook as a means for answering questions and interpreting company rules and regulations, employees will also begin to use the handbook as a reference when they have questions. Scheduling an annual employee handbook meeting may be another way to integrate the handbook into your company’s culture. This will allow you to reinforce company policies and provides an additional forum for your employees to ask questions.

7. Consistently apply polices. Employers need to ensure that managers and other employees with supervisory responsibilities not only understand the policies and procedures set forth in the handbook, but that they use the handbook to guide their actions and decisions. In doing so, all managers need to be sure that they consistently apply the policies within the handbook. Inconsistently applying policies will be viewed as discriminatory and biased, leaving you susceptible to legal liability.

8. Gauge employee reactions. An employee handbook is expected to grow with the company. After implementing the handbook, pay particular attention to how employees react to specific policies, whether the procedures within the handbook are effective in resolving employee concerns and whether there are issues that have arisen not covered by the handbook. This type of analysis will be powerful for determining your revision needs.

9. Review & update your handbook. Periodically reviewing your handbook will allow you to ensure that it remains compliant with applicable laws and that it is still meeting your needs. To ensure your revisions go smoothly, it’s important to first establish an approval process for edits. Determine who is authorized to make changes to the employee handbook and who must approve such changes. You will also need to think about how you will communicate any handbook changes to your employees. Try to provide as much notice as possible before a policy change goes into effect in order to ensure employees have adequate time to adjust to the change.

Make it easier: When all policy changes can be made online, as can be done with the Employee Handbook Wizard™, your policies become much simpler to maintain – not to mention more cost-effective.

10. Require acknowledgment of policy revisions. When a change to your handbook does occur, you should take all necessary steps in communicating those changes to your workforce: send memos, post notices in common areas, and discuss the changes at staff meetings. After any changes have been introduced it is necessary to again require employees to sign an acknowledgement form verifying they have read and understand the policy change. Doing so will ensure all employees are aware of the most current policies.

C’mon, go that extra mile; make sure the hard work you put into developing your handbook pays off by having a successful implementation plan. Spend the time necessary to train managers on company policy, educate employees on the contents of your handbook, and review and update your handbook regularly.

Are your policies causing MORE WORK for you? 7 Tips for ensuring your policies are working for you and not against you

Last week’s Tip discussed how to decide which policies to incorporate into your employee handbook. This week, we’re going to get into the nitty-gritty: how policies should be written.

When it comes to a well-written policy, there’s really only one question to focus on: Is the policy creating MORE work, or is it working FOR you? While on the surface this may appear to be a fairly simple question, the answer is often more complex. It has nothing to do with the amount of time and effort it takes to draft the policy; rather, you need to take into account the time you spend after implementing. Think about the time involved explaining, clarifying, or updating the policy, defending its legality, or handling employment-related lawsuits caused by the policy’s contents.

The following is our handbook consultants’ “do less work” checklist. It’s used to aid our clients in writing policies that protect the company and will create the least amount of work down the road:

# 1: Don’t complicate things:

Policies that are unnecessarily complicated create MORE WORK by causing you to dedicate extra time explaining what it all means.

Don’t use big words or overly complicated sentences. Avoid vocabulary that may not be understood by all employees.

“More work” policy: “Employees found to have breached company policy will be subjected to progressive disciplinary action.”

Do write in easy to understand language. It’s recommended that your employee handbook be written at a fifth grade reading level to ensure understanding.

“Less work” policy: “Employees who do not follow company policy will face disciplinary action. Our discipline process is made up of…”

# 2: Avoid leaving your employees confused:

Lack of clarity may cause your employees to interpret policies differently than you intended. This causes MORE WORK by requiring you to explain the policy’s meaning to your employees; or worse yet, if faced with a legal claim, the courts may side with the employee if he or she reasonably misinterpreted company policy.

Don’t be too vague. Leaving too much room for interpretation is never a good idea. If you are too vague employees may interpret policies differently than you had intended them to.

“More work” policy: Employees will be entitled to company benefits after employment begins”.

Do be clear and concise. Be sure your word choice is effective, your language is clear, and that the company is protected.

“Less work” policy: “In order to qualify for benefits with ABC Company employees must have worked at ABC Company for least 3 consecutive months.”

# 3: Don’t make any promises:

Words and/or statements that imply employment with the company is in some way permanent may limit your ability to take certain actions, including terminating an employee, even for cause. Restrictive language will create MORE WORK for you if you’re ever required to defend against breach of contract claims.

Don’t use restrictive language. Avoid words that limit the company’s ability to take certain actions or otherwise have a permanent connotation. Words such as “always”, “will,” “must” or “in all cases” may bind employers to such “promises”.

“More work” policy: “Employees will be subject to discipline for the following actions…”

If an employee happens to engage in inappropriate conduct that’s not specifically listed within your policy, you may have little recourse for disciplining him or her.

Do leave your options open. Instead, use words and phrases that give you the freedom to consider each circumstance on a case-by-case basis. Statements such as “at management’s discretion”, “each circumstance is unique”, “in some cases”, or “the company may…” will serve to accomplish this.

“Less work” policy: “The following are examples of the types of behaviors that may warrant disciplinary action…” “This list is only intended to illustrate the types of behaviors that may result in disciplinary action and that it is by no means exhaustive.”

# 4: Be mindful of state laws

Failure to take into consideration state laws when drafting employee policies is a huge red flag, indicating that your company practices are not consistent with your legal requirements. Lack of state-specific policies will likely cause MORE WORK down the road if ever faced with a lawsuit.

Don’t only think about federal requirements. Too often we see employee policies that comply with federal laws without regard to state requirements. Failure to include state-specific policies may leave you susceptible to liability by demonstrating that your company practices are not consistent with your legal requirements.

“More work” policy: “ABC Company does not discriminate on the basis of: age, race, color, gender, national origin, religion, and disability.”

While this complies with federal employment opportunity (EEO) laws, does it comply with your state EEO laws?

Do keep in mind state laws when developing policies. Federal laws won’t necessarily protect you in all circumstances. Employers must be sure to customize their policies to reflect state requirements as well.

“Less work” policy: If your state is one of many that have additional employment protections than what is granted at the federal level, you’ll need to take that into consideration when drafting your EEO policy. For example, if under your state civil rights laws sexual orientation and gender identity are considered protected characteristics, your policy should look more like this: “ABC Company does not discriminate on the basis of: age, race, color, gender, national origin, religion, disability, sexual orientation, and gender identity.”

# 5: Have some fun with it!

Policies that are overly negative will cause MORE WORK, requiring you to calm down disgruntled or frustrated employees and devote more energy and resources into boosting morale.

Don’t have a negative focus. All too often employers use the handbook to describe company rules, procedures and standards. Not only is this boring to read, employees may view the company as bureaucratic rather than a fun place to work.

Do promote company perks. The employee handbook doesn’t need to be just a book of rules, put a positive spin on it! Let employees know exactly why it’s so great to work for you; clearly communicate company benefits and perks and let your organizational culture shine through.

Less work: While including standards of conduct it is important, be sure to highlight your company’s positive attributes, such as your annual company party, the educational assistance you provide, or the company sports team that you sponsor.

# 6: Cut down on administration time

Information that is likely to change regularly should be excluded in order to avoid having to make regular updates to your handbook, resulting in MORE WORK for you.

Don’t include information that may change frequently. It’s not recommended to include information that has the potential to change, and may even change frequently, within your employee handbook. This includes employee names, dates of company events, and phone numbers.

“More work” policy: “See Jane Smith, Office Manager, if you lose your employee identification badge.”

Do use an alternative approach. To avoid having to revise your handbook every time an employee leaves, consider using position titles rather than employee names.

“Less work” policy: “See the Office Manager if you lose your employee identification badge.”

# 7 Use an easy-to-read format

Jumbling multiple policies per page or designating page numbers for each policy will only cause MORE WORK in the long run. This approach will require that you change your table of contents every time a change to one of your policies causes its contents to go into the next page.

Don’t jumble multiple policies to a page. Not only is reading more than one policy per page daunting, having multiple policies per page increases administrative time if policy changes result in a reconfiguration of your table of contents.

     More work:

     Table of contents:

• Introduction…………..1
• Welcome Message….2
• Company History……2

Do number policies for easy reference. Include a table of contents with policy numbers only. This way if a policy that was previously one-page is revised, causing it to run onto a second page, you won’t need to waste time changing all page numbers that follow. It’s also recommended that you only have one policy per page for easy reading.

     Less work:

Table of contents:

• 101 Introduction
• 102 Welcome Message
• 103 Company History

Policy writing is an art. It requires careful consideration to ensure proper word choice, prevent misinterpretations, and to present the information in the manner in which you intended. Add this list of do’s and don’ts to your bag of tricks and you’ll likely have sound employment policies effective in protecting your company from liability.

Employee Handbooks: Are you Getting the Acknowledgment you Deserve?

An employee handbook is essential for a variety of reasons. For one, employee handbooks help protect the company from legal liability by demonstrating the company’s compliance with a variety of labor laws, including state and federal laws that require the presence of written employment policies. In addition, an employee handbook formally delineates company expectations regarding performance and conduct, summarizes the relationship between the employer and employee and provides general information about the organization as well as the benefits and services the company offers.So now that you know the importance of an employee handbook, you should work on its introduction within your company. One of the most vital components of the employee handbook introduction process is that of employee acknowledgment and verification. The acknowledgment is important in order to ensure that all employees have read, understand, and are prepared to comply with company policies.

Below are some guidelines relating to the introduction of an employee handbook as well as the ever so critical employee acknowledgment process:

1. Formally introduce the handbook. Set aside time to inform employees of the importance of the employee handbook and that all employees are responsible for reading and complying with its contents. Employees may have some apprehension with regards to the sudden implementation of the handbook, so it’s important to inform them that the handbook is intended to protect staff as well as the company. But more importantly, it is designed to ensure everyone is aware of company procedures and behaves in a manner consistent with company rules and regulations.

2. Obtain initial acknowledgment. Whenever a handbook is introduced, it is necessary for employees to review the entire document and sign an acknowledgment form. This serves to verify that employees understand company policy and that employment is at-will. If your handbook is online, provide employees with detailed instructions on how to access it. It is also recommended that you provide a timeframe for acknowledging the handbook and stress that employees failing to review the handbook by the established deadline may be subject to disciplinary action.

3. Contents of the acknowledgment. The acknowledgment should inform employees that they are responsible for reading and complying with company policies. Additionally, a signed acknowledgment affirms the employee understands that the handbook is a living document which grows and evolves with the company and that its contents are subject to change. The acknowledgment should also reiterate that employment is at-will and that the employee handbook in no way guarantees employment with the company.

4. Send a reminder, if necessary. If the acknowledgment deadline comes and there are still employees that have not signed the acknowledgment, you should send out a reminder notice. This notice is intended to alert those employees who have yet to acknowledge the employee handbook that they are responsible for reading and complying with its contents. Reiterate that employees failing to sign the acknowledgment form are subject to disciplinary action.

5. Hold employees accountable. Employees that do not acknowledge the handbook should face consequences. This will demonstrate the importance of the company handbook and employee adherence to company policies. However, it’s important to remember that discipline must be administered consistently, meaning all employees that failed to sign the acknowledgment should be subject to the same consequences, whether it is a written warning or a suspension.

6. After revisions, obtain another acknowledgment. Anytime a revision has been made to the employee handbook, inform employees of the change and that they are responsible for reviewing the revised policy. All employees should be required to sign a new acknowledgment when there has been a change in policy or a new policy has been added to the handbook.

7. Make the process a continuous one. It’s recommended that handbook acknowledgments not only occur during the initial introduction of the handbook or when there has been a change to the handbook, but they should also be required annually. A good time to do this is during the yearly performance review. This will ensure that employees are still aware of company policy as well as any changes that may have been made to the handbook.

8. Store records. Obtaining employee acknowledgment of the handbook is useless if you don’t have a system for storing acknowledgment forms. Even if the acknowledgment is electronic, employers should be sure to retain a copy in employee personnel files. This will serve to verify that the employee is aware of company policies and procedures.

The development of an employee handbook doesn’t end with the final sentence of the last policy. An employee handbook requires continual review in order to ensure compliance with current labor laws and company practices. Another important part of the handbook maintenance process is that of employee understanding and awareness. Employers that take a proactive approach to ensuring all employees are knowledgeable of company policy are less likely to have employees that behave contrary to company expectations.

Creating a handbook? Don’t sweat it—just think P.R.A.C.T.I.C.A.L.ly

Last week’s Tip discussed some of the most common handbook mistakes our HR consultants encounter on the job. This week, we’re going to share with you the process they use when helping clients create a set of policies.

Our goal is to help our clients create easy-to-understand, legally-compliant policies that establish company expectations, communicate company benefits, and protect their businesses. We begin every visit by asking our clients the same set of questions. Unfortunately, many of their answers point to a handbook that is doing more harm than good—which makes them lucky they called us! Take this example from a recent client visit:

Consultant: What policies do you have in place now?

Client: Um…well, we have some basic things like the Company History and Company Hours…I think something about Paid Time Off and Benefits…oh, and how employees keep track of hours worked. I haven’t looked at it in a while.

Consultant: Okay, well that’s a start. Do you have an at-will disclaimer, anything about standards of conduct, or policies relating to EEO or sexual harassment?

[at this point client is becoming visibly anxious]

Consultant: Okay, well let’s move forward and talk about your ideal handbook then. What policies would you like included in your handbook?

Client: [Blank stare] … Er…What are my choices?

Would you have better answers for our consultants? If the thought of answering these questions makes you sweat, you’re not alone. Fortunately, you can use one simple word to determine the contents of your entire employee handbook: P.R.A.C.T.I.C.A.L.

To help you decide which policies are necessary for your business, think P-R-A-C-T-I-C-A-L.ly:

1. Protect your business. There are several policies designed specifically to protect employers from liability - and without them you may be leaving your company susceptible to legal claims. At-will policies are necessary for warding against breach of contract claims. Immigration law policies are critical for conveying the company’s compliance with employment verification procedures and for demonstrating good faith efforts to comply with the law. Policies on non-disclosure and confidentiality are recommended for protecting company assets, trade secrets, and client information. Other policies that are strongly recommended include those relating to: employment classifications, introductory periods, personnel records, employee grievances, personal property, and background checks.

Bottom line: At a minimum, include policies on at-will employment, immigration law compliance and confidentiality plus those that are required by law.

2. Required policies. In addition to the policies that are intended to protect the company, there are also a few employers are required, by law, to have in place. Statements that prohibit sexual harassment, describe the company’s pay practices, affirm the company’s compliance with anti-discrimination laws, and explain the company’s safety procedures must be communicated to employees in writing. And what better way to comply with this requirement than by including these written policies within your employee handbook?

Bottom line: Policies related to sexual harassment, equal employment opportunities (EEO), employee safety, and paydays are a necessity.

3. Administrative & operational. Information relating to company operations, such as business hours, parking protocol, work schedules, and procedures for meal and rest breaks is important for eliminating many of those routine questions about how the company operates. When employees can refer to the handbook to answer these and other similar questions, they don’t have to bother management with them – saving valuable time and preventing unnecessary distractions.

Bottom line: Save time by communicating the company’s administrative & operational basics, including hours of operation, parking procedures, and practices related to meal and rest breaks.

4. Codes of conduct. A chief reason for having an employee handbook in place is to communicate company standards and expectations with regards to employee behavior.

Bottom line: Include company expectations with regards to: attendance and punctuality, substance abuse, employee discipline, the use of company property, personal appearance/dress codes, workplace violence, and visitors in the workplace.

5. The perks. You never want to forget about communicating the perks of working for you. Be sure to carve out enough space to describe your benefits program and include both mandated benefits (e.g., COBRA, workers’ compensation, jury duty, and military leave) and non-mandated benefits (e.g., health insurance, paid time off, and day care assistance).

Bottom line: Benefits-related policies are unique to what each company offers, but most include things like: health insurance, retirement plans, paid time off, educational assistance, and employee discounts.

6. Incentives & pay. Policies informing employees about paydays, direct deposit arrangements, overtime, and timekeeping procedures are also important. If you have a regular merit review process, including information on wage and salary increases can also be good for employee morale and retention.

Bottom line: Include the following pay-related policies: paydays, timekeeping, merit increases, and bonuses, if applicable.

7. Company culture. Every company is different; some traditional, some casual, some cutting edge. The handbook should be another means in which company norms are discerned. For example, does your company communicate primarily via the intranet, email, or through regular staff meetings? Does entrance into your building require a secret pin or an employee ID badge? Do you have a company sponsored sports team that employees are free to participate in? What about an annual holiday party? These are all things that make the company the way it is and will help employees to get a sense of the culture.

Bottom line: Those little nuances that make your company the way it is should shine through in your employee handbook.

8. Audience. Some policies only relate to a small group of employees, such as information describing executive perks or sales commission plans. To avoid the employee handbook turning into an encyclopedia, try to only include policies applicable to the majority of employees. Providing documentation and discussing information that only affects a small group is best reserved for the onboarding process, or for a meeting between the employee and their manager. But remember, even though this information may not make it to the handbook, it’s still important to have these employees sign off on their understanding of it.

Bottom line: Including every piece of information possible may overwhelm employees and could even prevent them from reading the handbook entirely.

9. Listen to your employees. An employee handbook is expected to grow with the company. After implementing the handbook, you should pay attention to how employees react to specific policies, whether the procedures within the handbook are effective in resolving employee concerns and whether there are issues that have arisen not covered by the handbook. This will be powerful for determining your revision needs.

Bottom line: Determine if the handbook is effective in meeting your needs. If not, you may need to re-think some of the policies you have decided to include.

The contents of a handbook are unique to each company and depend on the benefits offered, how business is conducted, and the organization’s culture. Nevertheless, the policies you decide on should be practical and ultimately serve to meet your legal requirements, decrease the amount of time spent answering routine questions, and exemplify what is and what is not acceptable conduct.

Ignorance is bliss, but being clueless can be dangerous: Our experts share some of their top employee handbook horror stories

Ignorance is bliss, but being clueless can be dangerous: Our experts share some of their top employee handbook horror stories

If your employee handbook was going to be audited tomorrow, how do you think it would go? If your stomach just dropped because (a) you don’t have a handbook; (b) your handbook hasn’t been updated in over 12 months; (c) your handbook consists of a potluck of policies you and your employees contributed over the years or; (d) your “handbook” is really just a few sheets of paper stapled together, then stop what you’re doing right now and read this Tip.

Over the years our HR consultants have reviewed hundreds of handbooks, and we’ve compiled our experiences—with the anonymity of the guilty intact—to bring you some of the most common handbook mistakes. Over the next several weeks, we’ll be sharing them with you in the hopes that others’ follies will help you to save valuable time and money by giving you the inside scoop on creating, managing and implementing your handbook the right way.

Let’s begin by reviewing what NOT to do:

Mistake 1: A handbook with holes

One of our clients proudly handed us a policy manual with the following table of contents:

• Company History
• Company Hours
• Paid Time Off & Holidays
• Health, Dental, & Vision Insurance
• Short-term & Long-term Disability
• Employee Discounts
• Timekeeping

Notice something missing? Yes! About 20 essential policies. While it’s important to communicate company benefits, the handbook should also serve to convey the company’s expectations regarding performance and conduct and to meet legal requirements that call for certain policies to be communicated to employees in writing. Avoid gaping holes in your handbook by learning about what policies to include.

Mistake 2: Policies that make you say “Huh?”

Here’s an excerpt from a Florida financial services company’s policy on progressive discipline: “Employees found to have dishonored company policy shall advance through the following disciplinary steps: first offense: verbal warning; second offense: written warning; third offense: suspension; fourth offense: termination. “

What problems do you see with this policy? Well…it’s confusing, vague and way too limiting. This policy doesn’t take into account each unique circumstance and leaves no room for management discretion. Thanks to our team of HR consultants, their policy is now straightforward and does not limit the company to following the progressive discipline process sequentially.

Mistake 3: A handbook covered in cobwebs

“We just never got around to implementing it.”

We can’t tell you the number of times we’ve heard this one. If you think the hard part is creating an employee handbook, there are many businesses out there that may say otherwise. From our experience the “we-just-never-got-around-to-implementing-it” excuse is due to the perceived time involved as well as an uncertainty about how to carry out the process.

Your plan of attack: Set aside time to discuss the contents of the handbook with your staff and to answer any questions they may have. And remember, not only is the initial introduction of an employee handbook important, but so is its introduction to new employees.

Mistake 4: “Out of sight, out of mind”: Failure to regularly review and update policies

“HELP! We haven’t updated our handbook since we created it 3 years ago!”

Sound familiar? An employee handbook that is out of date can be more damaging than not having one at all. Regularly updating your handbook will help to ensure that it remains compliant with applicable laws and that it is still meeting your needs. Get insider tips for effectively reviewing and updating your employee handbook.

Mistake 5: Fire at will—but only if you have a disclaimer

We’ve heard it with our own ears: a manager who thinks his staff is doing a great job says, “Keep up the good work and you’ll be a lifer”. Or“You’ll always have a job as long as I’m around.”

You wouldn’t want your employees thinking they’ve got a job for life, would you? Your best defense against breach of contract claims is a well written employment at-will disclaimer. An at-will disclaimer makes it clear that you do not intend to have the handbook construed as a “contract” or promise of employment. Disclaimers can even help to protect the company from verbal contracts made by managers, whether intentional or not. Get tips for writing effective handbook disclaimers.

Mistake 6: Not holding employees responsible

It’s simple: The handbook acknowledgment form, usually a single sheet of paper, is necessary in order to ensure that all employees verify that they have read, understand, and are prepared to comply with company policies. But why don’t more employers require acknowledgments? Most likely it’s the perceived time and energy that’s involved in the acknowledgment process: sending them any time there is an update, keeping track of who’s signed it and who still needs to, and properly storing completed forms.

Save time and money: The exclusive HR411 Employee Handbook Wizard simplifies this process for you by requesting your employees to complete acknowledgments electronically. Returned acknowledgments are stored in your account to be viewed and downloaded at your convenience—no paper involved.

 Mistake 7: Cutting corners by creating a Federally-focused handbook

Too often we see handbooks that only have a federal focus. What many employers forget is that state law is often more stringent than federal law. And when the two laws differ, the law that provides employees with greater protections must be followed.

Here’s one California employer’s policy on overtime: “Overtime is payable for all hours worked over 40 per week at a rate of one and one-half times the nonexempt employee’s regular hourly rate.”

What’s wrong with this? While the above policy complies with federal law it doesn’t comply with California overtime provisions. Almost all California employees must be paid overtime for all hours worked in excess of 8 in a workday, in excess of 40 in a workweek, or for the first 8 hours worked on the seventh consecutive day worked in a workweek. Be sure to check your state requirements or ask our experts and get the peace of mind that comes with meeting both your state and federal obligations.

Mistake 8: Managers are clueless about how to apply company policies

Have you held meetings with managers on how each policy is to be enforced?

We’ve seen all too many times: inconsistency breeds legal claims. Consider this: an employee files a discrimination suit because he was suspended following his third tardy in a 30 day period; but Sally, his co-worker, was only given a written warning for the same exact infraction. To prevent claims of bias, make sure managers use even-handed discipline and consistently apply all company policies.

Stay tuned for more “tricks of the trade”:

This is by no means a complete list of the mistakes employers make when it comes to employee handbooks and policies. While these mistakes are all too common, our upcoming Handbook Series will divulge the tricks of the trade to help ensure you don’t fall victim. It’s easy to reap the benefits of a legally sound employee handbook—if you know what you’re doing. So, stay tuned for tips, tricks and details on how to PROPERLY create, maintain, and implement an employee handbook

How much is too much? Attracting & retaining talent without breaking the bank

You hear it all the time: everything comes with a price. That goes for recruiting and hiring employees, too. However, putting a price tag on a position can be unnerving and frustrating: salaries that are too low may deter qualified candidates, and overpaying employees will hurt your bottom line.  So, how can you decide on a salary that is both fair and competitive?  Finding that “magic number” involves, among other things, a thorough examination of the job, a look at the candidate’s level of experience and an analysis of labor market trends.
 

To price a position in such a way that attracts qualified candidates but doesn’t break the bank, consider the following factors:

1. Job responsibilities.  When pricing a position, pay close attention to the duties and responsibilities required.  Does the position require supervising more than one employee, preparing departmental budgets, or other tasks that necessitate a high level of discretion and independent judgment?  Complex tasks require more skills, and therefore, a higher price tag.

2. Employee competencies.  Employers need to ensure that the pay associated with the position aligns with the competencies needed to perform the job.  Competencies, which include the set of knowledge, skills, and abilities necessary for successful performance, will dictate whether the position is entry level, intermediate, advanced or specialized.  Positions requiring an advanced set of skills or specialized knowledge often come with a heftier price tag.                                                                                              

3. Relevant education and experience.  In general, the more education and work experience an employee has, the higher their competency level.  This suggests that employees with advanced degrees as well as relevant training and experience are well suited to perform the responsibilities of the position.  While these employees typically come at a premium, hiring experienced personnel has its benefits, including the fact that these employees tend to hit the ground running much faster than their inexperienced counterparts.

4. Cost of living.  The cost associated with living in a particular geographic location should also be considered when determining one’s pay.  The cost of living - including the cost of housing, food, and other basic necessities - in a metropolitan area is often greater than the cost of living in suburban or rural areas.  So, if you’re looking to fill the same position in different geographic locations the pay shouldn’t necessarily be equal.  

5. Market availability.  Sometimes, it can be a daunting task to find qualified candidates.  In a tight labor market when your candidate pool is somewhat limited, companies are often forced to compete for the same set of people.  During these times or when seeking to fill specialized positions, it may be in your best interest to offer enticing salaries in order to secure candidates with superior or scarce talent.

6. Benchmark within your industry.  To settle on a competitive salary, employers should compare, or benchmark, their company to others within their industry.  Study the salary structure at companies that are of similar size and caliber and when making comparisons look at the job’s responsibilities, not the title alone.  Doing so, will help to attract talent and position your company competitively within the market.

7. Legal compliance.   Consistency is necessary when making pay-related decisions.  If there are other employees holding similar positions, with comparable backgrounds, large pay differentials may be viewed as discriminatory under Equal Employment Opportunity (EEO) laws.  Always look at what existing employees earn before extending an offer to a new employee.
8. Find that “middle ground”.   When pricing a position, it’s important to ensure that it is within company budget and that the candidate has room to advance and grow.  Pricing the position too high in order to attract qualified candidates will do little to retain them if you can’t afford regular merit increases, bonuses, and other rewards.

Taking the time to find that “magic number” is likely to result in a win-win for both employer and employee by attracting qualified candidates without eating away at company budgets.  Labor market research and an analysis of the position will put you in the driver seat, making sure you’re informed prior to entering the salary negotiation phase.  

How to avoid the exempt vs. non-exempt employee classification trap

Are your employees correctly classified? The basis of the Fair Labor Standards Act (FLSA), and all subsequent pay decisions, revolves around classifying your employees as exempt or non-exempt from minimum wage and overtime pay. However, many employers get caught in the classification trap: The misconception that job titles alone dictate whether or not an employee is exempt. The truth is, other factors such as job duties, functions, and salary dictate an employee’s classification status.

What’s the big deal with classification, you ask? Misclassifying employees can result in serious financial penalties such as back pay due to unpaid overtime, fines, and legal fees. The Department of Labor estimates that 70% of businesses are in some way out of compliance with the FLSA, and in 2008 alone there were over 23,000 registered complaints, with U.S. businesses paying over $185 million in back wages to over a quarter million employees.

Don’t become another statistic. Before you classify your next employee as “exempt” just because they have a fancy title, review the following exemption criteria which will help you to determine appropriate classifications based on job responsibilities:

• Exempt Employees. First and foremost, let’s start with what it means to be classified as “exempt”. Exempt employees must be paid a set salary for any week in which work is performed, regardless of the quality or quantity of their work. This means that whether an exempt employee performs 10 hours of work within a week or 60, he or she still receives the same amount of pay. To be classified as exempt, an employee must earn at least $455 per week and perform job duties that fall under one of the six FLSA exemptions, which are outlined below.
• Executive Exemption. To qualify for this type of exemption, employees must manage the operations of a business, department, or subdivision within the company. They must direct and supervise the work of at least two employees and have the authority to hire, fire, and promote. Typically, employees meeting these conditions include your VPs, Directors, and Chief level staff members.
• Administrative Exemption. To qualify for this exemption, employees must exercise independent judgment and discretion performing non-manual work that is directly related to business operations. Typically, employees falling under the administrative exemption category include office managers, insurance agents, human resource processionals, and marketing personnel.
• Learned Professional Exemption. Employees in this exemption must have advanced knowledge in a field of science or learning through prolonged course of instruction (i.e. university, college, law or medical school). Occupations that require prolonged study include doctors, lawyers, dentists, professors, accountants, and the like.
• Creative Professional Exemption. Employees in this exemption category must perform work that requires invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor. Occupa Actors, musicians, writers, and painters qualify for this exemption.
• Computer Exemption. Employees in this category include those employed as computer programmers, computer systems analysts, and other skilled workers in the computer or technology fields. Their primary job duties involve designing, developing, testing, and analyzing computer systems and programs. Note: the computer exemption does not include employees engaged in the manufacturing or repairing of computer hardware and systems.
• Outside Sales Exemption. There is no salary requirement for this exemption, mainly because these employees typically work solely on a commission basis. Employees qualify for this exemption if their primary duties involve making sales away from their employer’s physical place of business.
• Non-exempt Employees. Non-exempt work is routine, following set standards, procedures, or rules, and does not require regular exercise of discretion and independent judgment. Non-exempt workers are entitled to a minimum wage per hour and must be paid overtime (time and a half) for all hours worked over 40 in a given workweek. Typical non-exempt employees include receptionists, data entry clerks, cashiers, and physical laborers, such as construction workers, carpenters, and machine operators.

While FLSA laws are complex, taking the time to shed common misconceptions and understand your obligations under the Act will help you avoid the “trap” - saving you the expense and headaches that result from non-compliance. Each situation is unique, and to ensure your business is protected, you should take time to review your state’s specific pay requirements and email us if you have questions specific to your business.