Here are some suggestions for your HR priorities for 2017:
1. The Overtime Rule is on hold, but...
I did quite a few projects this year related to the proposed overtime rules that were supposed to take effect December 1. These changes were surprisingly put on hold at the 11th hour by a Federal judge in Texas, and their fate is uncertain due to the election results. But a common misconception I encountered with employers is the belief that as long as an employee meets the salary test, it is fine to treat that employee as exempt. What I found is that many of the jobs I surveyed were misclassified for failing to meet a duties test. The employers thought their risk was with the new higher salary threshold, but they were really at risk all along. So make sure your jobs are properly classified, even if the salary is over $24,000.
2. Switch to the new I-9 form
The USCIS has revised the I-9 form and employers are required to begin using it by January 22. The list of approved documents and the basic process haven't changed, they've just updated the form to make it a little easier to use.
3. Update Job Descriptions
This can seem like a mundane administrative task, but job descriptions are your first line of defense in any employment related conflict. An unemployment hearing? Send us the job description. A workers comp situation? Let's look at the job description. An EEOC charge? Send us the job description. A lawsuit? Your attorney is going to ask for the job description. Job duties change - make sure the job descriptions change with them.
4. Add or review your pre-employment assessments
If you currently use assessments as part of your interview and selection process, review them to make sure they are providing useful information toward making your hiring decisions. If you are not using assessments, that means you are probably depending on interviews alone, which is the least valid method for choosing new hires. Just saying...
5. Make on-boarding a priority
Most companies I speak with plan to add employees in 2017. Choosing the right people is critical, but getting them off to a great start is perhaps even more important. Too many companies hire good people, chunk 'em in the lake and tell 'em to start swimming. Invest in a solid plan for the first day, week, month and quarter, with plenty of feedback and plenty of support. You'll spend a lot less time recruiting if you get the on-boarding part right.
6. Evaluate your use of 1099 workers
There are legitimate and questionable uses of 1099 workers. Both the IRS and the DOL care about this issue, and the penalties for improperly designating workers as contractors when they should be employees are quite punitive (from heavy fines all the way to potential jail time). So if 1099 workers play a key role in your personnel strategy, you best make sure that you have all your ducks in a row in this area.
Thursday, December 8, 2016
Good Turnover, Bad Turnover
Employee turnover, the number of employees that leave your organization each year, is an underused metric that can tell us a lot about an organization. Many organizations don't even track it. Others simply shrug off the data. They rationalize that all turnover is the ex-employee's fault. However, top performing companies tend to track turnover by various categories (voluntary, involuntary, by department or manager, by age group, by ethnic group, etc.). And they make adjustments in their processes to ensure that what turnover they do experience is good turnover.
What do you mean, "good" turnover? Isn't all turnover bad? Not at all. Some turnover is good. A recent hire's performance starts to slip after about 6 months on the job. Management intervenes and gently tries to get the employee back on the right path, but the employee resists all efforts to rehabilitate and begins to have a negative impact on the team. The employee eventually quits or gets fired. The rest of the team thinks, finally! This is probably good turnover. An organization that holds onto poor performers without attempting to bring their performance up to standard hurts the morale of those who are delivering solid or even excellent performance. Which often leads to bad turnover.
Bad turnover is the turnover that's often dismissed by management. That's when a good worker gives her two week notice because she is frustrated that management is unwilling to address the poor performance of her coworkers. Or the employee who is struggling during his first 90 days, but no one is helping him master the skills or learn the ropes. He could have been a solid contributor if someone had just taken a little time to show him how to be successful. Finally, there's the employee who leaves your organization for a very small pay raise, indicating that his loyalty to your organization was pretty thin. Loyalty that you might have earned with some minor culture adjustments.
Here are some generalizations about turnover:
- Voluntary Turnover occurs when an employee quits on your company. If this number is high, it's generally a bad thing. People join companies but quit bosses. If your voluntary turnover is high, look at the soft skills of your supervisors and managers. That's not to say that all voluntary turnover is bad - some folks resign when they start being held accountable. But if your voluntary turnover rate is stubbornly high, it's likely linked to your management culture.
-Involuntary Turnover occurs when your company quits on an employee. If this number is high it means people are failing at your company at a high rate. Perhaps your organization needs a better training or on-boarding program? It can also mean that your performance standards (expectations) could be too high. Or, it can mean that your selection processes are ineffective and you're hiring people who aren't a good fit for the roles.
The important thing is to track your turnover by voluntary/involuntary at least. Then dissect it further if need be. And don't just blame the exes. Take a look at what the causes could be and try to build a culture where most turnover is good turnover.
What do you mean, "good" turnover? Isn't all turnover bad? Not at all. Some turnover is good. A recent hire's performance starts to slip after about 6 months on the job. Management intervenes and gently tries to get the employee back on the right path, but the employee resists all efforts to rehabilitate and begins to have a negative impact on the team. The employee eventually quits or gets fired. The rest of the team thinks, finally! This is probably good turnover. An organization that holds onto poor performers without attempting to bring their performance up to standard hurts the morale of those who are delivering solid or even excellent performance. Which often leads to bad turnover.
Bad turnover is the turnover that's often dismissed by management. That's when a good worker gives her two week notice because she is frustrated that management is unwilling to address the poor performance of her coworkers. Or the employee who is struggling during his first 90 days, but no one is helping him master the skills or learn the ropes. He could have been a solid contributor if someone had just taken a little time to show him how to be successful. Finally, there's the employee who leaves your organization for a very small pay raise, indicating that his loyalty to your organization was pretty thin. Loyalty that you might have earned with some minor culture adjustments.
Here are some generalizations about turnover:
- Voluntary Turnover occurs when an employee quits on your company. If this number is high, it's generally a bad thing. People join companies but quit bosses. If your voluntary turnover is high, look at the soft skills of your supervisors and managers. That's not to say that all voluntary turnover is bad - some folks resign when they start being held accountable. But if your voluntary turnover rate is stubbornly high, it's likely linked to your management culture.
-Involuntary Turnover occurs when your company quits on an employee. If this number is high it means people are failing at your company at a high rate. Perhaps your organization needs a better training or on-boarding program? It can also mean that your performance standards (expectations) could be too high. Or, it can mean that your selection processes are ineffective and you're hiring people who aren't a good fit for the roles.
The important thing is to track your turnover by voluntary/involuntary at least. Then dissect it further if need be. And don't just blame the exes. Take a look at what the causes could be and try to build a culture where most turnover is good turnover.
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