September 2011 Newsletter

Five Strategies for More Productive Interviews

Have you ever finished your interview process only to realize that you don’t have enough information to confidently make a decision on who would best fill the position? We commonly hear from our clients that they are not getting enough out of their interviews and that they are guessing on their hires. Let’s face it; many applicants are skilled at presenting themselves well and improving your own interviewing skills will help you to better determine which candidates will really fit your needs and which are just very good at making you think so.

A key component of a productive interview is a clearly defined job description. Be specific when developing the list of experience, specific skills and behaviors that you need. Once you know this, you can put together a job ad and create the interview questions. Resist doing anything until you know exactly what you are looking for in the new hire.

The most critical step in the interview process is preparation. We know about the importance of preparation for the job seeker, but it is equally as important for the employer. Be sure to account for the following before placing a job posting:

  1. Consistent interview questions to be asked of each candidate that are designed to determine performance related behaviors and skills
  2. Concise interview schedule with a hard stop time for each candidate
  3. Sufficient time to review candidate applications and or resumes to determine any additional and unique questions that should be addressed
  4. Notes pages where candidate answers can be summarized and notes made that relate to each question asked
  5. Legally compliant employment application that each candidate completes prior to the interview

Third, make sure the interview is about the applicant and not about you. I cannot tell you how many business owners or managers spend an inordinate amount of time talking during an interview. This usually occurs from one of two conditions. The applicant will ask questions to buy time during a particularly stressful part of an interview or as a general tool to get a feel for who you are. You do want to be open with the candidate. However, let the candidate know at the beginning of the interview that he or she will have time for questions at the end of the interview. Stay focused on your questions and the candidate’s responses. Resist the urge to brag about your business. Instead, embrace the idea of challenging the candidate in a respectful manner. You want to get a feel for how he or she responds under pressure.

Fourth, establish a defined interview process commensurate with the level and importance of the position. It may involve multiple interviews, at multiple venues, over multiple days with multiple staff members to stress the importance of filling the open position with the right hire. As the importance of the position increases, the person filling that position will represent your company in many different circumstances outside of the office. Therefore, you want to get a 360-degree view of candidates. Don’t be afraid to take important candidates out to dinner or onto the golf course to get a feel for who they are away from the office.

Lastly, treat each hire as if he were the most important hire you will make. I have been involved with organizations that have great people and organizations that have below average people. These organizations commonly differ in how they approach the hiring process. Those organizations with average people just assume they are going to hire the best person that walks through the door. The great organizations know that they are looking for a specific type of person and will not hire until they are confident that they’ve found the right match. If you count yourself among those organizations with great people, keep your eye on the ball. If you are trying to get there, put these steps into practice and stay committed to getting there.

At Will— A Dangerous Myth in HR Management

Do you believe that you can fire anyone, anytime, for any reason or no reason? It can appear as an easy solution for a manager, but it’s a very dangerous way to think.

First of all, is it true? Can you fire anyone for any reason or no reason? In most states, absent a contract to the contrary, most employees are “at will.” So, yes, legally, you can exercise that power. But should you? To better understand the risk of at-will terminations, we have to make sure they think ahead and visualize themselves defending the action to an investigator or jury.

Below are examples of “no reason” terminations.

1.) Why did you fire Jim?
No reason. Unfortunately for the “no reason” manager (and his or her company), juries assume that business people behave rationally, and they aren’t going to believe that someone was fired for no reason.

2.) I fired you because I don’t like yellow sweaters.
The same reasoning applies to frivolous reasons for terminations. Technically, you can fire at-will employees for any reason, but again, the jury or investigator isn’t going to buy it.
So they are going to look for the real reason, and what are the possibilities?

Employees don’t like to be fired. And if the company says it’s for no reason, they aren’t going to believe it either. They’ll look for a reason, and, unfortunately, most of the reasons they find are illegal.
Below are examples of situations where an employee may be protected depending on the reason or cause.

Protected Class

  • You fired me because of my race
  • You fired me because of my religion
  • You fired me because of my national origin
  • You fired me because of my gender
  • You fired me because I’m pregnant

Protected Action

  • You fired me because I made a safety complaint
  • You fired me because I complained to EEOC
  • You fired me because I am trying to organize a union

Sexual Advances/Refusals/Harassment

  • You fired me because I wouldn’t go out with you
  • You fired me because I broke up with you
  • You fired me because I told you I would go to HR and complain about your constant advances and inappropriate comments.

In any of these cases, the jury has a fairly easy choice: Either they accept that the manager fired the person for no reason or a silly reason or they accept the reason advanced by the employee. The employee’s reason is going to seem more likely.

No Evidence to back it up.
Another played out scenario is that the company advances a good reason for the termination, but then there is no documentation to back it up. Since juries assume rational behavior in companies, they assume a smoothly operating documentation system. When there’s no documentation, once again, it’s back to what the employee alleges.

Note to HR managers: Experts recommend that you review documentation before acting. Many times the manager says, “Oh, yes, I have it well documented,” but when push comes to shove, actual documents can’t be found.

The lesson here is simple. You as the employer have the right to terminate any employee based on concrete, reasonable and well-documented evidence. Don’t us at-will as a way to terminate employees for bogus reasons. As stated in the title At Will is the biggest myth in HR & Management and if not practiced logically, it can leave you with more loss than gain.

Find Unclaimed Property

Could you have money that belongs to you stuck in the files of a state’s unclaimed property office? If you moved and did not complete a change of address form or have been married and changed your name, you might. An estimated $30 billion+ of unclaimed property is sitting in state treasuries waiting to be returned to millions of Americans and state officials lack the resources to find everybody.

Monetary unclaimed property can take the form of uncashed payroll and commission checks, dormant savings and checking accounts and certificates of deposits, safe deposit box contents, court funds, utility deposits, membership fees, and credit balances.

State law instructs landlords, brokerage firms, hospitals, and financial institutions on how to handle unclaimed property. According to a US Supreme Court decision (Texas vs. New Jersey, 379 US 674, 1965), the unclaimed property is returned to the state of the property owner’s last known address. If no address is known, it is returned to the state in which the business holding the funds is incorporated.

Individuals and businesses can check for unclaimed property by visiting www.unclaimed.org – the Web site of the National Association of Unclaimed Administrators. It’s easy and it’s free. If you do find your unclaimed property, here are the steps to file an annual unclaimed property report:

STEP 1: IDENTIFY THE UNCLAIMED PROPERTY eligible to be filed with the State’s Unclaimed Property Program.

STEP 2: ATTEMPT TO LOCATE THE OWNERS OF THE UNCLAIMED PROPERTY IDENTIFIED IN STEP 1. Make sure to keep documentation of your attempt to locate the property owner. States have various requirements as to how to contact the property owner, when to contact the property owner and some even have their own letter that is required to be sent out. Other notification requirements can require notification of the property owner only if the value of the property is $ 50.00 or more. The law requires that holders must make an effort to communicate with an owner prior to remitting the property to the state.

STEP 3: SEND YOUR REPORT AND CHECK PAYABLE TO the appropriate department. Once the state takes procession, the liability is removed from the company’s financial statements. Some states have certain guidelines as to the dates the State will receive unclaimed property and require a report annually.

If you have unclaimed property, be aware that states require that those funds be transferred to the States’ unclaimed property department after the designated period of time.

Back to School Driving Safety

It’s that time of year again, when summer is winding down and children are going back to school. So, now is the perfect time to hold a driving safety meeting with your staff.

School will be in session again and school buses will be back on the streets. Drivers need to pay extra attention around school zones, crosswalks and bus stops. Accidents, including pedestrian accidents, are far more likely to occur locally on routes where drivers are more familiar and comfortable. Every year, school bus accidents occur because many drivers forget about some school bus safety laws and rules.

Here are some back-to-school driving safety tips:

Stop for school bus lights. Always stop for school buses with flashing red lights. Drivers approaching the bus must come to a full stop for the duration that the red lights are on.

Check Your State Law. Check your state law regarding traveling in the opposite direction across a divided road, when the bus light are flashing. (Some states require that you stop then, too.)

Passing School Bus. Never pass on the right side of the bus. This is both illegal and dangerous as children enter and exit the bus on that side. Passing on the right can have tragic results.

Anticipate the worst. Always anticipate the chance that a small child may run in front of you by slowing down and preparing to brake.

Be careful around parked vehicles. Be especially careful in areas with parked vehicles on the side of the road. Children waiting to cross may be especially difficult to see behind parked sport-utility vehicles.

Obey crossing guards. Always obey the direction given by school crossing guards. In some areas school crossing guards have the same authority as local traffic police.

Avoid backing up. Try to avoid backing up your vehicle in areas with children. It’s difficult to see children while you are backing up.

Don’t speed. Remember that the speed limit in most school zones is 15 to 25 miles per hour.

Don’t honk at pedestrians or bicyclists. Honking at a child, whether on foot or on a bicycle, is not a good idea. The noise could possible startle a child and cause them to trip or fall into on coming traffic.

For more safety training topics, please contact the Risk Management Department.

Business Guidelines to Identity Theft

Identity (ID) theft is one of the fastest growing crimes in America. It occurs when an individual uses your name, Social Security number, credit card number, personal or business information without your permission to commit fraud or other crimes.

In today’s business world, it is almost impossible to do business without collecting personal information about your customers, employees, business partners, students, or patients. The data your business collects, stores, and manages is an asset. But when that database is breached it can quickly become a liability.
If company information has been disclosed accidentally or deliberately stolen, it is important to take immediate steps to help minimize identity theft damage.

  1. Contact the Federal Trade Commission at ftc.gov or call toll-free 1-877-382-4357
  2. Notify your local Law Enforcement
  3. Contact the IRS Identity Protection Unit and complete Identity Theft Affidavit (Form 14039).

What Is A Garnishment?

Wage garnishment occurs when an employee owes a debt and is unable or unwilling to pay money back to relieve that debt. In this case, an ‘intervention’ is staged as the debt collector will normally go to the courts and request what is called a ‘Writ of Garnishment’ for any balance due to Creditors, Internal Revenue Service, State Tax Collectors, etc. If the writ is granted, official paperwork is then sent to the employer with specific instructions as to how much can be deducted from the employee’s paycheck until the judgment is satisfied. Any money deducted through a garnishment order is sent directly to the debt collector via the employer and the employee receives what pay remains in his/her paycheck.

There are several important items to note regarding the garnishment process:

  1. Employees are protected from termination by their employers if their wages are garnished. This remains the case regardless of the number of garnishment orders received by the employer.
  2. Garnishment instructions vary by state. Employers should read over the order(s) very carefully upon receipt to ensure the correct amount of money is being withheld from employees’ wages.
  3. Garnishments normally apply to ALL wages earned by an employee including commissions, bonuses and periodic payments from a pension or retirement program. Usually, the garnishment order does not include tips.
  4. There is a ‘chain of command’ that should be followed where garnishments are concerned. If the employee involved already has a Child Support Order in place, Federal Tax Levy or any other garnishment; please note, that these may take precedence over an order most recently established. The employer will have to notify the debt collector and / or courts of this information.

The majority of the time, normal procedure for withholding on a garnishment order is as follows:

  1. 25% of disposable earnings for that week, or
  2. The amount by which the disposable earnings for that week exceed thirty times the Federal minimum hourly wage.
  3. If the person subject to the garnishment supports a spouse or dependent child, the garnishment may be restricted to a maximum percentage per week or ask the employer to deduct an amount per child from the calculated total.

However; as stated above, always refer to the garnishment paperwork for specific instructions as they do vary by state. Usually, a worksheet is included that will walk you step by step from gross to net wages so you can determine the correct withholding. This worksheet is then sent in to the debt collector along with the payment. If the employer is still in doubt, there should be a number to call to clear up any confusion.

Four Point HR clients are assured that the payroll department enters and processes all garnishment orders received to ensure that payments are made to the correct debt collector and include all necessary items. Copies of orders are sent to the employee(s) affected if noted in the paperwork. Garnishment balances are maintained / followed and closed out when fully paid by the employee.

Focusing on Retirement Goals

With the recent volatility in the financial markets, it is a good time to remind participants of additional market information available to them. Our 401(k) partner, Transamerica, has issued helpful advice to weather the storm.

If you are worried about how the stock market volatility affects your retirement savings, you are not alone. However, reacting to every news story or short-term market change will lead to a poor approach for long-term retirement savings. Instead, view this as an opportunity to review your retirement savings goals.

Success is dependant on how much you are saving, how your savings are invested, and if your investments are appropriate for your situation. This planning is vital to a successful retirement savings strategy. Keep in mind that the timeframe you will be considering will most likely be years or even decades long. This means you should think twice before considering any changes to your long-term strategy based on short-term events.

Even in challenging times, stay focused on your goals. Remind yourself of the three basic steps to an appropriate retirement strategy.

  1. Start saving as early, as much, and as steadily as possible – compounding your savings throughout your working career giving you the best chance for sufficient savings for your retirement.
  2. Diversify your investments – rebalance your investments periodically to maintain your strategy based on your time horizon and risk tolerance.
  3. Be patient – Making sudden changes to your retirement strategy based on the recent past or uncertainty of short-term events could end up hurting you in the long run. You should continue to review your situation periodically to make sure you remain comfortable with your strategy.

Above all, stay calm during the storm. As difficult as it may be to ignore the news and market rollercoaster, it is important to keep your perspective and stick to your plan. There have been U.S. debt crises before and there will likely be others in the future. Stock markets will continue to move up and down based on perception. Over time, a well-diversified portfolio remains the best approach for most investors.

Despite the downgrade, the US Treasury market is still regarded as one of the safest and most liquid in the world. Lost in the news were better-than-expected numbers released on weekly job claims and the July unemployment rate. While the markets react initially to these announcements, the best thing to do is to continue to focus on your retirement savings goals.

Source: Transamerica Retirement Services Corporation