Assessing Your Company's Human Resource IQ
Both the rise and/or fall of a business can often be directly attributed to the employees of the company. Wouldn’t it be nice if we could just hire the first 2-3 people that walk in the door and they would turn out to be “perfect” employees? While we all know the chances of that are slim, our highly experienced team at Guident Business Solutions can help equip you with the skills and knowledge you need to make good human resources decisions.
You only have one or two employees – do you need an employee manual? Yes! Regardless of the number of employees you may have, it’s still important that you have certain policies and procedures in place. This is important for both the employees and the company. An employee manual will outline policies for hiring, disciplinary actions, termination, and safety. It can protect your company against costly litigation and fines. In addition, a manual can help you make sure that each employee has a clear understanding of their job and how it relates to the success of the company.
An employee manual not only serves as an “instruction book,” outlining policies for hiring, disciplinary actions, termination, and safety, it can protect your company against costly litigations and fines should issues arise with an employee. If you want more information on how your company can prevent costly mistakes, give us a call we can help.
Review the following questions – be honest with yourself when answering them. Click on each question for the answer. The answers to the questions will help you understand why an employee manual, explaining the policies of your company, is important.
Do you have an established interview procedure in writing? +
You as the owner must direct the interview process and protect your company against liabilities from interview bias, stereotyping, or asking of illegal questions. You will set up the type of interview your company will use. Some options are a structured interview, patterned interview, stress interview, directive and non-directive interviews. Each style has its place and will serve your company in a different way. You may want the candidate to perform a skill, such as a welding test. You may offer a drug test for new hires even if you don’t do it for existing employees. The part of society which uses drugs know what company’s test for drug use and what company’s do not. Which company do you think they will submit their application? An established interview process will lower your company turnover and help to create a more productive workforce.
Do you have a formal Employee Manual? +
First and foremost, an employee manual is for the protection of the company along with explaining to employees the company policies, procedures, and work rules. It is important to protect your company’s “At-Will” status throughout the employee manual. You as the owner will be responsible for the company’s rules and policies. It can be an important employee relations tool and it will help your company avoid employee’s liability situations. The employee manual is not intended to be all-inclusive and must be carefully crafted giving consideration to balance the desire for an “employee friendly” handbook full of useful information with your organization’s need for litigation avoidance, which we all know will cost a lot more than the investment costs of developing a customized employee manual for your business.
Do you have an established training budget? Is it adequate? +
As with any line on your profit and loss statement, you will need to budget an appropriate amount for training for yourself, your management staff, and your employees. Training is an investment in your company and should pay dividends into the future. Effective training programs are based on through needs assessments and should include targeted objectives identified in the assessment process. The assessments, the programs, and the labor costs during training are a real cost to your company. Setting a training budget can assist you and your management staff with selecting the best programs which will produce the expected ROI for your employees and your company.
Do you have a formal disciplinary procedure? +
As the owner you realize the investment you have in each employee on your payroll, this is why the emphasis in developing a disciplinary procedure is on correcting undesirable conduct rather than simply on punishment. A disciplinary procedure must set clear expectations (usually expressed in the job description), have written policies, procedures and work rules in place (usually expressed in the employee manual). It should be supported by on-going communications, and by having you and your management staff supporting an “open-door” policy which encourages bottom-up communications. We suggest using a progressive disciplinary system where an employee will receive a verbal warning (in writing), a written warning, a suspension, and if necessary, termination. These actions will be for similar or same violations. Constancy is imperative for this system to be effective. Any inconsistent actions will over-ride any written rule you have in place and the liability to your company will be a real cost on the bottom line.
Do you have “Posted Offense” established and communicated? +
You as the owner can set certain rules, which if violated by an employee can result in immediate termination, meaning the company will not follow the established progressive disciplinary procedures. These policies are considered “posted offences”. Examples of such violations are; theft of property, assault of co-worker, possession of weapons on company property, removal of company records, unauthorized access of electronic records, and various OSHA safety violations. This list is not meant to be all inclusive and you as the owner can add and delete violations within reason. These posted offenses must be listed in your employee manual and communicated in writing to new hires and existing employees. They are established for the protection of your employees and to limit liabilities for your company.
Are you in Federal and State labor law compliance? +
In its most simple interpretation, being in compliance with federal and state labor laws means posting the minimum labor regulations required by each authority in a prominent place where your employees can view them. As a business owner, you know this is just the beginning. You will be responsible for knowing and being in compliance with these specific federal and state regulations. Understanding your company’s liabilities in this regard could help your company avoid costly fines.
Do you understand your responsibilities as a business owner under the OSHA regulations? +
Most workers come under the Occupational Safety and Health Act, 1970 (OSHA) with a few exceptions such as self-employed workers. This means you may not be subject to the jurisdiction of OSHA, but your employees are covered under OSHA regulations. Some of the most common OSHA standards are; Emergency Exit Procedures, Occupational Noise Exposure, Machine Guarding, Hazard Communication, Personal Protection Equipment, Lockout/Tagout Regulations, and Process Safety Management. OSHA classifies violations in five levels, and penalties are set accordingly. It is best for you as the owner of your company to understand your rights and obligations with respect to OSHA regulations in order to create a safe work environment and to limit your company’s liabilities.
Does your company have a Safety Statement and Safety Committee? +
As part of a comprehensive safety program your company should develop a Safety Statement, formatted much like a mission statement, the safety statement expresses your company’s desire to provide a safe and healthful work environment. Your company should establish a Safety Committee which conducts regular, recorded meetings and who are responsible for setting up programs such as; a Self-Inspection Program, Hazardous Communication Program, Safety Incentive Program, and Safety Operation Program. Each of these programs is initiated to provide a safe and healthful work environment and can help limit your liability if at anytime a company employee has an OSHA reportable injury.
Do you have MSDS manuals posted? Are they up to date? +
Material Safety Data Sheets (MSDS) regulations come under the Hazard CommunicationAct of 1986 also known as the employee right-to-know law. This law requires your company to inventory hazardous chemicals, provide an evaluation of chemical hazards in the workplace, and to communicate those hazards to your employees through the use of MSDS stations located throughout your business. Most hazardous information in the form of MSDS sheets is available through your current vendors. Establishing and maintaining the MSDS stations should be the responsibility of your Safety Committee in order to provide a safe and healthful work environment and help to limit your liability if at anytime a company employee becomes injured due to miss-use, either intentional or accidental, involving chemicals in your workplace.
Do you have a Risk Management Plan? Who oversees Risk Management? +
You as the owner must direct the interview process and protect your company against liabilities from interview bias, stereotyping, or asking of illegal questions. You will set up the type of interview your company will use. Some options are a structured interview, patterned interview, stress interview, directive and non-directive interviews. Each style has its place and will serve your company in a different way. You may want the candidate to perform a skill, such as a welding test. You may offer a drug test for new hires even if you don’t do it for existing employees. The part of society which uses drugs know what company’s test for drug use and what company’s do not. Which company do you think they will submit their application? An established interview process will lower your company turnover and help to create a more productive workforce.
First and foremost, an employee manual is for the protection of the company along with explaining to employees the company policies, procedures, and work rules. It is important to protect your company’s “At-Will” status throughout the employee manual. You as the owner will be responsible for the company’s rules and policies. It can be an important employee relations tool and it will help your company avoid employee’s liability situations. The employee manual is not intended to be all-inclusive and must be carefully crafted giving consideration to balance the desire for an “employee friendly” handbook full of useful information with your organization’s need for litigation avoidance, which we all know will cost a lot more than the investment costs of developing a customized employee manual for your business.
As with any line on your profit and loss statement, you will need to budget an appropriate amount for training for yourself, your management staff, and your employees. Training is an investment in your company and should pay dividends into the future. Effective training programs are based on through needs assessments and should include targeted objectives identified in the assessment process. The assessments, the programs, and the labor costs during training are a real cost to your company. Setting a training budget can assist you and your management staff with selecting the best programs which will produce the expected ROI for your employees and your company.
Risk management refers to dealing with specific events that may cause losses to your company. Examples of some of these events are; supplier problems, loss of sales revenues, loss of financing, unexpected competition, loss of key staff, increase in bad debts, or theft and vandalism. Managers and advisors of your company should be engaged to help develop this type of Risk Management Plan. Having a contingency plan and designating someone to execute that plan can limit your company’s losses and down time.
