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Top do’s and don’ts of video interviewing

30 May

Overcoming Workplace NegativityFor HR professionals to nail virtual interviewing, they need to be just as careful as job seekers.

Many HR professionals can’t do without their human resource information systems these days, preferring their software solutions to more traditional ways of keeping track of the recruiting process and employee data. One of the biggest types of technologies that is making an impact on HR is video interviewing. While not everyone is on board with the technology-Kevin Ryan, founder and CEO of Gilt Groupe, told Inc. magazine he doesn’t think CEOs should waste their time with the software-video conferencing with candidates can actually make it easier for HR professionals to get in touch with a wider range of candidates.

Prevalence of virtual meetings
There are dozens of web conferencing companies and programs on the market today. PC World even made a list of some of the best video interviewing platforms in 2013. The software has become so popular that, according to an infographic by web meeting tech firm PGi, six in ten hiring managers now turn to video interviewing to conduct face-to-face meetings with job candidates during the hiring process.

With web meeting platforms being cost-effective and easy to use for both hiring managers and job seekers, video interviewing has taken off among human resources professionals in recent years. In fact, the PGi infographic noted 74 percent of recruiters and 60 percent of hiring managers feel video interviews make it easier for them to do their jobs, and 90 percent of recruiters and 88 percent of hiring managers believe it speeds up the recruitment process.

HR professionals and hiring managers can get a better picture of who the candidate is during video conferencing because they can see the person’s body language. In a blog, VidCruiter, a video recruiting software company, advised job seekers to wear the same professional attire to a virtual conference as they would for an in-person interview, and also to ensure all of their surroundings are free of clutter and remain mindful about their facial expressions.

For HR professionals to nail virtual interviewing, they need to be just as careful as job seekers. While challenges can happen no matter how ready you are, HR professionals still should prepare as much for a video interview as for an in-person or phone meeting.

Here are some do’s and don’ts recruiters need to follow when conducting video interviews:

Do: Check first to see if the candidate has access to web conferencing technology
Don’t: Assume all candidates have webcams or video communication
Even though many people use the Internet and various types of web-enabled devices, not everyone may have a webcam on their computer or have access to video conferencing technology. If you wish to conduct web meetings with candidates, speak to them beforehand to ensure they have an Internet connection and have technology compatible with your video conferencing software. Also, ensure there are no issues with your company’s Internet connection and your web meeting software to avoid confusion and issues arising during the interview, according to Accountemps.

Do: Use a private space
Don’t: Conduct the interview in public company areas

Just as how job seekers need to be aware of their surroundings, so too should recruiters. Don’t conduct a video interview in an open part of the office or in a public space. Reduce the level of distractions in the area by holding the interview in a private conference room or walled-in workspace. This way, you and your interviewee aren’t disturbed, and the job seeker feels respected.

Do: Ask questions that showcase the person’s actual experience
Don’t: Quiz about information that can be easily faked with a google search
Be careful of the types of questions you ask candidates during video interviews. According to a Q&A on online recruiter resource ERE.net, the site recommended HR professionals and hiring managers not to change their questions too much, but to be careful about questions that have answers that can be searched online. Textbook questions can be easily aced during a video interview, so ask open-ended questions about the person’s professional experience or problem-solving ability to prevent candidates from looking up notes online.

Do: Ensure the camera is centered and quality is good
Don’t: Adjust the webcam or screen during the interview
Nothing may be more distracting or irritating than having to stop a video meeting or postponing one because the other person didn’t check his or her equipment beforehand. It can be a red flag to recruiters for job seekers to disturb their webcam because it isn’t positioned properly, and it can throw the interviewee off if the HR professional or hiring manager does the same. Technical issues can happen, but if you adjusted your equipment and something still seems off when you start speaking to the interviewee, try not to let it distract you. ERE.net suggested not focusing on the quality of the video, camera framing, or lighting, but on the person you are talking to.

Video conferencing may continue to take off, and recruiters need to ensure they follow some best practices to ensure they are using the technology correctly.

Strategies on how to have tough conversations with your employees

15 Apr

InterviewWhen it comes to strategic human resource management, at some point, every manager or HR professional has to sit down a worker to have a hard conversation. Many leaders hold off speaking with employees about difficult issues because they are unsure of how to handle these types of situations. Should they apologize to show empathy? Is it acceptable to just email the worker? Whether it is a termination or a performance review, HR professionals and company management must walk a fine line. Supervisors who know how to handle tough conversations and employ effective employee management are able to ensure positive outcomes to difficult meetings.

Here are four strategies for having tough conversations with employees:

Hold Conversations in Private to Keep Confidentiality
Every time managers need to have a meeting with workers about sensitive topics, they need to do so in private. This keeps the situation between the supervisor and the employee. Co-workers shouldn’t know if an employee is not doing well unless the manager feels it is in the person’s best interest to let others know, and even then there may be legal consequences for not maintaining confidentiality. Having conversations where other people can listen into the meeting can cause the employee to feel as if he or she is not being respected. Being compassionate and empathetic can go a long way to the worker understanding the points his or her boss or HR professional is making during their meeting.

Stay Brief and to the Point
Managers don’t want to beat around the bush when they enter a difficult meeting. According to a review of an HR management book in Forbes, being truthful right from the get-go can prevent any miscommunication and let the worker know exactly what the issue is. The article suggests leaders follow a simple, three-step process: facts, feelings and identity. Stating the facts right from the beginning gets everyone on the same page.

However, managers need to be careful how they plunge ahead with the conversation. Being overly critical can cause only further issues. According to Forbes, HR consultants advise supervisors should always try to achieve “clean, clear, lucid truth.”

According to an article in Inc. magazine, compassion is a key trait of effective leaders. Professionals who show they are empathetic to their workers’ needs and feelings are more likely to receive loyalty from those employees and enhanced productivity. In an article for Harvard Business Review, leadership consultant Peter Bregman wrote managers need to approach difficult situations from the employees’ point of view.

For example, the Forbes article explained how one manager would use the phrase “I’m not loving that” to get right to the point of an issue without being too harsh.

Seek Guidance of Legal Counsel Where Necessary
Leaders shouldn’t hesitate to receive advice from legal counsel when appropriate. Some types of difficult conversations, like terminating an employee, can have legal consequences if supervisors don’t handle the situation correctly. Speaking to lawyers or legal experts can prevent professionals from inadvertently sticking their feet in their mouths.

Keep HR in the Loop
Perhaps most importantly, managers should take advantage of HR professionals’ knowledge and experience with speaking to workers. HR should role play the conversation so the appropriate adjustments to leaders’ delivery can be made. According to Forbes, everything from body language to tone of voice is important during sensitive meetings. HR professionals can ensure managers understand what they can and cannot say, as well as how to correctly get to the point without sacrificing empathy.

Managers shouldn’t hesitate to speak to workers about issues that need to be addressed, but they need to do so carefully and make sure they are not creating further problems.

The importance of mentorships within the workplace

2 Apr

Man w clipboardMost workplaces provide internships to college or high school students, or they utilize training management software and match young employees with their more experienced colleagues for mentorships. Both types of learning opportunities can benefit workers and their employers, and human resources departments should not discount the advantages of establishing internships or mentorships in the workplace. With the right employee management system, your organization can develop or optimize its internships and mentorships, benefiting the entire company.

Developing workers through these solutions allows them to learn from subject matter experts and provides HR departments with a stronger pool of internal talent. Here are the three biggest advantages your organization can experience by instituting internships and mentorships:

Have the Best Teach the Business
Every company has subject matter experts whose knowledge can greatly benefit the whole workforce. Developing entry-level or mid-level workers’ skill sets through mentorships and providing students with opportunities to experience the professional workplace firsthand gives them access to industry experts at your organization, which can lead to networking opportunities.

Developmental opportunities with industry experts are so coveted that tech giants Google and Apple and multimedia powerhouse The Walt Disney Company grabbed the top spots of ideal employers for business students in the 2014 Universum Student Survey. When asked which companies the 46,000 surveyed undergraduate students would want to work for, most picked companies that had professional training and development opportunities as well as were leaders in their respective fields.

Providing internships to talented students and investing in mentoring within the workplace can help experts pass on their knowledge and encourage innovation within their respective industries. Internal workers who are mentees of company leaders or experienced workers may even be fast tracked for promotion, furthering their companies’ success.

Develop Internal Talent
According to an article in recruitment resource ERE.net, many companies approach internships and mentorships as opportunities to scope out potential talent. Giving students real-world experience in their chosen industry lets companies get ahead in acquiring the best new talent. Hiring workers who have been mentored by the best also means you don’t have to go through a long and tedious recruitment process. As these employees already know how the workplace operates and fit into the company culture, they are great candidates for positions.

According to an article in Harvard Business Review, competition for workers with strong potential has heated up over the years. However, without effective mentoring programs, companies can see themselves with low worker retention and employee engagement, the article noted. For example, the HBR story’s author explained one consulting firm saw itself losing talented young professionals because it didn’t have a mentorship program.

Workforce suggested matching mentors with mentees using employee management software to help HR departments develop key performers.

Promote Positive Associate Relations
Positive associate relations is often not a benefit many HR departments consider when looking at the advantages of mentorships and internships. However, these developmental opportunities encourage positive relations between associates. Mentors and mentees, as well as interns and their supervisors, can develop working relationships that strengthen the entire workplace environment. According to new research published in the Journal of Organizational Behavior, mentors and internship supervisors’ perceived organizational support (POS) increases when they coach talented workers.

“There is empirical evidence that suggests that employees’ POS helps increase their sense of obligation and desire to reciprocate to the organization, fulfill their socioemotional needs and incorporate organizational membership and role status into their social identity,” the researchers wrote.

Developing talent through either mentorships or internships is crucial for employers. Taking time to train and support workers with leadership potential can strengthen the entire company from the inside out. When mentees and interns do well and are either promoted or hired, they feel loyal to the organization and mentors and supervisors feel accomplished.

Challenges facing HR and Payroll Managers in 2014

24 Mar

Woman Working Using Flex HoursHuman Resources is an ever-changing industry, and HR professionals know they need to remaining constantly alert for new regulations and issues to arise. This year has already shaped up to be a challenging one for many HR departments across the U.S. From keeping key workers at the company to implementing effective payroll management, HR professionals and payroll managers are facing numerous challenges during 2014.

Here are the top three issues HR departments are coming up against this year:

Compliance with the ACA and Its Results
Much has been said about the Affordable Care Act (ACA) within the past few years-especially within the last couple months. This is because the ACA is not only going to impact how companies provide healthcare to employees, but there will be legal compliance standards that will occur as a result. These include employee litigation and audits from the U.S. Department of Labor and the Internal Revenue Service.

According to the ADP Research Institute, the ACA presents one of the most complex HR compliance challenges of all time. The lack of preparations on the part of employers has escalated the impact the ACA is having on the business community as a whole. For example, ADP wrote one-fifth to one-third of companies did not even have a clue how much of an effect the ACA’s health insurance exchanges would have on their businesses this past January. In addition, more ACA regulations are coming, and employers are just as unprepared for potential penalties and the Excise Tax Assessment as they have been for other aspects of the healthcare reform law. Even though the healthcare landscape continues to shift and evolve, HR and payroll professionals need to get on steady ground when it comes to understanding their compliance requirements and mitigating their own legal risks.

Retaining Top Talent
The recession remains in many people’s minds, but employees are beginning to feel more confident about their employment options. As the labor market shows signs of improvement, many employees who have waited on the sidelines for better career opportunities may decide to jump ship before the year is out. While this is a good sign for the job market, HR professionals are looking to lose some of their best performers this year if they don’t implement new employee engagement ideas.

According to a late 2013 poll by Right Management, 83 percent of 871 surveyed U.S. and Canadian employees said they will look for a new job this year. In 2009, only 6 in 10 employees said they intended to “actively seek a new position” in the coming year, but that number jumped to 84 percent the following year and has stayed about the same ever since. More top workers used to network to feel out their employment opportunities, but now the majority are becoming active job seekers instead. Twenty-one percent of employees said they were networking to keep their options open in 2009, but that number remained at 8 or 9 percent between 2010 and 2013.

Being able to provide competitive compensation is going to be an essential employee engagement strategy for not only 2014 but into the long term, as Right Management’s numbers suggests retaining top talent is going to be a struggle for a while. Human resource planning will be a go-to solution for many in the industry because of this, and more HR professionals will need to seek out additional employee engagement techniques if they want to acquire and keep key performers.

According to Human Resource Executive (HRE) Online, employee engagement may be its own challenge throughout 2014. Offering employees growth opportunities through effective talent management, tracking worker satisfaction, and maintaining collaboration in the workplace are all going to be important strategies to keep employees engaged this year, HRE Online suggested. According to Forbes, it is going to take recognizing where dissatisfaction comes from for HR professionals to entice workers to remain at the company.

Complying with the OFCCP Mandate
The Office of Federal Contract Compliance Programs’ (OFCCP) mandate pertaining to the hiring and employment of individuals with disabilities will be another key challenge this year, specifically Section 503. According to Business and Legal Resource, hiring managers must now reference Section 503 rules that require contractors to invite job seekers to voluntarily self-identify as disabled at the preoffer and postoffer phases of the hiring process.

BLR states “OFCCP’s final regulations implementing Section 503 of the Rehabilitation Act of 1973 (Section 503), require that employers invite job applicants and employees to self-identify as being an individual with a disability. On Jan. 22, 2014, the Office of Management and Budget (OMB) approved the final Voluntary Self-Identification of Disability form for use by covered federal contractors, beginning with contractors’ new plan year following the effective date of the final Section 503 regulation on March 24, 2014.”

The OFCCP does have training materials available on its website to help recruiters and HR professionals comply with the mandate.

 

The Challenge of 2014: Retaining Talent

10 Mar

It’s no surprise that positive associate relations are necessary to support a safe, happy, and productive workforce. Many organizations pride themselves on their relationships with employees and work hard to ensure workers have a fruitful work/life balance. Yet, how important are these things, really? What are the consequences should an employer choose not to focus on employee satisfaction and talent management? According to recent studies, some employers may have underestimated the importance of keeping their workers happy.

For example, according to career management firm Right Management’s new survey, as many as 83 percent of the 900 employees surveyed reported they would voluntarily leave their jobs in 2014. As active job seekers and established members of the workforce begin to gain higher rates of confidence in the labor market – and as more jobs are becoming available – they are more likely to take employment risks and look for better opportunities.

In fact, in October 2013 more than 2.4 million Americans left their jobs, accounting for 56 percent of all voluntary and involuntary separations that month, according to the U.S. Department of Labor. In short, this means employees have the upper hand in making decisions based on their career prospects, and are less dependent on employers. Conditions have vastly changed since 2009 when, according to Right Management’s survey, only 60 percent of employees said they would actively seek new jobs. The upward trend is most likely attributable to economic conditions directly following the 2008 financial crisis, which left many workers dissatisfied and “stuck” in their positions amid financial uncertainty.

Yet now as economic tides turn and workers gain more autonomy, employers must utilize their talent management software to retain top performers and engage their staffs.

Employees Desire More
One of the biggest changes to the labor market is the influx of millennial workers and how their attitudes and preferences have begun to shape the work environment. According to a 2012 Forbes infographic, there are more than 80 million millennial adults in the U.S. and 36 percent of the workforce will consist of these workers this year. This number increases to 46 percent by 2020. Millennial employees differ greatly from their baby boomer and Generation X cohorts in that they are much more technology driven, have reached higher levels of educational attainment, and can make companies appear more attractive to shareholders and prospective workers.

But they also drive the need for employers to offer its employees more than simply a paycheck. According to Forbes, millennials also require purpose and a sense of accomplishment to stay loyal to their employers – a trend that is catching on. A Hay Group study that looked at global job outlook, retention and turnover found that in North America, more than 36.7 million workers will have departed from their jobs between 2014-18, with a spike in 2014. Employees who responded to the Hay Group study also reported a supportive workplace, opportunity for career advancement, and competent leadership as the top reasons to stay with an employer.

“With retention a growing concern for organizations – not just for key high performing employees, but also core employees – understanding the factors that drive commitment and loyalty is essential for managing increasing turnover risks in the months and years ahead,” said Mark Royal, a senior consultant with Hay Group. “Now is the time for organizations to understand where they stand on and tackle these influences, to keep employees from taking flight.”

These trends indicate a growing need for companies to hone in on talent management strategies to ensure the business retains its top performers in 2014. As economic confidence influences employees’ decisions to migrate to better jobs, prioritizing talent management strategies will be essential to the company’s long-term success.

E-Cigarette and Medicinal Cannabis Use by Employees: Gray Area Matters

20 Jan

Every year brings new challenges for employers, yet few are probably prepared for never-before-seen issues, such as e-cigarettes and medicinal cannabis use at the workplace. Not surprisingly, employers in states that abide by the Drug Free Workplace Act of 1988, such as Colorado and Washington, may be especially hesitant when it comes to understanding the law’s full legal implications. It’s understandable that many HR policies in states where these laws are active may be a bit hazy, as the legal rhetoric outlining the rules are less than clear.

Guidance on E-Cigarettes at Work
Twenty-nine states have laws that strictly prohibit ”inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, or other lighted smoking device for burning tobacco or any other plant” in the workplace. However, electronic cigarettes don’t actually burn anything, but rather contains a heating feature which releases nicotine vapor, according to Ohio lawyer Jon Hyman’s blog on Workforce’s website. This distinction will surely challenge workplace anti-smoking rules, as e-cigareets technically fall outside the lines of what a traditional cigarette consists of and how it is smoked. E-cigarettes are currently allowed in public places that restrict traditional smoking.

In the past, anti-smoking laws in the workplace were implemented to help reduce employees’ exposure to second-hand smoke and lower health-related risks of nicotine addiction among employees who smoke, wrote HR Hero. However, most employers still allowed workers to take intermittent breaks throughout the day to smoke in designated areas. Yet today,’s proponents of e-cigarettes in the workplace say allowing indoor use on the job boosts productivity because the need for outdoor breaks is eliminated. These advocates also say there is no evidence that proves people’s exposure to electronic smoking increases their health risks”, Hyman explained.

To cope with the changing landscape of workplace smoking laws, employers and HR departments must make sure to specifically prohibit e-cigarettes while on the job, as current laws technically allow their use.

Smoke on the Water Cooler: Clarity Needed on Medicinal Cannabis Users
Although employers must be sure to pay attention to their smoking policies in the workplace, there is even more work to be done to negotiate proper guidance on employees who legally use medicinal cannabis outside of work or after hours. Not only are the stratification of laws across America unequal in their level of legality (as in decriminalization, medicinal use, recreational use and total prohibition), the laws regarding their application for employees and employers alike are muddled.

“It’s throwing employers for a loop because many have policies in place where testing positive for THC, or Tetrahydrocannabinol (the active ingredient in pot) requires the employee to be terminated or to participate in some sort of treatment program even if it’s not necessary,” Alison Holcomb, an attorney for the American Civil Liberties Union, told CNBC when asked how employers with anti-drug policies should enforce rules against legal users of medicinal cannabis.

The only clear guidance issued so far comes to HR departments of businesses that receive federal grants and contracts as these businesses must adhere to the Drug-Free Workplace law, which would require the termination of employees who test positive for THC regardless of any medical uses. Similarly, the Department of Transportation also prohibits any use of illegal substances by its drivers.

Some states, such as Montana, New Jersey, Michigan, Hawaii, Colorado, Vermont and New Mexico all have specific employee protection clauses built into their legislation which only allow termination for on-the-job use or impairment.

Yet, not all states have issued statues that explicitly state what is allowable or legal for workers or HR departments, so it’s vital employers advise legal counsel before implementing any specific policies or enforcing workplace drug rules. Employers must also bear in mind that medicinal cannabis users have been approved by a doctor, usually for compassionate use due to terminal diseases or serious illnesses, and should compare medicinal use to workers taking a Vicodin for pain management once off work premises and after hours.

Now is the time for HR Departments to consult with their legal counsel, review and update the employee handbooks and stay in front of the changes in the legislation.

Stop Talking and Listen For a Change

13 Jan

Positive and Constructive CriticismWhat do you look for in a good candidate?  That’s the magic question.  There is an easy answer.  It’s the candidate who is the best qualified candidate to do the job, right?  Well, yes in that respect but, there are other factors to consider.  Aside from the legal-type considerations, and believe me there are plenty, there is something called behavioral interviewing that you should really consider.

So, what is behavioral interviewing?  Long story short, it’s getting the candidate to talk about their previous (work related) experiences and describe past projects, success stories, failures, reflections and how they may have handled their failures differently with a more favorable outcome.  What does all this mean to the interviewer?  It means you need to SHUSHHHHHHH…listen to the candidate talk.  One of the most interesting things that occur during interviews is that the interviewers talk more than the candidates do.

Stop for a minute and think back to every job you’ve ever interviewed for.  How many times has that happened to you?  My guess is that it’s happened a lot of time throughout your career.  Why does this phenomenon occur?  Well, the easy answer is that most people don’t like long gaps of silence. It falls outside of their conversational comfort zone.  They like to “fill up” the dead air space.  Additionally, listening is not the same as hearing.  You can hear a lot of things but, are you really listening?  Have you really honed the skill of being able to filter out all external stimuli thus being able to focus on only one thing solely?  Most people would probably not admit to being able to do that though.  Let’s face it, we are told continuously by our teachers, peers, mentors and supervisors that being able to multi-task adds great value to our job and works well for meeting overall objectives.  In the interview though, not only could your multi-tasking be mis-interpreted by the candidate as being rude (for example looking at your email, sending a quick text or answering a call), you are also missing out on actually listening to the candidate talk about their experiences.

Bottom line, ask your question.  Hopefully, its open ended and behavioral based.  Then, listen to the candidate’s response.  Process their response, and then ask another probing question to their response.  Do this until you are satisfied that you have a good feel for the fit in matching the candidate’s professional experiences to your company’s mission and where you want that candidate to add the most value for you.

After all, you want to feel extremely comfortable that you know this person will grow to be your star top performer!

How Far Do You Reach in Your Outreach Programs?

6 Jan

Have you ever heard someone say, “It’s all cannon-150x150about the journey, not the destination”?  Sure you have.

If you’ve never heard the term “outreach program”, it’s all about seeking to hire qualified women, minorities and veterans into your open positions.  Mostly, government contractors and others doing business with the Federal Government are required to create Affirmative Action Plans as part of their ongoing recruitment efforts.  As part of those plans, there are some components that deal with outreach.  As part of their compliance efforts, that’s how some companies try to fill positions with qualified candidates from specific sectors within the labor market.  So, how does that saying fit into a company’s outreach program?  It’s all about setting out to do what you say you are going to do with respect to informing segmented groups about your company and “reaching out” to them with your job opportunities.  It’s as simple as that.  If you create and follow a comprehensive plan or program that branches out to these specific sectors and you aren’t successful (through no fault of your own) on attaining your goals it may go a long way in assisting you during an audit by demonstrating to the auditor that you put forth your best effort in trying or at the very least, demonstrate how far you were willing to “reach out” to the various groups in your program.  But, how far do you reach?  That’s what’s up for debate currently in the legislation.

If you earnestly go about creating a solid outreach plan, attend diversity job fairs, volunteer to speak at various diversity group meetings and/or training sessions, partner with your local department of labor office and take the time to meet the reps at your local veteran’s office, you should be on track to a great plan.

For more information on how you can track your progress in support of your goals, check out www.sagehrms.com and see how the Sage HRMS system can generate the reports you need to get the job done!

The Pros and Cons of Open Book Management

20 Sep

Open book management is a term that has been around for years, although there is still much confusion around the subject. The term itself is easy enough to understand – open book management is a business philosophy centered on involving a full staff in making a company more successful. Under the theories of open book management, involving more people in decision-making and planning can make a company thrive financially and organizationally. However, actually carrying out an open book management plan can be challenging, making it important to understand the pros and cons of such a program:

Pros of Open Book Management

Increased Transparency
Allowing a staff access into company financials is a powerful way to increase transparency among a workforce. Businesses that keep decisions separated by department or allow only the top executives at a company to have any influence on large decisions may be successful, but at these some companies, staff may feel left in the dark.

Open book management, on the other hand, leaves room for employees to contribute to the way a business is run, while increasing transparency and trust in management. When staff members feel they can trust their supervisors and are fully informed on the inner-workings of a company, they may be more likely to trust for executive decision-makers at a company.

Sense of Community
Sharing ideas can bring staff together and foster an environment in which employees feel open and honest with one another. A sense of community can positively affect a company on numerous levels, as camaraderie and developed relationships enable others to connect on a personal and professional level. This can increase happiness and employee engagement at the office, as well as open dialogue for workers to get to know the way other workers think.

Unique Ideas
By sharing financial and operational information with staff, executives may find more unique and exciting ideas coming from an office. Armed with pertinent information on how a company is working, individuals may be able to give new insights on how to approach a particular problem, or may come up with an idea to streamline operations. Sometimes, it takes a fresh perspective to solve a problem – involving an office in decision-making can provide unique insights and may result in improvements across a company.

Cons of Open Book Management

Information Overload
Too much of a good thing can be a hindrance when it comes to open book management. While some workers may be excited by the prospect of understanding company profits and becoming more financially literate, others may be overwhelmed by the onslaught of information. Some workers are excellent in their current roles because they are focused on the task at hand and do not have to worry about extraneous information.

Involving these staff members in increased decision-making can result in information overload, which can be distracting. If a company is implementing an open book management plan, it would be wise to involve only those who are most enthusiastic about the prospect of more responsibility and fiscal involvement to join in the new initiative.

Increased Worker Demands
Revealing financial and operational information to employees can have some unexpected consequences. According to the Society for Human Resource Management, some employers are nervous to let their employees know how much profit a company makes.This may be for a few reasons – companies that are not performing well may not want their employees to know the ins and outs of a troubled business.

Companies that are beating expectations and bringing in large profits may not want to show their employees this information for a different reason entirely. Some supervisors fear if workers see how well their department is doing, or that the company recently brought in dozens of new clients and has more cash to go around, that employees will be more inclined to ask for raises or become complacent. If a company is worried about this outcome, they may want to take it slow in opening up their management style.

Difficult to Implement
Involving employees in business decisions is a great way to move business forward, but not everyone starts off as a financial expert. Many companies switching to open book management plans offer financial training sessions to acquaint employees with financial operations.

After these training sessions, communication is essential, so weekly meetings and reports are often necessary to keep an open book management plan working. For certain companies, the involved nature of open book plans can prove to be too complicated.

Open book management plans aren’t right for every company, but when they’re used right, they can be the perfect solution for many business needs.

Top 5 Tips to Avoid an Employment Lawsuit

19 Aug

No one wants to be involved in a lawsuit—they can be timely and expensive and can negatively impact an organization’s reputation. Despite employers’ making efforts to avoid litigation, employment lawsuits are on the rise. According to Human Resource Executive Online, federal wage-and-hour lawsuits jumped to a record high between April 2012 and April 2013. During this 12-month period, 7,764 Fair Labor Standards Act lawsuits were filed, with no clear explanation for the spike.

With such large increases in employment lawsuits, it is important for employers to take precautions to protect a company against litigation. Keep reading to find five tips on how to avoid an employment lawsuit:

1. Mind the FLSA
In order to avoid employment lawsuits, it’s important to keep an eye on any changes to the Fair Labor Standards Act. According to the Society for Human Resource Management, misclassifying employees as exempt or nonexempt from overtime payments, as well as violations for off-the-clock work, are common mistakes that put employers at risk.

Placing an employee in the wrong category can result in missed overtime hours, incorrect salary payments, and other FLSA violations. The fallout from these violations can greatly cost a company.

2. Hire and Let Go With Care
Firing someone is one of the easiest ways to bring about a lawsuit. Experts agree that if a company wants to fire an employee, it must be done with care. If an incident has taken place, rather than firing someone on the spot, managers should send the individual home first or place him or her on administrative leave until an investigation has been carried out. Companies should also be sure to document the decision every step of the way to reduce the chance of legal action.

3. Be Smart With Severance Policies
Severance packages can be thought of as insurance against lawsuits. In exchange for the extension of a severance payment, employees should consent to signing a release waiving any claims against the organization. Employers may not be excited to offer severance to a departing employee, but being generous with these packages can encourage employees to walk away with payment rather than raising a lawsuit against a company.

Some companies are wary of severance packages and worry that doling out severance implies some level of guilt or wrongdoing on their part. On the contrary, courts understand that severance packages are part of a responsible employee management scheme that can help a company steer clear of wrongful litigation.

4. Train and Monitor Staff 
Many workers have trouble recognizing what qualifies as inappropriate workplace behavior, which is why it’s crucial to draft airtight company policies regarding harassment and discrimination. In addition to creating solid policy, training is also essential in order to avoid harassment lawsuits. Many states require harassment training—if a company does not comply with these laws and a harassment suit is lodged against the organization, the outcome can be costly.

Even in states where antiharassment training is not required, companies would still be wise to educate staff on harassment policies. This will reduce the likelihood of a suit, which will save a company money and its reputation. Training sessions should focus on all forms of harassment, including sexual harassment, bullying, age discrimination, disability, and racial harassment.

Company management should be careful with staff, even after training. Supervisors should be present at the workplace and look for any warning signs of inappropriate behavior. If a manager witnesses harassment or other workplace transgressions, he or she should correct it immediately by addressing the situation directly with the employees.

5. Open the Lines of Communication
If a company wants to get ahead of a legal problem before it begins, supervisors should invite employees to be open and honest with them about company concerns. Workers should feel comfortable going to a supervisor when they have questions about their wages or encounter harassment or discrimination at the office.

When employees feel comfortable voicing their concerns, managers will be informed of problems before they get out of control and result in litigation.

Litigation is no joke, but employers don’t have to be in constant fear of a lawsuit either. By following these tips, a company can stay out of trouble and create a work environment where staff feels safe and comfortable.

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