GB 370 - Unit #9 : People Stuff

Compensation & Benefits

-- Fair Labor Standards Act of 19318 (FLSA) -- Equal Pay Act of 1963 -- Employee retirement Income Security Act of 1974 ( ERISA) -- Family & Medical Leave Act of 1993 ( FMLA )

Basic options for setting up a Health Insurance plan are ?

-- a traditional indemnity plan , or fee for service -- managed care -- self insurance -- health savings accounts

Common mistakes are :

-- absorbing the entire cost of employee benefits -- covering non employees -- sloppy paperwork -- not telling employees what their benefits cost -- giving unwanted benefits

After the Hire :

-- as soon as you pick your hire & the person accepts the offer, notify the applicants who did not make the cut -- for each applicant interviews, keep their information on file in case you may want to hire them later -- by law, some materials must be kept up to 6 months after the hiring decision is made -- your new employees first day is critical -- be prepared to keep their momentum going & spend time building rapport

Protect yourself from a scam by :

-- compare prices -- check the plans underwriter -- make sure the company follows state regulations -- ask the agent to show you their commission of cost structure -- get help

Workers are considered employees under OSHA if you :

-- control the actions of the employee -- have the power to control the employees actions -- are able to fire the employee or modify employment conditions

What things should you not ask, stuff that might put them into a protected class?

-- do you have kids, age, etc ex: Mormons go on 2- year missions which creates a resume hole - better to shut up about that

Job Description

-- duties -- its working conditions -- the tools, materials & equipment use to perform the job

Overtime Requirements

-- except in certain conditions, federal & state law require non exempt employees be paid overtime -- most states have their own overtime laws -- don't assume just bc an employee is salary that they are exempt from overtime -- employees paid less than 913$ a week are entitled to overtime - will change every 3 yrs -- piece rate is not exempt but commissions ( gigging. sales, etc ) are a grey area

The Union-Organizing Process :

-- generate interest in union among employees -- collect signed authorization cards ~ if less than 30% of bargaining unit members sign cars, the process ends -- petition NLRB to hold election -- Secret ballot election is held ~ is union is rejected by majority vote, the process ends -- union signs up members & elects officers -- collective bargaining over first labor contract -- labor contract signed -- grievance procedure used to resolve disputes during the life of the contract

Consider a Roth IRA of Roth 401(K)

-- if you setup a Roth IRA, you use the retirement more like a rainy-day fund -- can also setup a college-savings account (529) for child that can be used as a rainy day fund

Who can do audits to ensure you are complying with regulations legally speaking ?

IRS & US Department of Labor

What is one of the most desired benefits ?

Health Insurance

Under the FLSA, all employees are classified as one or the other

Nonexempt Employee -- is entitled to minimum wage, overtime pay, & other protection Exempt Employees -- are not protected under the same rules, but must be paid salary

Complications arise when ?

a business begins to offer benefits, as some key benefits fall under government scrutiny

Non-pay benefits create a ?

better relationship with employees because they have a harder time valuing all the benefits

Carriers tend to ?

charge small business high premiums

Benefits aren't ?

cheap & they add 30-40% to base pay for most employees ex : university charges business units 35% of salary as "overhead"

Predictive Validation

correlating deviously collected test scores of employees with the employees actual job performance

Performance Feedback is best given ?

in a private meeting between the employee & immediate supervisor

Some states now offer ?

incentives to small business owners who provide their employees coverage

If you have decided to have employees you'll have ?

multiple policies to set up -- many are regulated by federal & state laws

OSHA Regualtions

states where a federally certified plan has been adopted, the state plan governs. They must be as strict as federal standards Small employers ( 10 or less) don't have to report injuries, but still must comply with regulations

Development

teaching managers & professionals the skills need for both present & future jobs

What is the big advantage of an IRA ?

the earnings on your IRA grow on a tax-deferred basis until you start withdrawing the funds -- get slammed if you pull the money out early

National Labor Relations Board ( NLRB)

the federal agency empowered to enforce provisions of the NLRA

Compensation

the financial remuneration given by the organization to its employees in exchange for their work -- wages -- salary -- incentives

The American Disabilities Act (ADA) of 1990

made it illegal for employers with 15 or more people to refuse to hire qualified individuals with disabilities if "reasonable accommodations" enables them to fulfill the job responsibilities

the rising health insurance costs have ?

made some small businesses cut back on the benefits they offer

Why have unions decline ?

-- increased standards of living made union membership less important -- unionized manufacturing industries have declined -- globalization of business has caused many unionized jobs to be lost overseas -- service professions have not unionized at a pare to replace union manufacturing jobs in the north & west

Equal Employment Opportunity: Affirmative Action

-- intentionally seeking & hiring qualified or qualifiable employees from racial, sexual, & ethnic groups that are underrepresented in the organization -- several executive orders require federal contractors to develop affirmative action plans & take affirmative action in hiring veterans & the disabled -- first order from Kennedy then Johnson & interacting with state initiatives across the country

The Strategic Importance of HRM

-- is increasingly important as firms realize the value of their human capital in improving productivity -- is critical to bottom-line performance of the firm -- HR planning is now part of the strategic planning process

Three major components :

-- legal stuff -- hiring people --paying people

Where does growth go?

-- manufacturing jobs have stabilized over last several years - the portion of manufacturing in the US relative to other jobs is flat -- gaines in production of food & transport equipment, which includes car making while clothes & computer making have dived -- the gain are largely concentrated in south & the mid-west regions

Legal Hire - Application

-- many firms will collect race & gender information on the application -- this is to ensure that the applicant pool they attract is representative as possible -- many times resumes are not consistent in presenting contact details , so get form data here -- painfully long it not a bad thing

Unions go back & forth

-- private sector unions are increasingly small -- seems tough to strike a balance between their initial objective & cause & abuse

Purposes of Compensation :

-- provide means to maintain a reasonable standard of living -- provide a tangible measure of the value of the individual to the organization

Federally, you are not required to provide:

-- retirement plans -- health plans ( except in some states ) -- dental or vision plans -- life insurance plans -- paid vacations, holidays, or sick leave * many companies offer these to stay competitive

National Labor Relations Act of 1935 ( Wagner Act )

-- set up procedures for employees to vote whether to have a union -- if the vote is for a union, management is required to bargain collectively with the union

Discussion of Performance Feedback should focus on the facts :

-- the assessed level or performance -- how & why the assessment was made -- how the employees performance can be improved

Labor Relations

-- the process of dealign with employees when they are represented by a union -- organization prefer employees remain nonunion because unions limit managements freedom

Factors affecting the wage-level decision :

-- the size & current success of the firm -- the level of unemployment in the labor force

Content Validation

-- the use of logic & job analysis to determine that selection techniques measure the exact skills needed for job performance -- used to establish the job relatedness of a selection device

Employers like beneifts because ....

-- they stay competitive -- they are easier to change than salary ( again people really anchor to salary)

The law requires employers to provide certain benefits for employees including :

-- time off to vote, serve on jury, perform military service -- comply with workers compensation requirements -- withhold FICA taxes to pay your portion , providing retirement & disability benefits -- pay state & federal unemployment taxes -- contribute to short-term disability programs -- comply with the federal Family & Medical Leave Act

State resource to handle the legal of employees

-- unemployment insurance -- get a tax ID for your company -- if you're in a licensed industry there is more -- all you need literally all fits on three pages

Equal Employment Opportunity: Adverse impact

-- when minority group members pass a selection standard at a rate less than 80% of the majority group

What to put in writing ?

-- when you have your safety program in place, put it in writing in a safety manual ~ it shoaled explain what to do in a fire, natural disaster, ect. -- keep fire extinguishers & first aid kits at convenient locations -- make sure your employees know where they are -- have a professional review the finished manual to ensure you are in safety compliance

4 rules must be followed for eligibility :

1. must be a defined type of plan - can't create your own 2. must have less than 100 employees including part timers 3. must cover at least someone besides the owner/ operator who is not also highly paid 4. can't have a pension plan immediately before the new plan ( can't change all the time )

Interviews should help you narrow to ____________ candidates

3-4

Legal Hire

Ask for a resume & have an online application Application A good job description will help you reduce the number of resumes

Dual-Career Families

Firms are increasingly having to make accommodations for dual-career partners by : -- delaying transfers -- offering employment to spouses -- providing more flexible work schedule & benefits packages

Employees like the benefits bc ~

People are bad at decision making -- could just give people the cash in their salary in many instances. The contributions can still be deductible Easier to compare like to like

Equal Employment Opportunity

Title VII of the Civil Rights Act of 1964 -- forbids discribincation in the employment relationship -- employees are not required to seek out & hire minorities but they must treat fairly all who apply

Job Specification

a listing of the : -- knowledge -- skills -- abilities -- other credentials the incumbent jobholder will need to do a job

The credit for the small employer pension plan provides ?

a tax credit for costs associated with starting a retirement plan

Employment -at-WIll

a traditional view of the workplace in which an employer can fire an employee for any reason or no reason

Temporary Workers

an increasing trend is to use more temporary workers without the risk that the organization may have to eliminate their jobs

Validation

determining the extent to which a selection divide is predictive of future job performance

Individual Wage Decision

factors such as seniority, initial qualification, individual merit, & labor market conditions influence wage decisions

The Equal Employment Opportunity Commission (EEOC)

guidelines prohibited asking certain questions of a job applicant -- you cannot ask anything not directly related to the job

An exempt employee has ?

has at least 50% of time exercising discretionary powers such as executive, administrative, or professional -- there can be other exempt categories as well

What is the biggest mistake legally speaking ?

is leaving employees out of the plan

Under Federal Law, tips ?

received by an employee can count toward their minimum wage, provided 4 regulations are met

Collective Bargaining

the process of agreeing on a satisfactory labor contract between management & labor ~ the contract contains agreements about wage, hours, & working conditions & how management will treat employees

Human Resource Management ( HRM )

the set of organizational activities directed at attracting, developing, & maintaining an effective work force

Grievance Procedure

the step-wise means by which a labor contract is enforced ~ grievances are filed on behalf of an employee by the union when it believes the employees have not been treated fairly under the contract

Some people have been ripped off by organizations peddling group insurance prices because?

they don't pay all policy holders claims bc they are not backed by sufficient cash reserves

How can you avoid the issue of an applicant lying about their experiences & achievements ?

try calling the persons former supervisor directly