New Final Rule on Exempt vs Nonexempt Employees - Action Required by July 1st
Business owners ask me questions all the time about the rules regarding Exempt vs Nonexempt employees (mostly as it relates to overtime pay). If you are a company with 1 employee or 5,000 employees, you need to pay attention to any changes to the FLSA, and we just received a new rule that requires a big change starting in July.
First off, let's help you understand this part of the Fair Labor Standards Act (FLSA). All employees governed by the FLSA (which are most in our country) are required to be paid minimum wage and payment for working overtime. The FLSA has an “exemption” for certain employees to not be subject to this regulation. This means they are “exempt” as a classification. As small business owners, this usually matters to us because we don’t have to pay exempt employees overtime pay. On the flip side, if the employees do not qualify for an exemption, they are classified as “non-exempt”, and you must pay them overtime when they work over 40 hours in a work week.
What makes an employee exempt?
The popular misconception by my clients is that they get to choose. However, it is not up to you. The business can’t make that determination. The classification is defined by the job duties, pay level, and pay type. You can classify an employee as exempt only if they pass the job duties test, the salary threshold test, and the pay type test. And they need to meet all of them, and not just one or two.
1. Job Duties Test - They are given little supervision and have the authority to make recommendations. Their titles can look like the following: lawyers, accountants, marketing professionals, business executives, managers, etc.
2. Salary Threshold Test - The employee gets paid over a certain amount (we will talk about that in a minute).
3. Pay Type Test -Their pay doesn’t change week to week (salaried not hourly). Do not fall into the trap of thinking everyone that is salaried is automatically exempt because their pay type is NOT the sole determination. You cannot take an employee who should receive overtime pay, pay them as salaried instead and then call them exempt. It just does not work like that, and you can get in some trouble with the DOL if you try.
There is a also a Specific Job Test that bypasses the above tests that you can look up on the DOL website for specific jobs (for small businesses, this would be like outside salespeople and some computer/IT based employees) that would make them exempt.
Other than these exemptions, everyone is non-exempt. For my small businesses, that means these types of jobs - administrative assistants, bookkeepers, customer service people, and any clerical level employees are non-exempt. Basically, anyone that has more routine tasks and takes direction - these people have no exemption from the rule.
There are also certain industries that have special exemptions such as automobile dealers. So, it is always best to check the regulations!
Now what changed with this new “Final Rule”?
One of the parameters in the list above (#2) states that one “test” of whether a position can be exempt is the salary threshold test. To be exempt, you can make no less than $35,568. If you make less, you are automatically non-exempt no matter what your job description says.
Well, that salary number is changing in a big way. In this final rule, the salary threshold will increase from the present (since 2019) annual salary threshold of $35,568 to the annual salary of $43,888 and increases to $58,656 on Jan. 1, 2025. This will go into effect on July 1, 2024.
So, what do you do because of this change?
For this current change upcoming, you need to query your list of employees that make under $58,656 and they will need to be reclassified as non-exempt by July 1.
What will this do to your business if you have someone that is currently classified as exempt but makes under this new threshold?
If the person doesn’t work overtime at all, this will have no impact on your business.
If the person doesn’t log in and out, they will need to starting on July 1st because at any time you will need proof of when they worked.
If the person does work overtime, you will need to pay them for it.
What are options you can do to mitigate any issues?
Just agree to start paying overtime and be done with it
Find other people to do the additional work so that the person never can work overtime - and tell them they aren’t allowed to work overtime unless it is approved in advance. You could hire a part time person (we can also help with this)
or see if someone else is underworked that can pick up the duties
Raise their pay over $58,656 and they will not be affected.
As a Side Note:
You might want to re-examine the classification you have for all your employees and make sure the way you have classified them is legal. Even if someone makes over $58,656 - they still need job duties that are considered appropriate to be exempt. The misclassification of employees can carry with it a high fine from the DOL and back pay for years. So please don’t make this mistake.
Homework for You
If I were you, I would print out a list of all employees that are currently classified as exempt and make sure they really pass the “tests” above. Can’t hurt to be sure.
We did record a podcast on this a couple months ago, where we talked about getting prepared for this new final rule and the implications. It is 10 minutes and definitely worth your time:
How Innovative Outsourcing and tHRiving: HR for Small Business Can Help:
One of the best services we perform for our clients is our HR Audit. An HR tool built for small businesses to identify the strengths and weaknesses of their HR. As part of the HR Audit, we look at your classifications and 13 other areas of HR to see where you are at. Pricing for this HR Audit starts at $2,500.
How Leadership Development and Mentorship Programs Can Change Your Small Business
How Leadership Development and Mentorship Programs Can Change Your Small Business
I know CEOs and Business Owners are tired of hearing that salaries and bonuses across the board are skyrocketing. Running the numbers and realizing the weight that has on your small business is a little overwhelming. However, I do think there are free ways to retain and hire and can dramatically affect your organization.
One way that I have seen to Retain and Hire that costs no money is to develop Leadership Development and Mentorship Programs within your organization. Before you roll your eyes and think this is a huge waste of time and money, watch this 2-minute video where I talk about some ideas that we have advised big companies like Delta Airlines and small businesses. Both have had a ton of success:
You know the saying, "It's the thought that counts." Leadership Programs are about creating a space where your employees know they are being invested in. Creating these programs is not a ton of work, and the program can be as big or small as you want it to be. We have seen some companies go all out and put a lot of time and money into "building the program" as a recruiting strategy that we believe does work. Or we have also seen book studies led by managers every two weeks at lunch also work. I think Book Studies with your team is a great place to start. Books like "The Ideal Team Player" (we give this to all of our clients when they start a search with us: Hungry Humble Smart) by Patrick Lencioni or Raving Fans by Ken Blanchard if you are looking for a Customer service type book are two great suggestions for your first book study.
When it comes to Mentorship Programs, younger people are starving for it. I tell this story about my son, Matt Filer, all the time. When Matt graduated from the University of Georgia (Go Dawgs), he had 3 different job offers. One was a sales role with a very established payroll company and one was at a company who offered a Mentorship Program where Matt would spend 15% of his time being developed by two different managers. Matt chose the job with the mentorship program for 25% less of salary. I will say that again: 25% less salary!
Putting these programs together show you CARE about your teams. Do it and watch your retention rise. If you do not know where to start, I am happy to talk to you about this! Here is my Calendly. I do 30-minute consultations, and I love talking about this subject.
Here are a few more things that can help with the HR side of your business:
1. The HR Quiz: If you have no idea where you are at when it comes to HR in your business, we developed an HR Quiz to get you thinking about some areas that we thing are really important. Should only take you 5 minutes and should be worth that time to see where you stand.
Press on image to go to the quiz
2. Our HR Audit: You know you need help with your HR, but you do not know where to start. This is the tool you are looking for! Starting at $2,500, we do a full examination of your HR practices (compliance, retention, talent, compensation, etc.) Link to that is below or you can message me or email me to get started:
Press on image to go to link and get a quote for an HR Audit
3. We love helping companies hire for their office positions. This will continue to be what were best at: https://www.innovative-outsourcing.com/hiringhome
How to Retain Your Staff Better than Other Small Businesses
How to Retain Your Staff Better than Other Small Businesses
Let’s talk about Retention.
If you know me or have heard me speak, you know how passionate I am about how retention in small business can drastically change your bottom line. I talk to a lot of Business Owners and CEOs about retention, and the overwhelming theme is that HR is “soft”, “touchy feely”, or the “only department that does not have to reach a goal or quota.”
I am a Mathematical Economics major. You are probably asking how I got into HR, and that is a fair question. However, that means I love data. So we are going to go over some statistics that disprove that HR “does not affect your bottom line as a small business.”
The stats:
3.7% Unemployment Rate (this is staying for the moment)
47% of Active U.S. employees are “watching or actively looking for new opportunities”
Replacing exiting workers costs .5x - 2x the employee's annual salary. Assuming an average salary of $50,000 that replacement cost translates to between $25,000 and $100,000 per employee.
Obviously, your small business is probably perfect and no one will ever leave your organization. However, 47% is a huge percentage of employees who are looking to leave for a new job and actually admitted to it on a survey. If you combine that with the cost outlined above you will hopefully realize that HR and retention dramatically affect the bottom line of your small business.
Want more stats? Here you go:
- In 2021-2022, a majority of workers who quit their job were asked and they said these were the top factors:
63% - Low Pay
63% - No Opportunities for Advancement
57% - Felt Disrespected at Work
Before you roll your eyes, think for a second about this. Maybe you cannot match the offer that Google just gave your EA. However, there are things that may be considered “touchy feely” or “soft” that can affect your bottom line. And did I forget to mention… a lot of this is free!
So here are the areas of Retention that we are going to focus on the next couple of weeks:
Competitive Salary
Career Path for Employees
Health Benefits, 401k, and PTO
Flexible Hours
Flexible Work Location (some 4-day workweek talk as well)
Unique Benefits No One Else is Offering
Leadership Development or Mentoring Programs
Great Looking Work Environment
That’s the start! Can’t wait to hear your thoughts in the coming week.
In the meantime, here is our Small Business HR Quiz. See where you are at and where you may need some help:
How to Lead Your Team in Economic Uncertainty
How to Lead Your Team in Economic Uncertainty
In full transparency, I posted this blog before to some of our clients. However, we are seeing some signs of this again and I thought it might be useful as a reminder of how to lead your team when times are uncertain.
I do not have the expertise to talk about cash flow management. However, I can talk about what you can do with your team from a leadership perspective. During the pandemic, I told our clients that decisions they made with their employees then will affect what happens the next two years. I will say the same about right now. Here are 4 ways you can lead your team during these uncertain times (or a 3-minute video if you prefer):
1. Communicate Often - This is when you should communicate more than normal as the CEO or business leader. If everything is fine at your company, let your team know that you are not going out of business. If you need to tighten budgets, tell them that. Do not let them hear through the grapevine what is going on at the company. Be direct, share KPIs, and let them hear from you often.
2. Ensure Job Security - If you are not planning on layoffs, tell your staff that as soon as possible. That looming threat often causes people to look elsewhere if they feel there is a threat to their role. Just telling your people that layoffs aren’t on the table (if that is true), will reassure people, and will encourage productivity without the thought of layoffs looming.
3. Show Empathy - The news is very negative out there. I actually recommend just acknowledging that. Tell your team that you know the news is rough and the markets are concerning. Understanding the concerns they might have will be oddly assuring.
4. Be Large and In Charge - Employees want to see their CEO be a leader worth following. People want a leader that has a vision and a plan, and who is not easily rattled by what is coming. They want to feel secure and know that their CEO is in control of the ship. We, as leaders, do not always have all the answers. However, when we are in front of our team, it is time to be confident and lead.
Strategies to Consider:
1. It is a great time to hire - If you are a company that sees no signs of slowing down, now might be one of the absolute best times to find great talent that we have seen in years. The clients we have worked with in the last month are seeing exceptional candidates! Shameless plug - we help small businesses hire. Email me at cfiler@innovative-outsourcing.com
2. Start the preparation for the worst - If you must, figure out a plan with your leadership team around what positions might need to be eliminated if a downturn turns worse. We learned in 2008 that you don’t want to wait on these decisions too long. Have a list of possible jobs that could be eliminated first (and the lowest performers listed), which could be a huge help if we get to that point.
Two Ways We Can Help:
1. There are always HR questions that come up when things are shaky - so please don’t hesitate to call me (30 minutes is always free). Email me to set up a time!
2. The HR Audit is a tool designed for small businesses in any industry to identify the strengths and weaknesses of their HR function.
We evaluate the 14 areas of HR from compliance to retention. We develop an HR strategy to make your employees proud of where they work. Watch the video to the right for more information or visit our HR Audit Page on our website.
Hope this helps and I will talk to you next week!
How to Finish the Onboarding Process Well - Part 5 of 5
How to Finish the Onboarding Process Well - Part 5 of 5
This is the last blog on the topic of onboarding. I truly believe onboarding is a crucial part of HR that small businesses do not pay full attention to. It is an easy way to retain talent that you worked so hard to get.
These two stats will make the case for me:
Great onboarding can improve retention by 82%*
New employees with good onboarding experience are 18x more committed to their employer.*
ONBOARDING PRINCIPLE #5 – Help Them Understand Company-Wide Policies and Expectations
You should have an employee handbook, and then you need to make sure they sign that they read it. They also need to meet with HR or someone designated to go over the policies with them. This ensures that they take the time to know that your policies are important and followed. Make sure they understand and have the time to ask any questions. One day, if you need to enact employee discipline – it will be important that you took this 60 minutes to train them!
ONBOARDING PRINCIPLE #6 – Make Sure You Give Them Their Job Description or Job Expectations
On day number one, the new hire needs to know what success looks like in the first 3 months. Are they supposed to do everything on their job description or just half of those responsibilities? t is hard to expect them to do great work if you haven’t told them what “great work” is in the early days of their employment.
This will set up performance conversations that should be had every 15 days in the first 60!
ONBOARDING PRINCIPLE #7 – Make Sure They Know Who To Talk to If They Have an Issue
If they are having an issue with their leader – who do they go to? (hopefully you have HR or someone functioning as HR)
If they are having an issue with a peer – who do they go to (after they try to handle themselves)?
If they are not being able to do their job well – who do they go to?
That’s it. Onboarding is not hard and it doesn’t cost (much) money. However, you need a plan and a schedule and you need to be a leader that makes this a priority. If you do, the results will be incredible. Don’t make an excuse why you can’t – just do it well!
Let Innovative Outsourcing Help!
If you are having an issue getting started, let one of our HR team members (Karen Moss, SPHR, SHRM-SCP) meet with your leadership team. During our HR Audit – we can talk through the options and come up with a structure for your onboarding! It’s a great way to kick start a “change”.
Stat source: https://www.oak.com/blog/employee-onboarding-statistics/
How to Get the Onboarding Process Right the First Time - Part 4 of 5
How to Get the Onboarding Process Right - Part 4 of 5
Onboarding seems straightforward to most small businesses. So you might be asking yourself the question: "Why is Cindi Filer spending so much time trying to perfect our onboarding processes?"
This statistic should help answer that question:
91% of new hires will determine if they want to start/stay based on how they are onboarded.
You want to get this right... Trust me!! So we will continue from our last onboarding principles:
ONBOARDING PRINCIPLE #2 – Tell Your Company Story
New employees want to know why you do what you do. So spend some time telling them the company story and answering questions like these:
Why and when did the company start?
Who started the organization?
What is the “heart” behind the company?
Is there any special history that the business is proud of?
This could be done in a few ways:
“Hype style” video
In a meeting with the CEO presenting to group
A one-on-one lunch with a leader.
ONBOARDING PRINCIPLE #3 – Get New Team Members Excited to Work at the Company
The new hire will be excited about being at your company if you (as their leader) are excited. That’s it.
Your energy level and excitement for the company (or your lack of it) will show through clearly. Make sure you bring that energy in their first weeks (hopefully forever). Remember, excited engaged employee are more productive so it is beneficial for you to put in the effort and energy!!
ONBOARDING PRINCIPLE #4 – Train New Employees Well and Quickly
Training is important – systematic training. The “follow me and just do what I do” is not the best training approach. Before you hire someone, make sure that you are ready to train well. Have manuals, videos, or team members ready with instruction that is clear and well done. New employees that get poor training typically fail.
A couple more important stats that you should be aware of:
59% of employees report no workplace training! (WOW.)
70% of employees believe they lack the skills needed to do their job.
So, if you train well – you have a huge leg up on your competition for talent!
Our HR Audit
We have an HR Audit, where we discuss your onboarding process in depth and make suggestions that fit your company. We also will evaluate the other 13 areas of HR and give our recommendations. HR Audit Info
How to Create Great Culture Through Onboarding
How to Create Great Culture Through Onboarding
Today, we are going to focus on creating culture by facilitating relationships during the onboarding process – a very important piece of the onboarding puzzle!
Here's a recap from my last newsletter on Onboarding to jog your memory:
91% of new hires will determine if they want to start/stay based on how they are onboarded.
The boss is the best person to onboard.
You need a PLAN ahead of their start date.
There are many elements to great onboarding – we will focus on them over the next weeks.
ONBOARDING PRINCIPLE #1 - CREATE GREAT RELATIONSHIPS
To ensure that your new employee is set up for success, you must start by facilitating great relationships.
On the first day, you should say something like, “While we want you to get to your work soon, you will see that we have put quite a few meetings, lunches and coffees on your calendar. We feel that this is crucial for you to spend time with the people that will be important in your work relationships.”
Then, you as their manager will set up all these meetings prior to their first day and those events should be on their calendar when they arrive. Don’t leave it up to them to schedule the meeting.
Communicate to the people they will be meeting with that these are critical and you expect them to follow through and meet. Do not let more urgent things get in the way.
Efforts like this create Culture because relationships are crucial. Here are some relationships that I believe need to be fostered:
Peers – Create lunches and coffees and meetings in the first 4 weeks for all peers (in their own department and across departments – like Finance, HR, etc). The new employee can do these meetings in groups or one on ones.
Manager/People Leader – You (as the boss) should have the first meeting with them on the first day – no exceptions. If you are taking vacation that week – do not have them start. It is important for you to take at least 15 minutes/day in your schedule to meet with the new employee (for the first 2 weeks) and see how they are doing in their onboarding. Then, create meetings every Friday for 30 minutes for the first 60 days. Have them set and do not miss them!
Customers – If they are customer facing, creating lunches/opportunities to have one of your team go with them to meet the customer (or zoom is necessary). Make sure when the person introduces them to your best customers, that they praise the new person and tell them how excited they are to be taking over.
Other high-level employees in your company – If there are others that are executives that they will be working with, make meetings with you and the other executive and the new employee. It is important for the high-level execs to meet WITH them and not just walking by their desk.
I’m pretty sure that very few small businesses do this.
And even fewer do this well. It’s FREE. And impactful. You’ll be surprised how well it goes and how your overall employee engagement improves as well!
As always – if you need some help to put together a great onboarding plan – call us! We have quite a bit of experience in this area and can help your team create a memorable few months for your new hires.
Here are the ways to get in touch with us:
Email me at cfiler@innovative-outsourcing.com
Go to our website: https://www.innovative-outsourcing.com/
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How Onboarding Well Can Improve Retention
How Onboarding Well Can Improve Retention
When I ask a client about their onboarding of new employees, they often tell me about their new hire payroll documents. And then I say to them, "What about the other onboarding activities?"
And I get a blank stare...
Just to refresh this statistic from my blog on Pre-boarding:
“Even after accepting a position, 91% are willing to quit within the first month and 93% during the probation period if the job doesn’t match their expectations.” - survey from Robert Half
With that said, let’s take a look at some of my favorite strategies around onboarding new employees:
Your New Goals for Onboarding:
1. Get your new employees super excited - one CEO of a large corporation we created onboarding for said, “I want to make the new hire run through the wall for our company”. They need to be fired up when finished with onboarding.
2. Help your new employees understand the general employment policies and expectations - This should also be company wide, but they need to know the information.
3. Make them feel like they made the correct decision in taking this job - Sounds like it is not your job, but it is.
4. Tell your company story - You want new employees to get behind the mission, values, and history of your small business.
5. Help them to create great relationships - Introduce them to people around the office. Set up lunches for them with different people that will be useful to know.
6. Help them to learn necessary skills - This is the basics, but set them up well to learn the role
7. Help them to know where to go for help and information - If they have questions about anything, they should know the best people to answer them.
Keep in mind the following statistic:
“A strong onboarding process improve new hire retention by 82 percent and productivity by over 70 percent.”
With these new "Onboarding Goals" in mind – think to yourself.
Is this a strength of our company?
When new employees are done onboarding, are they so aligned and ready to go that they hit the ground running with excited anticipation?
If not, let’s get to work. Two pieces of advice:
#1 – The importance of setting aside the time to do onboarding well.
The boss needs to participate and understand the importance of setting aside precious time in the first 2 weeks to do this well. We find that this is a real problem. If a boss doesn’t understand this critical need to onboard well, they just throw them in the job quickly to get work done. They are undermining future productivity without giving onboarding adequate time and attention.
#2 – The boss is the best person to onboard
The boss acts as a quarterback to determine what all is needed and to set up meetings and programs either with HR or alone if no HR exists to make sure all the objectives are met.
We will delve into more onboarding best practices next time!
Here are some links to our website and podcast. If you are a small business with recruiting or HR needs, please reach out to me at cfiler@innovative-outsourcing.com
Great Update to I-9 Verification Requirements
Great Update to I-9 Verification Requirements
In May, we informed you in the newsletter that it was announced that employers in the United States will have until August 30, 2023, to physically inspect the identity and employment eligibility documents of employees whose Form I-9 was completed virtually due to COVID-19 flexibility provisions. Here is a link to the article in case you forgot: In-Person I-9 Verification Newsletter.
We told you that we would update you if there was any big news. Well, there was big news, everyone!
On August 1, 2023, the U.S. Citizenship and Immigration Services (USCIS) decided to give the Employment Eligibility Verification form, the famous I-9 form, a bit of a makeover. Why, you ask? Well, they wanted to make it way easier for both employers and employees to figure out who can work legally in the U.S. Not just that, they also tossed in a new method for checking important work papers remotely. Let's dive into the details of these updates and see how they're changing the game.
The Remote I-9 Check Magic:
Okay, this is where we were hoping to see a change. There's a new way to check those important papers from a distance. If employers participate in E-Verify, they can now use video calls to give those papers a good look and say, "Yep, they're the real deal!" The employer needs to tick a box in Section 2 of the new I-9 form and hold onto a picture of the papers. In summary, being able to check virtually is going to save employers time and money.
Better I-9 Form:
The first thing you'll notice in the new I-9 form is how Sections 1 and 2 have teamed up to share a single page. This isn't just about saving space—it's all about making things smoother. The part where workers jot down stuff and the part where bosses do their thing are now on the same page, which should help keep errors and mix-ups at bay. Also, they've given the Preparer and/or Translator Certification their own little space in a Supplement A. And you know that Reverification and Rehire part? Well, it's now hanging out in a separate Supplement B. These changes should mean fewer mistakes and scribbles, so everyone's on the same page, so to speak.
Remembering the COVID-19 Days:
Now, if bosses used the video trick between March 20, 2020, and July 31, 2023, because of the whole COVID-19 mess, there's a bit of a twist. Some employers might have to do an in-person check later on. But don't worry, if they follow certain rules, they might just dodge that bullet. If they don't meet those rules, they've got until August 30, 2023, to get that real check done.
Wrapping Up:
So there you have it—employers can check those I-9s from far away. It's all about making sure everyone's on the same page when it comes to working legally. Small businesses should definitely get up to speed with these changes and see how they fit into their work routines. It's like leveling up in the real world! These updates are all about making things smoother and more adaptable, and that's a win for everyone involved in the world of work.
Sales Pitch of the Day:
The HR Audit is a tool designed for small businesses in any industry to identify the strengths and weaknesses of their HR function.
We evaluate the 14 areas of HR from compliance to retention. We develop an HR strategy to make your employees proud of where they work. Watch the video to the right for more information or visit our HR Audit Page on our website.
How to Onboard New Employees Better than Other Small Businesses
How to Onboard New Employees Better than Other Small Businesses - Part 1
“Even after accepting a position, 91% are willing to quit within the first month and 93% during the probation period if the job doesn’t match their expectations” - survey from Robert Half
Hiring is not easy in a small business. You spend time and money getting the right candidates for your organization. You make the job offer to your dream candidate, and they accept. The work is done, right? Wrong.
Now, the real challenge begins – Onboarding New Employees. It is time to make the best impression possible for their first 30 days.
The statistic above didn’t happen five years ago and we need to be paying attention to the onboarding process. Let’s talk about some things we can do to keep the talent that we just hired.
In this series, we will go through our thoughts and advice on the whole onboarding process in small business.
Today, we will talk about Pre-boarding.
This is what you do in between when the offer is accepted and prior to the start date. Here are some ways to ensure your new employee has a great feeling about your company even before their first day:
Day after the offer is accepted – Send something with your logo on it in the mail (a t-shirt, mug, frisbee – anything you have) with a handwritten note from the hiring manager about how excited you are to have this person coming.
3 days after the offer is accepted – Have each coworker (up to 7) email the person in the same morning – with a “we are so excited” email introducing themselves.
5 days after the offer is accepted – Share with them a schedule of their first week of employment including planned lunches with specific people, meetings with peers, time for them to acclimate at their desk, any training they need to go through.
6-8 days after the offer is accepted – The CEO (yes the CEO) calls to tell the person they are excited to meet them. If no one answers, just leave a message and your call back number.
If there will be weeks prior to their start date – keep emailing every Friday – to tell them some things that are going on in the department and giving them some additional information.
In addition to these things, you need to send your new hire paperwork during this time. The new hire paperwork needs to be:
Easy to complete and return (electronic signature only – no faxing required). If it can be done on a mobile device – even better.
Thorough and professional looking – not dripping 6 emails with different docs to handle – but in a one-stop-shop fashion.
If there is any document that is not absolutely required, drop it. Completing too many docs is onerous.
Whoever is sending the new hire docs needs to be pleasant and helpful in verbal and written communication. Use terms like, “thank you for completing so quickly”, “I know your hiring manager is excited to get you started”, and “I love my job here and I know you will too”.
Phone calls when needed should be gracious and helpful. This is not the job for a person who has been at the company for 25 years and is bitter and impatient.
As you look at this information – what are you doing well at your company in this process and what might need to change? Seeing that 91-93% of new hires feel it is fine to quit right away – it is important for you to strategize to get this right.
As always, our teams at Innovative Outsourcing and tHRiving: HR for Small Business can help you and your leadership with a plan to make this world class in your company.
If onboarding is just one area that needs assistance, consider our HR Audit. We will assess your current HR practices and give you a report of what is needed to be successful in the 12 different areas of HR. This service starts at $2,400 and goes up to $4,500 based on size and complexity.
Urgent HR Compliance Update: New Versions of Workplace Posters
Urgent HR Compliance Update: New Versions of Workplace Posters
Usually, we talk about items like retention and hiring, but today we are diving into the compliance side of HR. Karen Moss, our HR Expert, provides details on what you need to know! Karen, take it away:
Due to new rights granted under the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act), employers must display a new version of workplace posters.
Pregnant Workers Fairness Act:
Align to the left
Align in the middle
Resize to full width
Align to the right
This new law went into effect on 6/27/23.
It requires covered employers (15 or more employees) to provide "reasonable accommodations" to a worker's known limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an undue hardship.
Reasonable accommodations might include assigning light duty, permitting more frequent bathroom breaks or allowing pregnant workers to drink water at their workstations.
Other accommodations under the PWFA might include:
The ability to sit at a workstation.
Closer parking.
Flexible hours.
Appropriately sized uniforms and safety apparel.
Additional break time to use the bathroom, eat and rest.
Leave to recover from childbirth.
Reassignment from activities that are strenuous or involve exposure to compounds not safe for pregnancy.
In addition to this new law, another law called Providing Urgent Maternal Protections for Nursing Mothers (PUMP Act) went into effect 12/29/22.
The Pump Act requires employers to provide a reasonable break each time a nursing employee has a need to express milk for one year after the child's birth. Employers must provide a place, other than a bathroom, that is shielded from view and free from intrusion in which the employee can pump.
Companies with fewer than 50 employees can be exempt from the PUMP Act's provisions if they demonstrate compliance would impose an undue hardship.
Georgia has had its own Lactation Break Law which became effective on 8/5/20. The Georgia law applies to all employees, requires break time to be paid and does not contain a one year time limit on granting of lactation breaks.
Here also are links to our podcast where we explain more about it:
If you have any questions, please feel free to contact our tHriving team.
The Hiring Cheat Sheet for Employers
The Hiring Cheat Sheet for Employers
Hiring is not easy. Gone are the days when candidates "are lucky to get an offer". In this job market, you are still fighting for candidates. We want to make sure you have the upper hand on your competition.
Over the last month in this Newsletter, we have gone over some key insights from our Innovative Outsourcing team in depth. We have talked about the preparation, the best practices when a candidate is onsite, and how to offer your chosen candidate that sets you apart.
Most likely, you have not been able to read all of those suggestions, so we decided to put it all here in our Hiring Cheat Sheet for Employers. Here it is:
The Preparation for the Interview:
Tip #1 - Let the Candidate Know What to Expect
No one wants a surprise. No one wants to wait around and wonder what comes next. So, tell your candidates at the very beginning of the process what is likely to happen. This can help to alleviate any anxiety they may have and ensure that they are well-prepared.
Tip #2 - Get the Logistics Right
Ensure that parking, reception, and other logistics are in order. This will help to create a smooth and seamless experience for the candidate, and also ensure that they arrive at the interview feeling relaxed and focused. You would think this is self-explanatory. However, we hear from candidates all the time about how there was no direction and they did not know where to go.
Tip #3 - Don’t Overload the Candidate
As you plan the interview day, here are some tips:
Plan on the interview being around 30-45 minutes.
Plan on interviews never being more than a 3-1 ratio (interviewers to interviewee). Large panel interviews just don’t work well and totally stress the candidate. We get the feedback that it feels like a firing squad when there are more than 3!
Plan for a break with a snack or coffee if the person will have multiple interviews.
Tip #4 - Be Prepared
We always tell the candidate to be prepared but the interviewer should be as well! Here are some easy items to check along the way:
Make sure you have reviewed the resume and highlight a couple of interesting things.
Look at their LinkedIn to see what you might have in common.
Have 2-3 questions written about their background and 2-3 more questions to help you determine culture fit and skills fit!
If you want more in-depth examples and stories for Interview Prep, here is the link to the Newsletter on it - Onsite Interview Guide for Employers: Preparation for the Candidate
Onsite Interview Guide for Employers
Tip #1 - Don’t Tell the Candidate Everything Bad About Your Company
We agree that it is crazy we need to remind people about this, but we do. An old strategy was to let them know the good, bad and the ugly. Focus on the positive aspects of the company and the role.
Tip #2 - A candidate can catch your love for the company.
Tell the candidate why you love working there and sell them on the company! It is important to show the candidate why your company is a great place to work and to create a positive and engaging environment.
Tip #3 - Be On Time
It is essential to be punctual and ready to start the interview at the scheduled time. Being late can create a negative impression and may cause the candidate to feel disrespected.
Tip #4 - Shut Off Your Phone and Your Computer During the Interview
We get it - you are important and things are happening. However, the number of interviewees that get turned off by interviewers who are “not paying attention” is a large one.
Tip #5 - Pay Attention
It is important to engage with the candidate and show genuine interest in what they have to say. Actively listen and ask follow-up questions to gain a better understanding of their skills, experience, and potential.
Tip #6 - Quit Asking Impossibly Hard Questions
Avoid asking unnecessarily difficult questions. While it is important to assess the candidate's skills and experience, it is equally important to create a comfortable and non-threatening environment.
Tip #7 - Next Interviews Need to Happen Quickly
If you determine to bring the candidate back in for a follow up interview, plan that for the next couple of days. You have a very high chance of losing your candidate if that next interview isn’t FAST.
These are some tips while the candidates are in the office for an interview. If you want more depth, here is the link to the Newsletter for Onsite Interview Guide for Employers.
Best Practices When Making an Offer to a Candidate
Tip #1 - Call the Candidate with Excitement!
The hiring manager (or CEO if appropriate) needs to call the candidate with excitement! This is the moment that the candidate has been waiting for, and it's important to create a positive and enthusiastic experience for them. By conveying your excitement and interest in the candidate, you are more likely to create a positive impression and increase the likelihood of acceptance.
Tip #2 - Put an Offer in Writing that Same Day
The offer should come on the same day and preferably within an hour of the phone call (not before the phone call - that is not recommended at all!). This provides the candidate with the necessary details regarding the offer, such as salary, benefits, start date, and other relevant information. This also shows the candidate that you are organized, professional, and value their time.
Tip #3 - Meet or exceed their salary expectations
Don't offer less than they thought was coming. If you have discussed salary expectations with the candidate or posted a range, it's important to ensure that the offer meets or exceeds their expectations. Offering less than what they anticipated can create a negative impression and may cause the candidate to reconsider their interest in the position. Even if they take the job at the lesser rate, you have communicated to them that they weren’t even good enough for the lower end of the range and you will be starting off poorly.
Tip #4 - Keep communicating!
If there is much time between offer acceptance and start, continue to communicate with the candidate. This can include sending them a company t-shirt, newsletter, or welcome emails from staff. This helps to keep the candidate engaged and excited about the opportunity to work with your organization and may squash any other offers that may be coming in behind yours. Surprise and delight them with gifts, communication, excitement from current team members, etc. It doesn’t cost much - but is important if there is more than a couple of weeks prior to their start date.
In Conclusion...
We would love to talk to you about your hiring process. We coach our clients through every step when we work with them in recruiting. It’s just part of what we do and why our clients like to work with us! Our survey scores are 5 out of 5 on the client and candidate side. We know that sounds like bragging, and it is. Hiring and HR is what we do best!
Here are some links to learn more about Innovative Outsourcing, our podcast HR Ins and Outs for Small Business Podcast, and tHRiving: HR for Small Business
How Toby from "The Office" Destroyed HR's Reputation In the Workplace
This article was written by my son, Matt Filer. If you have seen "The Office", we think you will enjoy this fun piece about HR in the most popular Comedy show in history.
Let me just start off by saying this: I never thought I would sit down and write a piece about "The Office" for work, but here I am. I can tell you this - I do not think I could be more prepared for something if I tried. Malcolm Gladwell talks about how executing an activity for ten thousand hours will make you a master of that craft. I do not think Gladwell had consuming a sit-com about a manager and his employees as a case study, but let’s just say I may have my ten thousand hours studying my favorite show of all-time.
So here we go:
Sadly, a lot of what I thought about the workplace can be traced back to episodes of “The Office”. As a 29 year old, I spent an embarrassing amount of time in high school, college, and even now watching this show. Obviously, I did not think that my boss would act just like Michael Scott. However, if you have seen the show, the stereotypes conveyed about the workplace are somewhat accurate. If you are reading this, and you get offended by the workplace stereotypes coming, I apologize:
The accountants are uptight, rigid, and not incredibly social.
The sales team is loud, obnoxious, and thinks they are better than all the other employees.
The receptionist dreams of any other job they could possibly have besides answering phone calls.
The manager thinks he is the greatest leader since Abraham Lincoln, when in reality, he offends more people than he helps. For example: He gave himself a “Best Boss Ever” mug (as seen here).
You can stop me if some of this is not a tiny bit accurate about your own office...
However, the most obvious workplace stereotype in the show is the depiction of Human Resources. HR is defined in this show as the rule following police with the mission of sucking the fun out of every room they walk into. If you think this could be an exaggeration by me, here is a quote from the one and only Michael Scott talking about Toby: “Why are you the way you are. Honestly, every time I try to do something fun or exciting, you make it not that way. I hate so much about the things that you choose to be."
So... when I entered the workplace, this actually was my perception of Human Resources. I thought every HR Manager wears a brown suit and an overwhelming vanilla shirt and tie. Their voice would be painfully monotone because that is what Toby is like. I thought HR’s job was to make sure the rules were being followed and the fun was terminated. I thought all of this was true, and my own mother speaks to large groups of people, on the topic of, you probably guessed it... HR.
The writers of the show display that everyone else in the office is fine with Toby when they are just coworkers besides Michael. However, as soon as they are managers for the day or when Michael leaves the show, they turn on him.
For example, when Andy is manager, he begins developing a similar hatred for Toby. Additionally, when Jim is acting manager in one episode, he's annoyed by a simple request from Toby, describing him as "a little bit much".
This is just further proof that the boss is always supposed to be at odds with Human Resources just because their role is now that of the boss. Michael also says, "Thanks to Toby I have very strong prejudice against Human Resources. I believe the department is a breeding ground for monsters." It is hilarious writing, but it really does put HR in a tough light.
Toby from "The Office"
You might be thinking to yourself that I am overgeneralizing the amount of people who took this sit-com seriously and let it shape their expectations of the workplace. However, I do believe that millions of Americans have done exactly what I did, and have probably seen it close to 6 times through, watched the bloopers, and are probably begging Greg Daniels to put together a reunion. With that being said, I really do think people in their jobs view HR as the boring, rule following, and sad people of the workplace. And I believe a lot of that comes from the perception of Toby Flenderson’s character.
However, in my opinion, HR is actually the opposite of the perception that Toby portrays. I will admit to you that Compliance with guidelines and work protocols is not the most exciting thing, but Human Resources is way more than just some rule enforcing robots. The job of HR, especially in small businesses, is to create a culture where people love where they work. HR creates environments where your team becomes a version of your extended family, where they are trained in the values and mission of your organization. The job of HR is to work as a partner to the leader of the business, and they have the responsibility to take the people or paperwork issues in their organizations and handle it. Your HR team should be helping retain and hire the best staff possible and be putting together plans on how to do that going forward. Your HR should be providing feedback plans to your employees to know what they are doing well and how they can improve. I could really go on for days into the role that human resources SHOULD be playing in your businesses.
If your small business views HR like Michael views Toby Flenderson more than what you see above, I recommend you talk to our team. Our two HR experts, Cindi and Karen, will be able to talk to you about your organization and how you can utilize your human resources to affect your bottom line.
Best Practices When Making an Offer to a Candidate
Best Practices When Making an Offer to a Candidate
Don’t make a mistake now! You are so close to a YES!
Making an offer often seems like a formality to many companies. They have done all the hard lifting and found a great candidate. Historically, a short phone call telling them an offer is coming by email has worked because “the candidate is so lucky to get a job offer from our company! Of course they will take it!”
However, the world has changed. The way you offer is critically important not only to you getting the candidate you want, but to ensure a great beginning to their work days with you.
Call the candidate with excitement!
The hiring manager (or CEO if appropriate) needs to call the candidate with excitement! This is the moment that the candidate has been waiting for, and it's important to create a positive and enthusiastic experience for them. By conveying your excitement and interest in the candidate, you are more likely to create a positive impression and increase the likelihood of acceptance.
Say something like this:
“Emily, we are so excited to offer you the position of senior accountant. We have looked at over 130 resumes and interviewed many candidates for this position. We spent days figuring out exactly what we needed in this job, and then we found you. We believe that you will be not only exactly what we were looking for skill wise - but your attitude and energy are just what will make you a great fit. We will follow up today with an offer in writing but we really hope you will say yes!”
Put an offer in writing that same day
The offer should come on the same day and preferably within an hour of the phone call (not before the phone call - that is not recommended at all!). This provides the candidate with the necessary details regarding the offer, such as salary, benefits, start date, and other relevant information. This also shows the candidate that you are organized, professional, and value their time.
Meet or exceed their salary expectations
Don't offer less than they thought was coming. If you have discussed salary expectations with the candidate or posted a range, it's important to ensure that the offer meets or exceeds their expectations. Offering less than what they anticipated can create a negative impression and may cause the candidate to reconsider their interest in the position. Even if they take the job at the lesser rate, you have communicated to them that they weren’t even good enough for the lower end of the range and you will be starting off poorly. If you don’t give them the highest end of the range, you will need to explain why they aren’t good enough for that, and again this may not sit well with them. It’s better to make them excited with the salary - this is not the economy for a salary negotiation. Candidates don’t want to engage like that anymore. So give them a fair, expected salary.
Keep communicating!
If there is much time between offer acceptance and start, continue to communicate with the candidate. This can include sending them a company t-shirt, newsletter, or welcome emails from staff. This helps to keep the candidate engaged and excited about the opportunity to work with your organization and may squash any other offers that may be coming in behind yours. Surprise and delight them with gifts, communication, excitement from current team members, etc. It doesn’t cost much - but is important if there is more than a couple of weeks prior to their start date.
In summary, these 4 simple actions can make a HUGE difference in the result. As you look back at your last hire - is there any improvement you need to make? It sounds like FLUFF and unimportant - but the result of not doing these things might mean starting the recruiting process all over again when your candidate starts with another company. Let’s not let that happen.
As always, we would love to talk to you about your hiring process. We coach our clients through every step when we work with them in recruiting. It’s just part of what we do and why our clients like to work with us! Our survey scores are 5 out of 5 on the client and candidate side. We know that sounds like bragging, and it is. Hiring and HR is what we do best!
Book Buzz: "Unreasonable Hospitality" by Will Guidara
Book Buzz: "Unreasonable Hospitality" by Will Guidara
I went out on a limb and read "Unreasonable Hospitality" by Will Guidara. It is a captivating book that explores the transformative power of hospitality in the restaurant industry. Guidara, a renowned restaurateur and co-founder of the renowned Eleven Madison Park, shares his insights and experiences, emphasizing the importance of creating extraordinary dining experiences and fostering a culture of hospitality. Through personal anecdotes and practical advice, Guidara inspires readers to embrace hospitality as a mindset and a way of life.
You might ask why I read this book since I am not in the hospitality industry or dealing with the public daily in a restaurant or retail setting. However, as an HR person, the title made me want to read it and see if there was a small business application to our company at Innovative Outsourcing and our clients.
We are still living in a world where 51% of people are actively looking for a new job (just came out in today’s released Gallup survey). So, our companies have to be thinking about two things:
What am I doing to make my current employees want to STAY?
What am I doing to entice candidates to COME work here?
So the title "Unreasonable Hospitality" intrigued me. What if our companies did UNREASONABLE things for our employees to create great places to work? What would it be like if our employees talk about how awesome it is to work for us at their neighborhood pools this summer, and where our employees get calls from recruiters and they won’t even listen to the recruiter’s opportunity. Well that would be cool - wouldn’t it?
What would it take to be “unreasonably hospitable” to our employees? I’m not sure for every employer, but here are a few direct quotes from this book that I am going to think about:
"Two things happen when the best leaders walk into a room. The people that work for them straighten up a little, making sure that everything’s perfect - and they smile, too."
"I have since come to realize that a “cult” is what people who work for companies that haven’t invested enough in their cultures tend to call the companies that have."
"When talking about how his leader reacted in rage when he made an honest mistake - The memory of the shame and rage I felt that day will always be on my shoulder when I’m handling a mistake made by an employee. I will never forget how much impact - for good or for bad - that a leader can have. He didn’t respect me or anyone else in the dining room - and I thought that sucked."
"Our intention was to usher in a more elegant style of service, but I found if I hired people who had worked in fine dining, they already had too many bad habits. So we started looking for people with the right attitude and philosophy of hospitality."
"Giving the team more responsibility than they expected had an amazing impact - the more responsibility we entrusted them with, the more responsible they became."
"Tell your employees - Don’t be shy. Even if we’re proud of the way we do something - even if it feels integral to the restaurant - that doesn’t mean we couldn’t be doing it better: more elegantly, more efficiently, more creatively. Nothing is sacred."
"We didn’t ask for the check. Instead, at the end of their meal, we’d bring the bill over and drop it off - along with an entire bottle of cognac. We would say “Please, help yourself to as much as you like, with our compliments. And when you’re ready, your check is right here.”
That last one is so interesting. My first thought as a business owner is - that’s a lot of money you are wasting. And then it dawned on me. They are creating raving fans. They want what is normally a bad part of the meal (paying the bill) to be a great experience. So, just take that one thought and dream! Here are some thoughts:
When an employee has his review annually - you tell him it will be at 8am and then he can have the rest of the day off to do whatever he wants.
Your team has to stay in the office one evening to get something ready for a client - instead of bringing in pizza, bring in a very fine dinner and take 20 minutes to eat it at a table.
Your accounting area always works 60 hours on the 2nd week of every month. Have a nice dinner sent home to their families once each month during that week.
You surprise your team with a meeting at noon on a Friday - with taking the rest of the day off and giving them a gift card for $100 to a favorite nearby restaurant.
As the CEO, take your lowest level employees (2 at a time) to a nearby excellent restaurant and use this question “why don’t you tell me about your life in 15 min and I’ll tell you about mine”. No questions about work. Just get to know them. Employees are craving quality time with you.
Let’s figure out some things we can do to be unreasonable - to be employers that are ridiculous in how much we treat and care for our employees. For some of us owners - having a team like this sounds so fun. For others that need a push. So here is your push: Gallup estimates that low employee engagement costs the global economy US$8.8 trillion and accounts for 9% of global GDP. What does it cost your company? Probably more than you know.
I recommend this book to think “outside the box”. This would be a good one to have your management team read - and then have a lunch and talk about ideas on how to create an insanely incredible employee culture at your company. I’m guessing that the time you invest will come back to you tenfold.
And, of course, if you want our team to dream with you - we would love to do that! Just email me at cfiler@innovative-outsourcing.com and we will set up a time.