HR: Industry Updates

Start Writing Effective Job Descriptions

Wednesday, August 3rd, 2011

Compliance Tip of the MonthA well written job description is a key component in all phases of the employment lifecycle.  Having a job description for each position and providing the job description to applicants and employees will assist you in:
1.    Recruitment, Interviewing and Hiring
2.    Orientation and Training
3.    Performance Management
4.    Disciplinary Action Support
5.    Legal Compliance and Lawsuit Defense

This template is designed specifically for human resources professionals at dealerships to help you write effective job descriptions. It is a free download, and we recommend using it as often as needed. It is available here:

http://www.kpaonline.com/compliance-resources/hr-resources/whitepapers.html

IRS Revises Mileage Reimbursement Rate for 2011

Tuesday, July 12th, 2011

In Announcement 2011-40, the Internal Revenue Service (IRS)  has revised the optional standard mileage rates for computing the deductible costs of operating an automobile for business purposes.  While gasoline costs are a major factor the IRS also considered depreciation and insurance and other fixed and variable costs when revising the rate from  $0.51 cents per mile to $0.55 cents per mile effective July 1, 2011. If your employee handbook follows the IRS optional standard mileage rates, please be sure to adjust your business mileage reimbursements.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Mileage Rate Changes

Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11
Business 51 55.5
Medical/Moving 19 23.5
Charitable 14 14

Eight Dealership HR Cases in Social Media

Thursday, June 30th, 2011

Auto Dealerships: Is Your Customer’s Information Really Secure?

Wednesday, June 22nd, 2011

Ever since the Federal Trade Commission (FTC) passed the Safeguards Rule, customer information security has been a hot topic over the past several years for auto dealerships.   The FTC mandates that auto dealerships have a formal, written, and revisable program specifying the steps taken to protect customer’s personal information and prevent unauthorized use of such information.  The three objectives needed in a Customer Information Security Program are:

  1. Secure and insure the confidentiality of customer information.
  2. Defend against anticipated threats to the security of our customer information.
  3. Shield against unauthorized access to, or use of, our customer information.

What are the liabilities an auto dealership faces if no Customer Information Security Program exists or it isn’t implemented and/or communicated fully throughout the organization?  A prominent auto dealership in Colorado learned the hard way, due to two fraud investigations within a few months regarding fraud and forgery of contracts. 

Without a defined Customer Information Security Program, no risk assessment was completed to protect the customers’ information.  It’s not just up to the dealership owner to be ethical, but all employees working for the dealership.   Had there been a specific program in place regarding 1) Employee Training; 2) Information processing, storage, transmission and disposal; and 3) Detection, prevention and reaction to an attack of information systems, this dealership might not be in the predicament they are in and have a permanent black mark on their Colorado Dealer Board record.

More information on the Safeguards Rule for auto dealerships can be found at http://www.niada.com/PDFs/Publications/Safeguards%20Rule.pdf.  HotlinkHR clients have access to a complete compliance program for Red Flags Rules and Customer Information Security included within their subscription.

Who Are You Really Hiring?

Tuesday, May 17th, 2011

If you aren’t doing background checks and drug screens before you hire then you really don’t know who you are hiring.  KPA has found that over 30% of applicants we process through our HR system do not provide complete or accurate information on their application. To make a good hiring decision and to protect yourself in the event of a negligent hiring lawsuit a background check and drug test are a must. I’ll never forget having to testify against a client when I worked for one of the largest background companies in the US. The plaintiff’s attorney asked me if the client could have seen a history of substance abuse and traffic accidents if they had just been willing to spend $60 for a background check. I had to answer yes, the client had access and in fact had ordered background checks and drug tests in the past. Unfortunately a supervisor at the client company shortcut the process and put a person to work without the required background check. The new employee then promptly got drunk on the job and ran a company truck into the back of a car. The HR manager was not aware that the process had not been followed until after the accident had happened.  The settlement reached with the injured parties was over a million dollars.  Lessons learned?

1) Standardize the process for obtaining and reviewing background checks and drug tests.  If possible use software that will automate and force compliance to company policy for not just background checking but for the complete hiring process.

2) Don’t be penny wise and pound foolish.  A background check and drug testing will cost in the range of $60 to $75 dollars if you use a third party. A very small investment to make sure you know exactly who you are hiring.

3) Use a third party provider (they have  expertise, and access to data you won’t have ) but select with care.  Understand how they obtain their data. Make sure they provide compliance assistance as there are a  number of regulations at the state and federal level that govern the use of drug testing and background checks in hiring.

4) Never establish a policy that states “we don’t hire anyone with a criminal record”.  In many states this would be considered discrimination.  Each background check must be reviewed against the actual job and factors such as time since the criminal act, age at the time of the act, efforts at rehibiliationa and the serious of the crime must be considered.  Employers can determine that it is not in their best interest to hire a person with a criminal record but must show that the decision was made fairly and without discrimination.  Providing a ranking using specific criteria is where  third party provider can really add value.
For more information on background checking go to http://www.kpaonline.com/hr/hr-management-system/background-checking-drug-testing.html  or http://tandemselect.com/

Join the conversation: Do you always obtain a background check and drug test on a new hire?

Finalized Form I-9 Rules Effective May 16, 2011

Wednesday, May 11th, 2011

Effective May 16, 2011, employers must follow the newly finalized Form I-9 rule  (the rule was orginally published back in 2009). Here’s what that really means…

Don’t forget that  the final rules prohibits employers from accepting expired documents; revises the list of acceptable documents by removing outdated documents and making technical amendments; and adds documentation applicable to certain citizens of the Federated States of Micronesia and the Republic of the Marshall Islands.
The list of acceptable documents that employees may present to verify their identity and employment authorization is divided into “List A” documents, which show identity and employment authorization; “List B” documents, which show identity only; and “List C” documents, which show employment authorization only. Employers may continue to use the current version of the Form I-9 (Rev. 08/07/2009) or the previous version (Rev. 02/02/2009).  The U.S . Citizen and Immigration Service ( USCIS)  Handbook for Employers, Instructions for Completing the Form I-9 (M-274), was updated on Jan. 5, 2011.

Add Assessment Testing For Better Hiring Results

Tuesday, May 10th, 2011

As employers start hiring again two question we are frequently being asked from our HotlinkHR clients is “how can I make sure I hire person who really fits in here, we can’t afford a bad hire?” and “we’ve got the basic hiring process down but want to take it up a notch, what more can we do?”.   The answer to both questions is to add assessment testing to your hiring process.  Using assessment testing will help you understanding a person’s temperament and communication style which in turn will allow you to obtain better information during interviews, assess “culture fit” and provide insights into how the candidate will work with the  current  team.   Here’s a quick overview of the benefits of adding assessment test to your hiring process.

The 100 Best Companies To Work For-Could Your Company Make The List?

Wednesday, April 27th, 2011

Fortune Magazine just published their annual listing of the 100 best companies to work for.  The companies run the gamut from services (law, accounting, consulting) to construction to non-profits to retail to hi-tech.  Healthcare and Professional Services are the most represented industries on the list but there are also three companies in the automotive market -#15 Mercedes-Benz USA#16 JM Family Enterprise and #81 CarMax.  So are you thinking, it’s easy for these big,  publicly traded companies to be a “best place to work” but not so easy for the average company? Think again, your company may not make Fortune’s list next year but you can learn from and implement the best practices that make a company a “best place to work. Why bother?  Being know as a “best place to work” locally, regionally or within an industry makes it easier to attract and retain the best employees, which has a direct positive impact on your company’s bottom line.  Companies on the “Best Companies to Work For” list have consistently outperform major stock indices since 1998. 

 So what makes a company a best place to work?  According to the Great Places to Work Institute to be a great place to work employees ”"trust the people you work for, have pride in what you do, and enjoy the people you work with.”   The trust factor of an employee  is ” related to management’s credibility, job satisfaction, and camaraderie.”    Providing  fair and competitive pay and benefits, have good hiring practices,  open internal communications, abundant training opportunities, meaningful recognition programs and a committment to diversity all create a best place to work.   To learn more about how any company,  big or small,  in any industry can be a best place to work check out the Great Places to Work website at http://www.greatplacetowork.com/index.php

Join the conversation: What makes a company a best place to work?

Empowered Employees Increase Productivity, and Morale

Monday, April 25th, 2011

Workers who feel empowered by their employers are more productive and have higher morale, regardless of their industry.

These are the findings of a new study by lead researcher from the University of Iowa, Scott Seibert. He explains, “Empowerment is an effective approach for improving employee attitudes and work behaviors in a broad range of industries, occupations and geographic regions.”
The article, reported in EHS Today, lists four characteristics of an effective empowerment initiative:

  • High performance practices: Managers share information, decentralize authority, involve workers in decision-making, provide training opportunities and pay well.
  • Socio-political support: Managers make their employees feel like a valued part of the organization and encourage employees to recognize each other’s importance.
  • Leadership: A manager who inspires, provides strong feedback and is a good role model enhances workers’ feelings of competence and helps employees find meaning in their work.
  • Work design characteristics: Managers encourage training and provide individual workers with challenging work assignments.

“Managers in these studies reported that empowered workers were more innovative and more willing to take the initiative to solve problems on their own,” Seibert said. “Employees said they were more engaged in their work when empowered, that they felt like they had an influence and an impact on the business around them.”

What do you think? Do these initiatives improve team and individual performance, or do results vary in practice?

If you have experienced some of these workplace characteristics, leave a comment and share your insights with the community at the KPA blog.
Similar articles:

Stop Whistleblowing by Handing Out Whistles 

http://blog.kpaonline.com/2011/03/stop-whistleblowing-good-communication/

How Much is Employee “Slacking” Costing Your Company?

http://blog.kpaonline.com/2010/12/employee-motivation/

EEOC Issues Final Regulations for ADA Compliance

Wednesday, April 13th, 2011

Can you define what is a disability and who is covered under the ADA (Americans With Disabilities Act) and ADAAA (ADA Amendments Act of 2008) ?  The answer to this question of what is a disability  under the EEOC final regulations may surprise you.  Watch this short video to learn about the impact on employers when the Equal Employment Opportunity Commission (EEOC) final revised Americans with Disabilities Act regulations become effective on May 24, 2011.