March 2012 Newsletter

Structured Behavioral Interviewing

In last month’s article we talked about the value of writing job descriptions.  This month we will use the job description as the foundation to begin writing interview questions.

The Structured Behavioral Interview uses a standardized method of interviewing each candidate so that when it is time to make the hiring decision, we can realistically compare candidates. And, by asking every applicant the same set of questions, that comparison allows us to select the most qualified candidate based on their responses to the questions.

Behavioral Interviewing works on the premise that past behavior is the best predictor of future behavior.  Your questions should not be hypothetical.  Instead, ask specific questions and seek responses based on the candidate’s past behavior, to get a good idea of how the person will respond in the future.

In the Job Description we outlined specific job functions or job tasks that will require certain knowledge, skills or abilities (KSA).

1. Make a list of the job tasks and the KSA that would be required by the applicant to complete those tasks. 

Example:

If we look at a Receptionist job, the list of job tasks might include:

  • Greeting a heavy volume of clients on a daily basis
  • Using customer service techniques to resolve client issues
  • Accurately providing telephone messages to the mangers of the business

The associated KSA might be:

  • Excellent customer service skills
  • Excellent oral and written communication skills
  • Basic email and grammar skills

2. Write behavioral style questions for each of the tasks and KSA’s that you identified.

Example Task Question:

  • Using your past experience, can you tell me about the busiest time that you have ever spent on a reception desk?
  • I would like for you to describe what happened in your specific example, what you believe the degree of difficulty was, and how you handled it.

An example of a set of skill or ability questions might be:

  • I would like to focus on your communication skills.
  • Give me an example of a time when you were not able to get your point across to someone over the telephone.
  • What specifically did you do, how did you handle the confusion, and what was the outcome?

Remember:

  • Every job task and associated skill or ability should be included in the list of behavioral interview questions.
  • In each case, the answers from the applicant should describe a specific situation that occurred in the past. The candidate must be able to tell you what the problem was, how they handled the issue, and what the final outcome was.
  • Ensuring that you are asking every candidate the same set of questions will allow you to make a valid comparison between applicants, and it ensures the same treatment for all candidates.
  • You can formulate questions around any job-related subject by using the behavioral style examples above.

Next time we will talk about how to select the best candidate and check references.

What is the Problem?

Managers oversee employees with a multitude of different personalities and skill set requirements. If you think about it, certain jobs require mathematical abilities while others require detailed handicraft or maybe good customer service skills. The list goes on and on and executives must manage staff to maintain harmony.  Varied personalities can cause disruption on occasion and make it frustrating for managers if they cannot locate the root of a problem. What steps can be taken to acknowledge, repair and pro-actively deter any negative behavior in the office?

  1. Find the Source: Problems can arise from time to time in the workplace but often the root causes are not obvious. Managers need to step back and assess the situation to determine what or who could be causing the disruption. Have there been changes in behavior and/or productivity? Have there been complaints from co-workers? Could the issue escalate if not addressed?
  2. Discuss with Employee(s): Next, talk to the employee or employees to try and resolve the issue. This is a time for calm objectivity. State the facts and discuss maturely.  Raising your voice, making accusations, and talking but not listening will only further fan the flames.  Employees need to feel comfortable speaking freely and need to see sincerity on the part of the manager to correct the issue. Brainstorm to come up with solutions and work together as a team.
  3. Finalize Agreement: After possible resolutions are brought to the table, all should agree on a final plan of action and lay out the details. Permit the employee(s) to be accountable for executing the plan and making sure the steps are accurately followed to completion.  This way they have a part in the resolution and can see the positive results.
  4. Monitor and Provide Feedback:  While the employee is actively working on the problem, the manager should always monitor the progress. Is the timeline being met? Is the plan playing out the way it was intended? Is the problem slowly disappearing? Are positive reinforcements visible? The manager should look for all of these things and offer feedback and help if needed.

Workplace First Aid Kit

Many employers overlook the importance of having a fully stocked first aid kit. First aid supplies are required to be readily available under paragraph § 1910.151(b) of the OSHA standards. An example of the minimum contents of a generic first aid kit is described in American National Standard (ANSI) Z308.1-2003 “Minimum Requirements for Workplace First-Aid Kits.” The contents of the kit listed in the ANSI standard should be adequate for small worksites. When larger operations or multiple operations are being conducted at the same location, employers should determine the need for additional first aid kits at the worksite, additional types of first aid equipment and supplies, and additional quantities and types of supplies and equipment in the first aid kits.

In a similar fashion, employers who have unique or changing first aid needs in their workplace may need to enhance their first-aid kits. The employer can use the OSHA 300 logs, loss runs or other reports to identify these unique situations. Consultation from an appropriate medical professional or local emergency room may be helpful to employers in these circumstances. By assessing the specific needs of your workplace, employers can ensure that reasonably anticipated supplies are available. Employers should assess the specific needs of their worksite periodically and stock the first aid kit appropriately.

If it is reasonably anticipated that employees will be exposed to blood or other potentially infectious materials while using first aid supplies, employers are required to provide appropriate personal protective equipment (PPE) in compliance with the provisions of the Occupational Exposure to Blood borne Pathogens standard, § 1910.1030(d)(3) (56 FR 64175). This standard lists appropriate PPE for this type of exposure, such as gloves, gowns, face shields, masks, and eye protection.

According to the ANSI Z308.1-2003 document, a basic workplace first aid kit should include:

  • At least one absorbent compress, 32 sq. inches with no side smaller than 4 inches
  • At least 16 adhesive bandages, 1 inch x 3 inches
  • One roll of adhesive tape, 5 yards total
  • At least ten packets of antiseptic, 0.5g (0.14 fl oz.) applications
  • At least six applications of burn treatments, 0.5 g (0.14 fl. oz.)
  • Two or more pairs of medical exam gloves (latex or non-latex)
  • At least four sterile pads, 3 inch x 3 inches
  • One triangular bandage, 40 inches x 40 inches x 56 inches

Additional (but optional) items include:

  • Four 2×2 inch bandage compresses
  • Two 3×3 inch bandage compresses
  • One 4×4 inch bandage compresses
  • One eye patch
  • One ounce of eye wash
  • One chemical cold pack, 4×5 inch
  • Two roller bandages, two inches wide
  • One roller bandage, three inches wide
  • CPR barrier device

These items are intended to be the minimum for a workplace first aid kit. Depending on the potential for injury, a more complete kit may be necessary. Contact our Risk Management Department for assistance.

Do Ghost Employees Haunt Your Company?

Ghost employees, persons that are on a payroll but do not actually work for the company, can haunt recklessly if they are allowed to. The ghost employee could be a former employee, a fictitious person, or a person who has never worked for the company.   Do you know what to look for or how to identify a ghost employee?

Unfortunately, if ghost employees exist within a company, a payroll staffer is often the source of the fraud.  This staffer will add ghost employees – typically friends or family members — to the company payroll and have live checks delivered to them or have funds directed deposited into their accounts.

According to the Association of Certified Fraud Examiners (ACFE) study entitled “Occupational Fraud: A Study of The Impact of an Economic Recession”, the financial losses resulting from ghost employee fraud can be staggering and can increase in poor economic times. The ACFE reports the median loss from a payroll fraud was approximately $49,000 per occurrence in 2008. In the ACFE’s 2010 study, the average time to detect payroll fraud was 18 to 24 months.

To combat ghost employees, put strict controls in place:

  • Review payroll on a regular basis to make sure that all paid employees actually work for the company.
  • Rotate the responsibilities for keying payroll time, personnel information, and the delivery of payroll checks.
  • Provide access to employee files to only those employees that would need to have access to the personnel files.
  • Conduct unscheduled internal and/or external audits of your company’s payroll.

Improve Your Business Credit Score

Credit scores are complex statistical models used by lenders and suppliers to quickly evaluate a business credit risk. While there is no guaranteed way to improve a business credit score, here are a few steps owners can take to get the best possible scores for their organization.

  1. Ensure creditors and suppliers can validate your business information: Incorporate or form an LLC (Limited Liability Company) to ensure your company is seen as a separate business entity.
  2. Open a Business Bank Account: Keep your business finances separate from your personal finances. It is a requirement of the Internal Revenue Service (IRS).
  3. Better understand your business credit: Understanding your business credit score is an important step in successfully running and growing your business.
  4. Be proactive: Check your business credit report regularly and verify that the information in it is accurate and up-to-date.
  5. Pay creditors on time: Historical payment behavior with previous creditors plays a major role in calculating your business credit score.

Small Business Health Care Tax Credit

The Affordable Care Act is a United States federal statute that was signed into law on March 23, 2010 by President Barack Obama.  The Affordable Care Act is part of the healthcare reform legislation that Congress passed, but that has been challenged in many state courts for the constitutionality of the statute.

Under the Affordable Care Act, small business employers and small tax-exempt employers (charities) can qualify for a healthcare tax credit on their tax returns. If you have fewer than 25 employees and you provide health insurance, you may quality for a tax credit of up to 35% for small business employers and 25% for small tax exempt employers, to help offset the cost of the health insurance provided to your employees.

To be eligible to claim the credit:

  1.  You must cover at least 50 percent of the cost of single health care coverage for each of your employees.
  2. The number of full-time equivalent employees (FTE) you had for the tax year is from 1-24 employees.  How to figure the number of FTE’s:
  3.  Figure the total hours of service for the tax year of all individuals considered employees.
  4. Divide the total hours of service e by 2,080.
  5. If the result is not a whole number, round the result down to the next lowest whole number.  For example 7.89 would round down to 7.  But if your result is less than 1, example .35, round up to 1.
  6.  Determine the average annual wages you paid for the tax year.  If you paid average annual wages of $50,000.00 or more for the tax year, your credit is reduced to zero.
  7. Use IRS Form 8941 to claim the credit.

With this tax credit, small business employers who did not owe tax during the year can carry the credit back or forward to other tax years.  Also, since the amount of the health insurance premium payments are more than the total credit, eligible small businesses can still claim a business expense deduction for the premium in excess of the credit.  That’s both a credit and a deduction for employee premium payments.

For small tax-exempt employers, the credit is refundable as long as the refund does not exceed the income tax withholding and Medicare tax liability.

Beginning in 2014, the small business health care tax credit will increase to 50% for small business employers and 35% for small tax-exempt employers.

PAYROLL CORNER

Now is the perfect time to check your withholding for the 2012 tax season. Did you receive or are you expecting a big refund from your 2011 taxes? Did you end up with an unexpected tax bill? In either case, it may be time to adjust your withholding. To do so, simply submit an updated 2012 W-4 form with your changes. You can download a W-4 form at IRS.gov or request one from Four Point HR. For assistance in determining the correct withholding, contact the company or individual that prepares your tax returns.