February 2012 Newsletter

Reduce Workers’ Compensation Claims

In addition to the many other challenges faced by business owners, the number of workers’ compensation claims tends to rise during an economic downturn. With so much negative press on unemployment and the recession, employees – especially those working for small businesses — worry about keeping their jobs and paying their bills. This heightened anxiety can negatively impact a company’s safety record in two ways. First, an employee’s loss of focus on the job due to stress is a frequent cause of workplace accidents. Second, some employees look at their employer’s workers’ comp plan as a safety net when they feel their jobs are in jeopardy. Employers should be aware of these risks and can take three simple steps to mitigate them.

  • Rededicate the management to safety priorities. Clearly communicate concerns that workers’ compensation claims are likely to increase as your company weathers the downturn and take a team approach. Distribute claim information to management, openly discuss where claims are occurring, determine why those claims are occurring, and discuss strategies for bringing current claimants back to work. Make management accountable to each other for results and create awareness of the cost of claims to the bottom line.
  • Observe and support staff safety meetings. The business leader’s presence in employee safety meetings makes a strong statement that it is a priority for the business. Use these meetings to communicate that safety is vital to the success of the business and that everyone must work together on a group goal of no lost time claims.
  • Create a departmental incentive program. These incentives don’t have to be large. Owners can simply provide a gift certificate to each member of a department that works one quarter without a lost time claim. Going the department route will make every member of that department accountable to their co-workers and will incent them to think twice before filing a fraudulent claim.

Four Point HR designs risk management plans, including these three simple steps, to help our small business clients improve their safety records, which ultimately translates to an improved bottom line.

Use Cross Training for Team Building

Many U.S. businesses have experienced staff reductions and this requires a re-examination of the way they manage human resources. It is no secret that a round of layoffs or terminations has a negative affect on employee morale. Remaining staff members are often disappointed to see their co-workers leave and are anxious about the security of their own employment.

Thankfully, many of us have weathered the worst of the downslide and are hoping to maintain, or even increase, our current staffing levels. At the very least we are beginning to hear some positive economic news, whether we are actually seeing it translated in our businesses financials yet or not.

During this transition and rebuilding time, it is important to lead appropriately. Many business owners try to alleviate anxiety by gathering staff and giving pep talks. Unfortunately, this is not a solution, but a band-aid that comes across as out of touch and insincere amid the constant stream of negative indicators. Instead, consider pro-active steps like instituting a cross training program. Regardless of your current staffing level, cross training can improve support among your people, improve your internal operations and lead to a stronger team atmosphere.

Cross training improves morale when you let your team members know that they are the critical components that will help to lead your business out of the current downturn. Cross training also makes your business operate more efficiently. Cross training exercises make current staff members feel more secure about their employment and gain a greater understanding of how their individual job fits into the overall operation of your business. These exercises help your business meet your client needs by ensuring that multiple staff members are able to handle critical functions.

To get the most from this process, clearly communicate to all staff members what you are doing, why it is necessary, when and how often it will occur and what end result you hope to achieve. Conduct cross training between employees with similar skill sets who work in similar areas of your business. Cross training your accountant with your janitor is probably not going to improve efficiency in either position, but cross training one department head with another is very likely to yield rewards.

To get the most from the process, lay a strong foundation of communication with your people. Clearly define what is expected from each cross training session, how many sessions will occur and what you hope to achieve at the end of the process. You should request feedback from staff members before, during and after the process has concluded. In the end, you want to place ownership of a successful outcome on your staff and follow up to ensure that cross training has actually occurred.

Start with Defined Job Descriptions

You know you need help. You have been putting it off, but the workload just gets heavier with each day. It’s time to start delegating some of the work you do, which means it’s time to add to staff.

Any addition to staff should be part of an overall strategy, which clearly defines where the business is headed. Where do you see the business a year from today? How will this addition to staff allow you to satisfy your customers at a higher level? Assuming you have thought about these changes, it’s time to put your thoughts on paper and write a job description.

Typically, there are 5 or 6 sections to a job description. You will need to:

  • Select a Job Title and determine to whom the job will report. A job always reports to another job title, not a specific person. For example: An Office Manager reports to the Company President vs. John Smith.
  • Write a Summary (or Purpose) statement. For example: This job is directly responsible for identifying new revenue opportunities within the family market.
  • List 5 to 8 major job functions. Are there too many to list? Combine smaller tasks into several comprehensive statements. Use action verbs and be specific. Beside each task list the percentage of total time that the incumbent will spend on the task and/or specify how often the task is performed. For instance, is it daily, weekly, or monthly?
  • List the minimum Knowledge, Skills and Abilities (KSA’s) the candidate must have to perform the major job functions. This should include specific years of experience, required licenses, or education as well as specific subject matter knowledge, and any soft skills necessary to perform the job. An example of a soft skill is: The ability to work effectively with all levels in the organization to meet job requirements, or excellent oral and written communication skills.
  • Remember to add a disclaimer. It can simply be a final job task that reads: All other duties as assigned. Or, you can include a statement like: This job description is not intended to contain a complete list of job responsibilities and may be amended at any time.
  • Add a signature line. On the employee’s first day of employment, review the job description again. Ask for questions and when you are sure that the employee is clear about their job tasks and the quality at which the work should be performed, ask the employee to sign a “statement of understanding” typed on the bottom of the job description. For example: I understand the job as it has been explained to me, and will perform the duties at the quality level required.

Other reminders:

  • Date the document so that later job changes or enhancements can be tracked.
  • List the Job Status as Exempt (from overtime) or Non-exempt (from overtime).
  • If there are supervisory responsibilities, list number of individuals reporting to the position.
  • Ensure that the essential job functions contain a quality parameter for each task.
  • Where overtime, travel, or an unusual work environment is required, be sure to explain the details.

The job description is the foundation that will guide our steps and that of our new employee. It is also used in the orientation process, performance management discussions and to evaluate compensation levels.

This article series continues next month when we will use the job description to begin writing interview questions and preparing for the Structured Interview.

For our clients: Payroll Corner

All W-2’s were mailed to employees’ home addresses on Saturday, January 22, 2012. If an employee’s address had changed and the change was not submitted, the W-2 will be forwarded to the new address providing a change of address was submitted to the post office. If not, the employee can notify Four Point HR of the address change and select one of two options.

  • Wait for the W-2 to be returned to Four Point HR and we will re-send the W-2 to the correct address.
  • Send a written reprint request to us with a $5.00 Money Order payable to Four Point HR and we will reprint the W-2 and send it out on the day of receipt. The request must include a request for W-2, reprint, the requested year of the W-2 form, and the address to send the form. The employee should sign the letter and include their Social Security Number under the signature.

*Reprint requests can be made at any time and must be made in writing and sent with a $5.00 money order. Follow the directions above in number 2.

Now is a perfect time to check your W-4 withholding to determine any changes you would like to make for the 2012 tax year. Simply fill out a new 2012 W-4 form and submit it to Four Point HR.

President’s Day is Monday, February 20th, and banks are closed in observance of the holiday. Four Point HR will be open and will notify clients that may be affected by the bank closing.

Don’t forget, we are in a leap year and February has 29 days.

Blog Corner: Complex Government Regulations

Before you begin the interview process, clearly define what you are looking for in a prospective employee. You should divide these characteristics between value-related qualities and job-specific skill sets. To understand what those qualities are, start asking questions. Go to your best performers to get an idea of how previous employees fell short or did not thrive in your workplace. Ask other business owners, whom you respect, what they look for when they interview employees. Once you have a good sense of the values and skills that you seek, establish a set of interview questions to find out whether a candidate possesses these qualities.