Managers and VPs would say, I worked at such-and-such large company and we never did background checks there. Rather than fight over this, [...]]]> It’s true, I have a scrapbook filled with lies. I started this scrapbook years ago when I received quite a bit of resistance to background checks on applicants prior to making job offers.

Managers and VPs would say, I worked at such-and-such large company and we never did background checks there. Rather than fight over this, I merely starting sending them copies of articles I had collected. It’s pretty impressive… particularly when they saw who was doing the hiring and the hiring mistakes made.

Companies need to have a level of trust in their employees or we’d be working in prison environments where we’re watched every minute. However, the trust begins with a realistic and necessary step… background checks. A high percentage of resumes have an “error or omission” on them. Meanwhile, our California courts are holding employers more responsible than ever for who you allow into the work environment. So, if you’re not doing this basic due diligence, your company can and will be held accountable if problems arise.

I like to have every employee, at any level, complete an employment application simply because they must sign it attesting to its accuracy and truthfulness. And I hold them accountable to that. If a background check finds the information is incorrect or incomplete, we’ve got a problem. Bottom line…  if they’ll lie to get the job, what might they do once they have the job?

So, for the unbelievers, I’m going to provide a few highlights from my scrapbook. I haven’t added much to it in the past few years. Mostly because most companies have since learned to avoid the problems and, yes, lawsuits, that can arise from NOT doing background checks.

• A college professor lied about having a college degree, which was discovered when the state did a background check in preparation to making him the state’s poet laureate.
• The CFO of a software corporation was found to have lied about his educational background (both his bachelor’s and MBA) and, once it got out,  the company’s stock hit a 52-week low.
• A top executive scientist for a large medical device company was found to have been convicted of attempted murder of his wife and, in fact, he used the prison’s inmate post office box address on his resume and listed another company for his time in prison. The company had to hire an outside expert to review all the work and the FDA became involved.
• A football coach at a prestigious college lied about having a master’s degree in education and playing college football.
• A carpet cleaning company had to pay $11 million in damages because of two men they hired. These men cased the homes they cleaned and returned to steal from them. Unfortunately, a homeowner was unexpectedly home one time and they shot him. The courts determined the company was guilty of “negligent hiring.”
• A convenience store worker beat a customer with a bat. It turned out that the employee had done the same thing at his previous workplace.

No matter how much you like an applicant or believe in them, these days you really can’t afford to put your company and employees at risk when it’s so easy to check backgrounds. Yes, if they know you’ll do a background check the smart ones will walk away and find a company who isn’t doing checks. But wouldn’t you rather get a clean report than just rolling the dice?

The answer is quite simple. You’re the boss. While it’s great to be friendly with your employees, you can never forget that [...]]]> It’s a great feeling to come to work each day and find yourself in comfortable, easy-going surroundings. You feel close to the employees and there’s an easy camaraderie. What could be wrong with that?

The answer is quite simple. You’re the boss. While it’s great to be friendly with your employees, you can never forget that you are the only one who’s invested time and money in your business. Are you ready to throw that away by forgetting you need to be the responsible one?

At some point, it’s likely that you’ll have to counsel or fire an employee. It’s much harder when you’ve crossed that “friends” line. Something your employees never forget, just is case you have, is that they are paid to come to work each day. They aren’t volunteering. Also keep in mind that it’s almost always that one disgruntled employee (or ex-employee) who files the lawsuit or brings you to the attention of the government.

A casual environment can easily slip into a sloppy environment. Casual may mean that employees can wear jeans and flip flops or have fun decorating their cubes. Sloppy means your documentation is weak and your company is out of compliance.

Save your business by acting like a friendly boss who’s providing an environment that’s a great place to work.

Recently [...]]]> The huge number of California employment laws can leave business owners with the feeling that they aren’t actually in charge. While it is true that there are plenty of laws dictating your behavior in the workplace, you need to remember there are even more areas where you need to take charge and set the rules.

Recently I was asked a similar question by people from two companies. The issue was really quite simple (personal cell phones at work) but it was the thought process that really interested me. One company merely asked if they could tell employees not to bring their cell phones to work. Assuming your company allows employees to receive emergency phone calls so they don’t need another method for someone to reach them in an emergency, then the employee doesn’t need their cell phone while working.

Having an employee give up their cell phone isn’t as easy as you might think. The other company I mentioned tried to have employees leave their cell phones at the front desk while working. At least one employee loudly raised the issue that the cell phone was personal property and, therefore, the company had no right to take it away from him.

As the business owner, you do have the right to make your facility a cell-phone-free zone. How you go about creating that zone is something you need to think about. First, you need a policy that specifically states the rule, what employees can do with their phones, and the potential penalities for not following the policy.

I dislike the idea of collecting cell phones because you then become responsible for them and have to create a secure check-in, check-out system. That leaves you a few other obvious choices: tell employees they can leave their cell phones at home, leave them in their car, leave them in a company-provided personal locker, or to turn off the phone while working and leave it in their pocket or bag. The employee does have the right to use their cell phone during meal and rest breaks but you can designate where they can use them, such as the lunch room and outside the facility.

As a side note, some companies now prohibit camera cell phones in certain areas of the company where there is access to confidential information. It’s just too easy to take a quick picture with the phone of information in paper form or on a monitor. However, if you plan to use this reason for your policy be sure you can show that it’s a security issue or you could lose that battle in court.

Probably the biggest part of this whole subject is what happens when an employee doesn’t follow your new policy. While you can’t do a strip search to find out if they brought their cell phone into the workplace, you may see them on their cell phone or hear the phone ringing or notice it vibrating when it should be out of sight and/or turned off. Something will probably eventually give them away. So do you take their phone away and stomp on it? That may make you feel a little better at that moment but it’s not the best way to handle the situation.

You treat this like you do any other action or behavior that breaks a policy. It’s treated as a performance issue and you follow your disciplinary policy. When creating your cell phone policy, your management team needs to decide how serious of an issue this is and how far you’re willing to take the discipline. If all you ever do is shake your head and have yet another conversation with the employee, your employees will soon realize you aren’t serious about the policy because there aren’t any serious consequences.

Avoid discrimination when creating a new policy by remembering you have to take the same disciplinary action against every employee who doesn’t follow the policy … that means your best employee and your worst employee must be disciplined in the same way. Never put a policy in place if you aren’t prepared to enforce it. Your practices and policies must be in synch to be of any use to you … and protection for you.

As an HR consultant, I run across companies that decide it’s more cost effective to hire an [...]]]> Have you ever used a consultant, or started to, then decided to hire someone instead? How did you make the decision that the person you were hiring was good enough? What did you gain or lose in that decision?

As an HR consultant, I run across companies that decide it’s more cost effective to hire an employee to manage their HR rather than hire a consultant. It usually turns out that the employee is a "combo" person … someone who wears several different hats because the company is too small to have enough need in any of the areas covered. The combo person may have several titles depending upon what they happen to be doing at that moment, such as Office Manager-Executive Assistant-HR Manager. I’m all for the combo person. In fact, it’s often a necessity in a small business to have multi-talented, multi-tasking people.

When it comes to HR, the combo person is typically who I would train to handle the day-to-day routine things. This includes the hiring paperwork, time off or time card paperwork, and other items that are the black and white areas of HR related to basic compliance with the employment laws and regulations. These things can be taught and systemized so others can repeat it whenever needed.

The problem comes in when the business assumes this combo person knows as much as people who have specialized in that particular field for years. The gray areas of HR, at least in California and probably in most states, need to be managed by someone with the knowledge and experience obtained through practice over the years. Often the gray areas are decided as much by the courts as they are by the laws. Simply following the law may not save you in court. Juries have a different view of the law and you have to recognize that when managing HR issues.

If you have grown enough to need someone to handle your basic HR compliance, go for it. Don’t give the person the title of HR Manager, though, because the duties are closer to an HR Representative. Save the manager title until the work and person deserve it. Then also hire an HR consultant to make sure that person knows what they are doing. Also get advice from the consultant whenever you have employee issues beyond the very basics. How things are handled when problems arise can play a large role in how well they end.

Don’t think you’re saving time or money by letting your combo person handle the non-basic issues. Think, instead, of the thousands of dollars and hours of your time you’ll have to spend hiring an attorney to respond to a single complaint by an employee to the EEOC, Labor Board, or an attorney.

No, this isn’t just a pitch to hire HR consultants! It’s a real concern of mine when I see companies going that route blissfully unaware of the consequences. Remember, you get what you pay for. In the end, you have to weigh the risks and determine whether you want to put your business’s future in the hands of a person you’re probably paying less than $50K a year.

I was recently at a seminar on systemizing a business. It’s been proven that businesses are worth more money if your "how-to’s" are fully [...]]]> Have you ever really thought through how many different systems you have in place to keep your company running smoothly? Are any of those systems documented to ensure proper duplication each time?

I was recently at a seminar on systemizing a business. It’s been proven that businesses are worth more money if your "how-to’s" are fully written out and maintained. No matter how you look at it, documenting every step in your business takes time … but it also saves you time and money.

Although the seminar I attended was looking at the whole business, I’ll take it down to just the HR component for my example. I actually have created for clients a binder that includes:

• Section tabs for the various areas of HR (e.g., recruiting, hiring, performance management, etc.);
   
• Every HR form I’ve given them for each of those sections;
   
• Each form has blank lines where information must be entered so I have highlighted each of those blank lines and provided information about exactly what needs to be entered there;
   
• In the top right corner of each form I have the name of the computer folder where the form is located and the file name for the form itself;
   
• I then add a text block on the form where I state why that form is used, when it’s used, how to use it (or print it), who needs to sign it, and who gets the original and/or copies, and how/where to file it.

Why have I done this? Because many of the forms are used only periodically and if HR isn’t your primary responsibility, it’s very easy to forget the details. However, the details are important when you want things done correctly. With this reference manual, those clients just have to flip to the appropriate section and follow the directions.

In HR and other areas of your company, you’ll find having desk manuals saves training time and money (since time is money). You’ll also notice that quality remains high because there’s no room for misunderstanding or forgetting steps in a process. I’ve often used a desktop manual for the reception desk and it’s been a lifesaver when a receptionist leaves the company or is just on vacation. With a detailed manual, any replacement can easily figure out how to answer phones, receive packages, deal with visitors, and so on.

And, if you eventually want to sell your business, just remember that the value of your company will be much higher if the buyer realizes he can just walk in, open a manual, and know how to run the business without a huge learning curve.

I recently met someone who used a Non-Disclosure Agreement. However, he had neglected to follow-up with employees to make sure he actually received back signed copies. When he was terminating an employee it [...]]]> Are you using a Non-Disclosure Agreement or Employee Handbook or other form of agreement with any or all employees? Are you sure you’re protected?

I recently met someone who used a Non-Disclosure Agreement. However, he had neglected to follow-up with employees to make sure he actually received back signed copies. When he was terminating an employee it was discovered that his company’s technology was unprotected.

Sadly, this is not an uncommon situation. You’re busy and get distracted with other work. A week goes by and the last thing you’re thinking about is having that signed form returned to you. But without the employee’s signature on these documents, they are worthless in protecting your information, acting on policy violations, etc., etc.

I’m guessing that you didn’t create those agreements or your Employee Handbook just to have it ignored and unable to defend yourself in court if needed. So you really need to develop a system to ensure you get those signatures in place and files in each employee’s file.

I use two methods. One is for new employees and is simply using a form that lists all the new-hire paperwork that was given out. I keep that form in my follow-up file until I receive every form that needs to be returned. You just check each item off on the form as it’s received.

The other method is for existing employees when you’re issuing a new Employee Handbook or other document where their signature is required. It’s simple … just print out a listing of current employees and cross their name off when they have returned the signed form. Don’t forget to add a heading on the list saying what it’s for!

Of course, the secret is following up and issuing deadlines. Don’t let these things drag out. I usually tell everyone I need the signed forms back within a week. Ideally, you want to give employees three days to review any document. But, after that, drive them crazy until they return it.

My one exception is the Non-Disclosure Agreement. I send that out with my offer letter and they don’t start work until it’s signed. The whole point of it is to protect your company. If you’re giving them access to your company information and secrets without a signed Agreement, you’re voiding it yourself.

Go to your employee files right now and start auditing them. A late signature is better than nothing, but the best protection is getting those signatures at the right time.

The interesting part was finding there are two basic types of business owners. One [...]]]> As I’ve mentioned in other posts, I’m doing a bunch of networking these days. Once I got used to the process and walking into rooms full of people where I may not know anyone, it’s actually turned out to be fun and very interesting.

The interesting part was finding there are two basic types of business owners. One type is the person who was technically skilled enough to start his/her own business rather than working for someone else. This person fully understands how to do the work but is often lacking in general business knowledge. The other type is the person with the business knowledge who may seek or partner with the technology his/her business idea needs. This post is dedicated to the first type … the technically skilled.

 I just want to mention a few very, very basic rules of business that they (and maybe you) don’t know or have forgotten that really makes a difference in how professional or experienced you appear to other business people.

• Get a domain name that matches your company name or reflects your business. This is the "name" people type to find you on the internet (mine is www.HRjungle.com. Pay attention to how it reads so the squashed-together name doesn’t also spell something not so wonderful. Also keep it simple so people can easily remember it.
  
• You need a website. It doesn’t have to be big and flashy, just a 1-page site will do as long as it has basic information about what you do and how to contact you. Take a digital picture of your building, you, your team, or your logo to put on your website. People now look online for information about businesses before they’ll check the phone book. If you’re not online in even the simplest forms, you won’t appear to be current with the marketplace and you’ll miss out on customers.
  
• Make sure your email address uses your domain name and not some free email account. Your business looks like a hobby when your email address is sexy1234@yahoo.com rather than cj@HRjungle.com.
  
• Follow up that business email address by making sure you have configured Outlook or whatever email program you use to show your company name on emails. I have a client who set up Outlook to show his wife’s name (probably before they got into business) even though the actual email address uses his domain name. I thought his first email to me was spam because I didn’t recognize his wife’s name. When people get emails from me, what they see is that the email is either from "C.J. Westrick" or "HR Jungle." Remember, you want people to open your emails!
  
• Get an address. The lack of an address implies that you don’t have an office. It only costs $48 a year to get a small box at the Post Office so there are few excuses. I know many people work from their homes and may be internet-based, however appearances are everything and you don’t want people to think you’re not a legitimate business.

Okay, lesson over for today! Let me know if you need to know how to do any of these things at a very low cost. It doesn’t have to be expensive to look professional.

Employees will stay more engaged … more connected … to your company when they know more about the company. This is a great time of year to proclaim [...]]]> Have you already planned out your company’s holiday events? Did you include the company itself in those plans? I don’t mean your employees, I really mean the business.

Employees will stay more engaged … more connected … to your company when they know more about the company. This is a great time of year to proclaim to your employees all the accomplishments they have helped you achieve this year. Make it part of a company meeting or part of your speech during your company’s holiday party. Give them something to cheer about!

How large or small your company’s accomplishments may have been over the past year will dictate what you present. If sales have continued to grow, compare last year’s with this year’s. Even consider a month to month comparison. If you have found and fixed problems in your product or production line, talk about the advantage you will see from that. If you’ve added more leads to your database, give your employees the credit.

All you have to do is think about all the big or little things that have helped your company grow, change, or compete. Your employees were somehow involved in all of that. This is the time to remind them of their role in the company’s success and thank them for their help.

You’ll be surprised at all the things that come up when you really take time to review the year. This is also a good time to discuss the plans you have for the future and how this past year’s accomplishments have made those plans possible. Share with your employees and you’ll be rewarded.