Have you ever done the math in regards to your hiring practices? How many times have you thought you made the right hiring decision … only to find out that your new employee doesn’t know half as much as you thought?

The whole process of expanding your business can be daunting if you don’t have a plan. Since we know that hiring employees can be a valid option to help grow a company, why do so many business owners procrastinate? Could it be that it’s simply because you see hours, even days of effort ahead of you before any relief comes your way?

Of course, there’s also the fear involved in making a bad hire. And, yes, you can count of many more hours of effort managing that bad hire. Even worse, though, are those of you who spend an inordinate amount of time trying to salvage that bad hire because you just don’t want to go through the recruiting process again.

It’s best to do things right … right from the beginning. You'll save time and money once you discover how to plan and prepare for a new hire. Developing an easy-to-follow system will take away the headaches and worry about growing your business with employees. As you may have already found out, it’s better to spend a little more time before hiring than a lot of time later on trying to fix a hiring mistake!

This webinar will cover:

• Determining the right solution to help your business grow
  
• Justifying the business need for additional employees and the options available to handle that need
  
• Creating a job description that makes it easy to determine which candidate is the best candidate and protects your company
  
• Pre-employment testing … when, why, and how
  

Register NOW!

HR Jungle's monthly webinars each cover a specific HR topic directed toward the small business owner, with C.J. Westrick SPHR presenting.

Title:  DISCOVER WHAT SMALL BUSINESSES MUST KNOW BEFORE HIRING
Date:  Tuesday, August 19, 2008
Time:  8:00 AM - 9:00 AM PDT

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.

Just so you know what to look for, the newest version has an 06/30/09 expiration date in the upper right corner of page one. Although this doesn't affect any of the I-9 forms you've already completed and have on file, you should discard any blank copies of other versions and start using this latest version immediately.

The latest bill to hit California proposed by a San Francisco Assemblyman concerns sick leave. This bill, AB 2716, has already made it past the Senate Labor and Industrial Relations Committee and is lined up for the Appropriations Committee. So what's so bad about AB 2716? It forces every business in California to provide a specific minimum amount of paid sick leave to every employee.

Here's the actual language:

This bill would provide that an employee who works in California for 7 or more days in a calendar year is entitled to paid sick days, which shall be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the 90th calendar day of employment. The bill would require employers to provide paid sick days, upon the request of the employee, for diagnosis, care, or treatment of health conditions of the employee or an employee's family member, or for leave related to domestic violence or sexual assault.

Now for those of you who are running the math through your head, let me help. A full time employee working 40 hours per week would accrue 66.67 hours of sick leave over a year if the employee worked 50 weeks (assuming a 2-week vacation). That's 8 1/3 days of paid sick leave per year you will be required to provide if this law is enacted. However, there is a clause that says small businesses only have to allow 5 paid days per calendar year. But it neglects to define "small businesses."

Let's not forget all those part-time employees! Yes, the law specifies EVERY employee. So even those part-timers who you haven't been giving any benefits would be accruing sick leave based on hours worked.

The unused sick leave would carry over from year to year but, as now, does not get paid out upon termination of employment. This means the way you give and track sick leave would need to be a true accrual method (normally maintained through your payroll system).

While I believe a certain amount of paid sick leave is normal for full-time employees of small businesses, few small businesses offer more than a week of sick leave. And even fewer companies offer any sick leave to part-time employees. So, you've been warned. Now all we can do is wait and watch to see what happens with this bill.

Hands-Free Cell Phones While Driving

I've discussed this before, but now it's actual law in California that you cannot hold onto your cell phone while driving. It's time to make sure you have a policy about this and that all your employees understand your policy.

I'm watching for the next stage of this law, which will probably be amendments about how to dial without using your hands. Early studies have already shown that it's talking on the cell phone that distracts drivers much more than holding the phone. We've probably all experienced that problem … passing our freeway exit or turn because we're deep into a conversation. I guess the advantage of this new law is that at least we'll have both hands on the steering wheel when we make those sudden turns!

IRS Mileage Reimbursement

We've all been complaining about gas prices so it should come as no surprise that IRS has been listening. IRS has increased their mileage reimbursement rate from $0.505 to $0.585, effective July 1, 2008.

Now here's a little food for thought about mileage reimbursement for your employees. Most small businesses that I know seem to dislike using the IRS reimbursement rate when it comes to reimbursing employees for business travel. Yes, I know you want to save money but let's think this through. The IRS rate is the generic, approved rate you know you can claim for your business taxes (otherwise, you have to track actual costs of using the vehicles). The rate is meant to include the wear and tear on the vehicle itself (oil, tires, depreciation, etc.) plus the cost of fuel.

Okay, so if your business can claim the IRS rate as an expense, why are you failing to fully compensate your employees for the business use of their personal vehicles? You do realize that the employees are doing you a favor by adding miles and wear and tear on their personal vehicles so you can avoid purchasing company vehicles, don't you? Yet, you actually make them pay for the "honor" of providing you with a vehicle for your business purposes. If you're not paying the IRS reimbursement rate, your employees are probably losing money. Yes, they can actually apply for the "lost money" on their personal taxes if they think of it … but why should they have to go to the extra trouble while doing you a favor?

New Minimum Wage

On July 24, 2008, the new federal minimum wage of $6.55 per hour takes effect. Now, my California readers won't need to worry about this because our state minimum wage is already much higher at $8.00 per hour. The rest of you, however, need to be prepared.

Does an employee have any right to expect you to provide condiments, coffee, etc.? No. Providing things for employees is a benefit offered by the company, not a right or entitlement of the employee. However, you might want to consider the advantages of providing basic kitchen supplies … even if you don't actually have a kitchen available.

Nearly every office space has some sort of wet bar or a full-blown kitchenette. I've seen a lot of them in every configuration possible. The first recommendation I need to make is to keep it clean. It's amazing how employees can ignore spills, open cupboard doors, and trash sitting around when it's not in their own home.

Accept this as a fact of life. Pay your cleaning people to scrub it down any time they are cleaning the offices. This isn't just for the benefit of the employees … keep in mind that you have guests walking through the building that can see this area. I don't care how much stuff you stock that area with, if it's filthy you'll have lost most of the value of providing it.

So, what do you provide? The starter stock should include the following:

• Salt and pepper: Buy an actual salt and pepper shaker and the big cannisters to refill the shakers. Don't buy those individual packets because it's too easy for people to grab a handful to keep in their car, etc.
• Plastic forks, spoons, and knives: Buy big boxes of these and designate drawers to put them in.
• Paper dishes: You really only need paper plates. Anything else (like paper bowls) is catering to a specific employee's need, not a general need.
• Condiments: If you have a refrigerator you should consider catsup and mustard, maybe mayonnaise. Again, full bottles rather than individual packets.
• Trays: Pick up 2-3 large, inexpensive trays that can hold sandwiches, cookies, cakes, etc. when you either have a big meeting or party at work. Check places that provide catering supplies.
• Coffee: Provide a coffee maker of a size that works for the number of coffee drinkers you have. Consider using a decent brand of coffee so it's not a bad joke and you're not embarassed to offer it to guests. Personally, I hate the powdered creamer but it's easier to maintain than the dairy versions. Don't forget both real sugar and fake sugar.
• Napkins or paper towels: Paper towels are fine until you have guests and want to have things look a little nicer.
• Styrofoam cups: Although not eco-friendly, these at least are clean. If you don't have a dishwasher to ensure glass items are properly cleaned, the throwaway variety might be better.

Anything else you provide should be because you can afford to keep it in stock and you believe employees will be appreciative. Many companies also keep a locked cabinet filled with special supplies that are used strictly for guests or special meetings. The cabinet might include nicer dishes, doilies for the trays, napkins, sugar cubes, bottled water, sodas, etc. Anything you might want to "put on a show."

If you have a refrigerator that employees can use, make it clear that everything ends up in the trash on Friday night. This eliminates the mystery food left in the refrigerator or freezer. Don't allow exceptions or you'll lose control of the situation. I've seen refrigerators too full to add your lunch but with no one claiming ownership of anything in there.

As I said, providing these things aren't a requirement. However, your employees will enjoy having the basics available and may end up more productive because they're bringing their lunch rather than taking longer going out.

However, once in a while you hear things that are behind the new legislation. The law that goes into effect on July 1st requires the use of hands-free devices if cell phones are being used while driving. This isn't an employment law but employers need to pay special attention. Why? Because you have deeper pockets than the average individual out there driving.

I didn't say it was fair but it is your responsibility to keep others safe while your employees are on the road. We've all been talking on the phone while driving and missed an exit or made some other driving mistake that wouldn't have occurred if our full attention was on the road. Talking while driving is a distraction … whether you're talking with a passenger or on the phone.

Those distractions can be costly, both in human life and the bank balance. A few examples (from Powell Goldstein LLP) include:

• An insurance company's employee dropped his cell phone while driving. As he bent down to pick it up, he ran a red light and killed a father of three. The insurance company was included in the family's lawsuit even though the employee wasn't driving on company business or using a company phone. The company settled for $500,000.
   
• While talking about business on her cell phone, an attorney struck and killed a 15-year-old girl. The law firm settled for an unknown amount but the attorney was ordered to pay $2 million herself.
   
• A lumber wholesaler sales rep struck and severely injured a woman while driving and talking. The company settled for $16.2 million.

What's the safest route to take? Prohibit use of cell phones while driving. Inform your staff that drivers will return calls when they are no longer driving. Inform drivers not to answer or place calls while driving. Put it in writing. Drivers can pull over as soon as possible or return/place calls once they reach their destination.

It'll take time to get used to waiting to talk to people, but it could save lives and your company.