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Human Resources Kit For Dummies PDF

382 Pages·2006·1.76 MB·english
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01_049308 ffirs.qxp 10/24/06 10:49 AM Page i Human Resources Kit FOR DUMmIES ‰ 2 ND EDITION by Max Messmer 01_049308 ffirs.qxp 10/24/06 10:49 AM Page ii Human Resources Kit For Dummies®, 2nd Edition Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2007 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, or online at http:// www.wiley.com/go/permissions. Trademarks:Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book. LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REP- RESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CON- TENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CRE- ATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CON- TAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FUR- THER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFOR- MATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ. For general information on our other products and services, please contact our Customer Care Department within the U.S. at 800-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit www.wiley.com/techsupport. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Control Number: 2006934827 ISBN-13: 978-0-470-04930-3 ISBN-10: 0-470-04930-8 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 2O/RU/RR/QW/IN 02_049308 ftoc.qxp 10/24/06 10:49 AM Page vii Contents at a Glance Introduction.................................................................1 Part I: Building the Framework .....................................7 Chapter 1: The Big Picture................................................................................................9 Chapter 2: Law and Order: Navigating the Legal Minefield of Hiring and Managing.................................................................................................23 Part II: The Right People in the Right Places................41 Chapter 3: Building a Staffing Strategy..........................................................................43 Chapter 4: Smart Start to Hiring: Kicking Off the Hiring Process...............................51 Chapter 5: Resourceful Recruiting.................................................................................65 Chapter 6: Narrowing Down the Field............................................................................87 Chapter 7: One on One: Getting the Most Out of Interviewing.................................103 Chapter 8: The Home Stretch: Making the Final Decision.........................................121 Chapter 9: Starting Off on the Right Foot....................................................................143 Part III: Retention: Critical in Any Business Environment ...............................................161 Chapter 10: Ensuring an Effective Compensation Structure.....................................163 Chapter 11: Creating the Right Benefits Package.......................................................185 Chapter 12: Creating an Employee-Friendly Work Environment..............................207 Chapter 13: Getting Permanent Benefit from Interim Staffing..................................225 Chapter 14: Training and Development.......................................................................237 Part IV: Keeping Things Together: Monitoring Ongoing Performance...............................255 Chapter 15: Assessing Employee Performance..........................................................257 Chapter 16: Encouraging Extraordinary Performance..............................................277 Chapter 17: Handling Difficult Situations....................................................................291 Part V: The Part of Tens ............................................311 Chapter 18: Ten Keys to HR Success in the Future....................................................313 Chapter 19: Ten Ways to Become an HR Strategist....................................................319 02_049308 ftoc.qxp 10/24/06 10:49 AM Page viii Chapter 20: Ten HR-Related Web Sites Worth Exploring...........................................325 Chapter 21: Ten HR-Related Associations You Should Know About........................331 Chapter 22: The Ten Most Important HR-Related Laws............................................335 Appendix: About the CD............................................339 Index.......................................................................347 02_049308 ftoc.qxp 10/24/06 10:49 AM Page ix Table of Contents Introduction..................................................................1 About This Book...............................................................................................2 Conventions Used in This Book.....................................................................3 Foolish Assumptions.......................................................................................3 How This Book Is Organized...........................................................................4 Part I: Building the Framework.............................................................4 Part II: The Right People in the Right Places......................................4 Part III: Retention: Critical in Any Business Environment.................5 Part IV: Keeping Things Together: Monitoring Ongoing Performance........................................................................................5 Part V: The Part of Tens.........................................................................5 Appendix.................................................................................................5 The CD-ROM............................................................................................5 Icons Used in This Book..................................................................................5 Part I: Building the Framework .....................................7 Chapter 1: The Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Scoping Out the HR Role ................................................................................9 Strategist versus administrator..........................................................11 Adapting to the changing workplace.................................................12 Easing the work/life conflict...............................................................13 Avoiding the baby boom bust.............................................................14 Workforce diversity: Making it work..................................................14 Rising healthcare costs........................................................................15 Keeping pace with technology...........................................................16 Rules and regulations: Ethics first.....................................................17 Making HR a Strategic Partner.....................................................................18 Staying Ahead with HR Software..................................................................19 Become an educated buyer................................................................20 HR software: A features checklist.......................................................21 Chapter 2: Law and Order: Navigating the Legal Minefield of Hiring and Managing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Legal Matters: The Big Picture.....................................................................24 Keeping the Peace..........................................................................................25 Discrimination................................................................................................25 Disparate Impact............................................................................................26 The Equal Employment Opportunity Commission (EEOC)......................27 02_049308 ftoc.qxp 10/24/06 10:49 AM Page x x Human Resources Kit For Dummies, 2nd Edition The EEO Family: A Closer Look....................................................................29 ADEA: The Age Discrimination in Employment Act (1967).............29 AC-21: American Competitiveness in the 21st Century Act (2000)...........................................................................................29 ADA: Americans with Disabilities Act (1990)....................................30 COBRA: Consolidated Omnibus Budget Reconciliation Act (1985)...........................................................................................30 Equal Pay Act (1963)............................................................................31 FMLA: Family and Medical Leave Act (1993)....................................31 FLSA: Fair Labor Standards Act (1938)..............................................31 FUTA: Federal Unemployment Tax Act (1939)..................................32 HIPAA: Health Insurance Portability and Accountability Act (1996)...........................................................................................32 IRCA: Immigration Reform and Control Act (1986, 1990, and 1996)......................................................................32 OWBA: Older Workers Benefit Protection Act (1990)......................33 Patriot Act (2001).................................................................................33 Pregnancy Discrimination Act (1978)................................................33 Rehabilitation Act (1973 and 1998)....................................................34 Sarbanes-Oxley Act (2002)..................................................................34 Title VII of the Civil Rights Act (1964)................................................35 WARN: Worker Adjustment and Retraining Notification Act (1988)...........................................................................................35 Sexual Harassment: Keep Your Workplace Free of It.................................35 Spread the word...................................................................................36 Create a reporting process..................................................................37 Treat all complaints about sexual harassment seriously...............38 Take decisive action.............................................................................38 Document every complaint.................................................................38 International Expansion: Stranger in a Strange Land................................38 Forms on the CD.............................................................................................39 Part II: The Right People in the Right Places.................41 Chapter 3: Building a Staffing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . .43 Breaking Out of a Hiring Rut.........................................................................43 Grasping the Big Picture...............................................................................45 Consider a mix of resources...............................................................46 Reassess goals annually......................................................................47 Finding New Employees................................................................................47 Inner peace: Filling jobs from within the organization....................47 New horizons: Looking for staff outside the company....................49 Outsourcing: The role of HR...............................................................49 Chapter 4: Smart Start to Hiring: Kicking Off the Hiring Process . . . .51 The Costs of a Bad Hire.................................................................................51 Hiring: Think “Strategy”................................................................................52 02_049308 ftoc.qxp 10/24/06 10:49 AM Page xi xi Table of Contents Building Competency Models.......................................................................53 The ABCs of Job Descriptions......................................................................55 Sample job description........................................................................56 Look ahead, not behind.......................................................................57 Don’t confuse tasks with requirements and qualifications.............57 Set priorities..........................................................................................58 Don’t box yourself into a corner........................................................58 Don’t forget soft skills..........................................................................58 Make sure that the job is doable........................................................59 Be specific.............................................................................................59 Set a salary range.................................................................................60 What’s in a Job Title?.....................................................................................60 Employee Classification: Yes, It Matters.....................................................61 Full-time employees.............................................................................61 Regular part-time employees..............................................................61 Temporary workers and contract employees..................................61 Independent contractors.....................................................................62 Leased workers.....................................................................................63 A Final Note.....................................................................................................63 Forms on the CD.............................................................................................63 Chapter 5: Resourceful Recruiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Recruiting: The Big Picture...........................................................................65 Getting Started...............................................................................................66 Inside Story: Recruiting from Within...........................................................68 Creating a successful internal hiring process...................................68 Developing an employee skills inventory.........................................69 Writing a Good Job Ad...................................................................................71 The Internet: Powerful, but Be Careful........................................................73 A miraculous tool, but there’s no free lunch....................................73 Quality in, quality out..........................................................................75 You’re only as good as your Web site................................................76 Classified Ads Remain a Factor....................................................................77 Using Recruiters.............................................................................................78 Who does what?...................................................................................78 Should you use recruiters?.................................................................79 Finding the “right” recruiter...............................................................80 Back to School: Recruiting on Campus.......................................................81 Other Recruiting Sources Worth a Look.....................................................82 All in the family: Employee referrals..................................................82 Job fairs.................................................................................................83 Open houses: Our house is your house............................................84 Professional associations and unions...............................................85 Direct applications (walk-ins).............................................................85 Government employment services....................................................86 Forms on the CD.............................................................................................86 02_049308 ftoc.qxp 10/24/06 10:49 AM Page xii xii Human Resources Kit For Dummies, 2nd Edition Chapter 6: Narrowing Down the Field . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Job Applications: Are They Obsolete?........................................................87 Setting up the application...................................................................88 Using the application as an evaluation tool......................................90 Setting Up a System for Evaluating Candidates.........................................91 Resume Roulette: Reading Behind the Lines..............................................93 Mastering the basics............................................................................93 Reading between the lines..................................................................94 Watching out for red flags...................................................................94 Testing: Knowing What Works and What’s Legal.......................................96 Finding the right test for your situation............................................97 Staying out of test trouble.................................................................101 Phone Interviews: Narrowing Your List Further......................................102 Forms on the CD...........................................................................................102 Chapter 7: One on One: Getting the Most Out of Interviewing . . . . .103 Interviewing: The Basics.............................................................................104 The Five Deadly Sins of Job Interviewing.................................................105 Setting the Stage...........................................................................................106 The Introduction: Warming Up...................................................................107 Q & A: Mastering the Art.............................................................................108 Have a focus........................................................................................108 Make every question count...............................................................108 Pay attention.......................................................................................109 Don’t hesitate to probe......................................................................109 Give candidates ample time to respond..........................................109 Suspend judgments............................................................................110 Take notes...........................................................................................110 Vary the style of questions................................................................110 A Crash Course in Nondiscriminatory Questioning................................112 National origin....................................................................................113 Citizenship status...............................................................................113 Address................................................................................................114 Age........................................................................................................114 Family status.......................................................................................114 Religion................................................................................................114 Health and physical condition..........................................................115 Name....................................................................................................115 Language..............................................................................................115 Fifteen Solid Questions to Ask and How to Interpret the Answers.......115 End Game: Closing on the Right Note........................................................119 Forms on the CD...........................................................................................120 Chapter 8: The Home Stretch: Making the Final Decision . . . . . . . . .121 Coming to Grips with the Decision-Making Process................................122 Utilizing the “Tools” of the Trade...............................................................123 02_049308 ftoc.qxp 10/24/06 10:49 AM Page xiii xiii Table of Contents Selecting Your Candidate: You Need a “System”......................................125 Setting up your own protocol...........................................................126 Factoring in the intangibles..............................................................128 Hiring Right...................................................................................................130 Getting a Broader View................................................................................131 Checking hard-to-check references..................................................132 Using your own network for checking.............................................133 Online reference checking: Proceed with caution.........................133 Discovering the Truth about Background Checks...................................134 To do or not to do? That is the question!........................................136 So what’s the bottom line?................................................................137 Making Offers They Can’t Refuse...............................................................137 Don’t delay..........................................................................................137 Put your offer on the table................................................................137 Set a deadline......................................................................................138 Stay connected...................................................................................138 Know how to negotiate salary..........................................................138 Know when to draw the line.............................................................140 Clarify acceptance details.................................................................140 Stay in touch.......................................................................................141 Forms on the CD...........................................................................................142 Chapter 9: Starting Off on the Right Foot . . . . . . . . . . . . . . . . . . . . . . . .143 Onboarding: Going Beyond Orientation....................................................144 Three Unproductive Approaches...............................................................145 Osmosis...............................................................................................145 “Just follow Joe around”....................................................................145 Watch the video..................................................................................146 Doing It Right: A Little Empathy Goes a Long Way..................................146 The First Day: Ease Anxieties.....................................................................147 The First Week: Discover More about the Company and the Job..........148 Provide the rules of the road............................................................148 Keep orientation practical................................................................149 Involve senior management..............................................................149 Hold large-group sessions in a suitable location............................150 Make group presentations user-friendly.........................................150 Provide an orientation agenda.........................................................151 Space things out.................................................................................151 Give a clear sense of tasks and set concrete goals........................151 Second Week and Beyond...........................................................................153 Develop a checklist............................................................................153 Ensure goals continue to cascade....................................................153 Don’t let your message die................................................................154 Use mentoring to build a solid foundation.....................................154 Feedback: How good is your program?...........................................156 02_049308 ftoc.qxp 10/24/06 10:49 AM Page xiv xiv Human Resources Kit For Dummies, 2nd Edition Policy and Procedures Manual: Yes, You Need One................................157 Paying attention to presentation......................................................158 Knowing what to include...................................................................159 Playing it safe......................................................................................160 Forms on the CD...........................................................................................160 Part III: Retention: Critical in Any Business Environment..............................................................161 Chapter 10: Ensuring an Effective Compensation Structure . . . . . . .163 Defining Your Role........................................................................................163 Compensation and Benefits: Nothing Is Simple.......................................164 The Basic Language of Employee Compensation....................................165 The Foundation for an Effective Compensation System.........................166 Getting a compensation philosophy................................................167 Setting pay levels in your organization...........................................168 Accounting for individuals................................................................171 Thinking about wage plans...............................................................172 Exempt and Nonexempt: Why the Distinction Matters...........................175 Who’s exempt and why?....................................................................176 The bottom line on overtime............................................................177 Other legal considerations................................................................177 What You Need to Know about Raises, Bonuses, and Incentives..........178 Pay raises............................................................................................179 Bonuses...............................................................................................179 Incentives............................................................................................180 What’s fair versus what works?........................................................182 Communicate Your Policies........................................................................183 Chapter 11: Creating the Right Benefits Package . . . . . . . . . . . . . . . .185 What’s a Benefit Anyway?...........................................................................186 Key Trends in Benefits Management.........................................................186 The Basics of Benefits Coverage................................................................187 Social Security and Medicare............................................................187 Unemployment insurance.................................................................188 Workers’ compensation.....................................................................189 A Healthy Approach to Insurance..............................................................190 A bird’s eye view of the options.......................................................190 Weighing the options.........................................................................191 Rising costs: Staying ahead of the game.........................................192 Retirement Plans..........................................................................................194 Defined-benefit pension plans..........................................................194 401(k) plans: Pros and cons..............................................................195 Unfunded plans...................................................................................195 ERISA and other legal issues.............................................................196

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