This document provides an overview of important topics related to hiring and managing employees. It covers the benefits of hiring smart and retaining good employees ("the good") as well as challenges like discipline, violence, harassment and conflict ("the bad"). It also discusses compliance with various employment laws and regulations to avoid penalties and lawsuits ("the ugly"). The document emphasizes the importance of understanding legal obligations, having proper policies and procedures, conducting thorough background checks, and providing training to maximize the benefits and minimize the risks of having employees.

1. The Art of Hiring Smart
Welcome!

2. PRESENTING:
AGENDA/TOPICS TO BE COVERED
 THE GOOD  THE BAD  THE UGLY
◦ Overview of ◦ Discipline ◦ Compliance
Having ◦ Violence ◦ Lawsuits
Employees ◦ Harassment ◦ Penalties for
◦ Hiring Non-
◦ Conflict
◦ Retaining compliance
◦ Termination
◦ Training

3. THE GOOD
 Why have employees
 Why build a company with loyal employees
 What would happen if you didn’t have employees
 Hiring Smart
 Retaining the “Stars”
 Training for excellence

4. HIRING - What is
The New Art of Hiring Smart System?
1. Identify Hiring Needs and/or Problems
2. Quantify the Cost of Turnover
3. Understand What You Are Recruiting for
4. Use Innovative Prospecting
5. Prepare and Conduct a Winning Interview
6. Do Background Checks
7. Assess Applicants for Job Match

5. PREPARE FOR AND CONDUCT
A WINNING INTERVIEW
A. Review the Job Description
B. Review other Job Requirements
C. Develop Lead Questions
D. Build a File
1. Resume 3. Lead Questions
2. Application 4. Release Documents

6. DO BACKGROUND CHECKS
A. Reference Checks
B. Education Credentials
C. Credit Report
D. Criminal History
E. Past Employers
F. Driving Record Report
G. Social Security Verification

7. UTILIZE ALL OF YOUR
RESOURCES!
Interview 14%
Reference Checking 26%
Personality Testing 38%
Abilities Testing 54%
Interests Testing 66%
Job Matching 75%
0% 10% 20% 30% 40% 50% 60% 70%

8. INDEPENDENT CONTRACTORS
 Independent Contractors are not covered under
Workers Comp.
 Understand who is an employee and who is an
independent contractor to avoid liability under a
variety of laws:
 IRS (Federal income tax withholding and SS)
 State Unemployment compensation laws
 State WC Laws
 Federal and State wage and hour laws
 Federal and State discrimination laws

9. INDEPENDENT -- CONTINUED
 Improper categorizing of a worker can be
quite serious.
 Thereare specific guidelines that help
employers define who or what is an
independent contractor.
 Ingeneral, the main difference is the
amount of control the employer can
exercise over the details of the work.

10. HIRING SUMMARY…
 Turnover is a major expense.
 Traditional hiring methods are not
effective.
 Government regulations are
demanding change.
 Competition is forcing a closer
examination of those we employ.
 People must match their jobs and
fit the company culture.
 People are our number one
resource.

11. RETAINING – Keep your “Stars”
“In these days of Talent Wars, the best way to keep
your stars is to know them better than they know
themselves -and then use that information to
customize the
career of their dreams”
Timothy Butler & James Waldroop
“Job Sculpting” Harvard Business Review
September-October 1999

12. TRAINING
 There are basically three places to “fix”
people problems:
◦ Selection Process
◦ Coaching & Training
 Changing Behavior
◦ Replacing the Employee

13. TOOLS OF THE JOB
 If you don’t care enough to train your employees,
they might not care enough to provide you with their
best efforts.
 Share with your employees your goals and they will
respond better.

14. THE BAD
 Employers don’t want to deal with difficult issues,
such as:
 Discipline
 Violence in the workplace
 Harassment
 Conflict
But, “the bad” comes with the
good and must be dealt with
swiftly and firmly in a consistent
manner.

15. DISCIPLINE
 Employers need a consistent and understandable
means to communicate important information.
 Policies – are broad guidelines developed to guide the
organization decisions
 Procedures – provide further explanation and more
details on how the policy is to be applied
 Work Rule – states what employees may or may not
do to follow the policies of the organization

16. DISCIPLINARY PROCEDURES
 There are times when disagreements happen and
when the employer must take some form of
disciplinary action.
 While organizations work at preventing the need
for disciplinary action, if needed, the employer
should follow their established policies and
procedures very carefully.
 Providing proper feedback insures that the
employee is not surprised.

17. PERFORMANCE REVIEWS
 Reviews offer the best method for consistently
providing feedback to the employee.
 The frequency and timing of reviews can be
whatever the employer decides – it just needs to
happen consistently.

18. VIOLENCE
 Workplace violence occurs when an employee
with poor behavior control becomes highly
stressed.
 Stress may or may not be work related but is
usually set off by an incident at work.
 Employers need to be aware of employees
exhibiting signs of possible violent behavior and
take steps to prevent its occurrence.

19. HARASSMENT
 There are two forms of sexual harassment:
 Quid pro quo is a legal term which means “this for
that”. Quid pro quo harassment, therefore occurs
when an individual asks for sexual favors in return
for a favorable employment action.
 Hostile work environment is defined as one in which
an individual or individuals are subjected to
unwelcome verbal or physical conduct “when
submission to or rejection of this conduct explicitly or
implicitly affects an individual’s employment or work
performance.”

20. CONFLICT AND RESOLUTION
 Conflict can happen whenever people work
together.
 It can affect relationships between individuals or
groups and covers a wide range of intensity
levels.
 Resolution is a process of developing strategies
for resolving issues and maintaining or
rebuilding effective working relationships.

21. DEFINING CONFLICT
 Conflict in the workplace is a fact of life.
 85% of employee’s terminate due to
conflict with their boss.
 Managers spend about 1 month a year
dealing with personality conflicts.
 Peoplehave different goals and needs and
believe they are “right”.
 It
is impossible to avoid conflict but it is
productive to handle conflict.

22. PREVENTING CONFLICT
“If you can’t go around it, over
it, or through it, you had
better negotiate with it.”
-- Ashleigh Brilliant

23. PEOPLE DON’T LEAVE COMPANIES.
THEY LEAVE PEOPLE.

24. THE EVIDENCE IS EVERYWHERE
 Poor productivity
 Low levels of engagement
 Poor morale
 Turnover
Are largely attributed to conflicts in the
supervisor/employee relationship.

25. THE EVIDENCE IS EVERYWHERE
 Research indicates that 85% of employees
terminate due to conflicts in the boss/employee
relationship.
 Executives were found to spend a minimum of
one month per year dealing with personality
conflicts.
Source: Robert Half International

26. THE EVIDENCE IS EVERYWHERE
 50% of an employee’s work satisfaction depends
on the relationship the employee has with his/her
supervisor
Source: The Saratoga Institute
 The length of an employee’s stay on the job is
largely determined by his/her relationship with
their manager.
Source: The Gallup Organization

27. NO ONE BLINKS
 A typical American holds more than eight
different jobs between 18 and 32 alone.
 85% of American workers expect to be employed
by a new company within 12 months.
 Ten years ago, recruiters and employers would
have balked at a candidate with three jobs in the
last five years.
Source: Forbes magazine, April 2007

28. COST OF TERMINATION
 Termination is expensive.
 It is estimated that turnover and termination can
cost an organization 3 times the annual salary of
the individual being replaced.

29. THE UGLY
 Compliance Issues
 Laws and Regulations
 Lawsuits

30. COMPLIANCE ISSUES – WHAT TO DO
 Know the laws of the land and their importance
in running your business.
 Develop policies & procedures to minimize the
opportunity for litigation.
 Be fair with your employees.
 Document, document, document

31. OVERVIEW – SHRM LIST OF POSSIBLE
NEW BILLS
 Employee Free Choice Act of 2009
 Fair Pay Act of 2009  Secret Ballot Protection Act
 Title VII Fairness Act  WARN Modifications
 Labor Relations First Contract  Healthy Americans Act
Negotiation Act of 2009  Healthy Workforce Act
 Public Safety Employer/Employee  Emergency Retiree Health Benefits
Cooperation Act Protection Act
 Worker Protection Against  Executive Compensation
Combustible Dust Explosions  Additional Tax on Bonuses from TARP
 Family-Friendly Workplace Act  Family Fairness Act
(comp time)  FMLA Changes (25 employees)
Society for Human Resource Management HR
Congressional Monitor of various Bills

32. WHERE HAVE WE BEEN?
By 1900 By 1940 By 1980 By 2000
Case Law NLRA ADEA FWPCA IRCA USERRA
Common Law FLSA OSHA CWHSSA TMRA ADA
FICA ERISA SWDA FMLA EPPA
RLA VEVRAA CERCLA DFWA TEFRA
IRC MOSCA EPA WARN JSIA
Davis-Bacon COBRA SOWA MSPA FWPCA
Local Law PDA LMRA CRA CWHSSA
State Law FMSHA CAA ADEA SWDA
Case Law FUTA ADA (AGE) OSHA CERCLA
Common Law CCPA LMRDA ERISA SDWA
ERA CRA VEVRAA LMRA
JSIA REHAB ACT MSPA CAA
TSCA IRC PDA ADA (AGE)
NLRA Davis-Bacon FMSHA EPA
FLSA Local Law FUTA MHPA
FICA State Law CCPA FCRA
RLA Case Law LMRDA HIPAA
Common Law ERA Miller Act
MDSCA NMHPA
COBRA ECPA
TEFRA OWBPA
TSCA CCRA
NLRM HMOA
FLSA PRWORA
FICA INRA
RLA IMMACT
REHAB ACT Davis-Bacon
IRC Local Law
PCA State Law
VAWA Case Law
Common Law

33. IMPORTANT LAWS TO KNOW ABOUT
 Title VII of the Civil Rights Act (Title VII)
 Age Discrimination in Employment Act (ADEA)
 Americans with Disabilities Act (ADA)
 Immigration Reform and Control Act (IRCA)
 Fair Labor Standards Act (FLSA)
 Equal Pay Act (EPA)
 Occupational Safety and Health Act (OSHA)

34. LAWS - CONTINUED
 Family and Medical Leave Act (FMLA)
 Consolidated Omnibus Budget Reconciliation Act
of 1985 (COBRA)
 Health Insurance Portability and Accountability
Act 1997 (HIPAA)
 Drug Free Workplace Act
 Patient Protection and Affordable Care Act
(PPACA)

35. LAWSUITS
 Employment lawsuits are among the most common
lawsuits in which companies will find themselves
involved. It's a factor of business itself and one that
must be reckoned with.
 The costs to employers for lawsuits can be substantial
and can include:
◦ Penalties
◦ Back pay
◦ Attorney costs
◦ Time
◦ Lost productivity
◦ Bad press

36. PENALTIES
 Non-compliance with Healthcare Reform laws
 Responsibilities of employers
 COBRA
 FMLA

37. SUMMARY
 So, the question is, “Where do we go from here?”
 Good Employees – Bad Employees
 Good Benefits – Bad Benefits
 Understand the Good, The Bad, and The Ugly.

38. Lola Kakes
Founder, EffortlessHR, Inc.
Author, “If You Don’t Own a Circus … You
Shouldn’t Be Hiring Clowns!”
www.effortlesshr.com
520.546.3947