1. Hiring Employees
Laws, Job Descriptions, Interviewing,
Compensation & Benefit Plans

2. Hiring
Laws

3. Job Discrimination Laws
Title VII of the Civil Rights Act of 1964 (Title VII), which prohibits employment discrimination
based on race, color, religion, sex, or national origin.
The Equal Pay Act of 1963 (EPA), which protects men and women who perform substantially
equal work in the same establishment from sex-based wage discrimination.
The Age Discrimination in Employment Act of 1967 (ADEA), which protects individuals who are
40 years of age or older.
Title I and Title V of the Americans with Disabilities Act of 1990 (ADA), which prohibit
employment discrimination against qualified individuals with disabilities in the private sector,
and in state and local governments.
Sections 501 and 505 of the Rehabilitation Act of 1973, which prohibit discrimination against
qualified individuals with disabilities who work in the federal government.
The Civil Rights Act of 1991, which, among other things, provides monetary damages in cases
of intentional employment discrimination.
(THE U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, 2004)

4. Employment Laws
Uniform Guidelines on Employee Selection Procedures
“The guidelines are designed to aid in the achievement of our nation's goal of
equal employment opportunity without discrimination on the grounds of race, color,
sex, religion or national origin. The Federal agencies have adopted the Guidelines
to provide a uniform set of principles governing use of employee selection
procedures which is consistent with applicable legal standards and validation
standards generally accepted by the psychological profession and which the
Government will apply in the discharge of its responsibilities.” (Uniform Guidelines
c/o Biddle Consulting Group)
(UNIFORM GUIDELINES C/O BIDDLE CONSULTING GROUP, N.D.)

5. Hiring
Job Task Analysis and
Job Descriptions

6. Job Task Analysis (JTA)
Job Task Analysis (JTA) is the process of analyzing a job to come
up with a description of common duties on the job, as well as
descriptions of knowledge, skills and abilities required to perform
those tasks.
For newly created positions, individuals who will be affected by
the work of the new employee should be consulted.
(HR-GUIDE.COM, 2001)

7. Job Analysis - Data Collection
Duties and Tasks
The basic unit of a job is the performance of
specific tasks and duties. Information to be Tools and Equipment
collected about these items may include:
frequency, duration, effort, skill, complexity,
equipment, standards, etc. Some duties and tasks are performed using
specific equipment and tools. Equipment may
include protective clothing.
Environment
Requirements
This may have a significant impact on the
physical requirements to be able to perform a
job. The work environment may include The knowledges, skills, and abilities (KSA's)
unpleasant conditions such as offensive odors required to perform the job. While an
incumbent may have higher KSA's than those
and temperature extremes.
required for the job, a Job Analysis typically
only states the minimum requirements to
Relationships perform the job.
Supervision given and received. Relationships
with internal or external people.
(HR-GUIDE.COM, 2001)

8. Job Analysis
The results of a job analysis may include:
Major job functions or duties Work experience requirements
Common personal interactions Decision making authority
Work tasks Education requirements
Skills or competencies Typical-day descriptions
Critical situations faced by incumbents Training requirements
Work related knowledge Certification requirements
Performance standards and rating scales Determining hiring criteria
Physical abilities Defining new positions
Identifying training content needs Communicating job responsibilities
Restructuring jobs and businesses Determining appropriate measures for
Work environment factors performance appraisals
(HR-GUIDE.COM, 2001)

9. Job Descriptions
A job is a collection of tasks and responsibilities
to be performed by an individual in an
organization.
A task is a unit of work that is performed to
produce a desired result.
Job Descriptions contain a general list of tasks or
functions and responsibilities for a particular
employee. Job descriptions often include a list of
superiors, qualifications of the person holding the
position, skills desired, salary range, etc.
(HR-GUIDE.COM, 2001)

10. Job Description Example
.PDF CAN BE FOUND ON FSO - RESOURCES (“APPENDIX B: SAMPLE JOB DESCRIPTIONS”, 2004)

11. Hiring
Interviewing

12. Interviewing Potential Candidates
An interview is a selection procedure that is designed to predict future job
performance on the basis of applicants’ oral responses to oral inquiries.
Advantages
Disadvantages
• Useful for determining if the applicant has requisite
communicative or social skills which may be necessary for • Subjective evaluations are made.
the job.
• Decisions tend to be made within the first few minutes of
• Interviewer can obtain supplementary information. the interview with the remainder of the interview used to
validate or justify the original decision
• Used to appraise candidates’ verbal fluency.
• Interviewers form stereotypes concerning the characteristics
required for success on the job.
• Can assess the applicant’s job knowledge.
• Negative information seems to be given more weight.
• Can be used for selection among equally qualified
applicants.
• Not much evidence of validity of the selection procedure.
• Enables the supervisors and/or co-workers to determine if
there is a compatibility between applicant and employees. • Not as reliable as tests.
• Allows the applicant to ask questions that may reveal
additional information useful for making a selection
decision. (HR-GUIDE.COM, 2001)

13. Interview Types
Unstructured Interview - Involves a procedure where
different questions may be asked of different applicants.
Situational Interview - Candidates are interviewed about
what actions they would take in various job-related
situations. The job-related situations are usually identified
using the critical incidents job analysis technique. The
interviews are then scored using a scoring guide constructed
by job experts.
Behavior Description Interviews - Candidates are asked
what actions they have taken in prior job situations that are
similar to situations they may encounter on the job. The
interviews are then scored using a scoring guide constructed
by job experts.
(HR-GUIDE.COM, 2001)

14. Interview Types
Comprehensive Structured Interviews - Candidates are
asked questions pertaining to how they would handle job-
related situations, job knowledge, worker requirements, and
how the candidate would perform various job simulations.
Interviews tapping job knowledge offer a way to assess a
candidate's current level of knowledge related to relevant
implicit dimensions of job performance.
Structured Behavioral Interview - This technique involves
asking all interviewees standardized questions about how they
handled past situations that were similar to situations they may
encounter on the job. The interviewer may also ask
discretionary probing questions for details of the situations, the
interviewee's behavior in the situation and the outcome. The
interviewee's responses are then scored with behaviorally
anchored rating scales.
(HR-GUIDE.COM, 2001)

15. Interview Tips for the Employer
Minimize stereotypes Keep it Job Related
To minimize the influence of Try to make the interview questions
stereotypes in the interview process, job related. If the questions are not
provide interviewers with a job related to the job, then the validity of
description and specification of the the interview procedure may be lower.
requirements for the position.
Interviewers with little information
about the job may be more likely to
make stereotypical judgments about
the suitability of candidates than are
interviewers with detailed information
about the job.
(HR-GUIDE.COM, 2001)

16. Interview Tips for the Employer
Train Interviewers Interviewers should be trained to:
Improve the interpersonal skills of • avoid asking questions unrelated to the
job
the interviewer and the interviewer's
ability to make decisions without • avoid making quick decisions about an
influence from non-job related applicant
information.
• avoid stereotyping applicants
• avoid giving too much weight to a few
characteristics.
• try to put the applicant at ease during the
interview
• communicate clearly with the applicant
• maintain consistency in the questions
asked
(HR-GUIDE.COM, 2001)

17. Hiring
Compensation

18. Compensation
When hiring a new employee, giving time to
compensation is very important. This
compensation will guide the salary structure of this
employee for their tenure with the company. It will
also guide the salary structures of other
employees with similar skill sets in related
positions.
(NFIB, 2002)

19. Determining Compensation
1. Search salary surveys by various trade organizations and the U.S. Department of Labor for
similar positions and locations.
2. Network with owners and managers in your industry to compare salaries offered by similar
companies.
3. Find out salary history of potential employee. This will create a guideline. If unsure of what
to offer, begin with a 5-10% increase over previous salary.
4. It is best to offer a salary based on skill and knowledge of the employee rather than salary
history.
5. Make sure to keep an eye on what all other employees are making. This will help to assure
employees that no one is being undervalued financially.
6. Definitely consider offering incentive payments such as year-end bonuses or profit sharing.
If you are unable to offer a high salary up front, these added incentives may often entice the
employee to join your company. Make sure to offer these incentive plans to each employee
and create eligibility requirements.
(NFIB, 2002)

20. Hiring
Benefits

21. Benefits
Benefits are items such as health insurance, dental insurance, disability insurance,
retirement plans, etc. They are often offered in addition to a base salary package.
Benefits are often a necessity when trying to hire the best employees for your
company. Their skill sets and knowledge most likely make them a highly, sought-
after individual.
For small businesses, offering benefits can be an issue. Adding benefits to a
compensation package will increase payroll costs for the employer.
It is recommended that small business owners and managers seek out a local
broker for these insurance and benefit options. As with any “purchase” be weary of
inherent conflicts of interest by the benefits brokers.
(FARRELL, 2006)

22. Types of Benefits
• Health Care
• Specialty Items
• Health Insurance
• Life Insurance
• Dental Insurance
• Vision Plans
• Retirement Plans
• Disability Insurance
• Pension Plans • Etc.
• Contribution Plans - 401(k)
ON AVERAGE, A DECENT BENEFITS PACKAGE WITH HEALTH CARE PLAN, A
RETIREMENT PLAN AND A FEW EXTRA PERKS WILL COST ABOUT 30-45%
OF TOTAL PAYROLL EXPENSES.
(FARRELL, 2006)

23. Benefits - Health Care
To remain competitive and attractive to perspective employees, small
business owners should at least consider health insurance.
According to Bureau of Labor Statistics’ 2006 National Compensation
Survey, 60% of firms with less than 100 workers offered health
benefits.
Small business owners should keep in mind that health insurance
programs can represent 10-15% of total payroll costs.
(FARRELL, 2006)

24. Benefits - Retirement Plans
Often, seasoned employees will be looking for a retirement plan to accompany their
compensation plan. Companies can offer a pension plan or a contribution plan, such as a
401(k) plan.
A pension plan is when a company agrees to pay a certain dollar amount to an employee
every year during retirement. With higher job turnover and less employees staying with the
same company until retirement, this option is less utilized than a contribution plan.
A contribution plan, like a 401(k) allows the employee to invest their money in a variety of
investments, like mutual funds.
The employee can put this money into their 401(k) for retirement every payroll period.
The employer can, but is not required to, match a certain percentage of the investment
by the employee.
The employer should be sure to set eligibility requirements. Typically, an employer will
match part of the contribution after one year of service at the company.
(FARRELL, 2006)

25. Benefits - Specialty Items
Specialty options are added bonuses to compensation plans. These include
disability insurance, life insurance, dental insurance and vision plans.
Disability insurance would provide a percentage of an employee’s salary if they
were to get injured and could not return to work for a determined amount of
time.
Life Insurance would provide a determined amount of money to an employee’s
beneficiary in the case of death.
Small companies that are offering health insurance normally offer vision and dental
insurance although these are not part of health insurance plans.
(FARRELL, 2006)

26. Hiring
Resources

27. Resources
Appendix B: sample job descriptions. (2004, January). Technology Coordinator's Handbook, Retrieved
October 7, 2008, from Education Research Complete database.
Farrell, M. (2006, October 6). The Best Benefits Package For Small Biz . Retrieved October 2, 2008, from
Forbes.com: http://www.forbes.com/entrepreneurs/2006/10/06/aetna-unitedhealth-retirement-
ent-hr-cx_mf_1006benefits.html
Hr-Guide.com. (2001, 12 31). Hr-Guide.com. Retrieved October 1, 2008, from HR-Guide.com: http://
www.hr-guide.com
Jerabek, A. (2003). Job Descriptions - Don't Hire Without Them. Journal of Interlibrary Loan, Document
Delivery & Information Supply , 13 (3), 113-126.
NFIB. (2002, April 9). Five Tips on Determining New-Employee Compensation. Retrieved October 2,
2008, from Tools, Tips and Practical Management Advice: http://www.nfib.com/object/
1584049.html
The U.S. Equal Employment Opportunity Commission. (2004, April 20). Overviews-Laws. Retrieved
October 2, 2008, from The U.S. Equal Employment Opportunity Commission: http://www.eeoc.gov/
abouteeo/overview_laws.html

28. Next:
Hiring: Employee Agreements