Employer Solutions Blog – Sage HRMS

In this third installment of a five part series, Mollie Lombardi, a research director for Aberdeen Group’s human capital management practice, shares her thoughts on background checks. Mollie has surveyed and interviewed thousands of end-users to gain a better grasp of the key challenges facing human resources and talent management leaders. Mollie has an extensive background in writing and speaking about topics such as strategic talent management and employee engagement. If you’d like to learn more about Mollie you may read our first installment, Meet Mollie Lombardi.

In this age of social sourcing and viral job marketing campaigns, screening potential employees and checking their backgrounds might not seem like the most glamorous elements of the recruiting process. But they are extremely vital because they can greatly reduce risk for your organization.

Pre-employment screening can include many different things. Aberdeen Group research has found that the most common elements of employee screening are: employment and education verification, criminal background checks, reference checks, employment eligibility verification (I-9 in the U.S.), and drug screening. It’s interesting that employment and education verification is the most common screening element cited — 87 percent of organizations Aberdeen surveyed did so — but it’s understandable given our current economic situation. As people are out of work for long periods of time, there might be temptation to embellish work history or educational accomplishments, which could unnecessarily expose the organization.

It also is worth noting that many organizations are screening not just before hiring, but also after prospects become employees. Often, drug tests are performed after on-the-job accidents or other incidents. Continued checks for criminal violations and verification of licenses can be critical as well. Court records often move slowly, so issues that were not identified in the hiring process can show up later, and critical certifications might expire. Risk does not stop once a hire is made, so ongoing screening can help mitigate it.

Executing and managing employment screening can be challenging, which is why 62 percent of organizations that screen use an applicant tracking system, or ATS. However, just over half of these organizations actually integrate screening in to the applicant workflow. Much of the value of an ATS is in automating the hiring workflow, so integrating employment screening into this workflow makes the process easier for recruiters, hiring managers and the candidates themselves. According to Aberdeen Group research, organizations with full or partial integration between employment screening and an ATS see greater reductions in cost and time to hire, as well as greater improvement in hiring manager satisfaction.

Employment screening is essential, but busy hiring managers don’t want to wait for paperwork, and neither do top-tier candidates. The key is finding the solution that turns around accurate, timely results in a way that can be integrated with the overall hiring experience — keeping managers and candidates happy.

In my previous post, I discussed “the other HR data repository” (the need to monitor incoming email messages sent to an HR department). In that post, I mentioned how an HR organization could utilize email as a way to allow staff to request and receive a desired HR report.

That concept caught readers’ attention – and quite a few of you followed-up with me asking for more details on how this could be done. And so, here’s more info on using email to run HR reports – and how by implementing such a system you can help your HR staff – and indeed, all your employees – to “help themselves”.

But first, a little background . . .

In these challenging economic times, every HR organization is tasking themselves with streamlining business processes and identifying procedural bottlenecks. Very often, these bottlenecks are not caused by inefficiencies within an HR department, but rather show themselves whenever HR staff are dependent on another department (or another person) for information that HR needs.

Case in point:  running HR reports.

Who is responsible for running these reports in your organization? Can your HR staff run any report they want themselves, or does your staff have to contact someone down in IT in order to get a report generated?

And how about your employees? Can they run their own reports, such as a report that shows them their benefits, 401k contributions, and so on? Or do they have to contact your HR staff (who then has to contact your IT department) to get the report run?

There’s no question that a lot of HR data is “sensitive”; only certain people should be able to run certain HR reports. But just because “not all HR reports can be run by just anyone” doesn’t mean that your HR staff to has to play “tag; you’re it!” when it comes to running these reports.

Consider implementing a “Reports on Demand” business model within your HR organization.

Reports on Demand puts the ability to run reports in the hands of the people who need them. And the best thing about reports-on-demand is that it doesn’t require teaching your staff a whole new technology to do so. As long as an employee knows how to send an email message, they have all the expertise they need to request and received their desired reports.

So how does it work? Here’s how – using the example of an employee who wishes to receive an “Accrued Vacation” report for themselves:

•  The employee sends an email to a specified account, such as reports@yourcompany.com
• In this email (in the subject and/or body), the sender specifies the name (or “ID”) of the report they wish to run.
• The requester sends the message.
• The message is received by an “email response system” (ERS)
• ERS checks to see who sent in the report request and whether they are authorized to run that report.
• If the requestor of the report is authorized, the ERS runs the report and auto-emails the report output back to the requestor.

 Pretty nifty, eh?

What’s especially nice about an ERS system is that it can parse through the contents of an incoming email message and use those contents to run the requested report with any “parameters” (selection criteria) the requestor specifies.

And if someone requests a report that they should not be asking for, the ERS system can detect that as well – and alert HR or management about someone’s attempt to access sensitive data.

The bottom-line is that more than ever before, an HR organization has to look for “dependent processes” – tasks whose completion are dependent on the availability of other people. Because the more that you can remove these dependencies, the faster the tasks get completed, and the more you empower your HR staff to “help themselves”.

As we close the books on 2011, many businesses are looking at strategies and tactics for the new year. Given recent waves of market uncertainty, this year poses a unique challenge for decision-makers and C-level executives. While there are numerous financial considerations ranging from healthcare compliance to tepid consumer confidence, human resource managers have been forced to align their practices with the evolving global economy.

With these considerations in mind, here are my five top HR trends to look for in 2012.

1. Succession Planning

With an aging U.S. workforce and an anemic job market, HR teams will need to develop strategies to help mitigate employee turnover and assuage executive departures. A Mercer survey released late last year found roughly one-third of U.S. workers are considering leaving their jobs, with younger workers more likely to quit.

The Mercer study pointed out that workers are feeling less attached to their organizations, both emotionally and psychologically. They don’t necessarily believe that the organization they work for has their interests in mind.

On top of low employee morale, the aging baby boomer generation will present even more challenges to HR managers. For these reasons, succession planning for leadership and high-skills professionals will be extremely important in 2012. Have you thought about how you could quickly replace certain positions at your company?

2. Social Media

While its role within the realm of marketing and customer service has been clear, social media has been more of an enigma to many HR professionals. Problematic workplace issues can arise when employees engage in social media without a formal company policy in place. For example, they may divulge trade secrets, violate confidentiality, or lessen their productivity.

The National Labor Review Board also ruled on a few cases this year regarding the role of social media in the workplace. Generally, the NLRB sided with employees and their freedom to post content without fear of work-related repercussions. However, savvy HR managers will tap the considerable benefits of a workplace social media strategy to engage employees.

3. Human Resources Technology

HR management systems and related technologies help boost efficiency and increase productivity in areas such as payroll compliance, employee scheduling, data management, recruiting, and security.

With a variety of budgetary, hiring, and regulatory constraints looming in 2012, HR managers and executives are apt to be overwhelmed. Demand will rise for HR technologies that help to allay these burdens.

 4. Aligning HR and Corporate Goals for Increased ROEI

In an uncertain business climate like today, HR mangers are consistently being asked to explain the costs and benefits of employee-related programs and benefits, their Return On Employee Investment or ROEI. But this is not readily quantified. Relative to other business units, HR departments cannot point to costs and revenues as a measure of effectiveness. This is a problem for HR managers. One evolving solution is “strategic alignment,” using HR metrics as appropriate. 

In broad terms, strategic alignment means using HR processes to align business units and individual employees with the strategic goals identified by senior management. For example, management needs clear, direct, and constant communication with employees to implement strategies. More specifically, it means that HR managers modify traditional HR processes—recruiting and hiring, employee retention and development, and compensation—to implement the strategies developed by senior management.

Human resource departments that align their goals with their organization’s goals will accomplish more and increase their productivity in 2012.

5. Healthcare Reform

The Patient Protection and Affordable Care Act will continue to be implemented in 2012, and it will impose new compliance burdens each year until 2018. While the law is likely to remain mostly intact, the U.S. Supreme Court is expected to make a monumental ruling on its constitutionality this summer.

Either way, HR managers will likely need to collaborate with other departments to address healthcare compliance standards. A recent Towers Watson survey found 38 percent of finance executives believe strategy development will be more of a shared role, compared to 24 percent among HR leaders.

Companies are only beginning to address the complex decisions triggered by healthcare, says Towers Watson. But these decisions will have a direct impact on the broader set of employee rewards.

So there you have it, my five key human resources trends to watch in 2012. I’d love to know what you think. Comment below or let me know on Twitter by replying to @SageHRMS!

Years ago, chances were you would never see a hint of tattoo ink or the glimmer of a body piercing inside a corporate office. But the with the increasing number of young entrepreneurs and more relaxed atmospheres at many white-collar organizations, body art is becoming a more acceptable aspect of workplace attire.

It is not the human resource department’s job to dictate whether an employee can get inked or pierced outside of business hours. However, one of the tenets of personnel management means you are responsible for keeping the peace between workers, and generational differences may mean that some staff members are uncomfortable with their colleagues’ choice of self-expression.

Consider sending out an electronic survey regarding employee attitudes about allowing more obvious body art. Draft dress codes that reflect those results. If some people in the office log complaints about others’ appearances, store their comments in your human resource management system and keep tabs on the numbers – the issue may need to be regularly discussed as people’s opinions change. Also check your local labor laws, as the rules vary regarding employers’ rights to base hiring decisions on body art or ask workers to cover up tattoos.

Have attitudes changed about tattoos on display in the office?

It’s rarely a pleasant experience, but sometimes an internal investigation is necessary when a series of complaints from employees reveal a disturbing trend of ethical or legal violations.

Some recent human resource-related lawsuits have landed employers in the defendant’s chair, but information like employee warning letters that you store in your human resource management system could be the difference between a favorable ruling and heavy legal fines.

If the company has found illegal activity during an investigation, you can use information about labor and payroll laws in the HRMS to draft new policies that will help avoid such activity in the future.

Use the HRMS to keep track of and run metrics on the diversity of your workplace. This can be useful when arguing against accusations of discriminatory hiring practices – toward a certain race, gender or protected group – and can also help you police yourself and avoid practices that, though innocent, could appear otherwise to an outside observer.

You can also scroll through employee files to see if a particular worker has a several complaints against him or her, and take a proactive approach to stop any negative behavior.

How do you keep track of data that could be important in the event of an employee investigation?

Have you ever had a troublesome worker who ignored company rules, or who brushed off repeated verbal warnings from supervisors?

There are plenty of reasons that employee behavior may merit a written warning, and incidents have to be analyzed on a case-by-case basis. However, here are a few of the things that should never make it into a warning letter.

Avoid overly negative phrases, as being barraged with hostile words may put the worker on the defensive, preventing any chance of implementing a positive turnaround in habits.

Don’t give a laundry list of misdeeds without making suggestions for improvement. A letter is meant to prevent termination, so try to keep the language as constructive as possible.

Be sure to place a copy of the letter in an employee file, or if your company uses a human resources management system (HRMS), save it to their profile as it’s important to keep a detailed record of all verbal and written disciplinary action taken against an employee. Doing so can protect the company from litigation later.

Do you think letters are an effective method for reversing employees’ bad behavior?

The wealth of information freely offered on social media websites can seem like an attractive human resource management solution, when companies are looking to screen job applicants. Some employers are even using the sites to conduct ongoing screening of current workers.

While sites such as Facebook and LinkedIn can be invaluable when recruiting potential employees and networking with colleagues, using them to find out private details about a new hire can create legal problems.

Lester Rosen, founder of the background screening firm Employment Screening Resources, says that social media sites can provide insight on an applicant’s thought processes, hobbies and interests. However, the sites can also give information that hiring managers cannot legally use in their decision, such as race, sexual orientation, religion and more, he says.

One way to avoid stumbling across information that could inadvertently influence a hiring decision is to have someone else in the organization look at the applicant’s web page. Then that person can pass on only the details that are legally relevant to the hiring manager.  To make this process more formal you may want to record these unwritten rules and add this action to your company’s social media policy.

Do you have any tips for safely using social media in the screening process?

Make no mistake, there’s a lot of work ahead for HR professionals and benefits managers in order to comply fully with the Affordable Care Act. An HRMS (Human Resources Management System) can ease the burden of implementing the Affordable Care Act because it is designed to centralize HR and benefits information, so you can easily access the data you need for compliance and decision making. Here are some examples of how automation and HRMS is the HR key to success, especially with Healthcare Reform:

Stay current with compliance requirements. An HRMS receives regular software updates that keep the system updated for legislative changes, such as the Affordable Care Act. This means that you would not have to do all of the research to stay in compliance. Your HRMS solution would include things like employee notifications, revised forms, and more. It would also help keep your company in compliance with EEO-1, EEO-4, I-9 Citizenship Verification, Vets-100, Vets-100A, Family and Medical Leave Act (FMLA), and OSHA record-keeping requirements.

Better track and manage benefits plans. An HRMS allows you to define and set up unlimited benefit plans and carefully track the costs associated with each plan. You can also project future costs.

Simplify record-keeping and improve data accuracy. With all of your data in one central location, it’s easier to determine which of your employees participate in each benefit plan. An HRMS greatly reduces the risk of inaccurate data in your database.

Communicate more effectively with employees. An HRMS enables you to produce employee communications more easily. Announcements can be distributed in an online secure portal using employee self-service. Or you can easily use your employee database to create a letter or email and distribute it.

Perform open enrollment more quickly and with less expense. Online benefits enrollment functionality enables employees to choose the benefits packages they want on a secure website. HR can track the status of enrollment and report on results.

Calculate accurate payroll. Integrated payroll software is also updated to reflect current tax rates and rules. It will be ready to produce the new W-2s with health coverage costs included when you are required to print and deliver them (January 2013).

To learn more about how staying compliant with government regulations can help your organization, download our white paper, the Healthcare Reform Survival Guide.  With it you’ll prepare yourself for hidden surprises, attain clarity on compliance issues, and discover the most common changes facing employers.

These days, a lot more companies are using temporary labor and freelancers to pump up their labor force. If the poor economy forced your company to scale back its personnel, you may be facing the challenge of increasing staffing to meet renewed demand.

Temp agencies and independent contractors offer businesses the ability to meet short-term employee needs without the hassle or cost of offering insurance options and other benefits. However, this form of labor comes with its own set of risk and compliance requirements.

Taken from The HR Manager’s Guide to Proper Worker Classification, we recommend requesting to see these 10 things before you decide to hire a new independent contractor.

1. A signed contract and W-9 form. As required by the Internal Revenue Service, the W-9 has to be retained by the employer for four years. (On the company’s part, it will have to fill out the Form 1099-MISC.) Be sure that the contract includes specific terms, including limits on the agreement duration and the rate that will be paid out during that period. Clearly define expectations for when and how work will be delivered – since freelancers typically do not come into the office on a daily basis, it can be harder to manage them remotely. Agree on a payment system; will the contractor be hired on a weekly, biweekly, or monthly basis? Will the company deliver a portion of the payment at the outset of the project, and give the rest in a lump sum once the work is completed?

2. A statement or application listing all fictitious or assumed business names – just as you do when hiring a full-time employee. 

3. Examples of the contractor’s marketing materials, such as advertisements or listings in the Yellow Pages. Looking up a contractor on public review websites, such as Yelp, is also a good way to vet a potential hire. 

4. Website URL, invoice form, a business card or professional letterhead.

5. Literature regarding how the contractor’s business is structured – is it a sole proprietorship, a partnership, a corporation, a LLC? This provides insight about operational organization and can be a good point of reference when communicating with the contractor.

6. References or contact information for other clients. Checking in with other entities that have had a business relationship with the contractor is a good way to make sure you’re making the right hiring decision, and can also flag potential problems that could create a snag in completion of the project or pose logistical issues. 

7. Copies of insurance certificates. Hiring a contractor that has his or her own insurance shows responsibility, and may help protect your company from liability.

8. Having a phone number and address of the business is useful, not just for contact information, but to verify that the company is legitimate.

9. An Unemployment Insurance Number, or if the contractor has employees, ask to see an Employer Identification Number.

10. Copies of business and/or professional licenses. You want to make sure your company is hiring only skilled, and just as importantly, licensed contractors who are legally cleared to perform the work you require.

If you incorrectly classify a worker, you could be subject to penalties by the IRS and by many states.  Some analysts believe that this year, the IRS will perform over 2,000 random employment tax audits and one of the things they are scrutinizing is the classification status of independent contractors.  Be sure to educate and prepare yourself by reading The HR Manager’s Guide to Proper Worker Classification.

Do you have any stories of nightmare independent contractor situations?

With all the lawsuits related to the federal Family and Medical Leave Act, human resources managers need to make sure they do everything by the book when an employee gives notice that they’ll be out for an extended period of time.

The government mandates 12 job-protected weeks during a 12 month period for eligible employees who have recently had a child (through birth or adoption placement), need to care for an immediate family member with a serious health condition, have a serious health condition themselves or have to cover for a family member serving in the military. Eligible employees can also take up to 26 weeks for military caregiver leave during a single 12 month period.

Here are a several things an HR manager can do to stay compliant, protect the company and ensure a smooth transition for employer and employee alike:

1. Recertification: Before an employee goes on intermittent leave, request FMLA recertification. The law allows employers to request medical recertification once every 30 days under certain circumstances.

2. Discuss Vacation Benefits: Either employee or employer can decide whether a worker’s accrued paid vacation or sick days will go towards the 12 weeks of unpaid FMLA leave.

3. Handle IT Logistics: See IT about email access to the employee’s inbox. If the worker maintains outside communications ¾such as handling client accounts¾make sure those emails are forwarded to another employee during the absence.

4. Redistribute Workload: That employee’s work still needs to get done, right? Find the most appropriate way to have others handle that employee’s workload or possibly call a temporary employment service. Temp agencies can find workers to cover a job for a single day or for an extended period.

5. Check In: Employers are allowed to request that a worker on FMLA leave call in to report his or her status. Employees are still required under the law to give adequate notice and comply with a company’s call-in policy.  

6. Stay Compliant: Keep current with the law, and make sure your managers do too. Supervisors need to know the ins and outs of the law, as they will likely be the first line of communication between workers and the executives who oversee leave under FMLA. Employers are required to have an updated FMLA poster prominently displayed somewhere in the office.

7. Protect the Employee’s Privacy: Coworkers will probably notice their cube-mate’s absence, but employers should not disclose any employee medical information.

8. Watch the Weather and Holidays:  Calculate holidays and snow days while your employee is on leave, as an office shut-down day or national holiday may count toward the worker’s FMLA balance¾depending on whether they take a full week off or only part of it. Leave under FMLA is measured in work weeks, with intermittent or shorter leaves counting as fractions of weeks. Thanksgiving week offers a good example: If an employee on FMLA leave takes off the normally scheduled Monday, Tuesday and Wednesday, and the office is closed Thursday and Friday, then he or she is docked a full week of his or her FMLA balance. If the employee works the Monday and Tuesday, but takes Wednesday off under FMLA, then only Wednesday is deducted. However, since Thanksgiving week has three days, the day of FMLA leave is one-third of a week, rather than the one-fifth of a normal work-week.

9. Reassess an Employee’s Role: Other workers who are covering for an employee on leave may discover a huge mess in his or her wake, or the employee might refuse to adhere to company policy while away. Either situation can be grounds for termination. Companies can’t fire an employee for taking time under FMLA, but with legitimate reason can fire a worker upon his or her return. 

10. Prepare for Employee’s Return: When it’s time for an employee to return, they are entitled to their old job or an equivalent position with similar hours, expectations and salary. If he or she can no longer perform the old job due to a medical condition, make sure a termination would not violate the Americans with Disabilities Act.

Although this list is far from being comprehensive, it should be of help when trying to untangle some of FMLA’s provisions.  Also, remember that some states have different regulations beyond FMLA so keep current on all of these laws to remain in compliance and consult legal counsel when necessary.

Has anyone in your company requested FMLA leave? What kind of complications popped up?