We are now to our last point, the background/drug check.
Most small business employers do not see the need to spend money on a background check or drug screening if they have already done the other three steps we have already been over. But this could be a more costly mistake to your business not to. Small claims lawsuits where on the rise the last 10 years and they do not look like they will decrease any time soon. There are commercials on every hour of the day on television and the radio telling people it is all right to sue, almost like a God given right to do so and you have to protect your self, your family and your business.
I will mention the main reasons here but please read this very good article I found by Less Rosen from the carwash.com from the on line addition of their magazine: http://www.carwash-digital.com/carwash/201001/#pg32. This article says it all.
1. There is no single place private companies can go to confirm or verify criminal records of prospective hires. Background checks once only a seldom seen practice are now even routinely done when renting an apartment or to be able do volunteer work at schools.
2. Screening is legal but only if done for every applicant at your business as we discussed earlier about hiring procedures, or at least for everyone doing a certain job. Make sure it is also listed in your handbook with the guidelines spelled out. It should also include the guidelines for any follow up or random testing later as well. Such as a mandatory test for anyone driving a company vehicle, involved in a traffic accident.
3. Screening is well worth the cost. It can save you anything from time lost from a hung over worker, cost of damage claims of customer property, from insurance claims of stolen equipment, to the extreme of lawsuits from customers for criminal actions the employee did while at their location. It can even lower your insurance premiums. This is also why paying for your employees to be bonded, which will include a background check, can be a good thing and a great marketing tool.
4. Screening does not deter prospects or slow down hiring. (Unless you hire by driving to a street corner and pick up day labor) Good workers understand the need for screening and most appreciate knowing they will be working for an upstanding company if hired, as well as most likely working in a safe environment.
5. Screening is not hard to have done. There are many local, regional and national companies that do this work that pay to have access to the records you need and the employees to find the records that you do not have the time or money to find yourself. There is even a professional organization for this work, the National Association of Professional Background Screeners. You can find them here: http://www.napbs.com/ and use their member directory to find one near you.
6. If you feel the need for the extra step of drug screening above a background check, it too must be administered equally to be a legal hiring practice. You can find qualified medical companies to do this just by putting in your city, state and the words drug screening in a search engine. Most companies work with established chains of clinics like Quest and LabCorp to do the work or the healthcare company your business uses may also offer these services at discounted rates for their clients, just call them and ask. Some even have lower healthcare premium rates for companies that require testing for all employees because they know this should lower the number of claims for your business.
I hope that this weeks series of entries have been helpful to you and even if you may not or will not include all these steps into your routine hiring practices, that you have found some parts you feel are worth exploring or using in the near future. Feel free to comment to any entry in our blog, mention steps you have found or currently use your self that could help others and always feel free to e-mail us directly with questions or comments. Have a good weekend.
Friday, January 22, 2010
Thursday, January 21, 2010
What goes in a handbook?
Well practically everything can including the kitchen sink!
Or at least everything and anything you want your employees to know, understand, like the rules to follow, with lists of what will happen if the rules are not followed.
This goes well beyond just the hiring information or application we have discussed so far, as you will see. Some companies included their application inside the first pages of their handbook, which is removable, giving the new applicant the opportunity to see and read the handbook before they even fill out or turn in their application. This allows the applicant to see if they could or would like to be a part of the company and follow the rules that are in place. I myself have gone through applications and interviews, to be offered a job that once I saw their rules, I said no. Or ones that I was allowed to see their handbook with the application and did not even bother filling it out. This saves both you and the applicant valuable time and possibly money. Of course it is to say you should never just hand out your application or handbook to just anyone that comes by looking for a job. I would never suggest at any time that you allow your handbook or even an application out of your office if they have not already been hired. If you have a large business or one that hires crews seasonally you might also want to have a hiring seminar that you have advertised and booked applicants to attend that allows for you to discuss all aspects of the work you are offering even before a single application is filled out, just like I use to do once or twice a month for DirecTV technicians.
A handbook must cover every employee in your business by being specific to each job position and must also include all general information to cover everyone from the boss on down. I have listed here a few good sources you can check out to help you:
http://www.gaebler.com/How-to-Write-an-Employee-Handbook.htm
http://www.howtodothings.com/business/a4614-how-to-write-an-employee-handbook.html
http://www.life123.com/career-money/freelancing/freelance-writing/how-to-write-a-handbook.shtml
and from my personal freind Don Schwerzler founder of the Family Business Institute:
http://www.family-business-experts.com/employee-handbook.html
Here are things I think you should include:
The exact check list or order of the hiring practices including the location of the testing facilities if used.
The rules in regards to the application and that all information becomes part of their permanent record and must be truthful.
A list of the job descriptions of all employee positions, with their specific one highlighted or indicated so they know the exact tasks their job will entail.
Include here the start and end time for work for the different positions, days of the week, reasons where overtime may me needed and how it will be paid.
When job performance reviews will be made, they should be at least once a year for everyone; either at the same time each year, or when each employees hire anniversary comes up.
A list of all the reasons someone may be terminated from their position.
How job performance infractions will be given; verbal then written warning before termination except for theft, drug use, sexual harassment, battery of any kind, (list what ever you feel is necessary) which are grounds for immediate dismissal.
You can state what ever you rules you want to make; for payment of last wages, deductions if any and why, if theft or damage was involved etc.
In other words you can list in your hand book any rule you wish, so long as it is not illegal, and if it applies to all if it is a general rule or for everyone that holds that same position if the rule is task specific. For instance you can not list as a reason for termination not wearing safety gear for the bookkeeper, or failure to deposit funds for the window washer. But you could list removing company property, not authorized, from the premises for anyone.
You can include rules such as if out side food can be brought to work, where and how it is to be labeled and stored. If some things like water in coolers on trucks will be supplied by the company but the cups to drink from will not. When and where breaks from work are allowed and for what. How many days notice must be given for doctors appointments and if they will count against sick time or will be unpaid time off, etc. In fact any situation you can think of should be addressed in your handbook and if not list the steps that should be followed if no rule is listed, such as speak to a supervisor, owner or manager. You can also make changes to the rules at any time so long as everyone is told of the change, gets a copy and signs off that they have been notified of the change.
The most important thing is documenting that the new hire has been made aware of the rules and understands them. This is done by having the new hire put their initials in blue ink on every page of the handbook with a company witness watching and that a final page states that, fill in the name, has read and understands all the rules and that any questions where answered to their satisfaction which is signed by both the new hire and the company witness and that final page is removable and placed in their file with the handbook itself then given to them for their records and future reference.
Handbooks can be as simple or detailed as you wish them to be. I have seen some that were only two pages to ones that where so thick they where bound! Just make yours what you feel is best for you and your business. Tomorrow will be the last installment the background check.
Or at least everything and anything you want your employees to know, understand, like the rules to follow, with lists of what will happen if the rules are not followed.
This goes well beyond just the hiring information or application we have discussed so far, as you will see. Some companies included their application inside the first pages of their handbook, which is removable, giving the new applicant the opportunity to see and read the handbook before they even fill out or turn in their application. This allows the applicant to see if they could or would like to be a part of the company and follow the rules that are in place. I myself have gone through applications and interviews, to be offered a job that once I saw their rules, I said no. Or ones that I was allowed to see their handbook with the application and did not even bother filling it out. This saves both you and the applicant valuable time and possibly money. Of course it is to say you should never just hand out your application or handbook to just anyone that comes by looking for a job. I would never suggest at any time that you allow your handbook or even an application out of your office if they have not already been hired. If you have a large business or one that hires crews seasonally you might also want to have a hiring seminar that you have advertised and booked applicants to attend that allows for you to discuss all aspects of the work you are offering even before a single application is filled out, just like I use to do once or twice a month for DirecTV technicians.
A handbook must cover every employee in your business by being specific to each job position and must also include all general information to cover everyone from the boss on down. I have listed here a few good sources you can check out to help you:
http://www.gaebler.com/How-to-Write-an-Employee-Handbook.htm
http://www.howtodothings.com/business/a4614-how-to-write-an-employee-handbook.html
http://www.life123.com/career-money/freelancing/freelance-writing/how-to-write-a-handbook.shtml
and from my personal freind Don Schwerzler founder of the Family Business Institute:
http://www.family-business-experts.com/employee-handbook.html
Here are things I think you should include:
The exact check list or order of the hiring practices including the location of the testing facilities if used.
The rules in regards to the application and that all information becomes part of their permanent record and must be truthful.
A list of the job descriptions of all employee positions, with their specific one highlighted or indicated so they know the exact tasks their job will entail.
Include here the start and end time for work for the different positions, days of the week, reasons where overtime may me needed and how it will be paid.
When job performance reviews will be made, they should be at least once a year for everyone; either at the same time each year, or when each employees hire anniversary comes up.
A list of all the reasons someone may be terminated from their position.
How job performance infractions will be given; verbal then written warning before termination except for theft, drug use, sexual harassment, battery of any kind, (list what ever you feel is necessary) which are grounds for immediate dismissal.
You can state what ever you rules you want to make; for payment of last wages, deductions if any and why, if theft or damage was involved etc.
In other words you can list in your hand book any rule you wish, so long as it is not illegal, and if it applies to all if it is a general rule or for everyone that holds that same position if the rule is task specific. For instance you can not list as a reason for termination not wearing safety gear for the bookkeeper, or failure to deposit funds for the window washer. But you could list removing company property, not authorized, from the premises for anyone.
You can include rules such as if out side food can be brought to work, where and how it is to be labeled and stored. If some things like water in coolers on trucks will be supplied by the company but the cups to drink from will not. When and where breaks from work are allowed and for what. How many days notice must be given for doctors appointments and if they will count against sick time or will be unpaid time off, etc. In fact any situation you can think of should be addressed in your handbook and if not list the steps that should be followed if no rule is listed, such as speak to a supervisor, owner or manager. You can also make changes to the rules at any time so long as everyone is told of the change, gets a copy and signs off that they have been notified of the change.
The most important thing is documenting that the new hire has been made aware of the rules and understands them. This is done by having the new hire put their initials in blue ink on every page of the handbook with a company witness watching and that a final page states that, fill in the name, has read and understands all the rules and that any questions where answered to their satisfaction which is signed by both the new hire and the company witness and that final page is removable and placed in their file with the handbook itself then given to them for their records and future reference.
Handbooks can be as simple or detailed as you wish them to be. I have seen some that were only two pages to ones that where so thick they where bound! Just make yours what you feel is best for you and your business. Tomorrow will be the last installment the background check.
Wednesday, January 20, 2010
What goes on your application?
Well the first is obvious, the name address and phone number of your company.
Next, instructions to the applicant such as fill out in blue ink (blue is the accepted legal color, not black which can be later said to a copy or forgery, blue shows it is an original)
Not to attach a resume unless it is to become part of the official application, but that all information still must be filled out in total on the application even if listed on their resume. This way it is in the hand writing of the applicant and they cannot say later you attached a false resume to their application, or they did not know a mistake was listed on it.
You probably already know the things you can not ask on an application or in an interview like, marital status, age, whether they have children, or if a women, plan on having children, their religion etc…
But there are things you can ask for as ways around them:
You can't have them list their birth date but they can mark a box stating that they are of legal age (18 or 21 etc.) to operate certain equipment, for insurance reasons. Only once hired can you ask for a list of their dependents for reasons such as for insurance, not before hand on an application. But they might ask you in an interview about your insurance coverage and you should only state an individual policy price which might have them ask you ‘What would a family rate be?’ As long as they ask the question that gives you this information you are safe. But you must be careful not to indicate that any of the unasked information was used in the hiring process for that job. Never make notes on the application itself during an interview, use a separate piece of paper.
You can ask if they’re legal citizens, have a criminal record, ever plead guilty to traffic violation etc. these are part of public record and can be verified. You can ask if there is any day they can not work or would rather not work. For instance have a list of days, Sunday thru Saturday on the application with instructions for them to circle or mark all days they are available to work. Same with times of day they can work. Of course you can also include in the job description the days and times that are required for the job and if they will not work on a certain day (due to their religion) they are the one making themselves unable to be hired, not you.
Here is a list that was just posted on Grime Scene (a great pressure washing forum) please think about joining: guidelines-interview-questions-you-can-legally-ask
Ask them to list not only the standard past employers, business references as well as personal and education, but for industry specific certifications as well. You should also state that copies of the certifications are to be provided to be placed in their file if they are hired. These can be very useful tools for you as a business and in marketing. You can also state that they must be able to be bonded if you would like. This also can be good for you for insurance reasons as well as in marketing your business.
You need to include a statement at the bottom of the application just before the signature line that tells the applicant that all areas must be filled out completely, must be accurate and may be checked on and any lack there of can be used as reason not to except them as a candidate for employment, to hire as an employee or for termination at any time if they become an employee and statements are later found to be false.
Make sure your application is as detailed as you need it to be, do not worry about it only fitting on one page front and back like a store bought one. Some of the best jobs I ever had, had applications 4-5 pages long.
You might want to add a section next to each past job entry asking for a description of the work they did at that job, ask for the name of a supervisor or co-worker that is still there with phone number if different from the main number, and ask why they left. If there are gaps in education or employment ask what they were doing for that time even if it was not work in the current field they are applying for. Answers to these may give you a clue as to other aspects that could affect their job performance with your company or reasons why they would make the best fit. Any negative information you find that may cause you to not consider the candidate should be brought up to the candidate so they can challenge the information. If you don't and you do not hire them, and they later find out what you where told was miss information, they could come back legally against you in some instances.
For some of you that have businesses in a state like GA, with employer right to hire/fire laws, you may not have to give any reason as to why you did not choose someone so long it is not one of the illegal ones, but for many of you the employee holds more cards than the employer does in this process and you have to make sure you stay on the right side of the law. As with any of our blogs the information given here are general guidelines and you should check what the laws are currently in your state. Tomorrow the Handbook.
Next, instructions to the applicant such as fill out in blue ink (blue is the accepted legal color, not black which can be later said to a copy or forgery, blue shows it is an original)
Not to attach a resume unless it is to become part of the official application, but that all information still must be filled out in total on the application even if listed on their resume. This way it is in the hand writing of the applicant and they cannot say later you attached a false resume to their application, or they did not know a mistake was listed on it.
You probably already know the things you can not ask on an application or in an interview like, marital status, age, whether they have children, or if a women, plan on having children, their religion etc…
But there are things you can ask for as ways around them:
You can't have them list their birth date but they can mark a box stating that they are of legal age (18 or 21 etc.) to operate certain equipment, for insurance reasons. Only once hired can you ask for a list of their dependents for reasons such as for insurance, not before hand on an application. But they might ask you in an interview about your insurance coverage and you should only state an individual policy price which might have them ask you ‘What would a family rate be?’ As long as they ask the question that gives you this information you are safe. But you must be careful not to indicate that any of the unasked information was used in the hiring process for that job. Never make notes on the application itself during an interview, use a separate piece of paper.
You can ask if they’re legal citizens, have a criminal record, ever plead guilty to traffic violation etc. these are part of public record and can be verified. You can ask if there is any day they can not work or would rather not work. For instance have a list of days, Sunday thru Saturday on the application with instructions for them to circle or mark all days they are available to work. Same with times of day they can work. Of course you can also include in the job description the days and times that are required for the job and if they will not work on a certain day (due to their religion) they are the one making themselves unable to be hired, not you.
Here is a list that was just posted on Grime Scene (a great pressure washing forum) please think about joining: guidelines-interview-questions-you-can-legally-ask
Ask them to list not only the standard past employers, business references as well as personal and education, but for industry specific certifications as well. You should also state that copies of the certifications are to be provided to be placed in their file if they are hired. These can be very useful tools for you as a business and in marketing. You can also state that they must be able to be bonded if you would like. This also can be good for you for insurance reasons as well as in marketing your business.
You need to include a statement at the bottom of the application just before the signature line that tells the applicant that all areas must be filled out completely, must be accurate and may be checked on and any lack there of can be used as reason not to except them as a candidate for employment, to hire as an employee or for termination at any time if they become an employee and statements are later found to be false.
Make sure your application is as detailed as you need it to be, do not worry about it only fitting on one page front and back like a store bought one. Some of the best jobs I ever had, had applications 4-5 pages long.
You might want to add a section next to each past job entry asking for a description of the work they did at that job, ask for the name of a supervisor or co-worker that is still there with phone number if different from the main number, and ask why they left. If there are gaps in education or employment ask what they were doing for that time even if it was not work in the current field they are applying for. Answers to these may give you a clue as to other aspects that could affect their job performance with your company or reasons why they would make the best fit. Any negative information you find that may cause you to not consider the candidate should be brought up to the candidate so they can challenge the information. If you don't and you do not hire them, and they later find out what you where told was miss information, they could come back legally against you in some instances.
For some of you that have businesses in a state like GA, with employer right to hire/fire laws, you may not have to give any reason as to why you did not choose someone so long it is not one of the illegal ones, but for many of you the employee holds more cards than the employer does in this process and you have to make sure you stay on the right side of the law. As with any of our blogs the information given here are general guidelines and you should check what the laws are currently in your state. Tomorrow the Handbook.
Tuesday, January 19, 2010
What to include in your hiring proceedures?
Most of you never went to college to take classes on hiring, so unless you have earned a degree in Human Resources, everyone needs help in this area. Most of what I know I learned by having to learn it myself while running a business, managing other's businesses and working with very good HR people over the years. Here is the short version of what you need to know.
1. Your hiring procedures need to be written down somewhere, preferably in a handbook, which we will discuss in detail in the next blog.
2. Your procedures MUST be the same for EVERY applicant, so not to come under scrutiny by the Federal Fair Practices Act.
3. That this written procedure includes the end game as well as the beginning and that you have listed reasons and procedures for employee termination (firing) as well as hiring.
This way, no unhired prospect, current or former employee can win in a law suit against you. This is not to say they can not file one, anyone can do that, but you just want to be sure they will not win and walk off with a big payday for it.
The things to state and have in your hiring procedure:
That your company’s application must be filled out in full and any omissions or discrepancies, found at any time, can be grounds for immediate dismissal.
That any attached resume becomes a part of the application and fails under the same above rules.
That even if a job offer is extended, excepted and work performed, passing of a MVR check (if they will be driving your vehicle), a background and/or drug screening must be completed and passed before the job becomes official, and not passing any part will be grounds for dismissal and only hours worked to be paid at minimum wage. (Or amount agreed upon, your call)
If a job is offered then copies of a drivers license, if they will be operating a vehicle, and any other form of ID needed to comply with the filling out of the Federal and State Tax forms will be made at that time, not when they turn in the application. Asking for copies before a job is offered and accepted is against the law in some areas and puts your business at risk for theft of applicant’s identity.
You can place an evaluation/probation period, say from 30-90 days to be sure they can perform the work, before you extend certain privileges, or final salary rate etc.. and state that a non passing performance is a valid reason for termination.
Have a preprinted form that will list all the information for the official job offer including: new hires name, address, job title, job description, hours work maybe performed, rate of pay for work including rate of overtime, length of probation period, changes that will occur at end of probation, sick time you are giving per year, time off or vacation time per year (and list of any other benefits such as use of a company truck). This should be signed by you and the new hire with a copy to both parties.
That the new hire has received and read the company handbook, initialed each page in front of a witness, have signed and dated the book to keep and returned the acceptance page also signed and dated along with the witnesses date and signature.
This may sound like over kill but believe me, the very first time you need something like this and you do not have it, may be the last time for your business.
The rest of the particulars can be spelled out in the handbook that we will review later. Tomorrow what needs to be on your company’s application?
1. Your hiring procedures need to be written down somewhere, preferably in a handbook, which we will discuss in detail in the next blog.
2. Your procedures MUST be the same for EVERY applicant, so not to come under scrutiny by the Federal Fair Practices Act.
3. That this written procedure includes the end game as well as the beginning and that you have listed reasons and procedures for employee termination (firing) as well as hiring.
This way, no unhired prospect, current or former employee can win in a law suit against you. This is not to say they can not file one, anyone can do that, but you just want to be sure they will not win and walk off with a big payday for it.
The things to state and have in your hiring procedure:
That your company’s application must be filled out in full and any omissions or discrepancies, found at any time, can be grounds for immediate dismissal.
That any attached resume becomes a part of the application and fails under the same above rules.
That even if a job offer is extended, excepted and work performed, passing of a MVR check (if they will be driving your vehicle), a background and/or drug screening must be completed and passed before the job becomes official, and not passing any part will be grounds for dismissal and only hours worked to be paid at minimum wage. (Or amount agreed upon, your call)
If a job is offered then copies of a drivers license, if they will be operating a vehicle, and any other form of ID needed to comply with the filling out of the Federal and State Tax forms will be made at that time, not when they turn in the application. Asking for copies before a job is offered and accepted is against the law in some areas and puts your business at risk for theft of applicant’s identity.
You can place an evaluation/probation period, say from 30-90 days to be sure they can perform the work, before you extend certain privileges, or final salary rate etc.. and state that a non passing performance is a valid reason for termination.
Have a preprinted form that will list all the information for the official job offer including: new hires name, address, job title, job description, hours work maybe performed, rate of pay for work including rate of overtime, length of probation period, changes that will occur at end of probation, sick time you are giving per year, time off or vacation time per year (and list of any other benefits such as use of a company truck). This should be signed by you and the new hire with a copy to both parties.
That the new hire has received and read the company handbook, initialed each page in front of a witness, have signed and dated the book to keep and returned the acceptance page also signed and dated along with the witnesses date and signature.
This may sound like over kill but believe me, the very first time you need something like this and you do not have it, may be the last time for your business.
The rest of the particulars can be spelled out in the handbook that we will review later. Tomorrow what needs to be on your company’s application?
Monday, January 18, 2010
What is the cost of your new employee?
The number one expense in a service business is your labor costs. So you need to be sure that the money you spend is for someone that is qualified to do the work you are paying your hard earned money for.
The first way to do this is to have a set hiring procedure in place before you every place that first want ad.
Second you should have a detailed application just for your company not some office supply store form.
Third you should have an employee handbook made, given to every new hire and signed for.
Fourth you should run a background check and if possible a drug screening as well.
Taking these steps will not only give your customers value that you can spot light in your marketing but will give you added value as well in the long run by knowing you have skilling, qualified, honest, drug free employees representing you and your company. The old adage 'You get what you pay for' can be attested to by anyone that has just hired someone off the street or because a friend of a friend said he was a good worker and knew what he was doing, only to have anything from major trouble to just routine annoyance caused by this person. Hopefully you have not been damaged too severely so far but by following these steps you will greatly improve your odds of never having to worry about it.
These steps can save you money by reducing employee absenteeism, possible reduction in insurance premium rates, reduce or eliminate loss due to theft, increase the quality of employees that should work faster and safer allowing you to do more jobs without increasing man power.
I will go over in the next four blog posts this week information on each of these points and where more information can be found, that you can go to, and use on your own.
The first way to do this is to have a set hiring procedure in place before you every place that first want ad.
Second you should have a detailed application just for your company not some office supply store form.
Third you should have an employee handbook made, given to every new hire and signed for.
Fourth you should run a background check and if possible a drug screening as well.
Taking these steps will not only give your customers value that you can spot light in your marketing but will give you added value as well in the long run by knowing you have skilling, qualified, honest, drug free employees representing you and your company. The old adage 'You get what you pay for' can be attested to by anyone that has just hired someone off the street or because a friend of a friend said he was a good worker and knew what he was doing, only to have anything from major trouble to just routine annoyance caused by this person. Hopefully you have not been damaged too severely so far but by following these steps you will greatly improve your odds of never having to worry about it.
These steps can save you money by reducing employee absenteeism, possible reduction in insurance premium rates, reduce or eliminate loss due to theft, increase the quality of employees that should work faster and safer allowing you to do more jobs without increasing man power.
I will go over in the next four blog posts this week information on each of these points and where more information can be found, that you can go to, and use on your own.
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