Pink Squirrels – do you need ‘em?

Recruiters have a term for what you are probably looking for in a candidate.  You’re looking for someone who is young (around 25 yrs old) with a college degree (preferably a masters), who has 5-10 years experience in the field, is an expert at Excel and SAP (or Oracle), works well in groups or alone, has had experience from at least 5 different companies but is a stable worker, speaks at least 1 other language – all for a $10 hr receptionist/admin position at a local 5-person sales firm.  This candidate is referred to as a Pink Squirrel – they don’t exist in nature.

The question for you is, do you really need everything that is on your “required” list?  The current national economic crisis means that there is an excessive number of exceptionally qualified job candidates out there that will work for relatively low pay (compared to what their experience required two or three years ago) and it is tempting to try and get the most experienced bang for your buck.  But is hiring that out-of-work IT Manager for a $13-hr telephone tech support position the right thing for your company in the long run?

·         Education – Does the job require advanced education and how much.  Few things make less sense to me than “4-year college degree required – ANY degree”.  Is this a job for an engineer or a truck driver?  A CPA might need an accounting degree, but what about a payroll entry clerk?  My experience shows that this requirement is often an attempt to recruit more “well rounded” candidates without actually talking to the potential employees.    Although it might save you some time looking through resumes, that philosophy might be excluding knowledgeable candidates who already have real-world experience with the skills you are looking for.  I would put less emphasis on a college degree and more on recent exposure to industry best-practices and continuing education. 

·         Skills – How often do you see someone requiring candidates have expert level skills in Excel and then using those skills to build address lists?   The skill set that you ask for should be relevant to the actual job requirements and not something that you expect someone to know 5 years from now.  Unless you need a specific level of competence for the job – like an accountant using a Excel or a database engineer using SQL, you might find that many of your “basic” knowledge people actually know more than what they think and can pick up the rest pretty quick.

·         Experience – It used to be that you judged a person’s worth by how long they stayed at a company, with people getting their “50 year pins” at retirement.  Now, if you stay at a company for too long – like more than 2 years, you aren’t seen as a “go getter”.  What works best for your organization?  Don’t fall into the hype of “I have to change out my personnel every year or two or they become stagnant” – and don’t automatically assume that someone you want to hire must be a job-hopping-ladder-chaser to be a valued (but temporary) member of your team.

This list goes on and on, but you get the picture.  The most important thing to take away from this is that you must have a true understanding of what would make a prospective employee successful in their new position and not what you have been told that you want.  Let the actual department manager or the person who will supervise the new employee be involved early on in the process, rather than simply submitting a personnel request to HR and allowing them to run with the printed job requirements.  (Not knocking HR, but every line on a job requirement list should be audited for why it is a requirement).  Someone who embodies the company culture and has a true passion for your industry could be weeded out by a recruiter, your own staff, or even by themselves when there are unnecessary requirements placed on a position. 

One last morsel of food for thought.  If you do actually find that pink squirrel, will they will always be looking over their shoulder for the next best thing, leaving you on the hunt again?

Which Alphabet Soup do you use?

When looking at options for safety training, there is an extensive “alphabet soup” of certifying agencies and certification levels.   NASP, BCSP, CSP, LSP, CSA, OHST, CSHO, 511/501, and on and on.  From what I understand, they are pretty much like comparing Ford, Dodge and Chevy trucks – all doing virtually the same thing and for the same reason, but touting that they are the best.

A safety program must include basic information (like PPE usage and machine guarding) along with industry specific training (like permit required confined space or special HAZMAT training).  Training must be done initially and then have refreshers at specific intervals.  There needs to be written versions of the programs and they need to be reviewed on a frequent basis to make necessary changes to keep up with actual conditions and changes in industry best-practices.  Plus, management must buy into the program in order for the employees to buy into the concept of a culture of safety.

But when it actually gets down to the training, how do you do it?  Do you outsource your training or do you do it in-house?  Do you require an “OSHA” 10 or 30 hour course or is the equivalent NASP course sufficient (or what do you recognized as an equivalent)?  Do you require a CSP (Certified Safety Professional) to oversee and administer your safety program, or is training done by a competent person?  Is the addition of letters after the trainers name a recognizable and tangible value to your company, or is it marketing hype that drives training costs beyond reasonable expectations?  There are almost incalculable options when it comes to providing safety training, but what is most cost effective and what isn’t, what works and what doesn’t?

The above are not simply rhetorical questions.  How you chose to train your employees has an impact on the bottom line of your company - and regardless of opinion, training is necessary for the health of your employees AND the health of your bottom line. 

What's in a number? Increases in I-9 enforcement and penalties

What’s in a number?  If we are talking about the increase in I-9 enforcement & penalties over the last 2 years, we are talking about a lot.

Picture this:  The Department of Homeland Security (DHS) walks into your office and orders you to comply with an unannounced audit of your I-9 documentation. Would they find your I-9s in order and how much of a fine can you afford?

With the national spotlight focused squarely on the immigration debate, the federal government has decided to deal with the controversial subject in a way that seems to make sense to most Americans – increased enforcement of rules that fine or otherwise penalize employers for hiring employees who are not authorized to work in the United States.  And the primary process and documentation for employers to prove authorization is through the I-9 documentation.

The issue at hand is that an estimated 35-55% of I-9s contain incorrect or missing information - resulting in the potential tens of thousand dollars in fines (or more) to employers.  Fines range from $110 to $1,100 per violation, and criminal prosecution may include forfeiture of assets, civil fines of up to $50,000, and prison terms.  Obviously it makes sense to get your ducks-in-a-row before the Department of Homeland Security (DHS) shows up on unannounced at your doorstep and orders you to comply with an audit within 72 hours.

According to the Bureau of National Affairs (BNA), reports of penalties from worksite enforcement inspections increased five-fold in Fiscal Year 2010 (which runs from October 1, 2009 to September 30, 2010).

ICE Activity	FY2008	FY2009	FY2010
Form I-9 Inspections	503	1,444	2,000
Criminal Arrests	135	114	170
Final Orders	18	52	214
Penalties	$675,209	$1,033,291	$5,300,000

So, how do you know if you might be a target for such an audit?  Short of having a crystal ball, the best method of determining targets is to look at your industry.  Are you in an industry that typically is known to hire illegal aliens?  Examples of these types of industries include construction, agriculture, and housekeeping.  If so, you can assure yourself that you are in ICE’s crosshairs.  Don’t think that since you are a small employer they won’t look at you – ICE looks more at the industry than the size.  Also, ICE works on credible tips.  If you hire illegal aliens, you may find that a disgruntled former employee (disgruntled due to low pay, working conditions, or fired/laid-off) might have turned you in.  Sometimes it is accidental – an employee is laid-off.  They go to file for unemployment or other social service.  During the interview process, a trained state or federal employee finds that they were not legally employed, which now opens the investigation process.

Now the big question: what do I do about it?

Actually, that is pretty simple – follow the rules (they really are pretty simple).  Whenever someone is hired, they are required to complete an I-9 form within 3 days of their hire date.  They must produce documents that are consistent with the instructions to provide proof of their legal ability to work in the United States.  If they don’t provide you with the documentation (or it looks phony, like “Social Security Administration” is misspelled), send them home until they can come back with legitimate documentation.  Note that you aren’t required to be an investigator, but it is often easy to spot the fakes.  I once had a client company that had 4 people with the same Social Security number!  There is an alternative called e-verify.  E-verify is very structured, very easy to use, and provides a great benefit – it is a Federal Government program.  That means, that if the feds give you the ok to hire a person, they can’t fine you for later finding out the documents used were false.  For legitimate companies, the biggest issue is not completing an I-9 on all employees (like someone forgets their verification documents and you forget to follow up).

To assure that you will not have any issues, it is highly recommended that you audit your own I-9 process and existing I-9 documents for any discrepancies.  Waiting until someone driving a government car pulls into the parking lot is not the best time to determine if you are compliant.

OSHA top 10 list - 2009

OSHA’s top 10 sited violations for 2009

Everyone feels they run a safe enough operation.  But is it safe enough for the Federal Government?  According to industry reports, the number of OSHA inspections was about the same from 2008 to 09 at roughly 27,000 with the number of reported violations also being roughly the same at around 100,000.  However, there was a substantial increase in the actual penalties levied against companies.  2008 had a total penalty draw of $94 million.  2009 saw a draw of over $104 million in penalties. 

So, what are the top 10 for this year?

10) Training Requirements – Fall Protection.

OSHA has specific and straightforward requirements on fall protection – and the first if this is to have a written plan and train your employees in the plan.  As in so many other instances, it doesn’t matter if your employees know the information, it matters on whether you prove it.  This requires documenting the training as well as any subsequent refreshers.  This category led to 2,335 violations and over $1.5 million in penalties

9) Electrical – General

This category covers a lot of space – literally.  The biggest issues in this category dealt with space.  Not enough space around electrical panels, too little space in electrical work ways, and allowing people to get too close to live exposed circuits.  This category led to more than 2400 violations and over $1.5 million in penalties.

8) Powered Industrial Trucks

Can you envision doing your job without forklifts and other similar types of tools?  OSHA requires more than just instructing your employees to back down an incline when they have a load.  Problems here included not inspecting the trucks, trucks missing data plates, modifications, and employee certification.  This category led to almost 3000 violations and just shy of $3 million in penalties.

7)  Wiring methods - components, and equipment for general use

Open junction boxes, failure to use strain reliefs, and incorrectly repaired wiring brought this category almost 3000 violations and over $1.7 million in fines.

6) Lock-out/Tag-out

Failure to control hazardous energy – whether electrical, hydraulic, or even gravity – is a constant visitor to the top 10.  Many companies don’t even have a written plan, which is the heart of the program.  Employee training and establishing procedures lead to a plan that will keep your employee safe and keep OSHA out of your hair.  This category had more than 3100 violations and almost $4 million in penalties.

5) Ladders

Ladders on the top 10 list?  Although it isn’t as costly in violations as LO/TO, ladder violations had more action than any of the previous issues.  Ladder violations are extremely common and are often overlooked by your site supervisors.  Issues include using ladders for other than intended purposes (like a scaffold), not removing defective ladders from service, using the top step of the ladder as a step (note: it is not step), and failing to have ladders extend 3 feet beyond the top step-off level (or securing the top from movement).  Did you know that you aren’t allowed to paint a ladder?  This category had 3252 violations and over $2.1 million in penalties.

4) Respirator Protection

If you need respirators in your job, OSHA requires more than just digging a respirator out of your tool box and tossing it to the next guy in line.  If you need respirators, then you are working with hazardous chemicals and that becomes serious.  OSHA requires a written Respirator Protection program, employee training, fit testing, pulmonary function testing, and more.  This category had more than 3600 violations and almost $1.3 million in fines.

3) Hazard Communication Program

This is one that continues to surprise everyone.  A Hazard Communication Program is not difficult to create & maintain, yet continues to be one of the most common violations every year.  What are the chemicals that you use? Get MSDS sheets and teach your employees how to read them.  This is incomplete and a gross oversimplification, but failure to maintain Right-To-Know information is both the most common violations and the easiest to maintain part of this program.  This category had more than 6000 violations and over $1.5 million in penalties.

2) Fall Protection

OSHA requires fall protection systems – whether guardrails, netting, or harnesses – anytime an employee is working at heights above 6 feet.  In addition to the common edges of buildings (like roofs), you must also protect from falls when there are floor or wall openings.  This category had more than 7000 violations and a whopping $9.3 million in penalties.

1)  Scaffolding

Scaffolding has been around since the times of the ancient Egyptians; however we are still working in the dark ages when it comes to safety.  Top concerns with scaffolds includes improper access, improper construction materials used, improperly preparing for the ground conditions, not installing fall protection (like guard rails), and much more.  This category had more than 9000 violations and almost $8.5 million in penalties.

Having a safe workplace is not as time consuming or as costly as you may envision.  Written programs and employee training are the hearts of these programs.  And if the penalties that these top 10 violations could impact upon your business don’t convince you, then think of the other costs associated – the lives of your employees.  Across the board in the construction industry – encompassing Independent Contractors, General Contractors, and Residential Builders –  slips, trips & falls are the top causes for injuries averaging more than $13,000 per accident claim.  And your actual cost can be substantially higher than that with increased insurance premiums, job delays, training (or hiring) someone else to do an injured employees job, and the loss of potential jobs due to a tarnished safety record.

Have you considered a Temp Agency to help you with employment issues?

Have you considered using a Staffing Firm to help you with employee recruitment, hiring, and retention?  Most employers are uncertain with the future may hold.  Will your product or service grow over the next year or two, or will the economy cause you to cut back on your ambitious plans.  A Staffing Company can offer several solutions to help you manage these shifts.

Contingency employment – Would you love to be able to ramp up or ramp down employee levels quickly as needed?  This includes warehousing, production, administrative, artistic talent, and all other positions in the company.  As your needs increase, you can rapidly add more employees to the project without long-term commitment to employee cost.  Conversely, if the need for your current level of employees drops off, you can reduce your workforce without taking hits to your unemployment rating (and public appearance).  A contingent workforce – whether 1 employee or 100 employees – can help you maintain consistent bottom line costs by relieving the costs associated with having idle employees.

Temp-to-hire – Hiring someone new is expensive.  Hiring the wrong person is more expensive.  How would you like to have a 90-day working interview before you bring a new person into the fold?  A temp-to-hire program will get you past the “honeymoon phase” and allow you to see what you are really getting.  In the first 30-45 days, you are typically happy to have a position filled and your new employee is happy to have a job.  After 60 days (the end of the honeymoon phase) you will see what you are really getting.  Is this person starting to show up late each day?  Is there extensive cell phone or internet use while at work?  This type of try-it-before-you-buy-it is virtually risk free as the employee is typically on the Staffing Companies Workers’ Comp insurance and Unemployment Insurance.  Further, they will have had required background checks, immigration verification (such as e-verify), and any education or certification confirmations, assuring you that you are getting exactly what you are looking for.  Of course, if during the temp phase of any temp employee’s tenure with you, you decide that this person is the perfect fit for your company, you may hire them as a direct employee.  If they aren’t the right person for the position, you typically have no requirement to keep them on staff for any length of time – meaning that there is no risk past the time that you decide they aren’t right for your position.

Direct Recruitment – Most Staffing Agencies will actively recruit for your positions.  If looking for an employee for your contingent workforce, a temp-to-hire position, or a direct hire position, discuss what you are looking for in detail.  Your staffing company will run the ads, select appropriate candidates from the pool of applicants, interview to make sure that they have the skills (both tangible and intangible) for the position, run the requisite background and education checks, and present only the best candidates of the group.  This extensive service – a HUGE time and money saver to you – is often included in the cost of service.

If you haven’t looked into how a Staffing Service can be an integral asset to your growth or are not sure of all of the services a staffing company can provide, talk to someone in the industry today.  Chances are you haven’t discovered the full range of benefits available for both you and your employees.

Focus1 is a full service HR outsourcing company offering Temporary Staffing, Direct Recruitment, Payroll Processing, HR Management, Benefits Administration, and Workers’ Comp & Safety services.

If it isn’t written down, it didn’t happen –part 3 (Employee Training).

Quick question – why do you have to carry proof of insurance in your car?  Right!  It is to PROVE that you actually have insurance on your vehicle.  The cops aren’t going to take your word for it – they want to see a piece of paper.

Now apply that concept to employment.  Written documentation of employee training is required for a number of reasons:

1)      It helps reinforce to the employee that training is important.  If they know that their results (or even that they attended) will be documented, they may be less inclined to blow-off the meeting or ignore the teachings of the trainer.

2)      If you are approached by an interested party/client who requires training for your employees, this is documentation that will fulfill that purpose.  Documentation may be required by construction foremen who want to be sure your employees have had fall protection training OR clinic leasing agents who want to make sure that their tenants are trained in required evacuation procedure.

3)      Documentation of specific training may be required by an industry watchdog organization like OSHA, USDA, FDA, DADS, or a host of other acronyms.  Failure to produce proof of training for these organizations can result in fines, work-stoppages, or double costs (paying for the training and then paying again when you can’t prove the employees are trained).

4)      If an employee doesn’t follow the rules that they have been taught to follow (e.g. they drive a forklift forward down an incline instead of backwards down an incline) and is injured, documenting that you trained them properly can be aid in the defense that you were not negligent.

5)      How do you know if an employee has had their annual refresher training and is current in your Blood Borne Pathogens program unless you document the training?

So, how tough is this going to be?  Really it is pretty simple and there is often no “specific” process.  If you are using a third party service to provide training, they will typically provide this documentation for you as well as helping you keep up with what training you need and how often.  If you are doing it yourself, I recommend doing the following:

·         Keep a “master copy” of required training to act as both a reminder and a check list to make sure you provided the training.  Put the dates of refreshers on a calendar.  Remember that some training must be given to employees as initial training, and some must be refreshed either annually or periodically and all must be refreshed when there are changes to the original plan or methodology involved.

·         Use a sign-in sheet, but don’t leave it blank.  Use a print-out of the employee roster for the company OR the department affected.  This will give you a quick review of those who were not at the training (whether absent that day or simply unable to attend the training at that time).  This will also help you pinpoint that single employee that “always” seems to miss the training meetings.

·         Place a completion document (along with a copy of the outline of the training or results of any tests given) in the employees personal training folder stating that they successfully completed training X on this date and have them sign it.

Documenting training isn’t that difficult or time consuming.  But being able to provide proof that you did provide training can mean a safer worksite as well as one that runs into fewer bumps along the road of our heavily regulated and litigious society.

If it isn’t written down, it didn’t happen –part 2 (Written Programs)

Are you a safe company?  Do you teach your employees what to do in the event of an emergency or how to act properly in a work environment (like in, sexual harassment)?  According to the government, if you didn’t write it down, it didn’t happen.

Regardless of the number of employees you have, there are some programs that are required be written down with employees having access to them.  People have short memories and if you DO have a legal claim against you, how will you ever be able to prove that you provided this information?  Some of these programs are required by OSHA, the Government (both federal and state), and others may be required by industry standards.

This may not be as scary as it sounds.  Many of these written programs may actually be included as part of your employee handbook – although for various reasons, I suggest that some of the more extensive and detailed programs be external from that document.  Examples of required written programs include:

·         Blood Borne Pathogens – This is not strictly for healthcare but required for anyone who may reasonably come in contact with potentially infectious materials (blood, bodily fluids, etc).  

·         Emergency Action Plan – Where do your people meet if you have to evacuate in the event of a fire?  Where do you go in the building if there is a tornado?  How do you make sure that you get all employees and non-employees (clients, shoppers, etc) out of the building?

·         Hazard Communications – What chemicals are found in your building and do your employees know how to properly handle them?

·         Lockout-Tagout – How do you safely control hazardous energy ranging from electricity to gravity (what if you have to work underneath an elevator?)

·         Personal Protective Equipment (PPE) – This ranges from safety boots for construction workers to face shields for hospital lab personnel.

·         Toxic hazards – Does your company work with formaldehyde, lead, or cotton dust (all considered hazardous by OSHA and the EPA)?  If so, you need to have a written program detailing processes and procedures including required PPE’s.

·         Interestingly, a written “safety program” isn’t required to be in writing except by individual industry mandate.  However, providing a safety program can help you outline that horseplay and other “accidents waiting to happen” will not be tolerated.  Other strongly suggested written programs include new employee orientation plans, job safety analysis programs, and a written return-to-work program.

Now the big question – is the government going around checking to see if I have my written programs and fining me big bucks if I don’t?  In most cases they are not.  Unless you are in an industry that is targeted for spot-checking by OSHA or some other agency, it will never be known that you don’t have your required written programs.  But just like driving without a license (or insurance), you will do ok until you get stopped for a minor traffic infraction (or worse – a major accident that you caused) and then you will be under the magnifying glass.  Spending a few hours and a few dollars up front can be the difference between an incident being classified as an accident and being classified as willful negligence.

Focus1 provides outsourced services in the areas of Human Resources (HR), Benefits Administration, Payroll, Workers’ Compensation (WC) and Safety.   We focus your employee needs so you can focus on your business.