What do you do if a disgruntled employee throws down his tools in the middle of the workday and loudly announces he is quitting?
Such a disruption has a negative effect on all your employees and management. In addition to the disruption to your business, the costs of replacing this employee can be extremely high and time-consuming, especially with today’s current low unemployment rate.
Your management and good employees want to work with others as a team. By having a few “slackers” on your payroll, it can and probably will start an exodus of your good employees. Good employers, management and employees do not want turnover. A very robust pre-employment system helps keep the “slackers” off the payroll and good internal systems will help employers build a good culture for their employees.
One excellent system is to work with a reputable payroll company and set up your employee files correctly from day one. Most payroll companies today can set up e-files and self-service portals for employees. This eliminates wasted time because employees don’t normally get issued a paycheck until they complete a W-4 and an I-9 form – both required by the federal government.
Today’s technology has improved to the degree that a variety of reports can be generated any time. A significant time-saver, employers can easily run reports on dates of hire and reviews. Employers can ensure all required documents have been completed by all employees. In the past, it was a time-consuming process to ensure all employees completed the appropriate forms. Now your system can generate a report.
Smart employers will find an HRIS system that easily integrates with their payroll system. That way, they can also keep track of any disciplinary actions and insurance or retirement plan elections/selections. This system can also provide acknowledgement that employees received and reviewed important company documents such as the employee handbook, disciplinary forms and any required safety policies or procedures specific to the company’s industry.
Good systems can also provide documentation of training workshops and certifications. One example is forklift certification. Employees need to be recertified every three years by a qualified individual. Your systems should easily provide reports to track this information and flag employees who need to be recertified. In many professions, such as insurance and funeral homes, employees need to have an annual number of educational units (sometimes called CEUs) to maintain their licenses. Good systems can track and flag license-renewal dates and keep track of CEUs earned throughout the calendar year.
OSHA requires that most businesses conduct annual safety refresher training with all employees and be able to provide documentation. Businesses can easily document who attended and who didn’t through their HRIS system. They must complete the training with those employees who may have missed it due to illness, vacation, etc. Smart employers will also have a self-service portal for employees to make address or withholding changes, but only if the system is integrated with their payroll system. Portals should also provide an opportunity for employees to ask questions or express concerns.
Another system necessary to good cultures is making sure 90-day and annual reviews are delivered on or before their due date. Employers who treat their employees with respect earn respect in return. Almost any employee can tell you the date he began working and expects his boss to remember/acknowledge that date in some manner. A spouse expects an anniversary or birthday to be remembered with the same gusto. When reviews are late, employees get worried, which detracts from the company’s culture.
Smaller companies might do reviews twice a year. Employees hired from January to June are reviewed in March and employees hired from July to December are reviewed in October. This system offers a couple of advantages. By reviewing a group of employees at the same time, an employer can easily identify best and worst performers. It also gives employers two months of concentrated effort on reviews and 10 months not to worry about them.
Another review system technique is to have employees review themselves. For example, if reviews are due in March, deliver blank forms to employees in mid-February. Ask employees to review themselves and return the review in a sealed envelope.The supervisor completes the review before reading the employee’s self-evaluation. If all the categories are ranked similarly, the review discussion will be an easy one since both have the same perspective on the review elements. However, if Jill ranks herself a five and the supervisor ranks her at a two, this is an excellent way to correct Jill’s misconceptions.No matter what systems an employer puts in place, it is always possible to create a good culture. Do what you say, say what you do, treat everyone with the respect they deserve, and always remember — good systems build good cultures.
Paula Mathews is president of HR Compliance 101.