2005 Year
End Wrap Up -The HR Year in Revieww
As 2006 begins, Astronology takes a look
back at key issues human resource professionals
faced in 2005 and the issues’ implications for
2006.
The Legal Environment
2005 was a year that brought many challenges to
the human resource professional in terms of
protecting their organization from lawsuits.
According to
Workforce Management, these were the top 10
employer mistakes made in 2005:
1. Failing to Establish an Effective Sexual
Harassment Policy
Recent Supreme Court decisions hold employers
liable for their supervisors' actions unless
complaining employees fail to take advantage of
company complaint procedures.
2. Failing to Pay Overtime to Nonexempt
Employees
Many employers pay employees a salary regardless
of the number of hours they work and whether
they are subject to the wage and hour laws.
Unless they are exempt as administrative,
executive or professional employees, you must
pay them time-and-a-half their regular hourly
pay for all hours worked in excess of 40 per
week.
3. Failing to Complete I-9 Forms for New
Employees
Many employers merely photocopy
employee-produced documents without filling out
the parts of the forms that describe the
documents. This can be a costly mistake if the
Immigration and Naturalization Service audits
you – one employer was reportedly fined
$100,000.
4. Failing to Take and Document Disciplinary
Actions
Supervisors, not wanting to be perceived as
villains, hate to write up employees. Then, when
the company can no longer tolerate
unsatisfactory performances, the files do not
document the poor records, leaving no grounds on
which to justify discharges.
5. Failing to Quickly Discharge Poor Performers
Employers are advised to progressively
discipline employees and to give one warning too
many rather than one too few. If you have
retained employees for many years despite poor
attendance records, multiple infractions, and
even several “final'' warnings in their files,
you are asking for trouble.
6. Being Sure that Layoffs have no Disparate
Impact on any Protected Group
To avoid lawsuits, verify that the group being
laid off doesn't contain a disproportionately
high percentage of age-protected employees,
employees of a particular ethnic or racial
group, or those of a particular sex, compared to
the rest of the workforce.
7. Failing to get a Signed Release from a
Terminated Employee
As an employer, you may have a legitimate reason
for terminating an employee. However, you fear a
lawsuit if the employee is a member of a
protected class. The right approach to avoid
litigation often is to get signed releases from
departing employees, particularly if any
severance or separation pay is provided to the
employees.
8. Conditioning Employment Offers on Medical
Exams
The Americans with Disabilities Act (ADA) bars
employers from asking applicants about their
disabilities or requiring medical exams before
offering employment. You can ask applicants to
take job-relevant medical exams only after
offering jobs. The burden is on you to establish
the medical exam's relevance to job
requirements.
9. Failing to take Proactive Steps to keep your
Workforce Union Free
Employers must constantly communicate with their
employees to address grievances. If employees do
not believe their employer is interested in
their issues, these employees may look outside
the workplace for representation.
10. Failing to Retain Labor and Employment
Counsel to Avoid Making the First Nine Mistakes
The proliferation of complex statutes prevents
most employers from keeping on top of employment
law without professional help.
Key Strategic HR Issues for 2005
In addition to the legal environment faced by
human resource professionals, there were a
number of strategic HR issues that became 2005’s
areas of focus.
About.com’s human resources forum identified
ten key issues faced by human resource
professionals in 2005:
1) Building Successful Work Teams
People in every workplace talk about “building
the team,” “working as a team,” and “my team,”
but few understand how to create the experience
of teamwork or how to develop an effective team.
2) Minimizing Workplace Negativity
Nothing affects employee morale more insidiously
than persistent workplace negativity. It saps
the energy of your organization and diverts
critical attention from work and performance
3) Developing “Great Managers”
Great managers break every rule perceived as
“conventional wisdom,” when dealing with the
selection, motivation, and development of staff.
4) Continued Issues of Failed Performance
Appraisals
Performance appraisals or reviews, as they have
traditionally been approached in organizations,
are fundamentally flawed. The adoption of a
performance management system instead will
improve both employee performance and employee
motivation.
5) Introduction of Web-Based Human Resources
Understanding web-based technologies can
transform the way you offer Human Resources
services within your organization now and in the
future.
6) Retaining Your Best Employees
According to experts, retention will be a
challenge in 2006, requiring both competitive
salaries and great benefits. Employee
involvement, recognition, advancement,
development, and pay based on performance are
important factors in your quest to retain your
best.
7) Dealing with a Bad Boss or Bad Managers
Dealing with less than effective managers, or
just plain bad managers and bad bosses, is a
challenge too many employees face. Typical
results are high turnover and low morale.
8) Creating Respect at Work
Ask anyone in your workplace what treatment they
most want at work. They will likely top their
list with the desire to be treated with dignity
and respect.
9) Redefining the Human Resources Function
As organizations realize that their human
resources are their only dynamic asset, Human
Resources professionals must evaluate their
goals and potential contribution.
10) Developing the HR Scorecard
Better definition of the role Human Resources
can play as a source of sustainable competitive
advantage and a key driver of value creation is
essential.
Be sure to watch for future issues of
Astronology as we explore these and other
issues impacting the human resource profession
in 2006.