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Comp Time Vs. Overtime: Which Should You Offer Employees?

Colleen Giallorenzo — Thu, 16 May 2013 05:00:00 GMT

On May 8, 2013, the U.S. House approved a bill that would allow private-sector employees to take compensatory or comp time instead of overtime pay when they work more than 40 hours a week. Though the bill is said to have little chance of passing in the Senate, it has raised questions about the legalities and merits of offering comp, or compensatory time, in lieu of overtime pay.

For now, employers must comply with the rules as they are laid out by the Fair Labor Standards Act (FLSA). If you’re not sure what those rules comprise, here are some guidelines.

Non-exempt employees must be paid overtime.

Rules for overtime pay depend on whether employees are federally classified as exempt or non-exempt employees.

According to the FLSA, an employer is required to pay non-exempt employees one and a half times their regular rate of pay for hours worked over 40 in a single work week. An employer cannot and should not pay comp time in lieu of overtime pay even if the employee requests it.

So, for example, if Pam – a non-exempt employee who makes $20 an hour – works 42 hours, her gross pay for that week would be $860 ($800 for her regular 40 hours at $20 an hour and $60 for the two extra hours she put in at $30 an hour.)

Don’t forget to check your state laws, too.

While FLSA covers the federal law, your state may have additional regulations. For example, in California, overtime is required when employees work more than 8 hours in a day, not more than 40 hours in a week.

Non-exempt is not the same as “hourly”.

There is a misperception that employees that are paid by the hour are the same as non-exempt employees. Using the same logic, some people think salaried employees are automatically considered non-exempt, but neither of those beliefs is necessarily true.

Exempt and non-exempt employees are determined by how their job functions are classified, not how they’re paid. A salaried employee can be eligible for overtime and protected by FLSA, if his or her job is also classified as non-exempt.

If you offer comp time at all, offer it sparingly.

Though comp time can be popular with employees, it may not be the best reward for you to offer. Not only is it illegal to offer to non-exempt employees in exchange for overtime pay, but it can cause problems even when offered to exempt employees. For example:

If comp time is offered regularly, employees may come to expect it every time they work overtime.
It can lead to wage and hour claims and disputes over whether employees are truly exempt or non-exempt.
Some employees may take advantage of the offering – for example, working overtime unnecessarily so they can get a day off in the future.
If an employee has saved up a lot of comp time and then quits, do you need to pay for those banked hours?

If you do offer comp time, make sure you cover the rules with a strict and stringent company policy. Also make sure comp time is used as an occasional reward, not an hour-for-hour overtime exchange.

What you can do instead of comp time.

Get creative. Your employees are one of the most valuable assets your company has and it is to your benefit to make them happy and productive. If comp time is seen as a reward, there are other ways you can show your appreciation to your staff, such as:

Rearrange workloads, add part-time employees or outsource projects so employees don’t have to work as much overtime.
Offer an additional holiday or more paid time off.
Try to avoid employee travel over weekends or after normal business hours.

There are many ways you can make your employees happy without exposing yourself to liabilities and problems with the Department of Labor. Comp time should probably not be one of them.

Do you worry about HR issues like this one? Insperity can help you stay in compliance while you make the most of your human capital and grow your company.

Colleen Giallorenzo is a human resource specialist for Insperity and a certified Professional in Human Resources. She is responsible for delivering customized HR service solutions that positively impact clients’ businesses and result in retention and growth.

How to Choose a Retirement Plan: 3 Features Employees Love

Robert Cagle — Tue, 14 May 2013 05:00:00 GMT

Since the financial crisis of 2008, workers have become more aware and concerned about saving for retirement. As a result, employer-sponsored retirement plans are no longer an enticing perk, they’re an expectation.

In 2013, 42 percent of retirement plan investors say they’ve increased contribution rates to their workplace savings plan, individual retirement accounts (IRA) or health savings accounts, according to the Fidelity Five Years Later study.

But if you’re looking to hire highly sought-after candidates, you might need to offer more than your run-of-the-mill, no-frills retirement plan. They want a plan they can brag about.

Here are three retirement plan features that will excite employees and candidates.

1. Employer match

While you may be hesitant to contribute to your employees’ retirement plan because of the added cost, it can make your company a lot more appealing to current and prospective employees.

A common matching program is 50 percent of the first 6 percent. Under this formula, the employer contributes 50 cents for every $1 the employee contributes, until the employee’s contributions add up to 6 percent of total income for the plan year, at which time the employer’s contributions stop until the next plan year. For example, if an employee has a salary of $50,000, and he contributed $3,000 (6 percent) of his income, your maximum employer contribution for the plan year would be $1,500. (Certain income restrictions may apply.)

Not only is this a powerful incentive for competitive candidates, an attractive employer match program gives your current employees more reason to stick around for the long haul. Think of it this way: Would you rather spend your money on your current employees’ retirement plan or recruiting and training new employees?

2. Investment advice and tools

Let’s face it, not all of your employees are stock market tycoons, nor do they want to be. When it comes to investing and saving for retirement, many employees don’t even know where to start.

A 2013 survey found that 62 percent of employees 25 and younger want their employers to show them how to spend less so they can save more, according to State Street Global Advisors.

Whether you have an in-house advisor or use a third-party service, employees will appreciate the expertise and guidance. Not only will it help them make more confident decisions about their investments, it also shows them you care about their retirement goals. And when you care about your employees, your employees are more likely to care about your company.

The survey also found that 74 percent of employees said they would like clear examples of how their retirement savings will pay off in the future, turning the abstract idea of saving for retirement into something more concrete.

Tools, such as online calculators and spreadsheet templates, can help your employees forecast their
savings and model potential changes. This way they can see, generally, how their savings will be impacted by adjustments, withdrawals or any other modifications before they make them.

3. Web and mobile access

From paying bills to balancing bank accounts, many of your employees are already managing most of their finances online, or even from their smartphone. So why would their retirement plan be an exception?

From requesting a loan to adjusting automatic deferral amounts and managing their investments, many plans offer an online portal where employees have access to their account, planning tools and educational information from anywhere, anytime.

This is also good news for you. With online access, employees can manage more of their plan on their own, instead of always coming to you for assistance.

Offering an attractive retirement plan doesn't have to bust your budget. With Insperity Retirement Services, you can save on retirement plan costs and still provide employees with a first-class retirement package.

Robert Cagle specializes in the retirement services industry and is currently the senior marketing communications coordinator for Insperity Retirement Services. In this role, he is responsible for the support of client and participant communications. Robert currently holds the title of Qualified 401(k) Administrator as designated by the American Society of Pension Professionals & Actuaries.

How to Pinpoint Your Company’s Key Players

Eric Kilponen — Mon, 06 May 2013 05:00:00 GMT

Building a staff of well-recruited, well-trained employees is only the beginning of your company’s journey. Things change – constantly. And being able to deal with that change and emerge a better organization is the goal of any business.

To do so, you need to know where your top performers are within your organization, what characteristics make them your leaders, and how to strategically position them alongside the rest of your people to get the most out of everybody.

Start with structure

It’s hard to identify strong employees without first being able to visualize your entire workforce. That’s why having an organizational structure is step one.

When a defined hierarchy is in place, usually in the form of an organizational chart, employees know who does what and who reports to whom. This also makes the company better prepared to make staffing decisions that improve operational efficiency and spur growth.

A thoroughly refined organizational structure can also provide guidance when it comes to handing out promotions, crafting development plans and managing other employee changes.

Just the facts

No matter how hard you look at your org chart, you won’t glean much from names, titles and reporting relationships alone. You need pertinent workforce metrics and lots of them.

Key workforce metrics include those dealing with:

Performance – Employees with higher ratings tend to be more committed to the success of the company and more aligned with its overall goals.
Compensation – Sometimes star players aren’t being paid as such. This can cause them to start looking elsewhere for employment. On the other hand, underperformers can be accomplishing too little while making too much.
Budget – If a department is regularly under or over budget, it’s time to consider realigning your organizational structure to more efficiently appropriate these funds.
Turnover/retention – Replacing employees takes a lot of time and a lot of money. If a manager has a poor turnover ratio, it might be time to give somebody else a shot. Conversely, managers who consistently retain employees may deserve consideration for a promotion and/or additional headcount.
Age/tenure – Are any of your more influential employees nearing retirement? Have any key players been with the company for years but have yet to be promoted?

Harnessing change

Now that you’ve pinpointed the cream of your company crop, you can make well-informed decisions regarding where they fit into the organizational structure. And when things inevitably get shaken up, you’ll be better prepared to handle it.

Key employees exist at all levels of your organization. This means succession planning is a companywide endeavor, not something reserved only for executives. Don’t think of it as disaster recovery; succession planning should be a part of your business’s overall development strategy.

Research shows that mergers and acquisitions are on the rise. Companies buying or combining with other companies must consolidate their resources to maintain peak efficiency. This means identifying the elite employees within each organization and defining a new organizational hierarchy that allows the business to hit the ground running.

Change is a constant in life and in business. Departments get shaken up, executives retire and, no matter how hard you try, good employees find greener pastures. But these are fantastic opportunities to steel your organization around your best people and forge ahead. You just need to know who you can count on.

Craft your company’s optimal structure with Insperity^TM OrgPlusTM, the world’s leading organizational charting program.

Eric Kilponen has more than 16 years of marketing and product development expertise in the area of technology solutions. His current position is manager, product marketing at Insperity, and he is responsible for building demand generation for Insperity Performance and Organizational Management software solutions. He holds an MBA in marketing from Marymount University and received his bachelor’s degree from Purdue University.

Pre-employment Screening: 3 Problems With National Criminal Records Databases

Becky Parker — Thu, 25 Apr 2013 05:00:00 GMT

While many employment screening companies claim to search a national criminal records database with hundreds of millions records, it’s not always as impressive as it sounds. More often than not, the information you’re getting from criminal records databases isn’t compiled correctly or updated regularly.

Here’s the truth behind criminal records databases.

First, let’s clear something up: There isn’t a true centralized nationwide criminal records repository available to the public.

Many pre-employment screening companies use a national criminal records database to search for criminal records across multiple states. However, these databases are created and maintained by private businesses. The information and records these businesses use are purchased from courts (where available), corrections departments and probation departments.

It’s not as all-inclusive as it sounds.

Though many companies claim to have “extensive” and “comprehensive” criminal records databases, more often than not, many times these databases contain outdated and even wrong information. So you may not be getting the full scope of a person’s background.

Here are three of the biggest problems with national criminal records databases:

1. Incomplete records.

Just because a company has 120 million records, it doesn’t mean they have all the available information on your candidates. Since each company is responsible for obtaining and maintaining the information in its database, the type of records it collects and where they come from can vary. Moreover, some databases only contain records of felonies. And others don’t include details about the crime or identifying information about people involved, such as birth dates. So you don’t know if the record reported belongs to your candidate or someone else with the same name.

2. Missing states and counties.

Not all states make court records available for purchase. And when they do, the information is often incomplete. Therefore, the background information you’d get from these databases may be piecemeal and may not have reports from all states or jurisdictions.

3. Out-of-date information.

Databases aren’t always updated regularly. Some companies update their records as often as bi-weekly, while others only do it annually. Many may advertise that their information is updated daily. This can be misleading. Often, this means they simply renew one record each day.

All these inconsistencies and gaps in information can make it difficult to be confident about your hiring decision.

So how can you rest assured you’re thoroughly screening candidates?

Consider other options.

While a multi-state criminal records database search can be helpful in some cases, it’s best used to supplement other more extensive background screening services.

A good employment screening service will go directly to the courts, corrections departments and probation departments to collect background information. Many times this means searching criminal history records all the way down to the county level. Additionally, any information returned on a search should be verified at the originating court before it’s reported to you. This way you know you’re getting the most accurate, up-to-date information about your candidates.

Sick of second-guessing your hiring decisions? See how Insperity Employment Screening can help.

Becky Parker is currently the director of services and support at Insperity Employment Screening. She has more than 20 years of experience in the employment screening industry and holds NAPBS FCRA Basic Certification.

What You Can (and Can’t) Do When Employees Discuss Wages

Emily Dusablon — Fri, 19 Apr 2013 05:00:00 GMT

First, let’s settle a myth. Can employees legally discuss their salaries with other co-workers? Yes. Should they? That’s another story.

Recently, the National Labor Relations Board (NLRB) decided that an engineering firm had unlawfully fired one of its employees for discussing salary information with co-workers. The firm was ordered to reinstate the fired employee and pay back wages and benefits. The company was also ordered to reverse its policy that prohibited salary discussions and to inform employees of the change.

The ruling was noteworthy in that it contradicted a common misconception -- that employers can forbid employees from discussing their salaries.

Whether you are an employee or an employer, this is an important finding. Repercussions from these kinds of conversations can ripple throughout the entire company. The more you know about what you can and can’t do, the better you can protect yourself and your company.

Here are some guidelines to consider.

What employers can’t do

You cannot forbid employees – either verbally or in written policy – from discussing salaries or other job conditions among themselves.

Discussing salaries is considered a “protected concerted activity” by the NLRB and it’s protected regardless of whether employees are talking to each other in person or through social media.

What employers can do

Of course, discussing salaries can be problematic. Conversations can evoke feelings of jealousy and inequity among co-workers who most likely are unaware of the reasons for salary differences, including education, experience, training or negotiating skills. Suspicion, distrust and other negative emotions often result from salary discussions and seriously affect company morale.

The best way to head off those problems is to foster a positive working relationship with your employees. Consider instituting strategies like these:

Pay people fairly in the first place – auditing your own records and making sure your salaries are competitive in the marketplace.
Encourage a workplace where employees are comfortable approaching management or HR personnel with questions or observations about salaries or working conditions.
Help employees understand their salary ranges and job potential, and teach them how additional skills, training or certifications could possibly affect their growth within your company.
Provide resources and training for management so they are aware of labor rulings and know how to respond to employees’ questions and requests.
Put together a complaint resolution procedure for your company that allows employees to be heard.
Conduct internal surveys that monitor your company’s general climate, employee engagement and compensation perceptions.

If you’re like most companies, your employees are the backbone of your organization. Mutual trust and the feeling of being valued can go a long way in heading off problems before they escalate. With the guidance of your HR representatives and management, you should be able to handle whatever issue comes along.

Are HR issues like this not your forte? Insperity can help you keep in compliance, make the most of your human capital and find more time for your business and less time on business administration.

Emily Dusablon has more than 12 years of HR experience and is currently an HR advisor at Insperity. She is part of a team that provides assistance with HR client service products, resources and service delivery. Emily holds a Professional in Human Resources (PHR) certification from the HR Certification Institute.

More Visas Could Help You Hire Coveted Candidates

Alaina Rivas — Wed, 17 Apr 2013 05:00:00 GMT

Leaders on Capitol Hill are drafting legislation that would make significant changes to U.S. immigration policy. Part of that reform is a likely increase in the number of coveted H-1B visas, which employers need to sponsor highly skilled foreign workers they recruit in areas such as science, engineering and computer programming.

Rush to the starting line
Every April, employers scramble to secure a limited number of available H-1B visas; the current cap is 85,000, including 20,000 set aside for foreign graduates with advanced degrees from U.S. universities.

This year, winners of the visas were decided by lottery for the first time since 2008. U.S. Citizenship and Immigration Services (USCIS) reported receiving “a sufficient number of H-1B petitions to reach the statutory cap” in just five days.

With about 124,000 applications and only 85,000 visas to give, USCIS conducted two computer-generated lotteries on April 7. The first was for the 20,000 H-1B slots reserved for those with advanced degrees. Anyone who lost that lottery was given a shot at one of the remaining 65,000 visas.

The surge in applications is a sign that the economy is on the upswing. But it’s also a sign that the demand for highly skilled workers is greatly outpacing the supply of H-1B visas. In fact, the demand has exceeded the supply every year since 2003, when the cap was brought down from 195,000 per year to its current level.

Business implications
With more H-1B visas to go around, small and medium-sized businesses would be able to compete with larger companies for talent. They’d also have a better chance at getting a return on the time and effort it takes to go through the application process. Larger organizations often have headcount specialized in and dedicated to doing so.

And if they don’t make the cut this year, bigger businesses are flexible enough that they can wait longer to bring on a foreign worker. Smaller firms might have an immediate staffing need or one that pops up later in the year. Trading an all-at-once release of the visas for a periodical offering could help, but the legislation being drafted by Congress may not include such a provision.

A greater number of H-1B visas would also keep the U.S. competitive in the worldwide job market. Among other countries, Canada recently modified its immigration program to attract more global talent, specifically “innovative immigrant entrepreneurs who will create new jobs and spur economic growth.” A similar start-up visa program has been suggested in the U.S. but, again, may not be part of Washington’s plans.

Why not hire American?
Some say increasing the number of H-1B visas would hamper the hiring of domestic talent. But because the visas are so pricy and difficult to obtain, it’s reasonable to think that if companies could find proper candidates here at home, they would.

And because the visas last for three years and can be renewed for another three, they offer businesses a degree of stability. But turnover can be costly, so why not go for a domestic candidate with a great chance of sticking with the company for at least six years?

Tracking down the right people doesn’t have to be so complicated. Backed by more than 25 years of HR experience, Insperity Recruiting Services knows where and how to find qualified candidates who can help transform your business.

Alaina Rivas has more than nine years of recruiting experience and is currently the director of Sourcing Services at Insperity. Her focus is in recruitment talent identification, recruitment advertising, marketing and branding methods. This enables her to find the best talent using the latest recruitment strategies, talent attraction methods and technologies. She holds a B.S. in management, human resources from the University of New Orleans.

What a Minimum Wage Hike Could Mean for Your Business

Ted Weinberger — Thu, 11 Apr 2013 05:00:00 GMT

In his State of the Union address, President Obama proposed raising the federal minimum wage from $7.25 per hour to $9 per hour by the end of 2015, then increasing the rate annually to account for inflation.

If you’re a business owner, panic might be the first reaction. How would an hourly hike affect your labor costs? Your workforce strategy? Your product pricing? Here’s what you should know about a potential increase in the minimum wage.

Workforce indications
An August 2012 study out of Texas A&M found that increases in the wage floor produce little effect on layoffs and turnover, but “directly reduce job growth.”

On one side of the coin – let’s say the quarter in $7.25 – you’ve increased retention. Not many people would run away from a raise, government-mandated or otherwise. That softens the budgetary burdens associated with recruiting, onboarding, training and assimilating new employees.

On the other side, you have businesses hiring fewer people due to the increase in the marginal cost of an employee. The reduced demand leaves millions still looking for work. Additionally, it stifles the momentum of growing companies.

How to cope with costs
When faced with a jump in labor expenses, you have a handful of ways to react:

Letting go – In addition to layoffs, you might also consider trimming the number of part-time, temporary and/or seasonal workers you employ.
Spending cuts – Taking a stern look at travel and entertainment expenses can save a business thousands of dollars. Things like excessive sales trips, lavish hotel rooms and steak lunches can add up in a hurry.
Boosting productivity – Employees seeing plumper paychecks may naturally produce more or better work. If not, you can certainly justify increased skepticism of workforce performance. Increasing the training of minimum wage employees can also lead to enhanced productivity.
Getting organized – If it’s been awhile since you dusted off the old org chart, consider looking at ways to realign your business to maximize efficiency. This could involve reconfiguring job duties across the company and adding responsibilities to the minimum wage jobs to justify the greater expense.
Passing it on – Price increases on products and services may be deemed necessary to offset higher labor costs. But if you’re worried about consumer spending, you might want to …
Take the hit – Supporters say more consumer cash means more money for businesses. Sacrificing a percentage of your profits until the money makes it to your door is yet another option.

Not necessarily news
The federal minimum wage reached $7.25 in 2009, the result of an incremental increase over a three-year period. Since then, 20 states and the District ofColumbia have pushed that rate even higher. New York became the latest to do so when its 2013-2014 budget passed a couple days prior to the state’s April 1 deadline.

And at least nine more states are considering rate increases, including in New Jersey, where voters will decide the issue in November. The ballot measure includes automatic annual adjustments tied to inflation, known as indexing. Ten states already index, which can make it even harder for businesses to plan their financial future.

The bottom line is that higher-than-federal minimum wage rates are the trend, but keeping an eye on the statehouse might be more helpful than keeping an eye on the White House.

But you don’t have to go at it alone. Click here to see how Insperity can keep tabs on the ever-changing state and federal laws for you, and help you adjust your business practices accordingly.

Ted Weinberger has more than 25 years of experience as a compensation professional focusing on the linkage of pay to business strategy, the development of salary administration programs, the design of annual and sales force incentive plans and competency- and team-based pay approaches. He received a B.A. in psychology from Kent State University, an M.S. in industrial relations from the University of Wisconsin and has completed course work toward a Ph.D. in industrial relations from the University of Minnesota.

Hiring Candidates with Criminal Records Isn’t Always Bad for Business

Becky Parker — Fri, 05 Apr 2013 05:00:00 GMT

In April of 2012, the Equal Employment Opportunity Commission (EEOC) released new guidelines that recommended employers limit their use of arrest and conviction records in hiring, promotions and other employment decisions because it could be deemed discriminatory.

In conjunction with this, as of November 2012, 43 cities and counties have removed questions concerning conviction history from job applications – a movement known as “ban the box” – to prevent businesses from immediately disqualifying candidates who have criminal records, according to the National Employment Law Project (NELP).

Do these changes put your business at greater risk of hiring a dangerous employee? Not necessarily.

Here are three things you should consider before you disregard a candidate with a criminal history.

1. The amount of time that has gone by since the conviction.

According to NELP, one in four adults has an arrest or conviction that will show up on a general criminal background check. And these records can follow candidates for years, long after they’ve fulfilled their sentence.

Convictions or arrests that happened many years ago may not accurately represent who the candidate is today. A lot can change between then and now. If a candidate was arrested 15 years ago, does he pose a threat to your business, your employees or your customers today?

Also, consider whether a candidate is a repeat offender. Does the applicant have a long list of criminal history or was this just a one-time incident many years ago?

With that said, it’s up you to decide what’s best for your business. Before you make a decision, you should also consider the details of their crime.

2. The nature of the crime.

Evaluating the circumstances and severity of a candidate’s criminal history can help you decide whether they pose a threat to your employees or business. Will their conviction affect the job you’re hiring for or put your employees in danger?

For example, if you’re hiring an administrative assistant and the candidate was arrested for driving under the influence (DUI) 10 years ago, this may not affect how well they do their job.

On the other hand, if you’re hiring an accountant and your candidate was recently convicted of embezzling from their previous employer, you may want to reconsider.

3. Give them the opportunity to explain the conviction.

If a candidate has the skills and qualifications you’re looking for, the EEOC recommends you give them a chance to explain the charges during an interview. Often candidates will share details about the crime that can help you determine whether it will impair their ability to be a successful employee.

Once you have the candidates’ side of the story, take some time to go over all the information you've gathered – from the background check and your conversation. Does this employee have the skills and personality to be successful in your business? Will his or her criminal past put your business or employees at risk?

The more information you have about candidates, the more likely you are to make the best hiring decision for your business. A thorough background check will not only verify skills and experience, but provide you with more detail on a candidate’s convictions or arrests as well. This way you can judge each candidate on his or her merits, not on an old or irrelevant conviction.

A reputable employment screening company can help you gather all the facts you need and avoid the liability of conducting the search on your own. With Insperity Employment Screening, you’ll receive more current, complete and accurate information on your candidates in less time.

Becky Parker is currently the director of services and support at Insperity Employment Screening. She has more than 20 years of experience in the employment screening industry and holds NAPBS FCRA Basic Certification.

Health Care Reform: Cutting Your Employees’ Hours Isn’t Always the Answer

Allison Tinkham — Tue, 02 Apr 2013 05:00:00 GMT

The new Patient Protection and Affordable Care Act, also known as health care reform, requires employers with 50 or more full-time employees (including full-time equivalent employees) to provide health coverage to employees who work an average of 30 or more hours per week. If employers who are subject to the rules don’t comply, they can face hefty fines.

To get around this, some employers are hiring more contract or temporary employees, or going so far as to shift their workers from full-time to part-time status.

While this may seem like a simple solution, it can drastically impact your business’s productivity, growth and reputation. So before you make any drastic decisions, consider how these staffing changes will alter your business. Here are three questions to ask yourself before moving forward:

1. Will part-time employees possess the necessary skills to get the job done?

In most cases, part-time and temporary workers don’t have specialized skills. Often, they’re entry-level candidates who have worked a variety of jobs. Others do it to supplement their full-time career, such as teachers who work part-time or seasonal jobs during their holidays and summer breaks.

These workers may not have the specialized knowledge or skills needed to produce the same quality products and services your customers have come to expect from your company. Dissatisfied, your once-loyal customers might look elsewhere for what they need.

With that said, hiring part-time, seasonal and temporary help isn’t always a bad idea. It gives you much more flexibility and allows you to hire staff based on the ebbs and flows of your business. It can be the perfect fit for businesses that experience high turnover or seasonal spurts in production, such as restaurants or retailers.

2. How will you handle the impact on your staff?

Chances are your full-time employees won’t be too happy if you cut their hours and shift them to part-time. They could possibly get upset and quit.

If you’ve decided this change is necessary, explain why. Discuss the business reasons for your decision and allow employees to ask questions. Try to accommodate them as much as possible. For example, consider creating a schedule that allows them to take another part-time position somewhere else to make up the hours they lost at your company.

The repercussions of shifting some employees to part-time can extend even further. Employees who stay after becoming part-time may be bitter. And they may resent you and any new part-time or temporary employees you hire. One way to help ease the tension is to plan some team building events so everyone can get to know one another. Most importantly, make yourself available to your employees should they want to discuss their concerns.

3. Are you prepared to manage your part-time employees’ schedules?

Everyone wants a flex schedule – to come and go when it’s convenient for them. But when you have multiple part-time employees this can be difficult.

You need to carefully consider the position you’re filling. For example, customer service or technical support positions can’t be left vacant. Therefore, you’ll have to carefully schedule your part-timers so that there’s always someone available.

If you can, avoid hiring part-time or temporary employees for time-sensitive or customer-related positions. Instead, hire them for short-term projects or task-oriented positions. This way, if someone’s not there, it won’t hurt your business.

Many times, employees choose to work part-time or temporary positions so they can schedule their work around other obligations, such as family, school or even other jobs. When you schedule these workers, you’ll have to take that into consideration. For instance, employees with children might have a difficult time finding childcare at night. Working an evening shift may be out of the question for them.

Finding quality employees doesn't have to be so difficult. Backed by more than 25 years of HR experience, Insperity Recruiting Services knows where and how to find top professionals who can transform your business.

Allison Tinkham has more than 13 years of recruiting experience and is currently the director, recruiting services at Insperity Recruiting Services. She specializes in talent identification, training and development, and process design and implementation. She holds a B.S. degree in Psychology from Stephen F. Austin State University.

How to Sabotage Your Succession Plan

Eric Kilponen — Wed, 27 Mar 2013 05:00:00 GMT

Succession planning, an organization’s way of maintaining or correcting course when key employees leave, is carried out in many different ways. It can involve a secretive conclave where a successor is announced with puffs of white smoke. Or a nominee might undergo a rigorous confirmation hearing before members of Congress. Rock-paper-scissors, etc.

Whatever the method, succession planning can be easily derailed by ignoring some basic rules. The rest of the details are up to you.

Failure to launch
Executing a viable succession plan is easy, but you have to have one first. Thinking your company is immune to drastic staffing changes means stalling at the starting line, and lagging behind can be disastrous.

Maybe you’re too busy managing the day-to-day business to think that far ahead. That’s understandable, but being proactive now will save you a lot of time, money and frustration when changes do occur.

Additionally, we’re not just talking top-level executives. Because key employees exist throughout the organization, succession planning should be a companywide initiative – no departmental exceptions. That means a good, comprehensive plan can take years to formulate. Start now.

Ignoring your bench
Finding the best person for the job is the ultimate goal, so exploring outside options is never a bad idea. However, starting your search from the outside in is unnecessary if you already have the talent.

Hiring from the inside has several advantages, not least of which is money. Recruiting, onboarding and training a new employee is arduous and expensive – not to mention the time it takes to assimilate them to your company’s culture and workflow.

Another plus is a boost to morale, and maybe even retention, when mid- or lower-level staff sees one of their own bumped up a notch. They’ll start thinking, “Hey, that could be me some day.” Getting all areas and departments in on the search creates added buy-in and breaks down silos of information.

Developmental woes
The right replacements could be years away from having the experience and knowledge to take the reins. No problem. This is a great opportunity to groom them into the leaders you want them to end up being.

In addition, defining high-quality and high-potential individuals creates a benchmark you can use to identify possible successors. A good place to start is by using an objective performance appraisal process.

Without solid data, you’re basing decisions on faulty things like gut feelings, seniority and favoritism. Find the promising individuals within your organization and nurture them accordingly.

One and done
It’s always better to have options, and succession planning is no different. That way you have a fallback plan should your first choice fizzle. Explore the organization thoroughly enough to have at least three strong candidates for the position. Again, this kind of planning takes time, so don’t wait until a crisis to line up viable replacements.

Succession planning is a strategic way of cultivating an organization’s talent pool to meet its future needs in key leadership positions. It serves to strengthen a company, not just patch up the holes when important roles are vacated. Pay attention to the process, stick with it, and you’re company will thrive.

Be better prepared for workforce changes with Insperity^TM OrgPlus^TM, the world’s No. 1 organizational charting program.

Eric Kilponen has more than 16 years of marketing and product development expertise in the area of technology solutions. His current position is manager, product marketing at Insperity, and he is responsible for building demand generation for Insperity Performance and Organizational Management software solutions. He holds an MBA in marketing from Marymount University and received his bachelor’s degree from Purdue University.