LOGO - header HR Matters

 January 2012
Greetings!

Welcome to Kiesling Associates' monthly HR Matters newsletter.

  

Kiesling Associates is a CPA & Consulting firm in business since 1952. Our niche is in providing HR services to small and mid-sized organizations. We will provide proven solutions to enhance your business while allowing you to spend more time concentrating on operational matters.
 
Sincerely,
 
 
Brian Blahnik
Kiesling Associates LLP 

 

Cut Your Benefit Costs: New Ways to Save

 

The enormous cost of providing health care to employees continues to be a burden for many employers already struggling with tight finances. However, employers know that now, more than ever, offering competitive benefits is important for recruiting and retaining efforts. Balancing value for employees with cost management is difficult, but the strategies below can help employers do just that.

 

New Ways to Save

  • Offer voluntary benefits as a way to help employees without increasing your costs. Since group rates are often less expensive than individual policy coverage, voluntary benefits are often valuable offerings for employees.
  • As either your primary health plan or one of your plan options, offer a high-deductible health plan (HDHP) in conjunction with a medical savings account such as a health savings account (HSA).
  • Conduct dependent eligibility audits. Most employers have policies and procedures outlining eligibility for their employees and dependents, but can lose money by paying for employees' ineligible dependents. Employers can save money by conducting the audits and enforcing existing policies.
  • Provide education that encourages employees to become smart health care consumers and take responsibility for their health care costs. This includes shopping around for non-emergency procedures, buying generic drugs over brand name when available and asking physicians about treatment options and costs.
  • Develop and implement a wellness program. Focus on healthy, sustainable lifestyle changes for both employees and dependents. Emphasize that you are concerned for their health and well-being, and that a healthier workforce will lead to lower health care costs for all. Include financial incentives for participation, such as coupons, gift certificates or health plan premium reductions.
  • Set up a disease management program for employees with chronic illnesses, such as diabetes. These programs typically include health screenings, blood tests and more frequent check-ups. Some insurers offer these services for free.
  • Encourage regular preventive care, including recommended screenings and check-ups. Promote local health fairs and low-cost health screening opportunities, and consider offering on-site screenings or health clinics.
  • Show your employees how much health care costs by providing information about how much you pay for their care. Cost transparency can lead to employees making more economical decisions about their health, along with increased appreciation of their benefits.
  • Do your research before plan renewal and consider alternative carriers or plan design options. Sometimes making a minor change can reap big cost savings for your company with minimal impact on employees.
  • Get support from upper management for wellness and employee education initiatives. Employee health affects productivity and overall financial performance, so it is in your company's best interest to encourage employee health and wellness.  © 2009-2011 Zywave, Inc. All rights reserved.

 

 

Address Performance Problems Effectively

 

There are a few very common mistakes that managers can make when addressing performance problems. These mistakes typically occur because the manager is trying to resolve the performance issues quickly and may easily overlook a few details that may be important in actually resolving the problem.

 

Providing Untimely Feedback

A performance improvement discussion should be held in private as quickly as possible after the incident the manager is concerned about occurs. Don't wait until the employee's annual performance appraisals to let them know they're not measuring up or that there is a problem or complaint. Throughout the year have regular meetings to touch base.

 

Not Addressing the Problem Directly

Don't dance around the issue. Be clear and concise. Discuss how your expectations differ from the employee's performance. Prepare documentation to demonstrate the discrepancy between your expectations and an employee's performance, and stick to facts so employees can't argue with your criticisms.

 

Ask why expectations aren't being met and then listen. After presenting your concerns, let the employee speak. One of the big mistakes managers make is to talk the whole time.

 

Incorrect Problem Identification

While it may be easy to identify an employee with a performance problem, it is not always easy to identify the problem. If a manager does not properly identify the problem, she will have a difficult time correcting it.

 

In order to properly identify a performance problem, managers have to use several different skills. They need to observe the employee on a daily basis so they may notice changes in his actions. A manager must be willing to communicate with the employee and ask why there is a problem. She also needs to know how the job should be done.

 

Failing to Motivate the Employee

When the problem is a performance issue, the employee often needs to be motivated if he is going to improve. A manager can point out a performance problem and tell the employee to improve, but if he is not motivated to improve he will not. Motivation can come in many different ways. Simple words of encouragement may be enough. Sometimes, the motivation may be that the employee will be disciplined if his performance does not improve. Regardless of the type of motivation, employees will typically respond more positively if they have a reason to improve.

 

Lack of Follow-Up

Often managers address a performance problem with an employee but forget to follow-up with the employee. Managers need to check on an employee's progress to insure that the problem was properly addressed. If an employee has improved his performance, it is a good idea to let him know. This shows that the manager not only notices the problems, but also notices when an employee does well.

 

Employees depend on managers to provide honest assessments of their skills and help them meet challenges. The exceptional manager is one who can change people's behavior quickly. Every leader must know how to give and receive criticism to gain trust, respect, and credibility. We can punish people into compliance, but not into commitment. And commitment is what you want. Managers need to remember that it is their responsibility to help employees succeed in their jobs. 

 

 

The Essential Employment Interview

 

Of all decisions an employer makes, hiring employees is one of the most important. A critical part of the hiring process is interviewing candidates. Keep these pointers in mind as you prepare for your next interview:

  • Once the list of job-related interview questions is created, use it consistently for all applicants for the same position.
  • The interviewer should arrange for privacy, comfort, and an area free from distractions and interruptions.
  • Try to first put the applicant at ease with introductory and welcoming remarks.
  • Ask open-ended questions which focus on behavioral descriptions rather than simply "yes or no" questions (i.e. have them describe a work situation in which they handled stress well rather than just asking if they can "handle stress well").
  • Utilize behaviorally based questions - You focus your questions on drawing out specific job related examples of past behavior. This technique is based on the idea that an applicants past behavior is the best predictor of future behavior.
  • Listen; don't do all the talking.
  • Stay away from questions that have more to do with personal lifestyles than job experience - phrase the question so that the answer will describe on-the-job qualities instead of personal qualities - if the question is not related to performance on the job, it should not be asked.
  • The interviewer should stay focused on the job and its requirements, not any preconceived assumptions about what the applicant can or cannot do. Remember: any oral statements that the interviewer makes during the interviewing process can lead to potential liability for the company.
  • Remember that someone who interviews very well may have had lots of practice in many other job interviews as a result of frequent job changes. An uncomfortable interviewee may have experienced long-term employment situations and, as a result, fewer interviews.
  • Sell the job and the company while keeping your pitch realistic. Unrealistic expectations will generally lead to employee dissatisfaction and higher turnover.
  • Make sure you elicit questions or provide information which will help clear up any unanswered questions or doubts that are lingering in the applicant's mind.
  • End the interview on a friendly note and, if possible, apprise the candidate of the next step and the time frame for a decision.

In order to reduce the risk of costly litigation, potential liability, and exposure to punitive damages, it is critically important for employers to train interviewers and hiring managers about lawful practices.

 

The job interview is the time when the relationship between the applicant and the company begins. Remember, a job fit is a two way street. It is your responsibility to determine if the match will meet the company's needs as well as the applicants.

 

 

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind.  The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers.  Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.  Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer.  The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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In This Issue
Cut Benefit Costs
Performance Problems
Employment Interview
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HR CONSULTING
Brian Blahnik, PHR    Sr. HR Consultant
608-664-9110