Keeping Good People in Hard Jobs

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Keeping Good Peoplein Hard Jobs
2
Labor Challenges

• Recruitment
• Orientation and training
• Compensation and Benefits
• Supervising
• Motivating

3
Workshop Format

• Principles
• Practical Tips
• Discussion

4
Human Resource Problems

• I cant find anyone who wants to work
• My key employee has a better offer
• How much should I pay?
• Why cant they do it right?
• Why cant they get along?
• How can I motivate my employees?

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Labor Regulations

• Fair Labor Standards Act
• Tax and Social Security Withholding
• Unemployment and Workers Compensation
• Employment of minors
• Immigration regulations
• Civil rights regulations
• Employee vs. independent contractor
• Americans with Disabilities Act
• Family Leave Act
• Welfare to Work
• OSHA
• EPA

6
Legal Issues

• Discrimination
• Harassment
• Unlawful termination
• Unsafe working conditions

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Solutions May Be Outside The Box

• Labor Alliances
• Student Internships
• Non-traditional segments of the workforce
• Outsourcing
• Flextime

8
Human Resource Management

• Planning
• Recruitment and hiring
• Orientation and training
• Compensation and Incentives
• Motivation
• Policy

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Human Resource Planning

• Analyzing how you use your current resources
• Forecasting future needs
• Matching resources and needs

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Human Resource Planning

• Analyzing how you use your current resources
• Forecasting future needs
• Matching resources and needs

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Labor Planning

• Labor audit
• Job Analysis
• Identifying alternate structures
• Job descriptions
• Forecasting future needs
• Identify recruitment and training needs

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Labor Audit

• Include manager, family members and
  existing employees
• Education
• Skills
• Employment date
• Hours available
• Current salary

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Labor Audit-Continued

• Qualifications for Specific Equipment
• Computer Skills
• Technical skills
• Communication skills

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Use of a Labor Audit

• Evaluating current and future resources
• Training and cross-training
• Alternative job structures

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Practical TipManagers Self Evaluation

• Management style
• Communication skills and style
• Technical skills
• What type of person could work best with you?
• What weakness could someone else offset?

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Chore Chart

• Standard procedures for each chore
• Frequency that the chore should be performed
• What to observe and note
• Desired outcomes

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Example Chore ChartDelivery Route

• Pick-up delivery list
• Cross check load
• Inspect truck
• Plan route
• Operate vehicle in a safe and friendly fashion
• Deal with customers in a pleasant and profession
  manner

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Good and Bad OutcomesDelivers

• Business image
• Timely deliveries
• Increased equipment life
• Unnecessary trips
• Poor customer relations
• Mis-delivered loads

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Chore Charts are Useful for

• Improving standard procedures
• Orientating new employees
• Re-designing jobs
• Writing job descriptions

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Recruitment

• Communicate with potential applicants
• Create a pool of qualified applicants
• Best efforts are long-range and on-going

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Job Descriptions

• Are the duties clearly defined?
• Is the contribution to the overall
• objectives identified?
• Does the description suggest the employee
  will be part of a team?
• Does it convey opportunities, challenges and
  opportunities for growth?
• Does the title convey a positive message?

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Sources of Applicants

• Referrals from current employees
• Classified ads
• Other media
• Educational organizations
• Employment agencies
• Internet

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Practical TipGet Referrals from Employees

• Good source if employee making the employee is
  a good performer
• More likely to have realistic view
• Some companies offer bonuses if new hire stays
  for more than 6 months
• Referring employee may expect job offer
• Can lead to cliques or civil rights issues

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Writing Classified Ads

• Job title which positively describes job
• Necessary qualifications and experience
• Reflect the positive aspects of the job from
  the employees view
• Describe application process and convey urgency
• Promote the companies public image

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Educational Institutions

• Good source of applicants with specific skills
• Many have internship and work-study programs
• A high percentage of interns pursue employment
  at the firm

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Avoiding Liability in the Recruiting Process

• Avoid obtaining information which specifies
  race, sex, color, race, national origin,
  religion or disability
• Avoid practices which disproportionately impact
  these groups
• Link questions to major job activities

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Areas to Avoid

• Minimum height and weight
• Age, or specifying "recent graduate" or "young
  man"
• Martial status, number or children or provisions
  for child care
• English language skills unless related to work
• Friends or relatives working for the firm
• Arrest and conviction records
• Discharge from military service
• Citizenship
• Ability to work weekends and holidays
• Pregnancy unless it can be shown that the
  condition would interfere with major job
  activities

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Selection

• Past performance is the single best indicator
• Interview, skills test and reference check
• Most job failures relate to attitude and
  personality not skills
• Must investigate derogatory factors
• Never take any skill for granted

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Interview Process

• Introduce yourself and the firm
• Describe the position and the ideal candidate
• Describe a typical day on the job
• Provide a copy of the job description
• Ask the candidate to describe their
  background, experience and goals and
  objectives as related to the job

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Interview Process(continued)

• Have a structured set of questions
• Complete a score sheet during or immediately
  after each interview
• Involve two people if possible

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Interview Process (Continued)

• Ask opened ended questions
• How would you use your skills in this job?
• What would you do if an employee you supervise
  was late to work
• What would you if the vet is due in 30
  minutes, the refrigeration is
  malfunctioning and the feed delivery truck
  arrives

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Other EEO Issues

• Employees must be informed of speak
• English only rule and it must be justified in
  relationship to workplace duties
• Can not discriminate on basis of accent unless
  related to job requirements
• Must accept any INS approved document
• Must require eligibility of work documents for
  all employees

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Background Checks

• Check with previous employers, driving record,
  etc.
• Most employers will only give information on
  dates and positions held
• Ask if the employee would be eligible for
  re-hire

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Sample release form
I authorize XYZ company to obtain information
about me from previous employers and credit
sources and I agree to hold harmless XYZ company
and previous employers for any negative
information which may be found
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Work Sample Tests

• Can be an invaluable tool
• Focus on simple tests not complex role playing
• Employer may be responsible for injury during
  test
• Dont over emphasize skills which can be
  easily taught

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Practical TipsExample Work Sample Tests

• Drive a forklift forward and backward over a
  simple course
• Write a note telling the manager that equipment
  isnt working

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Orientation

• Work patterns are established early
• New workers are involved in a disproportionat
  e number of accidents and workers compensation
  claims
• A good orientation program is important even
  for temporary or seasonal workers
• Despite its importance orientation is short or
  non-existent for most ag employers.

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Orientation
Pre-Hire

• Describe a typical day on the job
• Verify work eligibility (I-9 form)
• Provide brief history of the farm
• Find out what the employee prefers to be called

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Orientation
Initial Welcome

• Introduce the employee to the supervisor and
  co-workers
• Go over employment contract, job description
  and policy manual
• Discuss work times, lunch and break policies,
  overtime policies, time card system, paycheck
  distribution, and procedure for pay discrepancy
• Discuss policy for sick leave, vacation, family
  medical leave and pregnancy leave

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Orientation
Initial Orientation-Continued

• Discuss tardiness and absenteeism policy and
  call-in procedures
• Discuss phone policy, personal storage areas
• Have immediate supervisor discuss any policies
  unique to the particular job

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Orientation
Job Duties

• Describe job duties, standard operating
  procedures and desired outcomes
• Discuss communication procedures
• Discuss training procedures
• Discuss performance expectations and
  evaluation system

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Safety-Orientation

• Identify all workplace hazards
• Location of fire extinguishers and emergency
  procedures
• Wear and use of proper clothing and personal
  protective equipment
• Proper use and care of equipment and storage of
  chemicals and solvents
• Location of first aid equipment
• Accident reporting procedures

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Training
Identifying training needs

• New employees
• New equipment, technology or regulations
• Skill and Competency gaps
• Planning for job rotations or delegation

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Training Alternatives

• On the job training
• Formal training sessions at the work-site
• Group training
• Programmed instruction
• Outside training

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On-the-job Training

• Explaining and demonstrating the correct method
  of completing the task
• Helping the employee perform the task under
  supervision
• Allowing the employee to perform the task
  unsupervised
• Coaching the employee based on their
  performance

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On-Site Educational Meetings

• Invite suppliers, inspector, equipment
  representative
• Have employees give demonstrations
• Call on UT Extension Service

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Group Training

• Updates skills and builds relationships
• Excellent for cross-training

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Other Training Alternatives

• Job rotation
• Job enlargement
• Mentoring or apprenticeship

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Practical TipRole Playing Exercises

• Manager-Employee Interactions
• Work Habits
• Role reversals
• Can be humorous or realistic

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Evaluating Performance

• Provide feedback to employees
• Basis for compensation and bonuses
• Identify opportunities for training and
  development
• Provide legal support for compensation and
  termination disputes

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Performance AppraisalCriteria

• Productivity
• Proficiency
• Personal traits

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Performance AppraisalRating Systems

• Relative to other employees
• Against a standard
• Critical incidents
• Narrative

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Performance AppraisalManagement by Objective

• Supervisor and employee jointly agree on progress
  toward goals
• Employee participates in setting goals
• Proven to be one of the more effective systems

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Practical TipFour List Approach

• Areas performed well
• Areas shown improvement
• Areas needing improvement
• Areas where the supervisor can help

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Compensation

• Wage
• Raises
• Incentives
• Benefits

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Goals for Compensation System

• Legal
• Adequate
• Motivate
• Equitable
• Provide security

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Setting Wage Levels

• Going rate at other firms
• Alternative employment opportunities
• Rate required to keep employees
• Rate which the farm can afford

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Factors to Consider in Designing Salary Structure

• Salary versus housing and other benefits
• Salary range for a job
• Percentage of overall compensation given as
  incentives or performance based

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Designing Raises

• Seniority-based
• Merit-based
• Based on promotion
• Cost of living adjustments

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Seniority-Based Raises

• May reduce turnover
• Rewards experience
• May under-value new employees
• Consider frequent but small increases for new
  employees

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Merit-Based Raises

• Rewards performance
• Can disrupt wage structure
• Easy to become glorified seniority system

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Promotion Raises

• Requires formal system of ranks or higher
  positions
• Provides clear path of advancement
• Preserves a logical salary structure

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Cost of Living Adjustments

• Decision to base on index or wage survey
• Percentage increases accrue to workers at the
  high end of the scale
• Flat increases lead to salary compression

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Practical TipRaises

• Small but frequent seniority raises early on
• Use COLAs to stay in a competitive range
• Develop performance based incentive system

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Incentive PayAdvantages

• Increases performance
• Provides recognition
• Communicates impacts of employees actions on the
  bottom line

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Incentive Pay-Disadvantages

• Envy among employees
• May not promote teamwork
• Can be viewed as an alternative to paying a fair
  wage
• System must be carefully designed
• Low paid employees may not want to share in risks
  and profits

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Designing Incentive Systems

• Determine how performance impacts profitability
• Decide how to measure performance
• Choose individual or group approaches
• Anticipate loopholes and unintended consequences

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Incentive Systems that Failed

• Reward for top employee-perceived as favoritism
• Healthy hog incentive-ignored medicine cost
• Piece-rate incentive ignores quality

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Practical TipConsider Informal Incentives

• 50 reward
• Pizza lunch
• Dinner for two or trip

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Other Considerations for Incentive Programs

• Incentives intended to promote safety could
  discourage accident reporting
• Piece-rate pay can discourage rest-breaks and
  safety procedures
• Re-evaluate on a predetermined basis

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Profit Sharing

• Aligns employee and employer goals
• Often viewed as random bonus by employee
• Variety of management decisions influence
  short-run profits
• Return over direct cost may be a better approach

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Motivating EmployeesThe Basics

• Proper training
• Know what is expected of them
• Performance-reward linkage
• Control and involvement in the job

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Motivation and Morale

• Know what is important to each employee
• Build in systematic recognition
• Encourage suggestions and dialog

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Practical TipsMotivation

• Awards
• Short staff conferences
• Suggestion system
• Rotate dull chores
• Add simple amenities (CD player, shower, etc)
• Enrich jobs-Delegate

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Turnover

• Disrupts activities
• Recruitment and training costs
• May be wanted or unwanted
• Multiple causes

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Turnover
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Reducing Turnover

• Exit interviews
• Worker satisfaction surveys
• Grievance procedures
• Relief workers
• Recruitment and compensation

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Discipline

• Most manager avoid discipline then over-react
• Employees can become defensive, withdrawn and
  less decisive
• Effective discipline is consistent, fair,
  constructive and places responsibility on the
  employee

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Need for Discipline

• Effort
• Dishonesty
• Co-worker relationships
• Safety
• Misuse of company property

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Progressive Discipline

• Develop fair rules and consequences
• Communicate policies
• 1st offense-Communicate standard
• 2nd offense-Verbal warning
• 3rd offense-written warning
• 4th offense-suspension or termination

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Discipline Interviews

• Briefly describe what was unacceptable
• Let employee explain first
• Ask employee to suggest correction
• Clearly describe what must be done to improve
• Communicate the consequences of continued
  unacceptable behavior

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Beer Approach

• Behavior
• (response)
• Effects
• Expectations
• Response

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Policy Manuals

• Spells out rules
• Can help document compliance
• Communicates strategy and philosophy
• Helps avoid unexpected legal problems

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Policy Manual Tips

• Use clear and non-technical style
• Include welcome, core values, work ethic and
  future outlook
• Dont include too many details
• Have the manual reviewed by legal council
• Discuss right to change policy and notification

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Important Policies

• Employment at will disclaimer
• Equal opportunity employer statement
• Harassment policy
• Drug and alcohol policy
• Vacation and benefits policy
• Sick leave purpose, accrual and payment for
  unused balance

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Policies(continued)

• Smoking policy
• Jury duty/military leave
• Maternity leave
• Family medical leave
• Severance pay policy
• Overtime pay policy
• Leave of absence policy

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Policies(continued)

• Training policy
• Performance review policy
• Safety policy
• Suggestion policy
• Complaint and grievance policy

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Human Resource Management

• Most important component is communication
• Planning, policies and documentation help both
  compliance and operation
• The hardest part is getting started