Employee Management for Small Business. Lin Grensing-Pophal

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Employee Management for Small Business - Lin  Grensing-Pophal 101 for Small Business Series

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      Whether you actually state the salary for the position is up to you. However, some mention of pay should be made. You might simply state “Competitive salary” or ask applicants to submit salary requirements.

      On one hand, by stating the salary you will decrease the number of responses if your salary is lower than that paid by other competitive businesses, but you won’t have to worry about the possibility of losing applicants if the salary is not up to their expectations — and you won’t waste everyone’s valuable time.

      On the other hand, by stating the salary you may not get the opportunity to convince applicants to start at a lower rate of pay than they had expected because of the other benefits your company has to offer.

      4.1c Benefits

      While salary is still a top priority for job seekers, medical and other benefits are becoming increasingly important. Company benefits can attract good candidates.

      According to a 2007 report by the Employee Benefit Research Institute in the United States (www.ebri.org), employers spent nearly $8 trillion USD on total compensation for workers in 2007 in the United States. Wages and salaries accounted for the largest share at $6.4 trillion USD (about 81 percent) — and benefits made up the remainder at $1.5 trillion USD of about 19 percent). EBRI also notes that total employer spending on health benefits is beginning to approach the amount spent on retirement benefits.

      Employee benefits represent a key advantage for those companies that are able to provide competitive and valued benefits to employees. In fact, benefits may represent a higher value than pay in some cases. Most notably, health care coverage has become a much sought-after benefit and can play a major role in a prospective employee’s decision to choose one job over another. The value of benefits will vary based on each company’s specific employee demographics, but it is important to note that it is the total compensation package that is most relevant, not simply pay rate or salary. This can be an important factor, particularly for small employers, who sometimes struggle to compete with larger organizations for staff.

      4.1d Where and how to apply

      Be specific here, and be careful that you don’t omit the obvious. It is not uncommon to find an employment advertisement that says “Send résumé” but neglects to say where.

      If you are running an open ad, you will want to include your company’s name, address, and phone number (if you are accepting call-ins). If you use a blind ad, you still need to indicate where résumés should be sent. Be specific about what applicants need to do to indicate their interest in the position. Should they send in a résumé, phone in, or apply in person? Do you want to give them more than one option? Is there a deadline after which you will no longer accept applications? Spell out the details clearly to limit the chances for misunderstanding. Refer to Checklist 1 as a guide.

       Checklist 1: Creating a Recruitment Advertisement

      4.2 Equal opportunity requirements (United States) or human rights legislation (Canada)

      If you are placing an ad in the United States, you must be careful that your ad does not contain any language that violates Equal Employment Opportunity Commission (EEOC) requirements. You cannot make statements such as “Recent college graduates please apply” or “No applicants older than 40, please.” You should also include a statement of your status as an equal opportunity employer.

      Similarly, in Canada, statements that unnecessarily restrict certain people (based on age or sex, for example) are prohibited by federal and provincial human rights legislation that regulates discrimination.

      You should also be aware that Internet recruitment presents some challenges. One major question that continues to be debated is “What is an applicant?” If you receive an unsolicited résumé when you have not posted a job, do you need to consider that résumé when an appropriate job — or any job — opens up?

      In certain cases, your company might be required to demonstrate it practiced fair hiring practices by defining the eligible population for your job search. This means you must determine the proportion of people of a certain sex or ethnic background in the general population and compare that to the number of applications you received from members of that sex or ethnic background. If the proportion of applications is similar to that group’s representation in the general population, you can be confident your hiring process didn’t inadvertently create barriers for that group. Defining the eligible population in your city is relatively easy. Defining that population online presents some unique challenges. One way to avoid problems if you are using the Internet for recruitment is to use other sources of candidates as well.

      To avoid any problems with your recruitment practices, contact the EEOC (in the United States) or the federal and provincial human rights commissions (in Canada) to ensure that you are abiding by the law.

      3

      The Law — What You Need to Know

      Tami is 22 and has spent the past two months actively looking for a full-time job where she can put her recently acquired business degree to use. On two occasions, she has been involved in a one-to-one interview with a potential employer who preceded the serious questioning with a request for some background information. For example:

      • “Are you married?”

      • “Do you plan to marry?”

      • “What about children?”

      Denise works for her local municipality as a light equipment operator. Recently, a heavy equipment operator position was posted. As Denise was signing her name, a supervisor from the department with the job opening came up behind her. Chuckling, he patted her on the back. “What’s a little thing like you thinking of a position like this for, honey? We need a big, brawny man to handle this job.”

      These two situations are fictitious, but this type of activity happens every day to thousands of people across the country. Aren’t these actions illegal? You bet. In your position as human resources manager or small-business owner, you had better be certain that your hiring practices don’t include this type of blatant discriminatory practice — or even less blatant, but equally illegal, discrimination.

      Today it may seem that when it comes to hiring and firing, it’s the employees who have an edge. Not so. Business owners still have the right — and the responsibility — to hire the best person for the job. When someone doesn’t work out, they have the right — and the responsibility — to terminate the relationship. But along the way there are certain rules, regulations, and restrictions that every business owner needs to be aware of.

      1. The Best Person for the Job

      Chris wanted to hire a new sales associate to sell power tools. He ran an advertisement for a salesman in the local paper, interviewed only male applicants, and when asked why he was discriminating against women, he seemed surprised. “I’m not discriminating against women — what do they know about power tools?”

      Chris is not alone

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