Firing an employee is often one of the worst tasks an employer faces, because they get emotionally involved. Bosses tend to second-guess themselves. They don't want to hurt the employee, or the employee's family. Small businesses may especially feel like employees are an extension of their own family and that they have invested a lot in the person. Employers also worry about the extra work involved in hiring a replacement and the possibility that a new person might be just as bad—or worse—than the last! And, of course, every employer is worried about the possibility of being sued.

Proper disciplinary procedures are also an area that many employers find troubling. Many wait until problems have become too big to ignore, or drop the bomb in an annual review instead of practicing good communication on a regular basis. There are some things to keep in mind that will help employers with a problem employee.

First, take a step back. Despite your best intentions, becoming emotionally involved in the situation will only make it more difficult. You have to think about what's best for your business, and delivering the news in an even, unemotional way will make it much easier for both parties.

Analyze your records—do you have the documentation you need? Focus on making sure you have recorded past incidents, with all the relevant facts. If possible, you should have performance evaluations and evidence of meetings with the employee to discuss their issues with concrete plans for improvement.

Is there a possibility of discrimination? Be sure to ask yourself questions about the appearance of discrimination on the basis of sex, marital status, national origin, religion, handicap, or age (or any of the protected classes).

Finally, when it's time to terminate, decide when and where. Make sure you have a private place in which to speak with the employee. Rehearse what you're going to say and be prepared for a negative reaction. Remember, this is a decision that has been made. You don't need to keep justifying it once you spell out the reasons (and make sure you give them the real reason), and you don't need to argue. Calmly and firmly state your position. If you've had successive meetings about performance issues or the employee has committed a zero-tolerance action, the employee shouldn't be surprised, although they may be upset.

Every business should have a termination checklist that spells out the process for any employee leaving the company. Is there any equipment that needs to be returned before the person leaves? Key codes or passwords that need to be deactivated or reset? Ongoing tasks that need to be reassigned?

Terminations should be few and far between, but you can still handle them like an expert if you are prepared ahead of time.

*More great information like this is available in our Elite HR Business School™! We walk you through everything you need to know from hiring to firing. 

Many businesses will probably want to sit up and take notice. One of the top conversations we have with small business owners, office managers, or managers/supervisors revolves around a problem employee.

Unfortunately, many small businesses don't contact an HR Consultant such as Elite HR Team until after they've gone through a difficult termination. At that point, they need a lawyer to help them with any litigation threats. The average settlement for wrongful termination is $500,000, along with an average of $85,000 in legal fees. Different discrimination claims have resulted in payouts of millions of dollars. The safest way to terminate an employee is to have documentation and discipline procedures in place before a problem arises. It starts with an employee handbook and job descriptions, which outline your expectations for employees and show the consequences if they aren't met.

Employee terminations are often a last resort, and most small business owners don’t like dealing with the process of discipline and termination. Unfortunately, if you’ve repeatedly warned an employee and their performance isn’t improving, termination is necessary. Replacing an employee can be costly, but not as costly as the lost time, poor effect on morale, and inefficiency of a bad worker.

We recommend that you spell out in your employee handbook the “zero-tolerance” policies—what actions could lead to immediate termination—and include a disclaimer that other situations may also qualify. If an employee endangers him- or herself or another employee, customer, or the facilities, the business’s reaction should be immediate and severe. You also need to understand if you are in an at-will state, and what that means. Basically, the terms of employment can be terminated at any time by either party for any or no reason—as long as it’s not for an illegal reason. So while you can terminate an employee at any time, you still may need to prove that they weren’t discriminated against.

If you haven't gathered yet, let us repeat it for you. Documentation is especially important when it comes to firing an employee. If you don’t have proper documentation, it may take longer to sever the relationship as you build up a record of incidents and warnings against that person. If you’ve made the decision to terminate someone, this can be a stressful and tension-filled time.

Elite HR Team wants to help you avoid terminations by building a strong, loyal, and happy workforce, but when termination is necessary, we can walk you through the best procedures to do so. Contact us now and get solutions before you have a problem! 

This is the fourth installment in "Top Ten Outsourced HR Tasks." If you've missed any of the previous installments, you can catch up on our blog.

It can be tempting to write your job requisition and then just wait for the resumes to come flooding in. It may seem redundant to have a job application as well, when all the job applicant's information is hopefully already on their resume, but here are some reasons why you need an application.

• An application allows you to compile all the information you need in one place.
• An application is the perfect place for a permission statement, which gives you the authority to call former employers and check references. You can also include at-will and false information statements, which inform candidates of your requirements.
• You can customize the application to gather the information you need, including education requirements or certifications, to make a preliminary decision what candidates to bring in.
• Although you can't make hiring decision based on protected classes, if your company is required to meet affirmative action benchmarks, the application is a good place to allow candidates to willingly self-identify.

Job applications are one more thing that a company can do to protect itself. If someone threatens legal action for discrimination because you didn't hire them, you can use the paperwork provided in the job application to prove that you hired based on fair practices. Applications are easy to create with our HR Form Templates. 

Filing paperwork is a dreaded task in most businesses. Did you know you are required to keep more than one file per employee? Are you keeping your I-9 forms separate from your personnel files? There are a lot of regulatory requirements around personnel files, and internal audits can help uncover them before you face steep fines. The I-9 form alone contains potential fines of $110 to $16,000 per violation. Filing medical information in the wrong place could lead to a potential lawsuit, with lawyer’s fees averaging $85,000. And wrongful termination lawsuits, which can have payouts in the millions, can be avoided with proper documentation—if you can find it when you need it! That's why Personnel File Audits are number eight on our list of the Top 10 Outsourced HR Tasks. If you missed the first two issues, you can catch up on our blog.

Personnel File Audits are a great way to get your file drawers organized and legally compliant. Having an outside source come in and audit your personnel files ensures that you are starting fresh, keeping only the information you need, and filing it compliantly. Elite HR Team's color-coded label system makes keeping the files organized a snap.

We’ve always saved clients more than their investment to audit their files and correct non-compliance. Much like finding dust bunnies under the bed, our audit “deep cleans” your files and searches for every possible fine. We leave you with files that are separated into personnel, medical, and financial, and labelled with necessary documents that should be contained within. We can’t promise to bring you joy in filing, but we can make it easier!

Elite HR Team wants to give you the tools to organize your office and do things right. A Personnel File Audit can get you back on the right foot. Check out our solutions for your personnel files here.

Many small businesses are looking for ways to run their businesses better while saving money. Hiring an HR consultant to help with your human resources function actually saves money in the long run! Think about it: by bringing an expert on board, small businesses don’t have to scratch their heads trying to figure out the nuances of employment law, and their businesses actually run more efficiently as a result of the processes and policies implemented. Happier workers means less turnover, and if there’s one thing that small business owners know, it’s that turnover costs money! Not to mention, happy employees are more productive and engaged.

This leads us to number nine on the Top 10 list of HR tasks outsourced by small business owners: Workplace & Employee Surveys. Read the previous posts here.

Many companies conduct exit interviews, which is very reactive. Elite HR Team believes in taking a proactive approach to workforce management. What if you could know what would retain key employees before you lost them? Retention surveys show you how.

What is a retention survey? It is a confidential workplace survey where employees give the business feedback on various topics. The survey allows employees to share their honest opinions of the business without fear of retaliation. Retention surveys are an opportunity for the business to gain knowledge about their business that they otherwise would not know. A manager or business owner can ask an employee how they like their job, and of course the employee is going to give positive feedback because they want their next raise or promotion! Basically, an employee will rarely give honest feedback without anonymity.

These surveys are always best conducted by an outside source. Anonymity allows employees to be completely honest and share their true thoughts about how the workplace can be improved. Elite HR Team completely customizes the survey for each client. We even had businesses ask their team for ideas for the Christmas party! We make the process easy for you by guiding you through various questions that should be asked and wording them in a way that fits your culture.

The information gleaned from responses is priceless. We think every business should conduct such surveys annually! By repeating the survey annually, you can measure the differences in responses and see if employees are more or less content than in previous years. Elite HR Team also provides an executive report that compiles all the responses and offers suggestions for improvement. It's a workbook to help you identify a plan of action to address the weak areas in your business.

What if you could get inside your employees’ heads and know what they really think? What if you could find the key to keeping them before they leave? What if you could give them what they really want instead of trying to guess what would keep them happy?

You can.

Even established businesses with efficient processes and strong policies find areas for improvement by going through this process. Beware: conducting retention surveys can lead to improved efficiency, better-managed time, happier employees, and maybe even your next million-dollar idea! 

Get started with our retention survey process now!

Many small businesses have employees, and they need to implement or supplement their human resources function, but they don't have the resources or the demand to hire a full-time HR specialist. While some of these same companies would think nothing of outsourcing their IT or accounting, they haven't quite made the leap to understanding how an HR consultant can help their business run smoother, while saving time and money.

Because of the response we got on our last blog post (read it here), we want to take the time to go through the top ten outsourced HR tasks and show how Elite HR Team™ specifically can help. We had requests to break down each of the top ten, so we'll start with number 10 and count down in the following weeks.

10. HR Compliance Audits & Training. Most businesses aren't non-compliant intentionally. They've simply fallen victim to the "this is the way we've always done it" or the "we don't really have a system for that" mentality. Compliance audits can point out the areas where your business needs improvement, and training from HR experts allows your staff to understand what they need to do and why, while giving them the tools to show them how.

A small investment in HR consulting directly impacts your bottom line by improving process efficiency and protecting you from fines and lawsuits. For example, spending $100 on multicolored file folders and investing some time into setting up your system correctly can save you $16,000 per violation if you aren't doing your paperwork correctly. Training your managers with a one-day seminar can prevent them from many common mistakes when dealing with problem employees, since wrongful termination carries a price tag of $85,000 in defense fees, with the average settlement $500,000. Properly documenting a hiring decision can prevent a million-dollar lawsuit.  Trust us; we've seen it all!

Fellow business owners don't want to air their dirty laundry. Forbes reported that more than a half million new business start each month, but even more employer businesses shut their doors. You could have the right idea at the right time for the right people -- and lose it all because of one lawsuit or government fine. Unless the case is sensational enough to be reported in the paper, it's just one more small business closing its door. 
 
In order to avoid this from happening to you, you should have your practices analyzed by a human resources expert. They can tell you if you're asking illegal interview questions; if your filing cabinet is also holding potential fines; if the way you treat employees is opening you up to a discrimination lawsuit, and more! By doing things right in the first place, you will avoid trying to fix much larger problems in the future. Businesses don't think twice about a financial audit, which they conduct at least annually. Human resources is just as important.

Some of the areas that we analyze for non-compliance are:

• Documentation, filing and recordkeeping
  
• Recruiting practices and processes
  
• Job descriptions and requisitions
  
• Compliance with the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act and the Age Discrimination in Employment Act (ADEA), among others
• New-hire practices and orientation
• Benefit eligibility and enrollment
  
• Employee classification according to the Department of Labor (DOL) and the Internal Revenue Service (IRS)
• Wages and hours according to the Fair Labor Standards Act (FLSA)
• Performance reviews, discipline and termination procedures
• Displaying the appropriate and required employment law posters

If you know what fines might arise, you can take steps to eliminate them, and even if you aren't finished with the process, an auditor might look at your efforts favorably if you can prove you're trying to establish compliant practices. To inquire about a human resource compliance audit or training, email us at [email protected].

Many small businesses have under 40 employees and do not employ a person dedicated to the human resources aspect of the business. The owner wears many hats in the company, usually spread between all departments; sales, accounting, customer service, human resources (HR), technical support, and even janitorial! We work with many small business owners who have lost their passion because they have become owned by their business rather than them owning their business. They try to hand off duties to various staff, and we typically see the HR responsibilities given to an office manager, but because the business owner knows they’re no HR expert, the owner keeps close involvement in the HR function, which is a daunting task when you’re wearing so many hats.

 Small businesses outsource HR in many ways and for many reasons, usually varying based on the industry, and the company’s size and needs. Simply stated, there are two ways to outsource HR; outsource it to a third party completely, or hire an HR consultant to train your office manager (or yourself) on maintaining a legally compliant, efficient, and excellent HR function. By outsourcing their HR function, a small business can ensure they are compliant with the law and run their business with peace of mind. Keeping up with the ever-changing requirements is a full-time job in itself, especially at the rate the government changes things (we know)! Many business owners can't tell you what acronyms like ADA, FMLA, EEO, and others mean, let alone how they affect their business. Outsourcing HR allows the business owner to regain their passion, and reconnect to their purpose by focusing on the parts of the business they love; the reason they got into business in the first place!

 The Society for Human Resource Management (SHRM) conducted a survey of hundreds of companies and found that 26% of them outsource to save money. But while outsourcing can affect your bottom line positively, it also affects the culture of your business. 23% of businesses outsource to focus on strategy -- handing off the nuts and bolts work to the people who are best at it. Additionally, 22% of companies said they outsource to improve compliance -- because a smart business owner knows the things he or she doesn't know can hurt them!

The top 10 outsourced HR tasks are:

1. Recruiting Assistance  
2. Background Checks
3. Workplace Policy Handbooks
4. HR Procedure Implementation
5. Staff Training & Development  
6. Management Training & Development
7. Employee Terminations
8. Personnel File Audits
9. Workplace/Employee Surveys
10. HR Compliance Audits & Training

To determine if HR outsourcing will work for you and what firm will work best for you, you need to first figure out what your needs are. Where are your frustrations when it comes to the employment cycle? What tasks would you love to hand off? Then determine their areas of expertise. Can they help you with your needs? Not all HR consultants may have the skill set you seek and need. Next, you need to compare the price of hiring an HR consultant to the return on investment (ROI). Many times, we help businesses become more efficient and create a more accountable workforce which reduces employee issues and typically lowers the amount of overtime needed, i.e. HUGE savings. Not to mention, that businesses are at risk for large fines and lawsuits if they leave themselves exposed. Many times, we see the investment pay off the first week we work with a client by uncovering and correcting unnecessary risk!

The question becomes, Why aren't you outsourcing your HR function?

We invite you to check out our 12-month outsourcing packages here, but we also have an "al a carte" option as well. As always you can email us with questions at [email protected].