In this pursuit, human resource professionals often find themselves tasked with ensuring that the right people are in the right positions and equipped with the necessary skills and resources to drive the company’s success.

This is where the concept of HR gap analysis comes into play – a strategic approach that illuminates the disparities between the existing workforce and the organization’s goals.

In this blog, we will delve into the depths of HR gap analysis, and specifically explore how the strategic tool of position management can serve as a guiding light in bridging those gaps effectively and efficiently.

Conducting an HR gap analysis is essential for several reasons. Firstly, it ensures that HR practices are aligned with the organization’s overall goals and strategies. Through organization-specific data, it helps in identifying areas that require attention and improvement, such as talent acquisition, employee development, performance management, or succession planning.

By understanding these gaps, organizations can improve data-driven decision-making, implement targeted interventions and drive initiatives to enhance HR performance and effectiveness.

Secondly, an HR gap analysis helps organizations stay compliant with changing legal and regulatory requirements. It ensures that HR processes and effective HR policies are in line with labor laws, regulations, and industry best practices.

Lastly, an HR gap analysis enables organizations to optimize their HR resources and investments.

It helps in identifying redundant or obsolete practices, processes, or systems and reallocating resources to more valuable initiatives. This analysis also determines where additional resources, training, or technology may be needed to bridge the identified gaps and improve overall HR performance.

An HR gap analysis is a critical exercise that gives you the human resources analytics you need to help your company grow and expand, make strategic decisions along the way, and foster positive business outcomes.

Without proper HR analysis, you can’t get a complete and transparent picture of your workforce and how it fits into larger strategies and initiatives.

As a result, you could over- or under-budget employee costs, inadvertently stunt productivity when you need to increase it and fail to respond effectively to internal or external disruptions. 

If the goal is growth, for example, gap analysis can show you if or when additional headcount may be needed so you can plan ahead.

It also identifies if current employees have useful skills that can be tapped or if they should be promoted into management roles. And you can determine how best to handle employee attrition and replacement, including retirement and turnover, without losing ground.

Gap analysis is also useful when going through an acquisition process. As your organization blends with another’s, you can know with greater certainty what the tactical and financial value of your workforce is, and whether you need to trim your team or reorganize it to justify employee expenses.

It’s also an excellent tool for developing or evolving a recruitment strategy. If change is on the horizon, such as entry into a new market or the creation of a new team, you know where to direct your efforts to find and hire people with the skills and experience needed to navigate the change, or if hiring internally makes more sense. And you can stay aligned with the budget by ensuring each new role or skill is absolutely necessary and not a wasted investment.

Instead of reacting at the moment to a sudden need, change, or crisis, you can proactively and responsibly make personnel decisions based on the analysis you’ve already done.

The post What is an HR Gap Analysis and How Can Position Management Help? appeared first on PrimePay.

Considering the clear financial link to increased DEI — as well as it being the right thing to do — you would think it would be every company’s urgent priority today. And yet the same studies show that progress is being made very slowly: Female representation on executive teams has risen between 2014 and 2019, but only from 15% to 20%, and representation of ethnic minorities has risen only from 7% to 13%.

With statistics like these, and DEI issues ever present in the news cycle and boardroom alike, it’s no surprise many HR executives are making it a priority to increase diversity within the company. But it’s not always easy to know where to begin to create the most momentum.

If your organization is looking to increase underrepresented demographics throughout the organization, here are the top three items to consider:

1. Where you source candidates.

As the adage goes, “If you do what you’ve always done, you’ll get what you’ve always gotten.” This phrase encapsulates companies that have built up very traditional, cookie-cutter talent pipelines — and also deliver traditional, cookie-cutter candidates. If you’re looking to increase the diversity of your candidate pool, you need to start looking at different sources for finding and recruiting talent.

Depending on your company’s current DEI status, this might mean re-assigning recruiting efforts from traditional recruiting sources to new ones. For example, a high-performance technology might reconsider its efforts to recruit at Ivy League college open houses in favor of local or regional talent sources like community colleges and state workforce development initiatives.

The company might also consider niche networking communities like Girls Who Code and Lesbians Who Tech, which offer training, mentorship, and job boards for underrepresented communities in technology.

2. How you write the job description.

How you write your job description matters, especially when it comes to recruiting a more diverse candidate pool. For example, one commonly cited anecdote from Hewlett Packard reveals that women apply only when they have 100% of the qualifications, while men have been shown to apply so long as they have 60% of the qualifications. The weight and value you place on different qualifications — identifying them as “nice to have” or “required,” for example — can have an impact on who decides to apply.

There are many things you can do to make sure your job descriptions aren’t putting off candidates from underrepresented minorities:

• Use a tool like Textio to make sure you’re not unknowingly including gendered language in your job descriptions
• Carefully evaluate which requirements truly are must-haves, nice-to-haves, or optional, so that your listings appeal to as many different kinds of qualified people as possible
• Focus the job description on what the person in the role will be expected to do and accomplish rather than what they will have done in a former position — this allows you to focus on a candidate’s potential for action, not accomplishments they may or may not have had equal access to in the past.
• As you expand your talent pipeline to bring in a more diverse array of candidates, you’ll want to evaluate your entire candidate pipeline to make sure you’re setting those candidates up to succeed. Often a rigorous, structured interview process unintentionally benefits certain people and unintentionally disadvantages others if they don’t share the same experience, culture, gender, or demographic.
  • For example, an organization might take for granted the signs of a “good interviewer,” especially in a time when many candidates are interviewing from home. However, some candidates might not have access to the resources others do, such as a private, quiet office without partners, pets, or children around. These candidates might be no less qualified, but because of their circumstances may not interview as well as other candidates when assessed by these outdated criteria.

An updated, inclusive interview process will proactively let candidates know what they are and are not being assessed on (their potential to do the work, not their race, gender, ethnicity, or living situation) and make it easier for every candidate to be evaluated fairly.

3. How you conduct the interview process.

As you expand your talent pipeline to bring in a more diverse array of candidates, you’ll want to evaluate your entire candidate pipeline to make sure you’re setting those candidates up to succeed. Often a rigorous, structured interview process unintentionally benefits certain people and unintentionally disadvantages others if they don’t share the same experience, culture, gender, or demographic.

For example, an organization might take for granted the signs of a “good interviewer,” especially in a time when many candidates are interviewing from home. However, some candidates might not have access to the resources others do, such as a private, quiet office without partners, pets, or children around. These candidates might be no less qualified, but because of their circumstances may not interview as well as other candidates when assessed by these outdated criteria.

An updated, inclusive interview process will proactively let candidates know what they are and are not being assessed on (their potential to do the work, not their race, gender, ethnicity, or living situation) and make it easier for every candidate to be evaluated fairly.

A New Focus on DEI

Across industries, working to increase DEI within organizations is a noble goal. It is also a financially beneficial goal. As you work to bring a new focus to DEI within your organization, focus on small, simple steps like these, as well as working with a human capital management tool that supports you in executing on these goals. Over time and paired with more aggressive and company-wide DEI efforts, these steps will turn into the new standard of best practices. And you’ll play a powerful role in creating a more diverse, equitable, and inclusive organization.

The post 3 Factors When Measuring DEI for Hiring appeared first on PrimePay.

That’s where the hire to retire process comes in.

Considering the hire to retire process can ensure that new hires and seasoned employees alike are well-cared for and stay with your company for the long haul.

But don’t worry, you don’t need to have a green thumb to make this work. Whether you’re a small business owner, a large enterprise, or an HR professional, we’ve got a few tricks up our sleeves to help you retain your employees and keep them blooming.

So, get ready to take notes and watch your workforce flourish.

What is the Hire to Retire Process?

The hire-to-retire process is a part of human resources management that focuses on the employee journey with a company. It can also be referred to as the employee lifecycle. It is the process of tracking employees from the moment they are hired until the end of their employment with the company.

Many companies will use human resource management software to help manage this process.

Key Components to the Hire to Retire Process

The key components of the hire-to-retire process include hiring, managing, retaining, transitioning, and retiring. We will over each of these in more detail below.

• Hire: This stage involves activities like planning and recruiting, applicant tracking, and onboarding. 
• Manage: This stage involves activities like payroll, HR compliance and training, time and attendance, and more.
• Retain: This stage involves activities like employee benefits administration, improving the employee experience and culture, employee engagement, employee performance, employee time off (PTO) policies, and more. Offering options like flex-time or earned wage access can help retain employees.
• Transition: This stage is where you help your employees plan for retirement by offering retirement benefits such as a 401K, Simple IRA, profit sharing, 403(b), 457, and more. 
• Retire: This is the bittersweet moment of sending an employee off for retirement. This stage includes offboarding, which could involve transferring job responsibilities, deactivating certain access points, turning in equipment, and conducting exit interviews.

By prioritizing each of these stages, and adding to your current business processes, you can create a supportive and engaging work environment that encourages employee retention and growth.

Benefits of a Comprehensive Hire to Retire Process

A comprehensive hire to retire process allows your employees to follow a clear path for growth and development, which can lead to the following benefits:

Employee Retention

Employees are more likely to stay with a company if they feel valued. This is supported by a survey that states 94% of employees share they would stay at a company longer if it invested in learning and development.

Increased Performance and Productivity

A key purpose of the hire to retire process is to provide employees with the necessary support and resources to succeed at every stage of their employment. Equipping employees with the tools and resources they need to enhance their skills can increase motivation, productivity, and job satisfaction. 

A formal onboarding program can play a critical role in this process, as it has been found to increase employee retention by 50% and boost productivity by 62%. 

Lower Training and Talent Acquisition Costs

When you combine all the benefits of the hire-to-retire process, one of the major advantages is a reduction in training and recruiting expenses. Satisfied employees spread the word about their positive experiences, which could lead to less of a burden on your recruiting and HR team, and more employee referrals, ultimately, bringing on more talent. 

And as mentioned above, when employees feel valued, they are more likely to stay with the company. So you don’t have to worry as much about the cost of replacing an employee, which can vary from 50% to twice their yearly salary, and this is just a conservative approximation by Gallup.

How to Create a Hire to Retire Process

Creating a successful hire to retire process involves several steps, including: 

1. Assessing Current State Of HR Processes: Evaluate key metrics, employee data, and the current state of your HR processes to help identify gaps, inefficiencies, and areas of improvement.
2. Defining Roles and Responsibilities: Clearly define roles and responsibilities for each position and where they fit within the organizational structure to ensure everyone is aligned and understands their role in achieving the company’s goals.
3. Recruiting: Develop a robust recruiting process to attract top talent and ensure that you are selecting the best candidates for each position.
4. Onboarding: Make sure your or your HR department’s onboarding process makes new employees feel welcome, gets them up to speed quickly, and sets the tone for a positive employment experience.
5. Performance Management: Establish a process to ensure that employees are meeting their goals, receiving feedback, and ensure that they clearly understand their path to continue growing and developing their skills.
6. Career Development / Employee Training: Offer end-to-end career development and training opportunities to increase employee engagement, satisfaction, and retention.
7. Succession Planning: Put a plan in place for key positions in the organization and reduce the risk of disruptions due to unexpected departures.
8. Exit Interview: Conduct exit interviews and provide valuable feedback and insights into areas where the company can improve, and identify trends in employee turnover.

Best Practices Before the Hire

Finding great talent starts with a great job description. Here are some best practices for crafting the perfect one that’ll grab attention:

• Job Analysis: Performing a job analysis will give you some guidance as to what the exact role is that you need to be fulfilled and thus lay the groundwork for the job description.
• Develop a Catchy Title: Some candidates will quickly scan and move on if they don’t think your job title is what they’re looking for. Be descriptive, thorough, and realistic. Give the job seeker a considerable amount of information in the title to motivate them to read more.
• Include the Necessities: A good job description should include an overview of the responsibilities, requirements of the position (including skills, education, or special certifications), and whether the position is full-time, part-time, or seasonal. Begin the post with details about the job and mention your company towards the end. It’s not all about you. It’s about how the person can help your company reach its fullest potential.
• Capture Your Culture: In the meat of the description, describe how the particular role plays in your company mission and culture. You not only want to hire a person who has the right technical skills, but you want to also ensure he or she will be a great cultural fit.

• Don’t Overload the Requirements: Printing an exhaustive list of requirements and skills may deter a great candidate from applying. List your most important requirements and be open-minded if you decide to take the discussion further.
• Grammar Check: Would you feel comfortable applying to a job where the company spelled its own name wrong? Don’t rush things and publish just to get it done. Have a second or third set of eyes read over your posting.
• Keep Mobile in Mind: Many job seekers are using their phones to look for new positions on apps and job platforms like LinkedIn, Indeed, Glassdoor, you name it. To keep this audience in mind, stay away from lengthy paragraphs in your posting and instead opt for bullet points and sub-headers.
• Explain How to Apply: A great job description means nothing if you don’t have a quick, yet detailed explanation on how the candidate should actually apply. Do you want them to call, email, or visit your career page?
• Final tip: Be sure to factor in HR compliance to avoid any violations.

Best Practices During Employment

Great news! Your catchy job title did the trick. But it doesn’t end here. Follow these best practices during employment to optimize the employee experience:

1. Engage Employees: By actively involving employees in decision-making and providing them with opportunities to provide real-time feedback on the hire to retire processes, you can create a culture of engagement that fosters loyalty and productivity.
2. Review and Update Regularly: Review and update HR processes per feedback to ensure that they remain relevant and effective in meeting the changing needs of your business and employees.
3. Ongoing Training and Development: Provide ongoing training and development opportunities for employees to not only improve their skills but also enhance job satisfaction and overall performance.
4. Monitor and Adjust: Keep track of HR processes to identify areas for improvement and make necessary changes to ensure continued success.

Best Practices After the Exit

Unfortunate fact: your employees probably won’t be working at your business forever. Life changes, career moves, and other factors play into why your employees might make the switch. Yes, it’s devastating – especially if they were a star employee. But it also provides you with a great opportunity to learn. No matter if you have one employee or 100, exit interviews can provide you with that opportunity, so long as you structure the conversation right.

Here’s a general outline of how the process should work. 

• The supervisor notifies whoever handles HR that the employee is terminating or transferring to another department.
• The supervisor encourages the employee to complete a questionnaire and schedule the exit interview.
• An HR manager sends a questionnaire to the employee and sets up the interview.
• During the interview, both parties confidentially discuss the information gathered from the questionnaire.

Because there is so much fear about coming forward with issues during employment, the exit interview is sometimes the best chance to get information.

The post The Hire To Retire Process To Retain Employees appeared first on PrimePay.

These benefits are designed to make sure that workers are treated fairly and have access to basic protections and support. You can minimize the manual time investment by implementing a benefits administration software solution.

As such, in this article, we’ll cover some of the mandated employee benefits that you should be aware of.

But First, Let’s Get One Thing Straight

When most people hear the term ‘employee benefits’, they think of things like health insurance, vacation time, and 401(k) plans. Employee benefits are much more than that, though. According to Merriam-Webster’s definition of the word ‘benefit,’ “a benefit is a service or right provided by an employer in addition to wages or salary.”

Some of these ‘services’ or ‘rights’ are government mandated and companies are required by law to provide them to their employees. So while you may choose to offer your employees fringe benefits like a retirement plan or dental insurance, there are six mandated benefits that most small and mid-size business owners must provide their employees.

1. Government-Mandated Benefits for Employees

In addition to paying your employees a salary or hourly wage, the following are government-mandated employee benefits that most businesses are required by law to provide.

• Social Security & Medicare Contributions
• Workers’ Compensation Insurance
• Unemployment Compensation Contributions

Depending on the size of your company and the benefits you offer your employees, you may also be required to provide COBRA, CHIPRA (Children’s Health Insurance Program Reauthorization Act) and Family and Medical Leave.

2. Social Security & Medicare

Social security and Medicare are Federally-funded and mandated benefits programs. These 2 government taxes are paid equally by both the employee and their employer as payroll deductions. Social Security benefits provide income to employees after they retire or in instances where they become permanently disabled. Medicare provides health insurance programs for people age 65 or older and in some cases, people that are younger than 65 due to certain disabilities or medical conditions.

3. Workers’ Compensation

Workers’ compensation insurance provides medical care and treatment, rehabilitation and replacement income for employees due to job-related injuries and illnesses. Workers’ comp is provided by an employer through either a state run insurance fund or through an insurance company.

4. Unemployment Compensation

The purpose of unemployment compensation is to provide temporary and partial income replacement to employees that have involuntarily lost their jobs. Terminated employees may not collect unemployment if they were let go due to certain circumstances… one being willful misconduct. Unemployment insurance is a combination of Federal and State run programs that both employees and employers pay into.

5. Family and Medical Leave Act (FMLA)

The FMLA requires covered employers to provide eligible employees with up to 12 weeks of unpaid leave for certain family and medical reasons. This includes the birth or adoption of a child, caring for a family member with a serious health condition, or the employee’s own serious health condition.

6. Affordable Care Act (ACA)

The ACA requires employers with 50 or more full-time employees to provide health insurance coverage to their employees. The law also includes provisions for preventive care services, as well as protections for individuals with pre-existing conditions.

In addition to these mandated employee benefits, some states and localities have their own requirements for employers. For example, some states require employers to provide paid sick leave or paid family leave to their employees.

It’s important to stay up-to-date on the mandated employee benefits that apply to your business. Failure to comply with these requirements can result in penalties and fines. Additionally, providing these benefits can help attract and retain top talent, as well as promote a positive workplace culture.

The post 6 Mandated Employee Benefits You are Required to Provide appeared first on PrimePay.

Oftentimes, business owners and HR managers alike might overlook the one basic business foundation that can get them into serious trouble if not done right—human resources (HR) compliance. 

Even just the mere thought of HR compliance could be enough to overwhelm anyone and cause some to ignore it altogether.

Preparing yourself and educating yourself for these challenges proves to be essential in running a smooth business (and keeping money in your pocket). Making an investment into a good HR software program can help you be better prepared to tackle common compliance issues.

Consider the following to be a general business guide to human resources compliance and keeping track of HR laws and regulations.

What is HR Compliance?

HR compliance is often defined as the steps taken by businesses to ensure that their policies and actions follow the labor laws set by their country, state, or local government.

To stay compliant, companies must create and document their policies, and make sure to enforce them to ensure they are always following the laws. Making HR compliance a priority helps ensure that companies operate legally and fairly, promoting good workplace practices for everyone involved.

Now that we’ve covered what HR compliance is, and what the top HR compliance issues are, it’s time to get into the fun part – managing HR compliance.

Sensing some sarcasm in the ‘fun part’? Your instincts may be right, but we can try to make a daunting task a little less daunting (and maybe even a little fun) with the right guidance.

Below are a few ways you can navigate through HR compliance challenges with confidence.

Top HR Compliance Issues

Whether you’re just starting out as a small business owner, a seasoned entrepreneur, or an HR leader, it’s critical to gain awareness of some common HR compliance issues.

To highlight a few:

Discrimination and Harassment

Title VII of the Civil Rights Act bans discrimination in all phases of employment by employers based on race, religion, color, sex, national origin, or age discrimination. (This applies to employers with 15 or more employees.)  Title VII also prohibits employment decisions based on stereotypes and assumptions about abilities, traits, or the performance of individuals of certain racial groups.

Title VII prohibits harassment of employees. As an employer, you are required to take appropriate steps to prevent this and your employees should know the proper procedures for reporting such issues.

Bottom line: Your company should provide adequate training and strong written communication regarding these practices.

Wage and Hourly Compliance

The U.S. Department of Labor’s (DOL) wage and hour division establishes protections for workers as it relates to the rate of pay, minimum wage, overtime, breaks, and more under the Fair Labor Standards Act (FLSA). And it may be easier than you think to violate this. The simple mistake of misclassifying employees violates the FLSA and could end up pretty costly. Other common FLSA ‘no-no’s’ include not providing compensation for all employee hours worked, which includes short breaks, on-call time, and time spent working off the clock.

Aside from minimum wage, overtime, and hours worked, the FLSA outlines regulations around recordkeeping and child labor. 

In short, your business must accurately classify employees, display an official poster outlining the requirements of the FLSA, focus on the health and well-being of youth workers, and more.

Employee Classification

It is pertinent that you know the difference between independent contractors, full-time and part-time employees. Familiarize yourself with the classifications and stay in accordance with the U.S. Department of Labor’s guidelines as well as the IRS.

As mentioned above, misclassifying employees can be a costly mistake. When workers are misclassified, they can be denied important services and protections like minimum wage, sick leave, and unemployment insurance. This not only hurts the employee but also results in less tax revenue for the government and less money for employee programs. 

Reclassifying workers and paying their taxes can help avoid penalties and protect both workers and the economy. Save a copy of this IRS fact sheet on understanding employee versus contractor designation to help avoid this mistake.

By enforcing these clear job definitions, you will not only be in compliance with the law, but each employee should better understand what they are accountable for. 

Workplace Safety

Providing employees with a safe work environment is critical. The Occupational Safety and Health Act (OSH Act), enforced by the Occupational Safety and Health Administration (OSHA), requires businesses to provide employers with a work environment free from recognized hazards. 

The top 10 OSHA-cited standards include the following:

1. Fall Protection, construction
2. Respiratory Protection, general industry
3. Ladders, construction
4. Hazard Communication, general industry
5. Scaffolding, construction
6. Fall Protection Training, construction
7. Control of Hazardous Energy (lockout/tagout), general industry
8. Eye and Face Protection, construction
9. Powered Industrial Trucks, general industry
10. Machinery and Machine Guarding, general industry

Employers in specified low-risk industries are exempt, however, it’s best to verify the risk level of your industry as outlined by OSHA.

Employee Leave

Employees are entitled to certain types of leave, such as sick leave, vacation time, and parental leave. Employers must comply with federal and state laws, such as The Family and Medical Leave Act (FMLA), regarding leave and provide appropriate time off to employees who qualify. The FMLA also allows eligible employees to take up to 12 weeks of unpaid leave for certain reasons.

Examples of FMLA violations include:

• Refusing to authorize FMLA leave for an eligible employee,
• Discouraging an employee from using FMLA leave,
• Manipulating an employee’s work hours to avoid responsibilities under the FMLA,
• Using an employee’s request for or use of FMLA leave as a negative factor in employment actions, such as hiring, promotions, or disciplinary actions, or,
• Counting FMLA leave under “no-fault” attendance policies.

Equal Pay and Pay Equity

The Equal Pay Act (EPA) amended the FLSA to prohibit wage discrimination between workers doing the same job with the same qualifications and experience who should receive the same pay, regardless of their gender, race, or other characteristics. 

Pay equity is about ensuring that pay differences are based on legitimate factors such as job responsibilities and experience, as opposed to based on sex, race, religion, etc. Employers must comply with laws regarding equal pay and pay equity to avoid legal consequences.

DEI

In order to properly align with Diversity, Equity, and Inclusion (DEI), employers must strive to create a workplace that is diverse and inclusive, where employees feel valued and respected regardless of their race, ethnicity, gender, religion, or other characteristics. This can be achieved through policies and practices that promote diversity and equity, such as inclusive hiring practices, training programs, and employee resource groups.

Many companies make the following mistakes:

• Not focusing on the right data. Look past the number, and get into all the insights!
• Focusing on one aspect. People are complex!
• Failing to lead from the top down. DEI is a company-wide effort!
• Recognizing DEI through brand, not actions. Ever hear ‘actions speak louder than words’?

All in all, ask the right questions to your employees to understand their honest feedback on how to improve your company’s DEI efforts.

Data Privacy

The Equal Employment Opportunity Commission’s privacy program establishes practices for employers who must take measures to protect their employees’ personal information and ensure that it is collected and stored securely. This includes information such as social security numbers, bank account information, and healthcare medical records. Employers must also comply with laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) to avoid legal consequences.

Installing software that shields against cyber attacks, implementing training, and additional security measures can help your business avoid a data breach.

Managing HR Compliance

Now that we’ve covered what HR compliance is, and what the top HR compliance issues are, it’s time to get into the fun part – managing HR compliance.

Sensing some sarcasm in the ‘fun part’? Your instincts may be right, but we can try to make a daunting task a little less daunting (and maybe even a little fun) with the right guidance.

Below are a few ways you can navigate through HR compliance challenges with confidence.

Develop A Compliance Program

A compliance program lays out all the necessary steps, policies, and procedures within your business to adhere to federal, state, and local laws, rules, and regulations. The program should include a code of ethics and conduct, a process for reporting and investigating violations, and guidelines for managing risks.

Provide Training And Education

Getting your employees on board and educated on HR compliance can make managing compliance much easier. When employees understand their legal responsibilities and know what the legal requirements are, it’s easier to adhere to them. You should consider providing training on topics such as workplace safety, anti-discrimination laws, harassment, and data privacy. More topics may be necessary according to your unique business case or industry.

Create Clear Policies And Procedures

Clear policies and procedures can help prevent violations and ensure that employees understand what is expected of them. You should consider creating policies on topics such as equal pay, employee leave, and harassment. More policies and procedures may be necessary according to your unique business case or industry. And of course, what good are policies and procedures if they’re difficult to access? Make sure your policies and procedures are outlined in a place that’s easily accessible by your organization, like an employee handbook.

Update Policies As Laws Change

Let’s face it, laws change. And they can change pretty frequently. You should consider regularly reviewing policies and updating them as laws change. It’s important to stay up-to-date with changes in federal laws, state, and even local regulations to ensure compliance. Here are a few ways to make keeping up with law changes easier:

• Use technology and tools for compliance management: There are plenty of HR software systems on the market to help manage employee data, track compliance training, and ensure that policies are being followed. 
• Conduct Audits: Regular compliance audits can help identify areas of non-compliance and prevent violations. Audits should be conducted by a qualified HR professional or outside consultant.

Addressing HR Compliance Issues

Despite your best efforts, compliance issues may still arise. Here are some ways to address and resolve compliance issues:

How To Address And Resolve Issues Or Complaints

As we mentioned above, compliance issues may arise, no matter how much you do to avoid them. Having a process in place for addressing and resolving compliance issues or complaints can help. This process could include a way for employees to report violations or concerns and a procedure for investigating and resolving complaints.

Documentation Issues

Like with many things in the work world, especially in the world of HR, documentation is key. As it relates to HR compliance, it’s critical to ensure that all documentation related to compliance issues is accurate and complete.

Communicating With Parties

It’s critical to establish clear communication and touch base with all parties involved in compliance issues, including the complainant, the accused, and any witnesses. And of course, communication should be respectful and professional.

Maintaining Confidentiality

This may go without saying, but it’s imperative that you maintain confidentiality throughout the compliance process to protect the privacy of those involved.

When To Bring Legal Counsel In

In some cases, it may be necessary to bring in legal counsel to address compliance issues. You may want to consider consulting with legal counsel if you are unsure about how to proceed with a compliance issue or if a violation may result in legal action.

HR Compliance Checklist (+ Bonus Performance Review Compliance Checklist)

• Anti-discrimination and harassment policies: Develop and implement policies that prohibit discrimination and harassment based on protected characteristics such as race, gender, age, and disability.
• Wage and hour compliance: Become an expert in the minimum wage and ensure that all employees are paid correctly, overtime pay is calculated accurately, and all required records are maintained.
• Employee classification: Make sure to properly classify your employees as either exempt or non-exempt under the Fair Labor Standards Act (FLSA) and state law.
• Workplace safety: Establish and maintain a safe work environment and ensure compliance with Occupational Safety and Health Administration (OSHA) regulations.
• Employee leave policies: Ensure that all employees have access to legally required leave such as the Family and Medical Leave Act (FMLA) and ensure that policies comply with state and federal leave laws.
• Equal pay and pay equity: Review and analyze compensation practices to ensure compliance with federal and state equal pay laws and ensure pay equity.
• Data privacy: Develop and implement policies that protect employee data privacy and comply with state and federal data privacy laws.
• Recordkeeping: Maintain accurate and complete records for all employees, including personnel files, payroll records, and other employment-related documents.
• Benefits administration compliance: Ensure that employee benefits are administered in compliance with all applicable laws, including the Employee Retirement Income Security Act (ERISA).
• Legal Counsel: Gain access to resources to help you avoid fines and lawsuits while managing the evolving HR and employment requirements. 

Bonus Checklist: Stay Compliant During Performance Reviews

Performance reviews are an important aspect of employee development and growth in any organization. They provide an opportunity for employees to receive feedback on their work and set goals for the future. However, without proper preparation, performance reviews can become an unproductive and frustrating experience for both employees and managers. 

The following quick checklist of best practices will keep you compliant when conducting performance reviews:

• Establish a cadence: Ensure performance reviews are conducted for all employees on a regular basis.
• Communication is key: Clearly communicate job expectations and responsibilities to all employees including the measured performance standards.
• Create a system: Put systems into place for measuring performance based on job-related functions and criteria that were illustrated in the employee’s job description.
• Review and refresh: Review and update job descriptions at least once a year.
• Document: Keep an accurate log and detail the records regarding performance to support personnel decisions.
• Be clear: Make certain that performance reviews are based on specific job-related criteria.
• Be honest: Provide honest, factual, and complete notes.
• Focus on OKRs: Compare performance against job descriptions and goals.
• Offer ongoing feedback: Don’t save feedback for review time, give feedback regularly!
• Be fair: Ensure the review process for measuring performance is equal amongst all employees.

The post Understanding the World Of HR Compliance: The Complete Guide appeared first on PrimePay.

What is Form W-2?

Form W-2, Wage and Tax Statement, shows the income and taxes withheld from an employee’s pay for the year. It is required for you to file your taxes. 

Don’t confuse a W-2 with Form W-4. A W-4 is a form individuals complete for withholding purposes; a Form W-2 is for employers to complete.

Employees should receive a Form W-2 from each of their employers where they worked during the prior year.

Typically, employers have until January 31st to send the prior year Form W-2 earnings statement to employees.  If an employer is mailing Forms W-2 to their employees, they must be postmarked by January 31st, so it may take a week or so to arrive t you. 

If you haven’t received Form W-2 from your employer by mid-February, follow these four steps:

1. Contact your employer. 

If you have not received your Form W-2, contact your employer to inquire if and when the Form W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.

2. Contact the IRS.

If you do not receive your W-2 by the end of February and you have already contacted your employer, you can call the IRS for assistance at (800) 829-1040.  You can also visit an IRS Taxpayer Assistance Center (TAC).  When you call or visit the IRS, you’ll need to provide the following information:

• Your name, address, Social Security number, and phone number.
• Your employer’s name, address, and phone number.
• An estimate of wages and federal income tax withheld in the prior year. Use a final pay stub for these amounts.

Based on the information you provide to the IRS, they will contact your employer for you, request the missing W-2 form and advise your employer of the penalties for failing to issue and file Form W-2. The IRS will also send you a Form 4852, a substitute for Form W-2. Form 4852 is completed by taxpayers when their employer does not give them a Form W-2 or when an employer has issued an incorrect Form W-2.

3. File your return. 

You still must file your tax return or request an extension to file, typically by April 15, even if you do not receive your Form W-2.  If you have not received your Form W-2 by April 15, and have completed steps 1 and 2, you may use Form 4852  which the IRS sent you. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

4. File a Form 1040X. 

On occasion, you may receive your missing Form W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return.  If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.  The Instructions for Form 1040X may provide you with additional details and guidance if you need to file an amended tax return.

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Employees are generally more productive and motivated when they understand the role their contributions play in achieving the company’s goals and objectives.  The performance review process can be a great way to strengthen the relationship between a manager and employee by promoting open communication in a relaxed environment.

It’s essential to prepare yourself to minimize the stress level for both employees and their managers, as well as maximize the effectiveness of your performance review process. 

Best practices for conducting employee performance evaluations.

Employee evaluations are nerve-wracking for both the employee and the manager giving the reviews. Make the process a lot more comfortable by preparing yourself using the following tips:

1. Have a system in place for measuring performance. 

Make sure you have a clear system upon which to measure performance and that employees understand the performance standards against which they will be evaluated.  This could be as simple as tracking the number of clients contacted or the number of sales per month, or it could be obtained from sources like customer satisfaction surveys. 

2. Be direct, factual and detail-oriented. 

A well-prepared and honest performance review is the key to managing employee performance.  It helps to achieve your company’s goals by aligning your employees’ development with the performance of your business.

3. Document all points covered in a work performance evaluation. 

Accurate documentation allows for ongoing feedback and can help measure an employee’s progress.  Performance records can also provide important documentation for your company in the event a disciplinary action, termination or other adverse personnel decision becomes necessary.

4. Get employee feedback.

Request comments, views, and thoughts from the employee. Listening to what your employees have to say about you can teach you a lot about yourself and how effectively you are managing your employees.

5. Give praise.

Be sure to highlight good performance and explain why it was good and how it helped the team and the company as a whole. Recognition is key in making your employees feel valued for the hard work they put in.

6. Guide the evaluation and record outcomes.

Remember to be honest with your review.  If you provide a very positive review of an employee without detailing the problems, you now have documentation that does not support a decision to discipline or terminate.  If a lawsuit surrounding the termination occurs, it may be more difficult to defend your company’s actions.  

7. Have the employee reflect on their own performance. 

Ask the employee to analyze and evaluate their own work performance. Find out what the employee thinks they can improve about themselves, and what they think they do well. 

8. Remember the performance review is a discussion. 

A review should never be a one-sided conversation. Talk about different topics and discuss why you both think it was either a good or bad outcome and how it could have been different, for better or for worse.

9. Pick your words carefully.

Be aware of how you word or phrase questions and statements to help eliminate the potential for misinterpretation. 

10. Agree about the game plan moving forward. 

Agree that there is a need for a change in the employee’s performance before developing a plan of action.  Discuss a plan of action for helping the employee to improve work performance and encourage the employee to contribute ideas on how to reach performance goals. 

11. Don’t hold all issues and praise until the review.

Don’t wait to discuss employee performance management issues until their annual review.  When it comes time for the formal review, there really shouldn’t be any surprises if there has been ongoing communication and feedback between the supervisor and employee.  Provide a clear, concise explanation of the issues you wish to address with the employee and provide specific examples. 

12. It is very hard to change personalities. 

It is not your place to critical of personalities or try to change them. Learn how to work with the employee and discuss forms of communication that they best agree with.

13. Have the difficult conversations.

Don’t avoid or dodge difficult discussions. Having these discussions may be tough, but ultimately have to be said.

14. Be clear and concise.

Avoid using closed-ended or rhetorical questions. Ensure that your employee understands which aspects in their performance can be improved, and vice versa. 

15. See the review through the employee’s eyes.

Don’t forget that change can be threatening to an employee. Explain the situation and be sure to answer all questions thoroughly. 

16. Stay away from negative comments.

Don’t make negative comments that attack an employee’s attitude rather than work performance.  Be sure to review the employee’s overall performance based upon specific, job-related criteria and provide concrete examples of performance problems. 

Remember to treat all of your employees fairly when it comes to performance reviews and avoid any statements or actions that can be construed as discriminatory.  If you have any questions regarding discrimination matters, contact an employment law attorney who knows your state laws.

Small business HR: Staying compliant the easy way.

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