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The Cost of a Poor Fit

Hiring the wrong employee can incur a tremendous cost on the employer. Not only training does cost money, but a poor fit may also reduce productivity and lower employee morale, among other hits to the bottom line.

The price tag for a poor fit is linked to the cost of employee turnover, which is between 16 and 200 percent of a person’s exiting salary, depending upon the strategic significance of an employee, their position their level within the organization, and the high-demand skills they may have.

A poor fit results in many costs to an employer. Here are just a few of the common costs associated with hiring the wrong employee:

  • Salary and other compensation-expenses related to the departing employee, such as severance pay
  • Declining productivity prior to the employee’s departure
  • Job advertising costs, seeking a replacement worker
  • Time costs associated with interviewing candidates
  • New candidate assessments
  • Reduced productivity in the position during on-boarding, orientation and training of the new recruit

Background Checks in Hiring

Statistics show that one in four American adults has an arrest or conviction that shows up in a routine criminal background check. If we venture into credit checks, the statistics can get even higher.

While background checks are valuable to some industries, they’re not standardized practice for every hire. Besides the personal and privacy implications for a potential incumbent, background checks sap the time and resources of an HR department, and should only be employed when necessary.

Today, the Equal Employment Opportunity Commission (EEOC) is giving greater attention to regulating background checks. That means employers need to be able to provide a valid business case for checking up on a potential employee.

Background checks are required by law in the following industries:

  • Healthcare
  • Education
  • Childcare

The EEOC is also working to document the adverse impact of screening out workers with criminal backgrounds can have. Their findings are particularly pertinent for protecting minorities, where the rate of criminal histories is typically higher.

5 Ways HR Specialists Keep You Compliant

Employment is a vast and nuanced field. When it comes to in-house human resources departments, organizations tend to hire generalists, who can speak to many different issues, rather than specializing in compliance.

Therefore, when venturing into the complex area of Employment Law, an expert consultant can support and augment the performance of your HR team, ensuring compliance with Equal Employment Opportunity Commission (EEOC) law, and other important regulations.

Employers and human resource departments must be mindful of the EEOC legislation, which protects workers from discrimination on the grounds of:

3 Steps to Compensation Compliance

3 Steps to Employee Compensation Compliance

Equal pay for equal work: It’s the principal at the core of pay legislation in the United States, and one that should be at the core of your organization’s compensation policy. But how can you ensure that you’re in compliance?

1. Know the Laws

Decisions about employee compensation are governed in part by the Equal Pay Act, which aims to stop gender discrimination. This act measures four compensable factors, enforced by The Equal Opportunity Commission, that determine the nature of a job:

  • Skill
  • Effort
  • Responsibility
  • Working conditions

In addition to the Equal Pay Act, employers need to comply with The Lilly Ledbetter Fair Pay Act, (2009) which extended a statute of limitations for compensation complaints. This act goes beyond the Equal Pay Act by adding protected classes, such as race and national origin.

Three Ways Managers Can Prepare their HR Department for an Audit

Three Ways Managers Can Prepare HR for an Audit

News of an impending audit can cause trepidation in a HR department. HR professionals might wonder: “Will this audit point out my short-comings? Will it mean more work for us?”

The reality is that a HR audit can be a collaborative process that can help the department operate more efficiently and strategically, and can enhance communication and trust throughout an entire organization.

So how can management help the human resources department see the benefits of an impending audit? Here are three key steps:

Online Learning

To be successful in today’s workplace, everyone – from HR Executives, to Students – should be continually learning and honing their skills. Online learning makes continuing education affordable, accessible, and even fun!  Sign up today!!

Human Resources Report

Our very own Jonna Contacos-Sawyer was recently featured in the Human Resources Report TM. Read the article which explores the role technology will play in HR's future.

*Reproduced with permission from Human Resources Report, 32 HRR 453 (May 5, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033)

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