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Archive for the ‘Employment Trends’ Category

Should You Re-Hire a Laid-Off Employee?

Wednesday, August 11th, 2010

employeescreeningblogProductivity in the U.S. is down, and rumor has it that employees are maxed out. If you’ve trimmed some staff members and squeezed out all you can from your remaining employees, it’s time to assess your productivity. Perhaps it’s time to consider hiring again.

Re-hiring a Laid-off Employee
When they’re ready to hire for a newly-open position, many business owners and managers naturally think about the last person who held it. In many cases, that person didn’t leave the company, but was laid off. Before you pick up the phone to recall a laid-off employee, consider these tips.

Often, it makes sense to bring a laid-off employee back into the fold. After all, if Susan did the job for years, she won’t require any training. She’s already in tune with the company’s culture, so there’s no bringing her up to speed on dos and don’ts. She knows the policies and procedures as well as you do. It’s usually much easier to rehire a former employee than recruit, hire and train a new one.

But first, consider the reasons behind the layoff. If George was an exemplary worker and budget is the only reason he’s gone, then he could be your only choice for the position. If that’s the case, call George as soon as you can—before another company hires him.

Why Hiring Laid-Off Employees is not Always a Good Idea
Chances are your company and its needs have changed during the recession. Perhaps your remaining crew has turned into a lean, mean, production machine—and that ex-employee won’t fit in. It can be difficult for inflexible people to fit into a changed environment.

There’s a reason George was laid off instead of Tom. Before you hire him back, assess the situation around the layoff choice. It could lead to insight about George’s past and future performance. Was his work up to speed? Did he create bad feelings when he left?

Laid-off employees can change, too. A formerly dedicated worker could develop a negative attitude toward a company he’s been seeing as the enemy for months or years. Consider requiring the former staff person to go through the same application process and interview as a brand-new employee. This gives everyone an opportunity to look objectively at needs, skills, and attitudes. If there are any signs of a grudge, ask open-ended questions to get to the bottom of it.

Don’t Forget Employee Screening
It pays to be just as cautious when re-hiring an ex-employee as when hiring a stranger. Anything can happen between layoff and rehire time. Don’t expose your company and other employees to the risks of hiring anyone—even a former employee—without a thorough pre-employment background check.

Warning: Your Employees Could Be Planning to Quit

Thursday, August 5th, 2010

employeescreeningblogWhy employees are voluntarily leaving their jobs in larger numbers than we’ve seen in nearly two years, and what employers can do about it.

It may seem like a slap in the face to employers who’ve worked hard to keep their employees happy (and employed) through this tough economy, but they’d better get used to this fact: employees are voluntarily leaving their jobs in larger numbers than we’ve seen in nearly two years.

According to the U.S. Bureau of Labor Statistics (BLS), the number of employees quitting their jobs surpassed those being discharged by employers this past February. And as quoted in the Wall Street Journal, a poll conducted by Right Management at the end of 2009 indicated 60% of employees intend to leave their jobs when the market improves.

Some employers are bracing themselves for major turnover. Formerly-nervous employees are starting to feel more confident that the economy will turn and employers will begin hiring again. And, they feel they’ve waited long enough to pursue better opportunities, according to the survey.

Another factor inspiring employees to jump ship could be low morale and job satisfaction. We’ve written about ways to keep employees motivated through the recession, as job responsibilities increased and perks disappeared. But some employers may have taken the “you’re lucky to have a job” approach to employee management too far—even if it was true!

Employees are again going to be faced with choices, as recruiters call and their networks start buzzing again with opportunities. While no one knows exactly when that will happen, history shows that what goes up (unemployment figures, for instance) must come down.

Employers concerned about losing good employees—and the associated costs, like recruitment, lost productivity and training—should think ahead and keep communication flowing. Talk to your employees one-on-one and hear their grievances. Ask for ways you can help improve the work environment. The goal is to catch your valued staff before they head out the door. After all, most employers know it’s much easier to keep a good employee than to find another one.

Is it Hiring Time Yet?

Thursday, July 22nd, 2010

criminaldata.comWhen it comes to the economy, everyone seems to be waiting for something to happen. Reports we used to pay little attention to, like unemployment, consumer confidence, savings rates and housing starts, capture our attention and are analyzed closely.

Employers are no exception. They’ve weathered the economic storm, and many want to know if it’s ever going to turn around. You may be asking yourself if it’s time to spend some of the cash you’re holding on to, or if it’s time to hire again. Or you may just want to know if you can exhale yet!

We can’t tell you the answer to Questions 1 & 3, but here are some tips for question #2: How do you know if it’s time to hire?

1. You and your employees are stressed out. You might have cut positions, combined workloads, or just kept piling tasks on yourself and your staff. If your people are starting to show signs of discontent, are leaving things undone, or are threatening to walk out—you know you have a problem. It just might be solved with a new employee.

2. You are profitable. Profitability is a very good sign. But only when it happens for several months in a row. Much of this depends on your business, but if you’ve been turning a profit for 18 months, and your current staff is overworked, it might be time to hire. If you’re not steadily seeing profits, see #3.

3. The new hire will produce profit. If you’ve crunched the numbers and a new hire will pay for him or herself and then some, what are you waiting for?

4. You’re paying for temps or independent contractors. If there are services you need enough to pay higher temp and contractor fees, can you afford to turn that expense into an employee? Consider hiring a good-fit contractor or temp. If they have skills you need, then find a way to create a sustainable solution.

When you make the decision to hire, be sure to properly screen employment applicants. Pre-employment screening is an easy way to mitigate the risk of hiring staff with questionable backgrounds, criminal histories, or unacceptable credit problems.

Increase Productivity through Better Employee Communication

Thursday, May 13th, 2010

Even as the economy shows signs of strengthening, many companies haven’t yet seen business rebound. They still need to do more with fewer employees. Perhaps you’re a hiring manager or business owner who is not able to begin hiring—but needs to keep existing employees motivated and more productive.

You might be thinking, “Haven’t I analyzed productivity enough over the last couple of years?” Perhaps you think there is no way to ask for more efficiency from overworked employees. What if you want to give them a break without affecting productivity? And you know you can’t hire more staff just yet. What to do?

Analyze Again

One answer is the one you might not want to hear: start at the top and analyze your business again. Look at your processes and procedures with a fresh eye—not an easy task, id it? So, why not get some help from the people on the front line? Seek input through an employee survey. Solicit their ideas for increased efficiency.

Fewer Steps, More Efficiency

If yours is a production-based business, efficiency can make or break it. Again, start with your front-line employees—like Mike, your shipping clerk. Look at Mike’s flow and setup. How many steps does each task take? Which can be eliminated or streamlined? How can Mike reduce travel time required for his job requirements? The higher the number of steps his feet take, the more time and energy he’s wasting. Encourage Mike to work with you to redesign his work station, eliminate wasted time and materials, or redistribute his tasks to others, if that makes more sense.

Decrease the Layers of Authority

If your business is sales-related, listen to your phone operators. How can they better balance customer service with efficiency? Are they wasting time waiting for approvals for services they are not authorized to give? Can you empower customer service staff to take care of issues on their own level, decreasing the layers required to handle a problem?

Be an Undercover Boss

Not sure if these areas are problems in your company? Your employees do! So ask them. Spend time with them. Get out of the office and shadow a few employees for a day. Take a cue from the new reality show “Undercover Boss,” where CEOs go undercover in their own companies, working alongside the lowest-level employees—and learning how their businesses really work.

Employees often follow procedures they are trained in, whether or not they are the most efficient use of their time. They do what is expected. But when given the chance to change things, many will jump at the opportunity to contribute to an improved workflow.

Give Mike a Promotion

Perhaps your frontline employees, like Mike, are capable of taking on some management duties. If you’ve downsized your management team, it may be that they already are—and if that’s the case, recognize them for it. Sometimes a change in title helps employees shine in ways you didn’t expect—and it can be real morale booster, too. So make Mike the Shipping Manager if he deserves it!

Talk to Your Staff

As with most management challenges, the key to increasing productivity lies in staff communication. Talk to your workers, learn how they do their jobs every day, and solicit their ideas for improvement. If they are willing to take on more responsibility, start on a plan to make that happen. And if they are at the point where another task will send them out the door—you need to know before it happens.

Employment Update

Thursday, May 6th, 2010

For the third month in a row, the private sector added jobs in April, according to a report from ADP. Jobs increased by 32,000 from March. March’s number was revised as well—and the news is even better: rather than a loss of 23,000 jobs, there was an increase of 19,000.

With employment from January 2010 to February 2010 increasing by 3,000, April’s numbers seal three straight months of increases. And this Friday, the U.S. Bureau of Labor Statistics will release its jobs report for April; analysts predict total job growth (pubic and private sectors) will be between 180,000 and 189,000. (March’s increase was reported at 162,000, which will be adjusted on Friday’s report.)

April’s expected increase will include the temporary jobs added by the U.S. Census Bureau. Still, the manufacturing sector is expected to add about 29,000, and service sector about 50,000 in Friday’s report.

Another bit of good news is that the Consumer Confidence Index increased to 57.9, 18 points higher than April 2009, and 5 points higher than just a week prior. The Conference Boar Consumer Research Center, which issues the Index, reports the reading is higher than it’s been since September of 2008 because consumers’ concerns about business and job markets are easing. The Conference Board also reports that online job openings advertised in April jumped to 4.15 million, an increase of 222,700 over March.

So hiring freezes may be starting to thaw. What about the employees who managed to keep their jobs throughout the economic downturn? How are they faring?

There are indications that wage freezes are starting to hit the road, too. The Wall Street Journal reports that large employers like BASF, the chemical company, and Rockwell Collins, an aviation electronics firm, are distributing raises to their employees. Retaining key employees, rather than cutting staff, has become the priority.

BASF was scheduled to pay out raises in April, but decided to do it a month earlier—and employee morale was instantly improved. Even the buzz surrounding the early raise announcement helped loyalty and allowed employees to recommit to the company.

And employers might soon need that commitment from their people. A January survey by Towers Watson showed that 15% of respondents were having difficulty keeping their best talent. Employers are seeing more poaching and defections of key employees. One way to keep them from going is to increase salary—and that’s what is happening. AT&T gave 100,000 managers significant raises in November of 2009—four months ahead of the rest of their employees.

We will report on Friday’s job numbers as soon as they are announced, so check back!

Is Your Company Preventing Workplace Harassment Claims?

Wednesday, March 24th, 2010

Employers must be ever-vigilant in providing a safe workplace for all employees. That responsibility includes a workplace harassment policy. Harassment is unlawful and can get an employer in trouble if it goes unmonitored or unpunished.

What is Workplace Harassment?

  • It’s an unlawful form of discrimination, based on the Civil Rights Act of 1964.
  • It’s defined as unwelcome verbal or physical conduct based on race, color, religion, sex, national origin, age, disability, sexual orientation or retaliation that results in a hostile work environment or a change in an employee’s status or benefits.
  • It can affect anyone.
  • Is not limited to male on female sexual harassment.

Harassment can range from offensive language or remarks to comments about a fellow employee’s body, skin color, or religion, to inappropriate touching, jokes, gestures, or even emails.

Increase in Sexual Harassment Claims by Men
A growing number of sexual harassment complaints have come from men since the start of the recession, according to the Equal Employment Opportunity Commission (the EEOC). Litigation, including harassment cases, tends to increase during economic downturn, when jobs are harder to find. In the past, men might have responded to sexual harassment by leaving a hostile workplace for another job—but now, when they’re not easily finding other employment, a harassment suit is more likely to be filed.

Harder-hit states for unemployment, like Michigan and California, saw bigger increases in the percentage of sexual harassment claims by men: Michigan’s cases rose 10% from 2007 to 2009, and California’s cases rose 5%.

While the stigma around claiming sexual harassment is huge for both genders, it is even more so for men, say the experts. Men can be seen as weak or unmanly when claiming sexual harassment, so the numbers of reported incidents are most likely lower than what actually occurs.

Employers are often in the dark about harassment; often employees are laid off for economic reasons, and file claims months or years later. Developing and enforcing a strict no-harassment policy is vital. And remember to broaden your definitions to include same-sex harassment. Many employees are more sensitive to what they say around the opposite gender, but might think that sexual jokes and banter among their own gender is okay—but it’s not.

As unemployment continues to hover around 10%, employers could face rising harassment claims—so now is the best time to review your company’s policy and tighten it up as needed. Communicate to and train employees on the policy. Strict workplace harassment policy enforcement is the best way to mitigate risk to your business.

What Employers Should Know About Generation Y

Thursday, March 11th, 2010

Call them Generation Y, Generation Next or the Millenials, the age group is loosely defined as those born from the mid-70s to the early 2000s. In general, the 78 million Gen Ys are very familiar and comfortable with communications, mass media and digital everything. They trend toward tattoos, piercings, and other ways to express their individuality.

Here are a few things that employers in older generations (the Baby Boomers and Generation Xers) might find helpful in knowing what makes your younger employees tick:

If you telephone a Gen Y employee, don’t be surprised if you don’t get a call back. Not all Gen Ys ignore the phone, but as a group they prefer IMing (instant messaging) and texting to email and telephone calls. Voice mails are often not listened to at all. This generation is more likely to just note that you called than to listen to your voice mail!

They live online. Gen Yers spend more than 3.5 hours on the internet every day, on average. And they’re not checking email. Social networking is a big part of their lives, and they check in with friends and family on Facebook rather than on email. Gen Yers are used to knowing what’s going on with their friends via Facebook, and expect to communicate through that network. If you’re not on Facebook, you’re not likely to know what a Gen Yer is up to.

Gen Yers have been spoiled a bit by their parents. They may expect a bit of indulgence in the workplace, too. For example, they value their non-work time and seek work/life balance—so they might expect their employers to cooperate with that important goal. Come up with creative compromises to make sure your goals are covered, too.

Gen Yers like change. They want to feel like they’re contributing new ideas. This might look like they want to undo procedures you’ve spent years refining. But this is one tech-smart group that doesn’t see the value in waste—of time, materials, or money. Listen to them and give their ideas more than a cursory look. You might find room for improvement, and you’ll win your employees’ loyalty.

Gen Yers like direction. Sure, many are self-directed; but others expect their employers to provide clear instructions and to state expectations. Help establish workflow, goals, and schedules, and be sure your Gen Yers know what the company’s priorities are.

Gen Y is possibly the most productive generation in history. They just might need a little more managing than others—but it’s a small price to pay!

Unemployment Down, but Hiring Outlook Still Bleak

Tuesday, February 9th, 2010

Although January’s unemployment figure dropped from 10% to 9.7%, other sources are not so optimistic about future hiring. Temporary staffing and payroll processing firms are among those reporting few positive indicators for hiring boosts in the near future.

ADP, a payroll processing company for US employers, issued a report that 22,000 private sector jobs were lost in January, 2010. Goods-producing sector jobs fell 60,000 while the service sector lost 38,000 jobs to arrive at the total. Within the two main categories, small business employment fell by 12,000, and manufacturing lost 25,000 jobs.

Unemployment has tracked high for the manufacturing and construction sectors for over two years now, with 1.9 million construction jobs lost since December 2007. The ripple effect of 15 million Americans out of work is continued lower consumer spending, which means employers don’t need more workers.

There are a few good-news items in the ADP figures: first, the service sector’s 38,000 jobs gain is the second straight monthly increase. Second, the overall drop of 22,000 month-to-month is the lowest decline since employment started falling in February 2008. Third, medium-sized businesses actually grew employment by 9,000.

Kelly Services, Inc., a temporary staffing firm, reported a loss in revenue and profit for the 4th quarter 2009 over the same period in 2008; however, revenue was up from the third quarter 2009. This could be a positive indicator; temp staffing services often see increases in business prior to full time job boosts.

The construction industry is still being hit hard. According to the United States Labor Department, construction saw 75,000 jobs lost in January. A bright spot in the Federal report is manufacturing, with an 11,000 job loss—much smaller than the drops seen in 2009. Motor vehicles and plastics/rubber were two areas that increased jobs, by nearly 30,000 total.

While unemployment figures for January were better than expected, hiring will likely not occur on a large scale until consumer spending bounces back—and that’s not likely until employers start hiring again in a big way. Stay tuned for updates as they come.

A Targeted Approach to Hiring Employees

Wednesday, January 27th, 2010

Hiring employeesHuman Resources pros and business owners are facing unprecedented numbers of applicants for limited—or zero—job openings. It’s nearly impossible to review every single resume, and it’s not efficient to even try.

Hiring has become more about recruiting than passive receiving of applications and resumes. Some employers are avoiding the resume onslaught by eliminating job postings altogether, preferring to use outreach strategies instead. Here are some tips to target your employee search and avoid the time-waste of reviewing hundreds of resumes:

  1. Go online! LinkedIn.com is the go-to professional social networking site. If you’re unfamiliar with LinkedIn, do yourself a favor and join. It’s free (they do have a paid option), and it’s a great place to “meet” other professionals from across the country—or across the ocean. Start building connections, join appropriate groups, and let everyone know when you’re looking for new talent. LinkedIn even has a search-by-industry feature.
  2. Check out your industry’s continuing education opportunities. Whether you’re looking for an accountant, a finance professional, support staff, or a marketing manager, you’ll find online and face-to-face training courses geared toward them. Find out where and when they are happening, and let the course or workshop leader know you have a hiring opportunity. People who are working on improving their skills could make great employees.
  3. Ask around. Talk to your vendors: they probably know lots of companies in your industry. They may know a fantastic worker who just left one of them. Talk to your employees. Chances are very good their friends and family members know someone who’s looking for a job.
  4. Be social. Attend local business events and networking opportunities. Hand out cards, make new contacts, and let folks know what you need. Your next recruit could be right in front of you. If not, you’ll make valuable contacts who might send someone your way in the future.
  5. Be social online. Twitter is probably the fastest way to send word around to the largest group of people. You can’t set up your account and instantly have thousands of followers (unless you’re Bill Gates or Oprah), but it’s a great way to build connections over time. When you need those connections, they’ll be ready to help you find a good employee.

Next time you’re hiring employees, try a more targeted approach—and spare yourself the time you would have spent reading all those unacceptable resumes, hoping for the right one to jump out of the pile!

When Economy Recovers, Will You Have an Employee Exodus?

Wednesday, January 20th, 2010

help wanted on employee screening blogCatherine is a business owner we know who recently shared a concern that’s been on her mind; a fear that other employers probably share. Her staff of six has weathered the bad economy with her, through layoffs of a few of their friends, no raises for themselves, and increased job responsibilities. Catherine has expressed her appreciation for their sacrifices, but was also proud that she was able to keep six people employed through such a difficult time.

Catherine’s business looks like it will come through the recession in pretty good shape—and she will be relying on her seasoned staff to bring it back to its former level of profitability. Her main concern? That her staff will abandon her for other job opportunities, just when she needs them most.

Catherine’s story is not unique, and she’s smart to be thinking about this possible problem before it begins. Worrying about it, however, will not accomplish much. But what can Catherine and other employers do to keep good employees around after the economy recovers? How does an employer prevent a mass employee exodus?

First, recognize the reality: a survey last summer reported that nearly half of employees surveyed plan to seek a new job after the recession ends. 30% were already actively seeking new work. Generationally, the Xs are least likely to stay with their current employer, while the older Baby Boomers are most likely to stay.

Assure your staff of their job security. If your business is strong, let your workers know. Eliminating the unknown may be enough to keep your employees from bailing on you. Job security is the number one reason for employees to seek a new job. It’s not the increase in job responsibility or too much work for each staff member—employees do not see those as reasons to leave your company.

Find out what your staffers want. Now is a great time to sit down with your employees, either in a group brainstorming session, or one-on-one, and really understand what they want from their relationship with your company. Then, realign your procedures and retention strategy to match their most important wants and needs.

Employers don’t have to face the economic recovery by losing good employees. If retaining your best workers is important, find out what they need to stick around!

The best pre-employment screening process includes employee background checks, employee credit checks, and criminal background checks. You’ll know you’re hiring safe when you screen employees before offering a position.