Pepsi Beverages agreed to a settlement on federal charges of race discrimination

Under the company’s policy, applicants with arrest records—even if they were not convicted—were not eligible for hire. In addition, the company denied employment to other applicants with minor convictions. The policy led to Pepsi unfairly excluding over 300 black applicants from employment.

According to the EEOC, the policy discriminated against minorities, because they have a disproportionate rate of arrest and convictions than whites. Further, using arrest and conviction records to deny employment can be illegal if it is not relevant to the job, the EEOC said. For example, an old DUI conviction would not be relevant to a retail sales job, while a conviction for theft could be.

Pepsi officials said the company’s employee background check policy is neutral, and the EEOC found no evidence of intentional discrimination. After the issue was first brought to Pepsi’s attention in 2006, the company collaborated with the EEOC to revise its background check process and improve its diversity and inclusivity.

Since the federal charges were brought against Pepsi Beverages, the company has changed its criminal background check policy. It also plans to make jobs available to those applicants who were denied unemployment under the previous policy.

Employment lawyers who monitor EEOC activity say there has been an increase over the past year in charges over background checks, and that the commission has taken a very aggressive enforcement stand on the use of criminal background and criminal history in hiring.

Pepsi Beverages is PepsiCo’s operation unit in the U.S., Canada and Mexico. Under the settlement, the company will report regularly to the EEOC on its hiring practices and provide anti discrimination training to hiring personnel and management.

The EEOC is expected to issue more specific guidelines for employers, following a hearing on criminal background checks last summer.

Last summer, the EEOC held a hearing regarding a possible ban on criminal background checks for screening employees, but has not yet released its opinion. Some states are already eliminating the criminal record question for state job applicants.

Why are supporters calling for the “box ban?” Some say that it prevents applicants from getting a fair chance at a job, because they don’t have an opportunity to explain the circumstances if they don’t ever get an interview. They say that too often, employers automatically eliminate anyone with a criminal history during the application process.

Others say that in most cases, the conviction is not related or relevant to the position being filled. Still others say that the disproportionate number of people of color with criminal records means this is essentially a civil rights issue. Advocates say they are behind the ban in an effort to reduce discrimination and unfair barriers against people with felony and misdemeanor convictions—particularly those that occurred years or decades ago.

Some cities have enacted ordinances prohibiting employers from asking anything about criminal backgrounds until after an applicant’s first interview. In Seattle, Philadelphia, Chicago, San Francisco and Boston, criminal background checks are permitted after an interview, but requiring an applicant to reveal his or her criminal record on a job application is not.

Advocates say that employment is the way to a better life for individuals with criminal records, and that it levels the playing field by allowing everyone to be judged on qualifications and merit. But many employers are understandably hesitant to take that chance.

We’ll keep you posted on these possible changes, so you can make the best hiring decisions for your business.

Have you hired an employee with a criminal conviction? How did it work out?

For employers

How can employers and HR managers create a work environment where every employee feels respected and comfortable? Here are a few tips that can help you shape a clear policy, so everyone knows what’s expected and what types of behavior will not be tolerated.

1. Gather information: First, meet with employees who have expressed dissatisfaction with the work environment. You can do this individually or in groups. Ask them to share any details of inappropriate or hurtful behavior, without naming individual employees who have perpetrated the behavior.
2. Create a list of workplace rules: Call it a code of conduct, a mission statement or a new company policy—whatever works. Take the information from the interview process and determine what is and is not acceptable. You may include items about personal behavior, such as treating employees and customers with respect, not harassing or bullying, and using language appropriate for the workplace.
3. Communicate the rules to all employees: It’s important that staff and management alike understand that the new rules are to be taken seriously, and that infractions will not be tolerated. Disseminate the rules in whatever manner your company typically communicates important policies, and add it to the employee manual.
4. Follow up: Handle each new complaint as it arises. Deal with the facts and avoid judgment. Clarify what happened and explain how it made the affected employee feel. Then make it clear that this behavior goes against company policy and will not be tolerated.

No employee deserves to work in a toxic environment. Make sure yours doesn’t fall into that category by following these simple steps.

Why? As one former recruiter says, there is a value in simply employing people. To give them hope, while keeping families intact and off the street. Illustrating the reality of family life for a large number of Americans today, is a recent 60 Minutes piece, following up on a story done a year ago about the large number of homeless kids in central Florida. Having lost their homes through eviction or foreclosure, many were then living with their families in motels. One year later, some of these same families are now living in their cars.

The story featured parents who once enjoyed full-time jobs and were able to support their families. Now, they’ve been out of work for months or years. Friends and family can no longer offer their extra rooms and couches, and the families have nowhere to go. Kids get ready for school in the morning in gas station or convenience store bathrooms. School systems hire homeless child specialists to help kids deal with the many problems associated with sleeping and living in cars.

If you’re an employer, are you in a position to hire someone and lift him or her out of poverty? Could you make a lasting difference in a family’s life by giving them the means to put a real roof (not a car roof) over their heads?

If you don’t need any workers, you can still strengthen your community. Why not donate a scholarship in your business’s name to your local technical or community college? Giving a student in need the chance to obtain an education is a life-changing act. Programs offered at these schools typically teach the skills most needed by local industry.

Imagine what would happen if 25% of the businesses in America each hired one worker. With approximately 6 million firms with employees in this country, that’s 1.5 million new jobs. While it might be a nice idea that goes nowhere, it’s worth thinking about—especially at this time of year.

Low on cash this holiday season?

So how can you convince employees to stick with you, even though you’re running leaner operation, and morale is suffering? Luckily, creating a great team often has nothing to do with money—and everything to do with leadership.

How Leaders Motivate Without Spending Money

• Encourage New Leaders: Make examples out of your best employees. Encourage them to step up and take on more responsibility. If they need more training to perform at a higher level, make sure they get it.
• Say Thank You: When someone does a great job, show your appreciation. Every time. If your company reaches an objective, share the accolades with everyone.
• Throw a Party: Celebrations make everybody feel good. Closing early on a Friday and bringing in pizza is a great, inexpensive way to kick off the weekend. Plan a picnic in the summer, or a bowling party in the winter. Anything to break the monotony of work and show your team that you want them to enjoy themselves will go a long way.
• Invite Ideas: Ask your employees what they think, instead of always telling them what you think. Hold regular brainstorming sessions, where everyone is allowed to contribute. Whether you use their ideas or not, it still makes them feel engaged and valued.
• Encourage Teamwork: Instead of making one person in charge of a team or project, have the entire group work together as a team, as equals. You may find they are more motivated to do well when they feel empowered.
• Break Down Barriers to Communication: Asking for ideas and encouraging participation is a great start to better communication. Ignoring titles and allowing staff to break out of their job descriptions can also help.
• Insist on Accountability: When employees are given high expectations, they will strive to meet them—and feel good when they do. If they don’t, let them know they are still accountable for getting the job done. Don’t allow an employee to present a problem without suggesting a solution. Eventually, everyone will be more accountable for their work and for improving their performance.

• Managerial positions
• Prospective law enforcement officers
• Jobs that provide access to consumer credit card applications
• Positions in the state Justice Department
• Jobs in which the employee would have access to confidential information
• Positions where the employee would be a signatory on a bank or credit card account
• Jobs in which the employee would have access to cash totaling $10,000 or more

The U.S. Equal Employment Opportunity Commission held hearings in October around the issue of employee credit checks, which some employers see as a signal that additional legislation could be coming.

One concern is that more people have experienced damaged credit ratings in the wake of the economic crisis. However, employers’ groups said that it is wrong for the government to infringe on the ability to screen out applicants who have the potential to damage or bankrupt a company.

In addition, the patchwork of statutes being enacted by various states makes it more difficult for national companies to stay in compliance, say employer representatives.

Experts say that it’s important for employers to be extremely consistent in how they apply employee credit screening policies. It’s also a good idea to talk to prospective employees about any problems revealed in credit reports.

• There’s the case of the bookkeeper who was charged with stealing over $100,000 from a concrete company. In a plea deal, she pleaded guilty to embezzling $5,000, got a 45-day sentence and was ordered to pay $50,000 in restitution. Then she went to work for a department store and stole $17,000 worth of merchandise and gift cards. Maybe that’s how she planned to pay the restitution.
• Another bookkeeper took trips, bought expensive cars and had plastic surgery – while making about $20,000 in salary. Still another worked for a couple for 30 years, taking money all the while. His $1 million theft was only found out when the business owners wanted to sell the company and retire.

Unfortunately, these types of fraudulent activities by employees are not unusual. We just don’t hear about the thousands of incidents that go away quietly. Many stories are never reported to the press, because they are not reported to the police. Whether out of embarrassment or fear of harming their business, many companies deal with these crimes on their own.

But the publicity can be helpful to other small businesses, since they are the most likely to be victimized. With one person responsible for writing checks, making bank deposits and reconciling statements, fraud is much more likely. Splitting these duties reduces the risk, but small companies often cannot afford the extra personnel. Hiring an outside bookkeeper is one way to alleviate the problem.

Why do employees steal? They usually have three traits: opportunity, need and rationalization. It could look like this: Your cashier figures out a way to take money that you’ll never notice. He’s behind on his rent and needs cash. And besides, he works really hard and you don’t pay him enough. He gets away with it, so he does it again. And again. And before you know it, you’ve lost $20,000. You never imagined this person would do anything like this. Chances are, he never has before.

If your company is victimized by an employee, reporting the crime can protect other businesses. When employees are properly screened prior to being hired, a criminal background check will reveal any previous convictions. And when you’re ready to hire, make sure to run pre-employment background checks and credit checks—especially when you’re hiring a bookkeeper, cashier or any other position that has access to cash or bank information.

• Create a positive environment: Promoting open communication, positive feedback, and friendliness can produce an overall feeling of positivity among your company. Relax the rules and allow comfortable clothing. Encourage employees to express their personalities in their attire and work environments. Celebrate happy occasions more often.
• Open it up: Ban the private office in favor of group work areas. Provide private areas with comfortable couches for brainstorming sessions.
• Be family-friendly: Provide quality onsite day care. Absenteeism will decrease, and satisfaction will increase among staffers with kids.
• Promote play: Engage staff in activities such as 5K runs at lunch, mountain biking or surfing, or occasional bowling nights. If you’re close to the ocean, provide surfboard parking so employees can go surfing at lunch. Install a bike rack and buy a few used bikes for anyone to use. If you’re near a trail, encourage walking meetings. Close down for a day and go on a field trip. Install showers so employees can get their exercise before work or in the middle of their day.
• Make it meaningful: If your company gives back to charities, involve employees in making the decision about which groups to support. When their efforts support causes they believe in, their efforts to do well increase. When their work is meaningful, people are much more engaged in the outcome.
• Respect everyone: Respect comes in many different forms. From soliciting their ideas, to showing appreciation, to allowing employees to listen to music as they work. You can even provide the ear buds.
• Trust: Communicate expectations, but then trust staffers to meet their deadlines by working however how they work best. Give them the freedom to meet their objectives, but do check in to see if they need help.
• Do the right thing: If an employee needs time off for personal reasons, or if they need a more flexible schedule to care for kids or a parent, work with them. Flexibility doesn’t hurt the bottom line, but it goes a long way to creating loyal employees.

Allowing employees to be themselves means they will bring their best selves to work every day. By promoting respect, play, freedom and trust, yours can be a company that people – even you – want to work for.

If you’re hiring, you’ll likely see all types of applicants

Three Types of Employees You Don’t Want to Hire

• The first type to avoid is the employee who performs at the “just enough” level. They do just enough work to get by. They come in exactly on time, and leave just when the clock says their shift is over. They contribute just enough to the company culture, share just enough ideas and give just enough of themselves to help out fellow employees. While one of these types on staff probably won’t hurt your company, can you imagine if you had an entire “just enough” team? Avoid hiring this type of person.
• Next, you might see the entitled type of employee. You might think you’re doing them a favor by hiring them, but their opinion is quite the opposite. They feel you owe them a job, and you’re the one who’s receiving the favor of them showing up for work. Soon, you’ll hear that they are not being paid enough, or that their job description doesn’t cover the tasks you’re asking them to perform. They may expect special treatment. Some view benefits like paid sick leave as just like vacation, and therefore theirs for the taking—whether they are sick or not.
• The constant complainer is another potentially burdensome employee. When interviewing, ask lots of questions about why the applicant left his or her previous job, what they liked and did not like about it, the company, their supervisor and fellow employees Look for clues, which might range from negative comments about a previous boss or company, or even “joking” about the dress code. And ask about how much interaction they had with customers. An interviewee who complains about customers has his or her priorities in the wrong order.

While you might not discover these toxic types of employees until after they’ve been hired, if you can avoid them, you’ll be glad you did. And remember, employee pre-screening is a must to uncover any credit issues, an undisclosed criminal background or discrepancies that can indicate a potential problem employee.

Employers often struggle with whether or not to buy gifts at the holidays for employees and customers

A new survey by Staples, the office supply store, reveals that it could be worth the time and trouble to reward employees and show appreciation to customers at the holidays: because they like them. Even small gestures impact motivation and productivity among employees.

In the survey of 215 employees from companies of various sizes and across industries, 60% said they like their company more if they received a holiday gift. A huge majority (75%) said gifts improved employee morale, while one-third said they improved employee productivity.

As far as corporate gifts go, one in three respondents said receiving a gift from a business made them want to do business with them again in the future.

How can employers handle this without spending too much, or alienating customers and employees with the “wrong” gift? Here are some tips:

• Plan early so you can personalize gifts with your logo, or come up with just the right gift for the right price. Waiting until the last minute almost ensures you will be forced to spend more money, make bad choices or be stuck with whatever’s left at the warehouse store.
• Food is almost always appreciated. However, tread carefully when choosing food gifts. Keep diet and religious restrictions in mind. You can’t go wrong with healthy and fresh foods, such as fruit, or when you give a variety of foods in a basket so each recipient is able to enjoy something.
• Employees often enjoy electronics. Depending on your budget, you could choose to give MP3 players, headphones or tablet PCs.
• Gift cards are general enough to be enjoyed by nearly everyone.

Do you give your employees and customers gifts? Do you plan to do it this year? If not, why not?