Filed under: Consulting, Human Resources, Job Descriptions, Landrum Lagniappe, Notes from Jim, Uncategorized | Tags: "human resources consulting", employees, Human Resources, internship, Job Description, Job Performance, Supervisor, Training
post written by: Jim Guttmann, SPHR
Human Resources Manager, Landrum Professional Employer Services
Internship programs have become popular with many employers. Internships can be a valuable way for students to gain workplace skills, especially at a time when employers are concerned with the lack of skills among new entrants to the workforce. These programs have the potential to represent a “win/win” situation for both parties. The employer may benefit from reduced recruiting costs, and the student may offer a fresh perspective and objective viewpoints that stimulate creative problem solving. In turn, students gain a realistic perspective of the working world, marketable work experience and valuable business contacts.
These programs are generally categorized as (1) full or part time, (2) paid or unpaid, and (3) credit or non-credit. Students typically choose their internship based on the content, work objective and project to be completed. Most students participate to gain practical work experience in their chosen career fields (rather than simply handling manual tasks like filing and copying). Arrangements are typically short-term lasting just one or two semesters in length, and the average intern spends approximately 20-25 hours per week in work activities.
As positive as this seems, there are nevertheless some pitfalls to avoid. Work/Study and internship arrangements need close monitoring to prevent an unsatisfactory outcome. This is because these programs sometimes lack structure and the assignments provided are not challenging enough, or the direct supervision provided is inadequate. When this occurs students may have difficulty accomplishing their work and learning objectives, which can result in dissatisfaction on the part of the student and/or the employer.
Students can also become dissatisfied with the lack of a formal evaluation of their performance. When constructive feedback is given, the internship experience can be used to help the student identify weaknesses and to begin to correct them before starting regular employment. The structured feedback is an important part of the overall learning experience. 
Though students may sometimes be willing to trade work for the opportunity to gain experience, an employer must consider applicable wage and hour laws when designing the internship program. The U.S. Department of Labor (DOL) has recently released a new set of standards to help employers determine whether interns must be paid minimum wage and overtime under the Fair Labor Standards Act (FLSA) for their services.
These new standards apply only to those interns working for “for-profit” private sector employers. A DOL fact sheet provides a list of six criteria that must be applied when determining whether an internship should be considered “training” (when the intern is not paid), rather than “employment” (when the intern is paid). To be considered as training, all of the following conditions must be met:
• The internship is similar to training that would be given in an educational environment.
• The internship experience is for the benefit of the intern.
• The intern does not displace regular employees but works under close supervision of staff.
• The employer that provides the training derives no immediate advantage from the activities of the intern. (In fact, its operations on occasion might be impeded).
• The intern is not necessarily entitled to a job at the conclusion of the internship.
• The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
Unless all of these factors apply, an employment relationship does exist under the FLSA and the minimum wage and overtime provisions do apply to the intern.
It is important to note, however, that Nancy J. Leppink, the Acting Head of the Department of Labor’s Wage and Hour Division, confirmed that the agency is “cracking down” on unpaid internships. According to Ms. Leppink, “If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law.”
The DOL plans to continue reviewing the need for additional guidance on internships in the public and nonprofit sectors. For further information, visit the DOL’s Wage and Hour Division web site or call the agency’s toll-free information and helpline, 1-866-4USWAGE (1-866-487-9243).
In the meantime, here are some suggestions for employers on what to do when implementing an internship program.
• Develop a detailed program that fits the specific needs. Determine whether the intern should and will be compensated, the workspace the intern will use, and what type of supervision will be provided. If the internship is sponsored by the educational institution, the company needs to coordinate with the school to determine any specific requirements mandated by the institution.
• Implement an orientation program that defines the intern’s role. The intern should be informed what training is provided, what projects will be assigned and who he or she reports to. A clear definition of the intern’s role will limit any questions on his or her status within the organization (and may limit liability if an organization intends to provide the internship on an unpaid basis). Additionally, all corporate policies and procedures should be reviewed with the intern during orientation, including safety requirements and nondisclosure and non-compete agreements.
• If the internship is paid, any “time-keeping” requirements should be discussed during this meeting. In today’s world, many organizations use virtual employment techniques outside of the workplace. An intern should be instructed in what constitutes working hours so proper compensation can be determined and the company is not exposed to liability under the FLSA.
Finally, due to the variety of laws and legal issues that might arise, it is recommended that internship programs be reviewed by legal counsel prior to implementation.
Jim Guttmann, SPHR
Filed under: Corporate Culture | Tags: "corporate culture", "culture continuum", "employee focus group", "employee survey", "human resources consulting", employees, focus group, Human Resources, strategic vision
post written by: Melissa K. Miller, PHR, Strategic Management Specialist
Landrum Human Resources, Inc.
“Culture eats strategy for breakfast.” Wow, were truer words ever spoken? This powerful quote is often attributed to management expert Peter Drucker. The concept is a no-brainer really, but seeing it in such plain language gives it the punch it deserves. The most elegant strategic vision is no match for a lousy corporate culture.
Do you know where your organization stands on the culture continuum? Many times managers assume they understand the issues that are important to their employees. Not knowing what they don’t know, managers often set about to solve “the problem.” They may even administer a generic employee satisfaction survey to measure the suspected problem. If the manager’s assumption is wrong or if the survey doesn’t ask the right questions, then the real problem may go completely undiagnosed.
Ask employees open-ended questions to find out what is really on their minds before acting. Conducting employee focus groups is a great way to get people talking. Here are a few ground rules to help employees open up:
• Create a “safe” environment for employees. The meeting space should provide privacy and the focus group should be led by a trustworthy facilitator. The best way to ensure candid discussion is to bring in a trained facilitator from a respected organizational development consulting firm.
• Use random selection to identify focus group participants (unless all employees are participating). Ensure that the participants understand the random selection so they don’t feel targeted.
• Keep groups as homogeneous as possible when it comes to position. In other words, don’t group line employees with supervisors, or supervisors with upper level management, etc.
• Give everyone a chance to speak up by keeping each group small with no more than fifteen participants.
• Encourage an attitude of respect and tolerance for the opinions of others within the group.
• Ensure that employees understand that management will hear the voice of the group, not the individual. What happens in focus group stays in focus group, as the saying goes, and no one should discuss the focus group conversation with anyone afterwards.
Acting precedes asking in the dictionary, but in the case of employee satisfaction, asking should come first. Acting on inaccurate assumptions can be costly and detrimental to employee trust levels. For example, a company owner came to us saying, “We’re looking at across the board pay increases to improve employee morale.” Focus group data revealed that dissatisfaction with pay rates was not at the top of the list; actually, it wasn’t much of an issue at all. The real issue was a culture that tolerated supervisors who treated employees with disrespect.
The focus groups provided actionable data which allowed the client to fix the issues that were most important to employees and save tens of thousands of dollars in arbitrary pay raises. By asking and acting on employee feedback, the client successfully affected a cultural shift that supported their strategic vision.
Melissa K. Miller, PHR
As Strategic Management Specialist for Landrum Human Resource Companies, Melissa is responsible for facilitating inter-departmental process improvement, strategic planning and capacity management. For the clients of Landrum Consulting Services, she leads Strategic Planning Retreats and Focus Groups. Melissa is certified as a Professional in Human Resources (PHR) by the Human Resources Certification Institute.
Filed under: Health Reform, Healthcare Tax, Human Resources, Landrum Lagniappe, Uncategorized | Tags: CPA, employees, Health Reform, Healthcare Tax, Human Resources, PEO, tax
2010 Hire Act: Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers
post written by: Sharee Rich, CPP
Controller, Landrum Human Resources.
On March 18, 2010 a new law went into affect to provide employers with a tax credit for hiring workers who were previously unemployed or only working part time. As with any legislation, there are specific qualifications for both the employer and employees. A list of these qualifications can be found on the IRS Website.
Under the HIRE Act, employers who hire qualified individuals between February 3, 2010 and December 31, 2010 may be eligible for (1) an exemption of the 6.2% Social Security payroll tax contribution for that individual, and (2) an additional tax credit of up to $1,000.
The payroll tax exemption applies to wages paid from March 19, 2010 through December 31, 2010 to a “qualified employee”. Employers eligible for the 6.2% payroll tax exemption will be able to begin claiming the new tax incentive on a revised employment tax form (pending issuance by the IRS) for the second quarter of 2010. Even though the exemption begins on March 19, 2010, employers won’t lose out, because the amount of first-quarter wages that would have been forgiven will be allowed as a credit for the second quarter.
The reduced tax withholding will not affect the employee’s future Social Security benefits, and employers would still be responsible for withholding the employee’s share of Social Security taxes (as well as income taxes). The employer and employee’s shares of Medicare taxes would also still apply to these wages.
For each qualified employee retained for at least one year, employers may claim the “Retained Worker Tax Credit” which is equal to the lesser of $1,000 or 6.2% of such employee’s wages for the one year period. This retention credit can first be claimed on employer’s 2011 income tax returns. Note: For workers that would otherwise be eligible for the Work Opportunity Tax Credit, the employer must select one benefit or the other for 2010. There is no double dipping.
In order for employers to claim HIRE Act Benefits, including a payroll tax exemption or a new-hire retention credit, a qualified employee must complete and sign the affidavit. Form W-11 is available on the IRS Website.
On May 25, 2010, Landrum Human Resources and O’Sullivan Creel hosted a webinar on the HIRE Act and other new healthcare laws. Watch it now: Realities for Small Businesses Under New Healthcare Laws
Filed under: Consulting, Customer Service, Human Resources, Landrum Lagniappe, Notes from Tom, Risk Management | Tags: "small business owner", Communication, employees, Human Resources, PEO, safety, safety officer, Training, Trust
post written by: Tom Folkers, Business Development Manager, Landrum Professional Employer Services
Ask yourself, “How many safety officers do we have on the payroll?”
If you’re a small business owner you’re first response may be, “We’re too small to have a Safety Officer.” Or maybe you’re thinking it is just one of the many hats you wear.
As the owner of a specialty contracting firm for thirty years, I never figured people got paid enough to lose a finger or an eye, or that it made sense for anybody to spend the day in the emergency room. That’s why everybody, from their very first day, was empowered to take on at least some of the duties of a safety officer.
Part of everyone’s orientation at Folkers Window Company went something like this:
“Everybody that works here has the authority and the responsibility to stop an unsafe procedure. Nobody here gets paid enough to sacrifice safety for getting the job done. If you see something that doesn’t look right, stop and talk about it. Call the office for more equipment or more people, if that’s what it takes to get it done without someone getting hurt. Don’t resume that part of the job until it can be done safely.”
One day walking through the shop, I heard a radial arm saw screaming and screeching through a formed sheet of aluminum. A new employee, who I had just “empowered” with the safety orientation, was trying hard to make a good impression by getting a lot of work done. When asked what was making all the noise, he said the blade on the saw was wobbling because the bearings needed to be replaced. With visions of blade fragments crashing through his face shield, or a ragged edge of sheet metal piercing an artery, I unplugged the saw and told him to get with the production manager to replace the bearing (or the whole saw if necessary). With an incredulous look he said, “Wow, you really mean it.”
“Mean what?” I asked.
“You really mean all that stuff about safety.” He continued to explain that he had heard safety speeches everywhere he had ever worked, but he never really believed that if it came down to actually stopping production those safety speeches would really hold up.
Any number of our long-term employees would have done the same thing; it just happened that I was the first to hear something out of the ordinary. The lesson in that experience is that a culture of safety does not happen from one brief speech during an orientation. The culture grows by example and new employees learn from the people they work with, even the boss.
Empower each member of your team to be a “Safety Officer.” If your company is large enough to actually have a designated safety officer, that’s all the better. As a credentialed professional, they will be able to strategically create a safe environment and implement systems to avoid costly OSHA penalties. However, no one person, or even several people, can watch everybody all the time. So make sure everyone “has the authority and the responsibility to stop an unsafe procedure.”
Landrum Human Resources offers Safety training classes and many other professional seminars; click here to learn more.
Tom Folkers, Business Development Manager
Filed under: "Human Resources Certification", HRCI, Human Resources, Landrum Lagniappe, Notes from Jim | Tags: "Human Resource Manager", "Human Resources Certification", "human resources consulting", Communication, employees, HRCI, Human Resources, PEO, Trust
post written by: Jim Guttmann, SPHR
Each passing year seems to bring new employment laws for employers. As a result, virtually everyone seems to understand the importance of having access to a competent Human Resources Manager in today’s work environment. These are the folks you rely on to sort out these numerous legal changes; the ones who implement procedures to ensure you stay in compliance with the myriad of Federal, State and Local regulations. So, since we hopefully agree that these individuals are important to your organization’s success, how do you find a competent HR Manager?
First and foremost, this person has earned a certification as a human resources professional by the HR Certification Institute (HRCI). Are there competent HR Managers who are not certified? Of course; however, those who are certified carry the distinction of meeting strict education, experience and testing requirements in core HR principles. In other words, holding a certification designation through HRCI demonstrates that the individual should know what they are talking about! For more information on the HRCI and its requirements for certification, click here.
Beyond a good understanding of the overall HR Body of Knowledge, what interpersonal competencies are demonstrated by those most capable? Well, these are ones that made my top 10 list:
1. Confident but Humble. They are confident in what they know and this confidence has grown from years of education, training and experience. However, they are also humble enough to realize they can’t possibly know everything as it relates to employee relations. If they “know that they don’t know,” they will seek the right answer from a colleague (i.e. subject matter expert) or from other competent and reliable resources.
2. Quick Thinker but Can Look Ahead. They have the ability to think on their feet when the need arises and they are generally good at “reading people.” On the other hand, they are also capable of looking several steps ahead in terms of various actions and likely consequences of those actions. Like a Master Chess Player who can see several moves ahead and plan accordingly, they don’t get so caught up in the emotion of the immediate situation that they can’t see the long-term implications of their actions. With those skills, their advice is usually very sound.
3. Good Communicator. They can communicate well with all levels of people within an organization because they understand they may need to adapt the delivery of the message to the recipient’s level of comprehension. Or, to use a football analogy, a pass from the quarterback is a good one only if the receiver catches the ball. Effective HR Managers understand and relate well to just about everyone regardless of status in life, diversity of background or place within the organization. And it doesn’t hurt to have a healthy sense of humor!
4. Does the Right Thing. When providing advice, they consider all sides of the issue and work toward doing the “right thing.” They look for Win/Win situations. They believe that what’s good for the Company can be good for Employees, and vice versa. They don’t view the interests of the Company and those of the Employee to be mutually exclusive. They are “Pro-Company” and “Pro-Employee.”
5. Flexible to the Needs of the Customer. They understand that sometimes there is more than one way to get the job done. However, in doing so, they will never offer advice that will compromise their ethical standards. They carefully listen to the customer and seek to understand the needs of the business. They try to see the issue through the customer’s eyes and find solutions within those parameters.
6. Genuinely Likes People. They believe that most folks are inherently good and have the best of intentions. After all, that attitude is likely what originally attracted them to the HR profession. They believe that employees should be treated in a fair and consistent manner. They have compassion for people but they understand they can’t get too emotionally involved in every situation. They also believe in the value of “tough love” and that folks should be held accountable. They believe everyone should be treated with dignity and respect, even in the unfortunate circumstances when they must discharge an employee.
7. Open to Learning New Things. Due the fact that employment law and the world of employee relations is constantly changing, they simply must have this quality to be successful. They also realize that what was acceptable and/or worked well years ago may no longer apply today.
8. Doesn’t Mind Confrontation. They understand that dealing with difficult situations is part of the job and are often very good at diffusing matters and getting others to calm down and think rationally. They don’t see confrontation as necessarily a bad thing; rather, as an opportunity to improve communications and reach an acceptable resolution for all concerned. They are often viewed as showing “grace under pressure” or being as “cool as a cucumber”.
9. Likes a Challenge. They don’t shy away from challenges and persevere in the face of adversity even if the issue takes months to resolve. Like their genuine interest in people, this is another area that likely attracted them to the HR profession. They believe there is a solution to almost any employee relations problem.
10. Natural Leaders. They view themselves as Leaders within the organization, but not because they think they are better than anyone else. They hold themselves to a high standard of quality and ethics, and believe their actions should lead by example. They appreciate this role and the contribution they offer to the success of the organization, and they take that responsibility seriously. They are good team members.
At Landrum Companies, we have many employees who have met the highest standards in the industry by obtaining certifications in such areas as human resources, risk management, claims handling, and payroll and employee benefits administration. For more information about our team of highly qualified Landrum HR Professionals, please visit our website.
Jim Guttmann, SPHR
