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robintek

Jan 15
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Six Small Business Scams To Avoid

By Risk Management Bulletin

Federal Trade Commission and IRS agents encounter dozens of small business scams each year. Know the risks and steps you can take to protect your company in 2018.

1. Tech Support Calls

The caller claims to represent the Global Privacy Enforcement Network or Microsoft and says that your email was hacked or that your computer contracted a serious virus and can be fixed for a fee. Computer companies will not reach out to you via a phone call, but scammers will use this scam to access your credit card or other personal information.

2. Phishing and Malware Emails

An email appears to originate from a legitimate business and asks you to verify personal information or it states that you need a critical security upgrade. Known as phishing emails, these scams can deliver harmful malware to your computer and compromise your business. Only open emails from trusted sources as you protect yourself. Mark suspicious emails as spam or delete them.

3. Directory Listings

A consultant says she can list your business in an online directory for a fee or that you owe a fee to resolve a problem with your existing Manta, Google or other online directory listing. You can claim, manage and edit your online directory listings yourself online. This directory listing scam is a ploy to gain your credit card information. Decline the help and hang up the phone as you protect your business.

4. Fake Invoices

You receive an invoice stating that you owe money for office supplies, advertising or another expense. If you did not order these items or already paid the invoice, you may disregard the fake invoice. Be sure to keep excellent records so you and your staff can dispute any fake invoices.

5. Loan Robocalls

To help you fund your business, a caller will offer you a loan with excellent interest rates or offer to lower the interest rate on an existing loan. These scams gather your personal information, so decline the offer and only pursue legitimate small business loans.

6. IRS Fraud

Someone calls your office and says that your small business faces legal action because you owe thousands of dollars in overdue taxes. The IRS will always mail communications about overdue payment. The scam caller simply wants your social security or credit card number to steal your money or identity.

These six scams are only a few of dozens that could affect your small business. Understand potential scams and train your employees to recognize and avoid them. Purchase business insurance, too, to protect your business from liability if you do happen to become a victim.

Jan 15
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Cost Of Cyber Breaches For Businesses

By Cyber Security Awareness

A cyber breach occurs when someone gains access to information they should not have. In our age of digitization, all businesses face cyber attack risks that could halt operations temporarily or permanently. Discover the cost of a cyber breach and ways you can protect your business.

Calculating the Cost of Cyber Breaches

The Wall Street Journal estimated that cyber crime in 2014 cost U.S. businesses $100 billion. That figure could top $2.1 trillion worldwide by 2019. Consider these nine common cyber breach costs.

1. Loss of Customers – A 2016 study found that 76 percent of consumers would stop doing business with a company that suffered repeated data breaches.

2. Business Disruption – Business process failure and lost employee productivity account for almost 40 percent of the total cyber attack costs. This figure does not account for lost ideas or blueprints. Additionally, your business could lose half of its annual revenue if a cyber attack occurs during the busy season.

3. Breached Client Records – Lost or stolen records that contain sensitive or confidential information can cost a company more than $221 per record.

4. Notification Costs – PCI, HIPAA and other regulations require your company to notify each individual whose information was affected by a cyber attack. The average notification costs in 2016 totalled $0.59 million.

5. Public Relations – To repair your reputation, expect to spend significant time and financial resources preparing and distributing media resources, informing victims, employees and shareholders about ongoing breach repair efforts, and acquiring new customers.

6. Legal Costs – Major retailers have paid as much as $10 million to settle class-action lawsuits filed by consumers. Your costs may not be that high, but you could face hefty legal fees in addition to your legal defense costs.

7. Regulatory Fines – After a breach, your business could face fines from several regulatory agencies, including the Federal Trade Commission, Federal Communications Commission,  Payment Card Industry Data Security Standard or Health and Human Services.

8. Identity Theft Repair and Monitoring – The cost of identity theft repair and monitoring averages $10 per victim.

How to Reduce Cyber Attack Risk

Unfortunately, your business cannot protect itself 100 percent from a cyber breach. However, you can take steps to reduce your risk.

First, implement data loss prevention technologies, including encryption. Then train employees to protect information and systems. You should also prepare an incident response plan and team as well as a business continuity management plan. Purchase cyber insurance, too, since it can cover financial loss.

A cyber breach is expensive and could break your business. Contact your insurance agent for specific tips on how you can protect your company.

Jan 15
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HOW TO BUILD A ‘LEARNING ORGANIZATION’

By Other

According to Wikipedia, “a learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.” This concept was popularized by Peter Senge in his excellent book The Fifth Discipline. No, it’s not an old rock group; Senge ran a think tank at MIT Sloan School of Management. His Fifth Discipline Fieldbook provides a manifesto that companies can use to build a learning organization.

According to Senge, there are five main aspects to a learning organization. Let’s discuss how each of those might apply to the HR equation.

Systems Thinking. This means that HR doesn’t operate in a bubble, but rather in concert with other aspects of the system. Understand how HR affects everything in your business from operations to sales, marketing, customer support, and so on. A strategic HR manager will take a cross-disciplinary approach when it comes to their HR practices, training, etc.

Personal Mastery. This means you commit yourself to the process of learning. How many books have you read in your area of expertise during the last year? Do you receive trade publications, attend trade conferences, network with your peers, and look for additional learning outside of your expertise? Do you make sure everyone else at your company is engaging in personal mastery?

Mental Models. Basically, this means the assumptions or framework in which each of us operates. To become a learning organization we have to challenge these models, and HR must be part of this conversation. A classic mental model in the HR arena is the management of performance evaluations. In most organizations, this model is more than 50 years old, meaning that it’s time to retire it. What new model can you develop that will generate integrity, trust, and better performance?

Shared Vision. All business authors stress the importance of this factor. Jim Collins emphasized it in his Good to Great book, as did Senge in The Fifth Discipline. How is HR helping to push out and market your organization’s vision? How are you making it “visual”? For example, if I walked into your company would I know what your vision is without having to ask about it? If not, start working with the marketing department and engage in some internal” branding” of the vision.

Team Learning. As the saying goes, none of us is as smart as all of us. How can we create vigorous dialogues in which we all learn from each other? I encourage you to go to the five-minute video I did on a very powerful team learning process that anyone can facilitate. In growing your business as a “learning organization,” you’ll probably need to deal with obstructions. Opposition might come from individuals trying to protect their turf, one department not wanting to communicate with another, a lack of empowerment among leaders or employees — or an organization that’s just too big to share information fully (Senge suggests a cutoff point of 150 employees).

Cultural dimensions can also impede the learning process. What barriers have you identified to building a knowledge organization? What strategies do you have to get past these blockages? If you have yet to do so, I encourage you to pick up a copy of Senge’s The Fifth Discipline as well as The Fifth Discipline Fieldbook.

Jan 15
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CASE SETS WORKERS COMP SETTLEMENT RECORD

By Workplace Safety

In 2004, a California carpenter fell 20 feet from a scaffold, suffering a head injury that resulted in brain injury — and led to a structured settlement of $8.9 million (the highest on record in the Golden State).

According to attorney Christopher Asvar, his client is suffering from a variety of injury-related symptoms ranging from multiple personality disorder, depression, and psychosis to cognitive impairment and anxiety attacks that could last for the rest of his life. Asvar won the settlement despite the fact that CT and MRI scans showed no signs of trauma to the client’s brain, and medical experts described his disability as “mild.”

This decision speaks for itself — and it carries a warning to every business.

Jan 15
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New Year Safety Resolutions For Your Business

By Unregistered

A new year has arrived, and you’re probably busy preparing your business for a successful year. Add safety to your checklist. According to the Bureau of Labor Statistics, employees suffered roughly 2.9 million workplace injuries or illnesses in 2016. Implement several safety resolutions in 2018 as you create a safe work environment.

Search for and Eliminate Hazards

Schedule a workplace inspection, and look for potential hazards.

  • Evaluate the layout, condition and safety of every work area.
  • Identify potential electrical, chemical, fire and other hazards, and decide how to address and eliminate those risks.
  • Test tools and equipment to ensure they operate properly and safely.
  • Schedule regular maintenance to ensure safety precautions remain a priority.
  • Inspect the personal protective equipment and verify that everyone is using it properly.
  • Watch how employees work and note any unsafe behaviors.
  • Schedule regular inspections throughout the year.

Involve Employees

Your business is most likely to maintain its safety standards when you involve every employee from supervisors to new hires. To keep your employees involved, consider several tips.

  • Invite suggestions for safety precautions, and take those suggestions seriously.
  • Ask employees to brainstorm techniques that improve safety.
  • Maintain an open door policy that encourages employees to report safety concerns or violations.
  • Encourage all employees to participate in training new hires on safety precautions.
  • Form safety committees to perform regular safety checks, investigate reported concerns or violations and promote safety in their individual departments and throughout the workplace.

Implement Training

Whether your business performed regular safety training in 2017 or dropped the ball on this precaution, you can implement training now and during the new year.

  • Check and follow OSHA training requirements.
  • Utilize technology such as engaging videos, computer games or online quizzes to enhance and expand the training options you offer your staff members.
  • Use interactive training techniques like demonstrations and hands-on experiences.
  • Give every employee the opportunity to participate in training discussions and to ask questions.
  • Include managers and supervisors in the trainings so they know the most current safety regulations, processes and procedures and feel comfortable teaching these safety essentials to the people they supervise.
  • Create a schedule for the rest of the year that includes safety meetings, trainings and inspections.

Reward Safe Behavior

Encourage safety when you offer rewards. With a prize or recognition on the line, your team may amp up their safety consciousness and work harder to ensure everyone follows procedures. Plus, friendly competition between departments can improve morale and engagement among all your employees.

As your business prepares for success in 2018, implement several safety resolutions. For more tips and ideas on how to teach, prioritize and maintain a safe work environment, talk to your insurance agent.

Jan 15
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FOUR WAYS TO SIMPLIFY HANDLING COMP CLAIMS

By Workplace Safety

When it comes time to work with an adjuster on a Workers Compensation claim, you can make life easier for everyone concerned by following these guidelines:

Get the main contact involved in the process from the get-go and be sure that they provide all the information the adjuster needs: The claimant’s personnel file, documentation of the injury, eyewitness testimony, etc. Get this information to the adjuster as soon as possible, preferably within an hour after his or her initial inquiry — or at least on the same day.

Be sure to have a specific occupational clinic or physician treat the claimant — this will facilitate the process and eliminate any possible uncertainty about dealing with an unfamiliar health-care provider. Work with a clinic that understands your business and can recommend options for light activities the client can perform, rather than having to take them off the job entirely.

If you have any questions about working with adjusters to expedite claims, we’d be happy to help!

Jan 15
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Do You Need To Purchase Workers’ Compensation For Seasonal Workers?

By Workplace Safety

Seasonal employees add value to your company and remain an asset for your business. You may wonder, though, if you must provide these temporary employees with Worker’s Compensation. Understand the law and your responsibility to your employees as you maintain a safe workplace environment.

Why Hire Seasonal Workers?

Temporary employees can provide numerous benefits to companies any time of the year. You may hire these employees to:

  • Cover duties when a regular employee takes sick leave or a vacation.
  • Meet temporary production booms.
  • Perform seasonal duties such as snow removal or landscaping.
  • Diversify your workforce.
  • Assess available talent before you expand operations and hire more employees.

What Dangers do Seasonal Workers Face?

You may provide safety training to all your employees, but this training might not be adequate for your seasonal workers. They may forget safety procedures, transfer to a department that features unfamiliar equipment or simply receive in injury as they perform their assigned duties. Common injuries among seasonal workers include:

  • Overexertion while lifting, pushing or holding items
  • Strain from improper carrying posture
  • Repetitive injuries from repeatedly performing the same task

If an employee suffers a job-related injury or illness, he or she can file a Workers’ Compensation claim.

What is Workers’ Compensation?

Workers’ Compensation is insurance that covers occupational illnesses or injuries. It will pay for medical treatment and other expenses, including lost wages, rehabilitation, job training and temporary disability, as the injured or ill employee recovers.

Must you Provide Workers’ Compensation to Seasonal Employees?

The United States Department of Labor oversees Workers’ Compensation. However, individual states determine the specific Workers’ Compensation requirements for businesses in that state. Familiarize yourself with your state’s laws as you determine your specific Workers’ Compensation obligations.

Also, remember that you are ultimately responsible for the safety of your employees. This requirement generally means you must provide Workers’ Compensation for every worker whether they work full-time hours year-round or only seasonally.

If you are required to provide Workers’ Compensation for seasonal workers but don’t and someone is injured or becomes ill, you could face fines and court costs. Plus, you’ll still be responsible to cover the costs associated with treating the work-related injury or illness.

How do you Purchase Workers’ Compensation for seasonal Workers?

Discuss your specific hiring practices with your insurance agent. He or she will recommend the right insurance products, including Workers’ Compensation, for your business and ensure you purchase policies with adequate coverage for all your employees.

As you meet your staffing needs, ensure you purchase the right insurance for all your employees. It’s important for all your employees, including seasonal workers.

Jan 15
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HR AND RISK MANAGEMENT

By Risk Management Bulletin

We usually think of HR helping to avoid employment practice risks. We want to make sure not to be trapped in wage and hour claims, discrimination and harassment litigation, and wrongful termination lawsuits. Then there’s leave management, including ADA and FMLA. Although these are the major issues in HR risk management, HR is also instrumental in helping with other aspects of managing risk, such as:

Workers Compensation — Insurance companies don’t pay claims, they finance them. When you suffer a Comp claim, your experience modifier (“mod”) increases to repay the claim during a three-year period at a high interest rate. This can be the most expensive money that your company borrows. That’s one reason we recommend that employers do everything possible to get employees returned to work. Has your HR person helped develop a comprehensive return-to-work program?

Cyber Liability — To what extent are poor employee practices leaving your information systems vulnerable? To what degree is HR working with IT and security to make sure that new employees receive proper orientation and terminated employees are managed effectively from a security standpoint? For example, what precautions have you taken to have mobile devices returned, passwords retrieved, trade secrets protected, etc.? To what degree does HR make sure that telecommuting employees don’t expose the company to cyber risks?

Social Media — One element of cyber liability, risk from social media, is expanding every day. Has HR made it clear who owns the company Twitter account? Have they set social media guidelines? Do they know how to respond to any perceived risks, such as negative employee postings? Privacy exposures — Whether it’s medical records (HIPAA), Social Security information, financial information, etc., employees can both generate exposures and be subject to them.

Disaster Planning — One disaster can wipe out your company overnight. Whether it’s a tornado, hurricane, earthquake, flood, or a brutal snowstorm, the news is replete with the devastating impact of such events. To what degree has HR helped generate a plan to protect the company in the aftermath of a disaster?

Employee Benefits — With a growing number of ERISA claims and a rapidly changing benefits landscape, HR is thick in the mix. Who is responsible for staying on top of the emerging benefit trends?

Perhaps the greatest risk that HR can help with is growing the business: Providing strategic advice about what your company needs for growth and how to move in this direction. At smaller companies, it’s difficult for the HR executive to wear all these hats. In this situation, many businesses have partnered with their insurance agency or other professional providers of risk management services.

Jan 15
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USING OUTSOURCED WORKERS

By Risk Management Bulletin

That Works has an extensive report and checklist about what’s known as the “contingent workforce.” This includes temporary employees, leased employees, and more. Here are some questions to consider in these relationships:

Who is responsible for what? — As with any arrangement, it’s important to study the contract. For example, if an employee isn’t working out, who should be responsible for firing them? Consider every aspect of managing personnel from hiring through performance management and retention to termination.

How much are you paying to outsource various HR functions? — Whether you’re outsourcing because you don’t have the time, expertise, or desire to do the job in house, you’ll have to pay for someone else to do it for you. What’s the competitive rate? What about the provider’s experience and results? Do your homework and interview at least a couple of providers and their clients before you choose one.

What is the provider’s hiring process? — They should be able to show it to you in writing. If they can’t, pick someone else. Make sure that the provider does proper skill testing, character assessments, background checks, extensive interviews, immigration checks and pre-hire physicals.

What references can the provider offer? — Don’t just ask for references, get the names of companies who have used the vendor during the past year. See if the vendor is willing to share this information and allow you to interview those companies. Ask “What will these companies tell us?” Then do Google research to see what comments you can find online. What’s the knowledge on board at the vendor? — How long has the person who does the hiring and staffing been doing their job? What are their credentials? Is there expertise on board to help you with any compliance concerns?

Does the agent carry the right insurance? — Depending on whose payroll is involved, the law requires employers to provide Workers Compensation benefits, as well as withholding unemployment and Social Security taxes, and more. If the temp or leasing agency treats their workers as independent contractors you could end up being in a heap of trouble.

Does the agency provide employees benefits? — Remember, if a worker walks and talks like your employee, they’re probably going to be considered your employee, whether they’re a sole employee or in a joint employer relationship. If an employee receives no benefits from the provider, you can easily face a hefty benefits claim down the road.

What about union activities? — To what extent has the agency been faced with unionization efforts? Your temporary workforce might be considered part of an existing bargaining unit and thus covered by your union contract. HR That Works members should view the extensive Contingent Worker Report and Checklist.

Jan 15
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How to Prep Your Commercial Property for Winter Snow and Ice Removal

By Risk Management Bulletin

Winter weather often includes snow and ice, two hazards that can create dangerous conditions on your commercial property. Prepare to keep your employees and customers safe when you prep your property for winter snow and ice removal.

Inspect Lighting

The exterior, walkways and entrance lights on your property should be in good working order. Inspect them now to ensure the bulbs work and that they adequately illuminate your entire property.

Remove Debris

Leaves, branches and other debris on the ground can cause falls and slips, and this debris hinders snow and ice removal. Clear your property before winter weather arrives, and maintain ongoing clean-ups as needed so your property remains tidy and safe.

Prune Landscaping

Accumulating ice and snow can cause tree branches to bend and break, which affects safety on your property. Prune trees and bushes to prevent this hazard. Remember to trim bushes near walkways and the plow route, too.

Improve Water Drainage

Dangerous ice puddles can form in areas where water accumulates, so improve the water drainage around your property. A professional landscaper can help you prepare your sidewalks, parking lot and entire property for winter.

Prevent Slips and Falls

You are responsible to prevent slips and falls in every area of your commercial property. After you identify potential risks around the parking lot, walkways, entrances and steps, correct any issues. You may need to install rubber mats, secure handrails or fix sidewalks.

Examine the Roof

Because wet snow weighs heavily on your property’s roof, it can cause severe damage. Examine the roof to ensure it’s in good repair, and clear debris from the downspouts and drains. When snow storms start, clear the roof as often as necessary.

Prepare for a Power Loss

If ice or wind damages power lines, you could lose power, which affects the lighting and safety on your property. Purchase a generator, become familiar with how to use it properly and test it before you need it.

Stock Appropriate Equipment

Make a list of winter equipment you need to keep your property safe. Your list may include shovels, ice melter, flashlights and a snowblower.

Review Snow and Ice Removal Contracts

Before winter weather strikes, review your snow and ice removal contracts. The person or company you hire should be reliable, show proof of adequate insurance and be experienced with the proper techniques for removing snow and ice on your specific property.

This winter, you can maintain safety on your commercial property when you take these steps. Your insurance agent can also share invaluable tips with you and update your business insurance policies as you prepare your commercial property for winter weather.

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