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EDITOR’S COLUMN: WHAT KIND OF HR DO YOU HAVE?

By Your Employee Matters

I recently received a solicitation for an HR opening.

Here�s part of what it said:
Title: HR Manager Compensation: $70k-$90k + Corp Benefits

The HR Manager serves as a strategic business partner to the Management team and is responsible for recommending, designing, planning, coordinating and implementing a full range of human resources services in the areas of recruiting and selection, employee relations and communications, compensation administration, performance management, employee development and training, benefit administration, HR administration, execution of company policies, and employment law compliance.

Principal Duties and Responsibilities:

  1. Assists managers in identifying organizational needs and developing strategies and programs to address these needs. Implements human resource process improvements relating to all phases of the human resource activities that support the goals of the company.
  2. Manages employee relations issues by assisting managers and supervisors with the interpretation and fair application of company policies and procedures.
  3. Facilitates and participates in employee corrective action meetings to effectively resolve concerns/issues.
  4. Partners with the management team to gain a detailed understanding of organizational goals and needs to develop staffing practices and procedures to meet the business needs.
  5. Develops and maintains a network of contacts to help identify and source qualified candidates including job boards, colleges and universities, minority recruiting sources, temporary agencies, newspapers, and professional organizations.
  6. Manages the full lifecycle of recruitment, including sourcing candidates, interviewing, reference checking background checks, negotiating with applicants, and closing the hire
  7. Performs new hire orientation, processes new hire paperwork, drug testing and reference checks. Maintains applicant and employee records, reports, and logs to conform to EEO regulations, including all applicant flow, promotional, terminations and new hire logs. Maintains OSHA reports and records.
  8. Participates in maintenance of the compensation program, including the job evaluation process, writing job descriptions as necessary; and managing the administration of the performance evaluation program. Maintains and recommend changes to the employee handbook and procedures manual.
  9. Conducts training on policies and procedures.
  10. Manages the company�s relationship with health-care service providers, and other appropriate vendors.
  11. Performs benefits administration, including change reporting (personnel requisitions, work comp claims, terminations, and new hires). Processes required documents through payroll and insurance providers to ensure accurate record keeping and proper deductions.
  12. Assists managers in preparation of performance management material and annual reviews. Does Stromberg/HRIS training with each manager (access, restricted accessibility).
  13. Assesses employee turnover data and makes specific recommendations regarding employee retention programs and strategies.
  14. Develops and administers employee development plans and training programs to meet the needs of the workforce and managers. Holds career discussions and assists managers and supervisors to identify outside training resources necessary for employee development.
  15. Tracks HR department metrics. Evaluates reports, decisions, and results of department in relation to established goals. Recommends new approaches, policies, and procedures to effect continual improvements in efficiency of department and services performed.
  16. Stays current on recent federal, state, and case law changes and monitors labor law updates and newsletters for changes that affect HR.
  17. Complies with and actively supports company policies and procedures such as equal employment opportunity, affirmative action, safety, ISO 9000, and ethical business practices.
  18. Performs related daily administrative duties as required.
  19. Carries out other related duties as assigned by the Vice President or General Manager.

This is what strategic HR can be � and should be � even if it�s only a part-time job! If you�re an HR That Works member, the tools on the Web site will support your HR person in performing these duties and responsibilities. The result will be a healthier bottom-line.

STAY-AT-HOME SPOUSE ALSO NEEDS LIFE INSURANCE

By Life and Health

There is a serious misconception about not buying Life insurance for a stay-at-home spouse that is all too common. Many people feel that because a spouse doesn’t work outside the home, Life insurance is not necessary because there’s no salary to replace.

The problem with this thinking is that it fails to account for all the jobs a stay-at-home spouse performs during a typical day, one of the most important being childcare. All of those tasks would still need to be completed if the stay-at-home spouse passed away. Either the surviving spouse would have to quit his or her job, go part-time, or hire someone else to help out. If the stay-at-home spouse had Life insurance, the policy proceeds could be used to pay someone to tackle the household tasks and care for the children so that the remaining spouse could continue to work and support the family.

When you buy coverage for a stay-at-home spouse, you need to consider how long you would need help. If your children are infants or toddlers, then you’ve got many years of childcare before they can be left on their own. If they are teenagers you will need less help because the children are gone most of the day and they can also help out with household chores.

Until you do a needs analysis, you can’t really know for sure how much coverage the stay-at-home spouse should own. The best way to ensure you have accounted for all the ways your family depends on the stay-at-home spouse, is to talk with your insurance agent. They can help you determine how much coverage to purchase.

There are two basic types of Life policies. Permanent Life insurance provides life long protection as long as premiums are paid when due. This coverage also accumulates tax-deferred cash value. Such cash value can be borrowed against for education, to buy a home, and supplement your retirement income. Keep in mind that any unpaid loans made against the policy’s cash value accrue interest and reduce the policy’s death benefit if the insured should die before the loan is fully repaid.

Most permanent policies offer a fixed premium for the life of the policy. Other plans offer flexible premiums and benefits to suit your needs.

The other option is Term Life insurance. This coverage provides affordable protection for a specified number of years. Term policies are available ranging from 5 years to 30 years, many of which are annually renewable after the initial term period. Look for a term policy with a conversion privilege. This permits you to convert your term policy to a permanent policy without providing evidence of insurability.

Consumers often choose term policies because of large coverage needs and affordability is always a factor. However, a term policy is only in force for a specific time and once it expires, you lose the death benefit unless you renew. Renewal costs can be sky high on these policies.

Since there are many issues to consider with your family’s Life insurance needs, it is important to discuss your options with your insurance agent. That way, your family will be financially prepared if they lose the person upon whom they are so dependent.

NEWLYWEDS SHOULD FOCUS ON FINANCIAL FUTURE

By Life and Health

There’s so much to plan when getting married that it’s easy to get bogged down in the details. It’s crucial not to lose sight of what really matters, and one of the most important matters to consider is your financial future as a couple.

According to an August 2007 survey, conducted by Allstate Insurance, the typical newlywed couple has combined assets of approximately $107,000. In spite of this, few newlyweds make provisions to protect their financial future through purchases such as Life insurance. In fact, 61% of those polled said they hadn’t purchased Life insurance before marriage, and 64% of that group still hadn’t purchased coverage within the first three years of marriage. A mere 23% of the respondents said they bought Life insurance during their first year of marriage. Another 9% did so before the end of the third year.

The study revealed some other interesting findings.

  • Of the men who responded, 42% had Life insurance beyond their employers’ coverage prior to marriage. Only 35% of the women respondents had coverage in addition to what their employer provided.
  • Of those surveyed, 53% said purchasing Life insurance showed a commitment to their future together as a couple.
  • Of those questioned, 42% said that Life insurance would be a thoughtful and meaningful gift for their spouse, but only 3% said they received or would likely receive a card or note to meet with a life insurance agent as an anniversary gift.

Even though Life insurance isn’t traditionally thought of as a romantic token of affection, it is an important gift that shouldn’t be overlooked. To help you find the coverage that’s right for the two of you, consider the following tips:

  • Talk to an expert. Meet with an insurance professional to evaluate your financial needs and goals and to determine how much life insurance you and your spouse need. Your insurance agent can also explain possible coverage amounts and options.
  • Plan for the future. Will you have debts that would need to be paid? Will you have enough to cover your children’s education costs? Will you have aging parents that may need care? Having Life insurance in the event of untimely death can help provide the funds to meet these situations.
  • Don’t rely on savings alone. Most people do not have nearly enough in their personal savings to allow their family to pay off final expenses or hold onto assets, such as the family home, without the added protection of Life insurance.

Employer-based coverage is not enough. Furthermore, Group Life insurance through an employer isn’t typically portable. This means that if an employee leaves the job, they are also leaving their Life insurance behind. That’s why it’s necessary to have an Individual Life insurance policy that is yours no matter where you are working. Call one of our Life specialists today!

KEY TO INSURER’S FINANCIAL RATING IS ITS LONGEVITY

By Life and Health

You buy Life insurance for the financial protection it offers. The proceeds from a Life insurance policy can replace the income your family loses after you’re gone. When deciding on which policy to buy, it’s imperative that you choose an insurance company that will still be around after you’re gone.

The key to an insurance company’s longevity is its financial rating, which is represented by a letter grade. Insurers are graded by credit rating companies that have been designated as Nationally Recognized Statistical Rating Organizations (NRSRO) by the Securities and Exchange Commission (SEC). A credit rating company receives this designation if the SEC feels it has a reputation in the United States as an issuer of credible and reliable ratings by the majority of financial institutions that use its information.

After a credit rating company receives its NRSRO designation, it can then rate financial firms like insurance companies. There are specific criteria that an NRSRO uses when rating an insurer. These criteria include:

  • Potential for growth
  • Diversification of the types of businesses it is involved in
  • Earnings
  • Profitability
  • Management of operating expenses

After all of these factors are considered, the NRSRO assigns the insurance company a letter rating. Keep in mind that each NRSRO’s rating system is a little different; however, all of them use some form of an “A” rating for indicating a top rated company. Generally speaking, you want to purchase a policy from an A-rated company.

There are five main NRSROs that rate insurers:

After you have researched an insurer’s ratings, you should:

  • Call their customer service line and ask for the company’s ratings from each of the ratings services. If the service representative refuses to tell you or lies about the ratings, don’t buy any products from that company.
  • Ask the insurance company for copies of its ratings reports. If it complies with your request, it is a sign that the company is consumer-friendly.
  • Ask your agent to explain each rating service report to you in simple terms. If the agent can’t explain the various ratios and terms, it is a sign that they have not been properly trained. That same lack of training may also manifest itself when you need your agent to handle a claim, evaluate future insurance needs, or recommend additional products.

MANY AUTO INSURANCE POLICIES LACK COVERAGE FOR YOUR GPS

By Personal Perspective

If you’ve recently gone somewhere on vacation and your car did not have a Global Positioning System (GPS), you probably wish it did. GPS systems have become increasingly popular as their prices have dropped. Navigationally challenged drivers who used to decipher hard-to-read maps can now rely on these small devices to help them reach their destinations. However, the popularity of GPS devices makes them particularly attractive to thieves. They are also susceptible to damage in car crashes, like any other item in a car. How will an Auto insurance policy cover a stolen or damaged GPS?

Unfortunately, standard policies provide little or no coverage for a GPS. Many older policy editions explicitly state that they do not cover losses to any electronic equipment that receives or transmits data signals. A GPS would seem to fall within that description. More recent policy editions do cover electronic equipment, but only if it is permanently installed in the vehicle. These policies provide a small amount of insurance for electronic equipment; $1,000 coverage is typical.

It is possible to buy additional coverage for GPS devices. Any car owner with equipment worth more than $1,000 should speak with their insurance agent about buying a special policy form. It increases the coverage to a specific amount shown on the form. Typically, insurance companies will not offer more than $5,000 coverage.

If the policyholder has an older edition of the policy, she will need a different form to cover a GPS. This form covers sound reproducing equipment; audio, visual and data electronic equipment; and tapes, records and disks while in a vehicle. A GPS device falls within the data electronic equipment category. Coverage applies if the unit is permanently installed in the vehicle or if it is removable from a permanently installed housing unit, designed to be powered solely by the car’s electrical system, and in or upon the car at the time of the loss. The form provides coverage for devices in cars the policyholder owns and those she rents or borrows. As with the other form, she can buy coverage in amounts up to $5,000.

The additional premium for this coverage is normally small. A rate of $4 for every $100 of coverage is typical. For example, the cost for $2,500 of coverage might be around $100.

As car buyers ask carmakers to add more and more gadgets to cars, insurance coverage for those gadgets will continue to evolve. It is unwise to assume that an insurance policy automatically provides much coverage for these gadgets. All insurance buyers should review their policies carefully. In addition, ask one of our agents questions if GPS coverage is a concern. With a GPS and the right insurance coverage, drivers can be confident that they’re going in the right direction.

PROTECT THE CONTENTS OF YOUR APARTMENT WITH RENTER’S INSURANCE

By Personal Perspective

Many renters assume that because they don’t own their dwelling they have nothing at risk. In fact, a 2006 survey by the Insurance Research Council found that only 43% of people who rent their dwellings said they had Renter’s insurance.

Although renters may not face the same level of risk as homeowners, they still have to protect themselves in the event a disaster strikes. Your landlord probably carries insurance, but this only protects the building – not the contents of your individual apartment or home. Renter’s insurance protects your personal property in case of fire, smoke damage, lightning, vandalism, theft, explosion, windstorm and water damage resulting from burst pipes, sprinkler systems, or malfunctioning heating/cooling systems.

The amount you receive if your belongings are damaged or stolen depends upon whether your policy is for “actual cash value” or “replacement cost.” Actual cash value coverage pays you what your property was worth at the time it was damaged or stolen, minus your deductible. Replacement cost coverage pays what it actually costs to replace what you lost, minus the deductible.

Although protecting your personal property is an important reason to carry renter’s insurance, there are other equally important reasons you should never rent an apartment without it. Renter’s insurance provides you with liability protection in the event someone slips and falls while in your apartment. If this happens to you, you are covered up to the policy’s liability limit for an award in a court judgment and for your legal expenses.

In some instances, apartments are rendered uninhabitable because of fire, burst pipes, or another disaster. If the event is a covered peril under your policy, Renter’s insurance will cover any additional living expenses you incur until you can move back into your place. However, there are certain limitations. Generally, the maximum amount you can receive is between 30% to 50% of the total value of the policy, depending upon your coverage. Your insurer will usually continue to pay while your home is being repaired or rebuilt, or until you find suitable alternative living arrangements. Some insurers cap the amount of time you can receive this benefit at 12 months, while others cover you for what they consider a reasonable length of time.

Finally, Renter’s insurance can protect you in the event you cause unintentional damage to your landlord’s property. In most instances of renter-caused damage, the landlord’s insurance company will pay for the repairs, but will seek reimbursement from the liable tenant. In this scenario, your renter’s insurance covers you for the reimbursement amount.

If you are currently renting an apartment and don’t have Renter’s insurance, call our office today to discuss purchasing coverage. Our agents can show you how simple things like raising your deductible, or installing smoke detectors and burglar alarms, can help you get great coverage at an affordable rate.

SEPARATE POLICY OR ENDORSEMENT: HOW TO INSURE YOUR MOTORCYCLE

By Personal Perspective

As the weather warms up, more and more riders will be hitting the streets with their motorcycles. Whether you’re a weekend rider or a hardcore road warrior, you want to be sure your valuable bike is covered for any contingency.

As a motorcycle owner, you are faced with the decision of whether to insure your bike by adding an endorsement to your Auto insurance policy, or by buying a separate policy. It’s important to understand the differences between the two so you can choose the option that best suits your needs.

An endorsement is a document that is added to a basic policy either at the time the policy is purchased, or during its term, which becomes part of the policy and increases the coverage provided by that policy. If you insure your motorcycle by adding an endorsement to your Auto insurance, you will only have one insurance bill to pay to cover both your car and your bike.

However, there are certain disadvantages to insuring your motorcycle this way. In most cases, you cannot customize your insurance with an endorsement. You are locked in to the same coverages, limits, and exceptions for your bike that apply to your car. That’s why it is important to discuss with our agents what a motorcycle endorsement covers and how it’s covered before you add it to your Auto policy.

Your insurer may offer you the choice of purchasing separate coverage for your motorcycle. While Motorcycle insurance does vary by state and insurance company, one thing remains the same: your driving history and credit score can impact your eligibility. Riding a motorcycle is a higher risk activity than driving a car; if you have a number of tickets or accidents on your driving record, you may be considered too high a risk for the insurance company to extend separate coverage.

If you qualify, there are certain advantages to having a separate policy. Because these policies are created specifically for motorcycles, they offer more coverage options. For example, a motorcycle policy allows you to choose higher liability limits than you have on your Auto insurance.

One of the great things about owning a bike is the ability to personalize it, but many of these customizations aren’t covered unless you purchase a separate Motorcycle policy. Typically, a basic Motorcycle policy will extend coverage for custom parts and equipment up to a specific limit, such as $1,000. If your custom accessories or parts are worth more than the basic policy limit, it’s a good idea to purchase additional coverage to cover those parts in case they’re ever damaged. Also, be sure to ask for a list of the specific custom parts that are covered, and any exclusions that may apply.

Keep in mind that although you will be paying a separate premium for Motorcycle insurance, you may qualify for discounts. Many insurers offer discounts for multi-motorcycle policies, mature drivers, and insuring both your auto and motorcycle with the same company. In some instances, you can receive a discount for attending safety training programs, or for becoming a certified motorcycle safety instructor.

CONSIDER LEGAL IMPLICATIONS OF INJURED EMPLOYEES RETURNING TO WORK

By Business Protection Bulletin

When making the decision to return an injured employee to work, there are several significant legal issues that must be considered as a result of both state and federal law.

The first consideration is your state’s Workers Compensation laws. Although a common objective of Workers Compensation laws is to facilitate the injured worker in returning to a productive job, not all states approach this goal in the same manner.

Your state’s approach probably falls into one of the following three categories:

  • States that provide for a specific number of weeks of rehabilitation and a limited amount for training for the injured worker. After training is complete, the worker is considered rehabilitated. This training component also limits the employer’s liability to find another job for the claimant.
  • States that are considered defined benefit states. A worker is paid for his temporary total disability. If disability reaches a predetermined percentage of body loss, however, the employer can issue a lump-sum payment and close the case, whether the worker can return to work or not. Rehabilitation is a minor part of this approach.
  • States that use loss of earning power as qualification for benefits. Once a worker is injured, his Workers Compensation benefits will continue for life unless he is proven to have an earning power. In these states, the employer at the time of injury must offer a job to the injured employee if one is available within the employee’s physical restrictions. If this is not possible, the law requires that rehabilitation efforts begin.

The Americans with Disabilities Act (ADA) also presents certain legal considerations concerning the manner in which an injured employee is returned to work. The first consideration is regarding the collection and maintenance of the injured employee’s medical information.

The ADA requires employers to collect this information to determine how to accommodate an employee’s disability and whether the employee is capably of performing a specific job. However, the ADA also mandates that employers:

  • Treat this information as a confidential medical record.
  • Maintain this information on separate forms and keep the forms in separate files.
  • Not use this information for any purpose that is inconsistent with the ADA.

There are also specific rules regarding the disclosure of such information. Supervisors and managers may be informed about necessary restrictions and accommodations arising from the disability. In addition, first aid and safety personnel can be informed if the employee’s condition may require emergency treatment.

Another key consideration under the ADA is whether or not the returning employee is eligible for a particular job. The law says that if an employee can perform the essential parts of a job, they are eligible, even if certain minor aspects of the job cannot be performed. Employers are required to make reasonable accommodations as necessary so that the employee can perform the job. This is what is commonly referred to as a “light-duty” assignment.

Decisions regarding necessary accommodations must be accomplished through a joint process involving the employer, employee, and the employee’s doctor. A company refusing to make reasonable accommodations is at risk for a lawsuit. A worker who refuses reasonable light-duty work risks having their benefits or employment terminated.

AVOID VICARIOUS LIABILITY BY TRAINING AND MONITORING EMPLOYEES

By Business Protection Bulletin

”Respondeat superior” is a Latin phrase that translates “let the master answer.” This is legal jargon relating to the breadth of the employer’s responsibility for the actions of his employees. Literally, and in basic terms, any injurious or wrongful act of an employee within the course and scope of his employment creates liability for the employer (the master). This is commonly known as “vicarious liability.”

An employer’s liability for injury or damage caused by employees is considered “vicarious” because the act was not committed by the employer, but by individuals for whom the employer is responsible. Just like a parent is responsible for the actions of a child, even if the parent had no knowledge of what the child was doing, so too is the employer responsible for the employee’s actions.

When crews are spread over several job sites, the employer loses some direct control over the actions of the dispersed employees; however, he is not relieved of his responsibility for the actions or inactions of these workers. The “master” will be required to financially stand up and answer for any injury or damage caused, even though he might not have been aware of those actions.

Within the framework of construction operations, the employer is obviously responsible for any work done incorrectly or poorly. For example, if an employee of a plumbing contractor does not properly cement or solder a pipe, leading to severe water damage from a break at the connection point, the employer is expected to pay for the damages.

Beyond simply being vicariously liable, the employer has the potential to be accused of “negligent entrustment.” Negligent entrustment can be asserted when an employer allows an unqualified person to use a dangerous instrumentality. Construction sites teem with dangerous instrumentalities; from items as simple as nail guns and power saws, to man lifts, grading equipment, and trenching equipment. Employers owe a duty to the employee, others on the job site, and even the general public to affirm an employee’s ability to safely and correctly operate equipment necessary for their job.

To avoid breaching this duty and allegations of negligent entrustment, the employer must test employees to confirm they are adequately trained to operate the equipment they are expected to use. This can be accomplished by observing the employee’s use of the equipment and correcting misuse. Observation and training should be done by a highly trained supervisor or by the supplier. The training must include detailed safety instructions and “what-if” scenarios. Once the employee has been “cleared” to use the equipment, continued observation is necessary to ensure the employee doesn’t become careless.A common response to recommended training and testing is, “We don’t have time for that.” This may be true, but if you don’t have time to train, do you have time to go to court? Also, do you have the funds to pay the damages? Successful negligent entrustment suits often involve punitive damages that could drastically increase the cost for that particular incident.

Vicarious liability and charges of negligent entrustment aren’t limited to your employees. You may also face liability for the actions of entities or individuals to whom you sub-contract work. Making sure you hire qualified and properly insured subcontractors is of vital importance.

You, as the saying goes, are your employee’s keeper. Not due to lack of trust, but because you are ultimately responsible for the results and consequences of their actions. Choosing, training, and monitoring your employees and subcontractors will allow you to avoid or at least minimize many of the potential problems.

MAKE YOUR WORKPLACE HARASSMENT AND DISCRIMINATION-FREE

By Business Protection Bulletin

Harassment and discrimination can spell big trouble for a business. It can cause disruption in the workplace and lower employee morale. It can also result in lawsuits that have the potential to cost employers hundreds of thousands of dollars — or even more.

The U.S. Supreme Court has held that employers can be found liable for harassment and discrimination claims, even if the employer wasn’t directly aware that harassment and discrimination were occurring in the workplace. Employers are expected to take a proactive stance, and an employer who has not addressed the issue at work is vulnerable in the event of a lawsuit.

What are harassment and discrimination?

Harassment and discrimination are defined by federal, state and local laws. Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, gender, creed, religion and national origin. Other laws prohibit discrimination on the basis of age, disability and pregnancy.

Harassment can include any verbal, written or physical act that makes employees uncomfortable at work or interferes with their ability to perform their jobs. It can include jokes, emails, cartoons, drawings or other material that is suggestive or reflects negatively on a protected class. It can include slurs or offensive language.

What can you do about it?

As an employer, you can be held accountable for all forms of unlawful discrimination and harassment, so it pays to have a proactive policy to protect your business and your employees. Here are some ways you can begin to address the issue:

Create a harassment and discrimination prevention policy: Make sure employees know that you will not tolerate harassment or discrimination. A formal written policy outlining your commitment to a harassment and discrimination-free workplace is a good way to start. Many employers include such a statement in employee handbooks that are distributed to all employees and collect a signed statement of understanding from each employee. Others combine a written statement with a mandatory employee training session.

Outline steps employees should take: Your policy should also include a method for employees who feel they are being harassed or discriminated against to report the behavior. A formal investigation process is also important. Some companies ask employees to report their concerns to their immediate supervisor first or to the next person in the chain of command to begin an investigation. Others direct employees to bring their concerns directly to the office manager or HR department. The important thing is to make sure the method is clear, easily accessible and highly confidential.

Make sure employees know you and your management team take your policy seriously: One of the best ways you can gain employee buy-in for your policy is to make sure you and your managers demonstrate that you believe it is important. Whether during a meeting or in informal settings, it’s a good idea to stress the amount of harm harassment and discrimination can cause and to make sure employees know they can come to you if they’re not treated fairly.

Taking care of business

In today’s competitive business environment, it can seem like there is too much information to process and too many tasks to perform. It can be tempting to put issues like harassment and discrimination prevention on the back burner, particular for a company that started out small but is growing rapidly. However, taking the time to establish and communicate a proactive policy is a wise move — one that can help you protect your company and build a stronger workplace in the long run.