Janet Schmidlkofer
K&N Electric Motors, Inc.
Thanks to all who took a few moments to respond to our most recent Management Pulse survey on corporate compliance, performance and disciplinary actions. I imagine this is a topic that does not reside at the top of the “What am I going to work on today?” list. Unfortunately, to make matters worse, you may never experience the need to prove you have a program. Of course that is the good news. I will quickly review the results from the 146 survey respondents and then share a few thoughts and ideas.
Here are the survey highlights:
- 75% of the respondents reside in the United States, 11% in Canada and the remaining 14% were from across the rest of the world.
- More than 70% responded their companies sold products and/or services to government agencies valued annually at over $50,000.
- A little over half of respondents have a formal corporate compliance program and only 40% have an EEOC program in place.
- A full 90% of respondents have formal orientation programs and 65% document annual training.
- In regards to discipline, 74% responded they have a formal process and of that group 96% has a formal disciplinary progression process with 87% documenting employee follow-up.
- There were 75% of respondents that provide a template for guidance through the process.
Without orientation and disciplinary programs in place, it becomes very difficult to prove or protect yourself in the case of employee complaints, or worse, lawsuits. This article is my attempt to share some ideas or concepts for you to consider for your business.
Corporate Compliance
K&N expects all employees to maintain a high ethical standard of behavior. Therefore, the Company has established a Corporate Compliance policy and program. K&N will provide training for each employee at the time of hire and then on an annual basis. The inappropriateness or appropriateness of behavior is judged not by the intent of the employee, but its impact on a co-worker, customer, vendor or the public. It is the Company’s policy that all employees comply with the ethical standards established. Not only must the actual behavior meet appropriate standards, but also all employees are expected to act in ways, which do not give the appearance of impropriety.
If an employee believes that a co-worker, including any members of management, has acted in an improper, unethical manner per the Compliance Program, he/she may report this behavior to the Company’s “tip line” …………..without fear of retaliation.
The complete Corporate Compliance Policy may be viewed on the Company’s intranet site at …….
The above Code of Compliance is documented in our employee handbook and is followed in an orientation by an interactive training video with manual, which the employee keeps as a resource. Not only must there be a program, but it must be actionable, documented and requires training every 12 months.
Why does a U.S. company even have to document their corporate compliance program, training and proof of adherence? Well you don’t, unless you provide over $50,000 worth of goods and/or services to any and all government agencies. Please note the municipal pump installation, the City Hall HVAC work, county electrical panel or the Bureau of Reclamation turbine work all add into the “government” work with which you might be involved. Government works does not mean just the federal government.
Of course there are other reasons you may want to have a compliance program. These might include customer satisfaction, quality repairs and an overall honest and high-performing staff. The success of our business is dependent on the perception our current and potential customers have of our company. If our attitudes and actions reflect the values they respect and reward, our business will succeed. So will yours!
Affirmative Action/Equal Employment Opportunity/Federal Contractors Program
It is our policy to grant equal employment opportunities to all qualified persons without regard to race, color, sex, sexual orientation religion, handicap, veteran or military status, age or national origin. It is the intent and desire of our company that equal opportunities will be provided in employment, promotion, wages, benefits, and all other privileges, terms and conditions of employment.
Am I required to have a program, you ask? If you are in the U.S. and employ 15 or more employees then yes, you must have an Equal Employment Opportunity (EEO) statement in place and would look very much like the statement above. If you contract with the federal government, you must have an Affirmative Action Program (AAP) in place.
EEO laws prohibit unlawful discrimination against "protected classes" of applicants and employees such as race and gender. States vary in their description of protected classes. For example, some states include sexual orientation. EEO also covers the Equal pay act (EPA), Age discrimination (ADEA) and Americans with Disabilities Act (ADA).
In contrast to EEO plans, Affirmative action laws require covered employers to implement very specific plans to identify and hire certain protected class members. These laws apply to employers that do a specific dollar amount of business with the federal government, or enter into a contract requiring an AAP. In some cases, a court can order an employer to implement an AAP to correct past discrimination.
I must say, documenting this in the employee manual is by far the easiest part of this regulation!! We must track and report all applicants, interviewees, new hires and submit our goals for hiring under-represented protected classes such as, minorities, veterans and women. This includes how we advertise and what job fairs we may or may not attend.
The Federal Contractors Program (FCP) ensures that contractors who do business with the Government of Canada achieve and maintain a workforce that is representative of the Canadian workforce including women, Aboriginal peoples, minorities and persons with disabilities. The Program applies to non-federally regulated contractors with 100 or more employees and who have a federal government goods and services contract, a standing offer, or a supply arrangement valued at $1 million or more.
Conclusion
Orientation programs, annual training and a documented progressive disciplinary program are all vital tools to assist you in meeting the complex Human Resources regulations required in today’s business world. Add to that job descriptions with physical requirements and working environment and you are well on your way to a compliant work place!
Related Reference and Training Materials
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