Stan Martindell
Topeka Electric Motor Repair, Inc.
The July issue of Currents included an article by fellow Management Services Committee Member Paul Idziak that focused on the May Management Pulse survey covering several aspects of the hiring process. This article builds on Paul’s analysis and covers four other areas of hiring new employees covered in the July Management Pulse survey.
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Careful thought needs to be given to the hiring process. Hiring the best candidate should always be the goal. Following proper procedures increases the chances of hiring the best candidate; it also reduces the chances of creating legal liability for your company.
Employment Eligibility Verification I-9 Form
The most recent survey results for a question about the I-9 Form is cause for concern. In the U.S., federal law requires all employers complete the Employment Eligibility Verification I-9 Form. The purpose of the I-9 Form is to verify an employee’s identity and that the employee is eligible to accept employment in the U.S. According to the survey results, only about 57% of the 99 respondents are completing I-9 Forms. About 20% are not completing the form and almost one quarter responded that it is not applicable (survey participants may be outside the U.S.).
U.S. federal law is clear that the form must be filled out and maintained for inspection if an audit occurs so there would be very few, if any, situations where the I-9 Form is not applicable. Section 1 must be filled out on or before the first day of employment by the employee. Employers must complete Section 2 by the third business day from the employee’s start date. Immigration & Customs Enforcement (ICE) is tasked with I-9 Form enforcement. ICE conducts audits of businesses to determine if I-9 Forms are completed and kept on file. The number of audits has been on the rise but dipped from Fiscal Year 2013 to Fiscal Year 2014.
Fines levied by ICE for failing to properly complete and maintain I-9 Forms can range from $110 to $1100 per violation. The I-9 Form is relatively easy to complete and does not take much time. There is ample online help if you have questions about filling out the I-9 Form.
Interview questions
The survey results were more encouraging for a question on whether a set of questions is being consistently used in interviews. More than 70% of respondents said they have a set of questions they consistently use when interviewing job candidates.
Actually, consistency is important in all aspects of the hiring process. Consistency lessens the chance of a discrimination claim and will help in the defense of a claim if one occurs. For a given position, each candidate should be asked the same questions. A good starting point for developing a set of questions is to look at the job description. The set of questions will differ depending on the position to be filled. You would not ask the same set of questions of a prospective bookkeeper as you would for a shop technician. The focus should be on the candidate’s experience, job skills needed and essential job functions required of in the position. Consistency throughout the hiring process will help you better rank candidates and ensure a fair and level playing field.
Contingent offer of employment
Question number 3 relates to contingent or “conditional” offers of employment. For a variety of reasons (mostly legal), extending a conditional offer of employment is a good idea. Approximately 60% of respondents are extending conditional offers. Many states only allow drug tests, physical exams, driver’s license checks or credit checks after an offer of employment is made. If an offer of employment is conditional, an employer must be very clear about the conditions. This is one of the reasons a formal offer letter should be used when extending an offer. The conditions can be clearly set forth in the letter. Careful thought must be given to the types of conditions that will be required.
It makes sense to check driving records for employees who will drive a company truck but may not be relevant for other positions. Likewise, a credit check makes sense for someone who will have access to company funds but may not be appropriate for other employees. The laws in the area of post-offer tests and checks vary from state to state in the U.S. so it would be wise to consult with a local Human Resource (HR) professional to be sure you do not violate any local laws.
Job descriptions
Over two thirds of respondents (about 69%) are using job descriptions in their businesses. At a minimum, a job description should set forth the duties and responsibilities of the job, the required education and training needed and the amount of experience required. HR professionals will tell you there is a long list of reasons a company should have job descriptions. In this article, I will highlight some of the more important reasons.
First, a job description communicates what is needed to a prospective employee. For the employer, it makes it easy to come up with a job advertisement. It can also be a useful tool in performance reviews. Second, a job description is very important to maintain compliance with the American with Disabilities Act (ADA) and the Fair Labor standards Act (FSLA). A job description sets forth the essential job functions which is an important concept under the ADA. Under the FSLA, there are exempt and non-exempt positions. A good job description will assist an employer in the correct classification of a given position within the company. Third, job descriptions can help with the proper Workers Compensation classifications. Fourth, job descriptions can help in defending Unemployment Compensation claims. Poor performing employees who are fired will often claim that they did not know they were performing poorly. Having a job description can help an employer explain why a former employee did not perform the tasks required.
In a few places within this article, I mentioned HR professionals. Let’s face the fact that most of the smaller companies in our industry don’t have a lot of HR experience. Having an HR professional review your hiring (and firing) practices as well of other HR components of your business may be money well spent. An HR professional does not have to be an attorney and will likely be less expensive than an attorney.
Thanks to all who responded to this survey. I hope you find the information in this article to be helpful in assessing the hiring practices within your business.
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