HIRING AN EMPLOYEE INTRODUCTION Good employees

SMALL BUSINESS DEVELOPMENT CENTER—RM. 032
HIRING AN EMPLOYEE
(c) Revised December 2013
Board of Regents, University of Wisconsin System
Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or
recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA.
INTRODUCTION
Good employees can be a company’s greatest asset. For many small businesses, finding and keeping
good people is critical. Employers should follow these general guidelines. Topics covered include basic
legal obligations to employees, and suggestions on orientation, training, and benefits to attract and hold
good people. This outline is meant to touch on the important steps. Much additional information on each
topic heading should be sought. For specific information regarding legal interview questions and
procedures, call the SBDC at 715-346-3838 and request an Interview Guide. It is advisable to consult
with your accountant before hiring.
DETERMINING THE NEED
Before hiring, you will want to determine the company’s staffing needs. Hiring should happen when your
business has grown to the point that it can support the expense of a new employee or the business cannot
grow without additional help. Complete financial projections. Determine the work areas that are most
critical and that need the most people-hours. Determine exactly what you need help doing.
Is the need for a full-time or a part-time employee? Is the need “permanent”? There may be alternative
ways to fill the need without adding to your staff. For example, short-term or seasonal overload can be
handled by hiring temporary employees, contracting out, or by having current employees work overtime.
Each approache presents specific considerations you must understand. Specific questions can be directed
to Wisconsin’s Department of Workforce Development,
http://dwd.wisconsin.gov/dwd/default_business.htm
Other approaches: members of the present staff may be capable of assuming more responsibility than
previously delegated. Delegation helps develop people. Small business owners must be able to delegate
jobs to others if they want their business to grow. Promoting from within rewards employees and
encourages others. Reorganizing the work load may reveal a new method for handling the job.
And finally, weigh the expense of training and compensating someone against the expected profits.
Doing a break-even analysis may be helpful in this regard. Calculate how many additional sales will be
needed to cover the added expenses. Be sure to include the cost of benefits.
DEFINING THE JOB
Once you have made the decision to hire an employee, prepare a written job description. The description
defines and clarifies the job for the employer and employee. Defining the job is an essential step in hiring
an employee. Going through the process will help insure hiring the person with the right skills.
The five elements of a basic job description are:
1.
Summary; purpose of the job, title, salary/wage range, hours, and the person to
directly report to.
2.
List of key responsibilities organized into general categories.
3.
Specific activities needed to accomplish the key duties.
4.
The “job specifications” - summary of necessary skills and qualifications.
5.
Working conditions.
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The job specifications include technical and interpersonal skills, and the educational and experiential
background necessary to do the job. These should be listed at the acceptable, not the ideal level. Job
specifications are the “must haves” not the “wish list,” (see comments under Interviewing). The working
conditions include environment and physical aspects, such as heavy travel, noise, constant standing, etc.
Job descriptions focus your recruiting effort, and are useful for important human resource management
activities such as orientation and training, performance appraisal, promotion, job redesign, and planning.
COMPENSATION PACKAGE
There is more to employee compensation than wage or salary. You need to plan your labor expense and
communicate compensation to employees in terms of a package.
A compensation package can include:
1.
Wages, commission, bonuses
2.
Raises and promotion opportunities
3.
Incentive pay, gain sharing, profit sharing
4.
Employee discounts on company products/services
5.
Perquisites such as memberships, subscriptions, automobile, etc.
6.
Paid benefits; vacation, sick pay, life and health insurance, personal time off, tuition
and personal development funds, travel and expensereimbursements, free or reduced
cost, meals, etc.
7.
Benefits mandated by law; social security tax payments, unemployment insurance,
worker’s compensation insurance
There are hundreds of possibilities for designing a compensation package. The psychological value to an
employee of some “perks” may far outweigh the monetary cost and can serve as a significant edge in
recruiting and retaining employees. Be prepared to negotiate.
You should know what your competitors and other businesses are offering for similar jobs. Research
your competitors--what are they paying? .
Labor market data, salary and wage surveys,employment trends, training programs, state laws,
Affirmative Action, and employee training information can be obtained from:
Department of Workforce Development (DWD)
608-266-2832
http://dwd.wisconsin.gov/dwd/default_business.htm
http://worknet.wisconsin.gov/worknet/
(Wisconsin Labor Market Information)
When offering benefits beyond wage/salary, be aware of the tax laws regarding what payments are and
are not deductible as business expenses and what benefits are taxable to the employee. There are laws
governing the administration of retirement funds and insurance. Consult with an attorney/tax accountant.
GENERATING APPLICANTS
To find good employees, it is necessary to generate a pool of candidates. Hiring employees without the
necessary skills is often caused by hiring from too small an applicant pool. You don’t need to interview a
lot of people, but you should screen from as large a group of candidates as reasonably possible.
To develop a pool of applicants from which to screen, plan your recruiting and use multiple methods.
.
SCREENING APPLICANTS
There are three basic tools for screening job applicants as a preliminary step to interviewing. They are:
the application form, the resume, and telephone screening. All three should be used for candidates that
are likely to have resumes, with the exception of top executives. Entry level or “unskilled” workers may
not have resumes, so requiring a resume from unskilled workers could eliminate qualified candidates.
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At the screening stage, look closely for evidence that the applicant meets the job specifications as outlined
in the job description. If you make exceptions, realize that you have made a real change in your original
plan. Be consistent in your screening. Having made efforts to generate a large candidate pool pays off
here because you will have a better idea of whether you really need to compromise your original plan.
Application Form
Application forms should gather sufficient information about a person’s qualifications to make a
preliminary screening decision. Forms ask for work education and job skills background. The application
blank is a form of “testing” and is covered under the non-discrimination laws (see below). Eliminate
questions that are not job related. Your attorney should review your job application for discriminatory
questions and “implied contract” language which can limit your ability to terminate employment.
Resumes
Resumes can leave gaps in your understanding of an applicant’s background and experience. The
effectiveness of using resumes alone as a screening tool depends upon the type of job. It is a good idea to
require all applicants to fill out your application form. Again, be consistent. One of the secrets to
effective hiring is gathering the same type of relevant information from all candidates so valid
comparisons can be made. This is especially needed in the interview process. (see following section)
Telephone Screening
After reviewing the applications and resumes, call those individuals that appear to have the background
that most closely matches the job specifications. Use this first contact as an additional screening method
by asking a few key questions related to your most important selection criteria. Ask if they are currently
employed, regardless of how the resume may read. Ask why they would consider leaving if they are
employed. Ask if the basic salary range will be acceptable. Make an appointment for an interview only
with those individuals that best meet your criteria.
For recruiting top managers, these screening methods are modified. Call our office for more guidance on
recruiting executives. The basic methods outlined do apply, for most middle management positions.
INTERVIEW AND SELECTION
The steps in interviewing and selection are the screening interview, testing (where appropriate), reference
checking, and the hiring interview. For many jobs, the candidate will have only one personal interview.
Sometimes, a second interview is needed. The interview is to gather information about the candidate.
This is not a normal two-way conversation. In the interview, the candidate does most of the talking.
Prepare for the Interview
1.
Educate yourself on effective interviewing techniques.
2.
Review the application form, resume and any work samples.
3.
Develop a semi-structured series of questions that assures the same information is
gathered from all candidates. Questions should cover important aspects of the job and job related
skills. Ask for SBDC publication, “Interview Guide for Employees”, 715-346-3838.
4.
Write your interview questions down in an outline, and use the outline to structure the
interview. Structured does not mean stiff; it means organized to cover the same basic ground
with each candidate. Interviewers should attempt to gather as much relevant information as
possible about the candidate in a short time. Following the outline will help.
5.
Ask follow-up probe questions based on what the candidate’s responses are to the lead
questions. Allow the candidate to cover the necessary ground in some other order if they “jump
ahead” to areas you intended to ask about. Steer candidates back to the topics you need to have
covered if they go off on tangents. Structure the interview without being overly controlling.
6.
Scheduling clients. Allow one to two hours for each candidate. Interviewers should take notes.
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Do not write notes on the application form or the resume because you will want lots of
room and the original forms need to be saved as records.
Testing
Testing may be suitable for certain jobs where a test can validly predict performance. For example, a
typing test is a fair test of typing ability. Simple job tasks, such as reading a blue print may be used. The
key to legal testing is that the test should validly predict job performance. Some testing may be
discriminatory. Consult an attorney.
Reference Checking
Check the applicant’s work references; both those offered directly by the candidate and some of those
developed in the interview without jeopardizing a candidate’s legitimate need, in some cases, to keep
their job searching confidential. Past supervisors and co-workers are usually better sources for objective
opinions than personal character references. Validate education,credentials and employment records.
Checking references is an important step and one that is too often skipped. Studies have repeatedly
shown that interviewing alone is one of the least valid methods for selecting employees. Interviewers are
subject to tremendous bias. Interviewing needs to be supplemented by reference checking.
Again, for more tips on checking references, refer to our guide, “Interview Guide for Employers.”
Second Screening Interview
It might be advisable to invite top applicants back for second interviews before the final decision is made.
Second interviews can be more informal and include more effort to “sell” the candidate on the company.
Hiring Interview and Final Selection
In small businesses, it is important to select a person that fits with the philosophy of the company and
matches the applicant’s job expectations. Small businesses may have trouble offering employees a career
“path” beyond the original job. However, an effort must be made to develop each person individually.
Avoid hiring in a hurry, even when the need to add or replace a person is great. Avoid the “warm body
syndrome” of hiring the wrong person to fill a position because the need for someone is extreme. If none
of the candidates fill the requirements, it will be much better in the long run to start over.
Use the hiring interview to negotiate compensation and to clearly portray the work, and the company.
Remain flexible in negotiating compensation. A candidate can be included by negotiating early
performance review, incentive pay, time off, special training and opportunities, flexible hours.. Be
careful not to create variances with established personnel policies without considering questions of equity.
WHEN YOU ARE READY TO HIRE
The list below is designed to be a checklist of your major legal obligations as an employer. Depending
on your circumstance, there may be more requirements. You will need to check with each agency
listed for specific requirements and to be aware of recent changes in the laws.
1. Tax I.D. Numbers to Apply for:
□ Federal Employer Identification Number (FEIN)
When you hire employees, you are required to withhold both FICA (Social Security Tax) and federal
income tax from wages and salaries, and to pay an employer’s matching contribution to FICA.
Consequently, you must apply for a Federal Employer Identification Number (FEIN) used to identify
your business on payroll and income tax returns. To get a FEIN, you must fill out Form SS-4.
http://www.irs.gov/pub/irs-pdf/fss4.pdf
To receive Form SS-4, withholding tax tables, and information on federal unemployment
compensation call 1-800-829-1040 and request a federal small business tax kit or visit www.irs.gov
.
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□ State Employer Identification Number
Request a Permit Application Form from the Wisconsin Department of Revenue at
608-266-2776 or visit http://www.revenue.wi.gov/html/with.html
http://www.revenue.wi.gov/
2. Forms to Be Filled Out by Employees:
□ W-4 Federal Income Tax Withholding
□ WT-4 State Income Tax Withholding
□ I-9 Eligibility for Employment
When hiring an employee, have him or her complete a federal form W-4, Employee’s Withholding
Allowance Certificate. The filing status and withholding allowances shown on this form are used to
figure the amount of income tax to withhold from employee wages. Employees must also fill out form
WT-4 to determine state withholding.
Lastly, an Immigration and Naturalization Service (INS) I-9 form must be completed by all employees as
a means to verify they are legally eligible to work in the United States. The law requires that employers
also:
• Check documents establishing employee’s identity (i.e. Social Security Card) and eligibility to
work
• Complete the employer’s part of the I-9
• Retain the form for at least three years or one year after the person leaves employment
For further information on I-9, call 1-800-375-5283 or visit their web site at
www.uscis.gov/.
3. New Hire Reporting must be filed with the Wisconsin Department of Workforce Development, 1888-300-HIRE, within 20 days after the employee starts work. New hire reports can be submitted on line
at
http://dwd.wisconsin.gov/uinh/
4. Wage Reporting Requirements:
Timely monthly and quarterly reporting and filing are required. Severe penalties are applied if reports
and payments are even a day late! Find a system that works for you to keep track of what reports are due
when to avoid penalties!!! Work with your accountant.
□ Form 940—Federal Unemployment Compensation Tax (FUTA)
When: Filed annually
What: FUTA pays unemployment compensation to workers who lose their jobs. You report and pay
FUTA separately from social security and Medicare taxes. You pay FUTA tax only from your own
funds.
It
is
not
withheld
from
employee
pay.
http://www.irs.gov/businesses/small/international/article/0,,id=104985,00.html
□ Contribution/Wage Report--State Unemployment Compensation
http://dwd.wisconsin.gov/ui/
When: Filed Quarterly
What: Payroll tax that an employer pays if any one of the following conditions exists under Wisconsin
law:
• As an employer, you paid $1,500 or more in wages in a calendar quarter of the current or
preceding year, or;
• If you employ one or more persons full or part-time for some part of a day in each of 20 or
more calendar weeks of the current or preceding calendar year, or;
• On your first Wisconsin employment, if with respect to other employment
outside Wisconsin, you have a liability under the federal unemployment
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tax act, or; transfers result in a mandatory transfer of Unemployment
Compensation Experience) or;
• If you are a nonprofit organization or an employer of agriculture or
domestic labor. Covered employers must display a U.C. Benefits poster
• If you acquire all or part of a business already covered (not all business
notice showing they are providing unemployment protection to their employees.
Effective for tax payments after January 1, 2011 the IRS will not accept deposit coupons.
All tax deposit transactions must be made through the Electronic Federal Tax Payment
System (EFTPS)
http://www.irs.gov/efile/article/0,,id=98005,00.html
□ Form 941—Employer’s Federal Tax Return
When: Filed Quarterly
What: Reports Social Security (6.2%), Medicare (1.45%), employer’s match of SS & Medicare, and
Federal Income Tax Withholding. If your tax liability for the quarter is less than $2500, you are not
required to make monthly deposits and can pay the taxes with Form 941. If, however, your tax liability is
predicted to be more than $2500 for the quarter, you are required to make monthly deposits and do not
need to complete Form 941 (see below).
□ Form 8109--Federal Income Tax Deposit Coupons
Effective for tax payments after January 1, 2011 the IRS will not accept deposit coupons. All tax
deposit transactions must be made through the Electronic Federal Tax Payment System (EFTPS)
http://www.irs.gov/efile/article/0,,id=98005,00.html
https://www.eftps.gov/eftps/
When: Filed Monthly
What: Employers must deposit withheld SS, Medicare, employer’s match of SS & Medicare, and
Federal Income Tax Withholding. Deposits must be made electronically. On an annual basis, Form 945
is filed to reconcile the year’s deposits.
□ Form WT-6--Wisconsin Tax Deposit Report
When: Filed either monthly, quarterly or annually—determined by the Wisconsin Dept. of Revenue
when a State Employer Identification Number is applied for (see above)
What: Employers must deposit withheld State Income Tax on a regular basis.
□ WT-7—Employers Reconciliation of Wisconsin Income Tax Withheld from Wages
When: Filed Annually
What: Reconciles monthly, quarterly or annual State Income Tax deposits.
□ Form W-2—Wage and Tax Statement (for Employees)
When: Annually
What: To report payments to your employees and withheld income such as social security and Medicare
taxes. By January 31st, employers must furnish Copies B, C, and 2 of Form W-2 to each employee whom
wages were paid during the year. Send Copy 1 of Form W2 to your state, city, or local tax department.
Keep Copy D for your records. online filing http://www.socialsecurity.gov/employer/bsotut.htm
□ Form W-3—Wage and Tax Statement Transmittal Report
When: Annually
What: Transmittal form sent along with all W-2 copy A’s to the Social Security Administration by
February 28th. If you file W-2 statements electronically, however, the deadline is April 1st.
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5. Secure Worker’s Compensation Insurance
Wisconsin law requires that you carry worker’s compensation insurance for your employees if you have:
•
Three or more employees or;
•
Paid wages of $500 or more in a calendar quarter or;
•
A farm which employs six or more workers for any 20 days in a calendar year.
While the state requires that you have worker’s compensation insurance, the state is not the insurance
carrier. Worker’s compensation is obtained through private insurance carriers. Please see facts on
Independent Contractor Status and Wisconsin Worker’s Compensation law.
For information, call: Wisconsin Department of Workforce Development, Worker’s Compensation
Division (608) 266-1340. DWD will also provide information on ways to inform workers about potential
benefits. Call (608) 266-1340, or write Worker’s Compensation Division, PO Box 7901, Madison,
WI 53707 or email: http://www.dwd.state.wi.us/ui/
Any independent contractor who does not have a FEIN and is injured on the job, can be construed as an
employee of the business for which work was done, and could, in fact, file for worker’s compensation
from that business. If you employ the services of independent contractors, ALWAYS ask the
independent contractor for their FEIN number to protect against a potential worker’s comp claim. In
addition, businesses should make sure the independent contractor meets all criteria in the state’s nine-part
test for independent contractor status:
1. Maintain a separate business.
2. Obtain a Federal Employer Identification number from the Federal Internal Revenue
Service (IRS) or have filed business or self-employment income tax returns with the IRS
based on the work or service in the previous year.
3. Operate under specific contracts.
4. Be responsible for operating expenses under the contracts.
5. Be responsible for satisfactory performance of the work under the contracts.
6. Be paid per contract, per job, by commission or by competitive bid.
7. Be subject to profit or loss in performing the work under the contracts.
8. Have recurring business liabilities and obligations.
9. Be in a position to succeed or fail if business expense exceeds income.
It is important to note that if an independent contractor files a worker's compensation claim against the
business for whom they are doing work, and the business disputes the claim, the judge will look at the
status of the claimant at the time of injury. In other words, they must have met the 9-part test at the time
of injury to qualify as an independent contractor. Otherwise, they will be considered an employee, and
the business will be heavily fined for not carrying worker's compensation in addition to being responsible
for the dollar amount of the claim.
For protection against this kind of situation, a business can buy a worker's compensation policy on an "if
any with no payroll" basis. Typically, the business is rebated 80% of the policy amount if by year's end
they can prove no payroll was issued. Be sure to ask the insurance company at the front end what proof
they will require when audited at the end of the year so that no surprises ensue.
If you use contractors, you must file Form 1099 for each individual contractor to whom you make
payment of $600 or more during a calendar year. Contact the Wisconsin Department of Revenue for
more information (608) 266-2776. http://www.revenue.wi.gov/
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5. Posting State Department of Workforce Development Posters is required. The workplace
posters are at http://dwd.wisconsin.gov/dwd/posters.htm
ADDITIONAL LEGAL CONSIDERATIONS
Labor Standards Law
Labor standards cover minimum wage, overtime, prevailing wage, child labor laws, compensatory time,
wage payments and other regulations. Regulations apply whether wages are paid on time, piece-rate,
commission or other basis. It is your responsibility as an employer to determine your liability. The
Department of Workforce Development administers state labor standards. Employers must also abide by
the federal laws and regulations. These laws change so please consult the appropriate office.
Some of the laws that apply to you as an employer include:
•
Employment of minors. It is illegal to employ minors under age 12.
Regulations apply for hiring minors between the ages of 12 and 18.
Because of the length and complexity of these laws, refer to the 2012 Child
Labor Guide published by the Equal Rights Division.
http://dwd.wisconsin.gov/dwd/publications/erd/pdf/erd_17231_p.pdf
Fair Employment. State law mirrors the federal laws and prohibits
discrimination in employment, promotion, and benefits against any
qualified person because of sex, race, handicap, age (if between 40
and 70), creed, color, national origin, ancestry, sexual orientation,
marital status and in most cases arrest and conviction record. Ask the
Equal Rights Division for a copy of Wisconsin’s Fair Employment
Law (ERD-4531). http://dwd.wisconsin.gov/er/
•
•
Minimum wages. For detailed information about current rates and
regulations, ask for the minimum wage poster (ER-39).
Overtime Pay Requirements. This law mandates overtime pay under
certain common conditions. Contact Department of Workforce
Development and the US Labor Department, Wage and Hour
Office, (608) 264-5221. http://www.dol.gov/whd/
This is only a selection of laws that apply to you as an employer. There are other laws you need to be
aware of. To obtain copies and interpretive materials of these state and other laws, call the Department
of Workforce Equal Rights Division, (608) 266-6860 (which enforces the State’s fair employment,
labor standards, and relocation laws); or visit http://www.dwd.state.wi.us/er/
For information on federal regulations, contact the following departments:
For wage and hour information, contact the
US Department of Labor, Wage and Hour Division
http://www.dol.gov/whd/
Affirmative Action
In addition to outlawing discrimination in employment, certain companies contracting with the federal
government must adopt an affirmative action program for the employment of women, minorities, the
handicapped, and Veterans. Check with the city of Madison, Affirmative Action (608) 266-4082
regarding compliance with federal affirmative action guidelines.
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Profit Sharing, Insurance and Pension Benefits
Profit and pension benefits are subject to Employee Retirement Income Security Act (ERISA) of 1974.
Health, life and disability insurance plans are also subject to ERISA regulations. The federal Department
of Labor and the Internal Revenue Service share in administering this law. Consult with your attorney.
Workplace Safety and Health Regulations
Right-to-Know. Requires all employers to inform workers about toxic substances, infectious agents and
pesticides in the workplace. Contact Safety and Buildings Division, Bureau of Safety Inspections,
(608) 266-2780, http://dsps.wi.gov/sb/SB-HomePage.html
OSHA - Occupational Safety and Health Administration has issued regulations and standards for
workplace safety. You must determine what steps need to be performed in order to be in compliance .
SARA Title III. The Superfund Amendments and Reauthorization Act (SARA) Section 313 requires
businesses using toxic substances to report to the Department of Natural Resources, Madison, WI
(608) 266-9255, http://dnr.wi.gov/topic/CompAssist/
Record Keeping
•
Employers are required to keep records on wages, hours, and other items as specified
by each agency.
•
Records do not have to be kept in any particular form but the employer must provide
the information required.
•
Records must be kept for hourly and salaried employees for a certain number of years
as determined by the respective agencies.
Each agency has different reporting requirements. Make sure you understand what information may be
asked for and store it in the appropriate way. Also see the SBDC resource guide, “Employer’s Guide to
Labor Laws.”
ORIENTATION AND TRAINING
Without proper orientation and training, the best hiring efforts can result in failure long term. Too often
the investment of time and care in hiring is lost because of lack of follow-through. Hiring is only the first
step in creating a satisfying and productive employment relationship. Much learning needs to happen
along with much teaching.
Orientation
An employee’s first month on the job is confusing. The business owner or job supervisor should be
friendly and encourage questions. Job turnover is expensive. Elements of a good orientation program are
listed below. The list is not exhaustive but will give you a guide to the basic components.
1.
Company, Introductory information on:
a)
History and development, philosophy and value system.
b)
Organization - structure, who’s who and who does what.
c)
Products - brief description of the original product(s) and its evolution to meet
competition and consumer needs.
d)
Office or plant facilities and layout.
2.
Personnel Policies
a)
General statement regarding what the new employee can expect of the company and
what the company expects from him or her.
b)
Compensation and benefits.
c)
Details of retirement plans, insurance
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d)
3.
Existence of unions and collective bargaining agreements, if applicable.
Union membership.
e)
General policies: terms of employment, general disciplinary rules and
procedures, rules covering attendance, hours, sick leave, vacations, dress
codes, telephone use, etc.
f)
Safety and security procedures.
g)
Employee activities and social functions.
h)
Career development and advancement opportunities.
Job Overview
a)
Explanation of type of work, hours, department organization, etc.
b)
Policies unique to the job. Special job privileges.
c)
Introduction to co-workers and supervisors.
d)
Tour of department to show where facilities and supplies are located.
e)
Job training preview: coaching, seminars, etc. Probationary period. (Any use of a
hiring contingent probationary period should be discussed with an attorney.)
Employee Handbook
As you hire employees, you should compile an employee manual. Using a handbook can effectively
manage the communication of policy, philosophy, mission and values. If you have developed an
employee handbook, have the employee sign a statement that he or she has read it. Your handbook
should be reviewed by an attorney.
Training
All employees need training, even those who are fully qualified and capable of performing their job at a
satisfactory level without skill development. Such an employee will still need detailed instruction on
what exactly the job is, what the work routines are, what the priorities are, what are the performance
standards, what areas does the employee have authority over, etc. Many studies have shown that a
majority of employees do not have a clear understanding of their responsibilities. This is caused by a
failure of their managers to communicate. Training is communication.
Most new employees need some skill or knowledge development to perform at a satisfactory level. The
first step in training is needs analysis. Failure to perform may have causes other than a lack of employee
skill or knowledge. The failure may be organizational; the company is not providing the needed tools,
materials, performance feedback and/or motivation. These are failures of management.
Most training in small business is on-the-job training. To learn effectively, an employee needs effective
teaching, which includes goal-setting, meaningful presentation of topics and materials, a chance to
practice, feedback, and reinforcement. Effective teaching on the job is called coaching. Coaching is most
often the responsibility of the business owner/manager.
In some cases, skill and knowledge development may be more effectively handled in off-the-job training.
Investigate courses, seminars, workshops, and other forms of training and development. Funds invested
in outside training have the potential for great returns, depending on the situation. However, learning offthe-job will not carry over to on-the-job performance unless the work environment reinforces and
supports the new behavior. Reinforcement is the responsibility of the business owner/manager.
PERFORMANCE APPRAISALS
Although beyond the scope of this guide, it is important to understand the critical need employees have
for performance feedback. Developing a rational basis for evaluating employees and making a conscious
effort to give them feedback is the heart of performance appraisal. Feedback develops and motivates
employees if it is constructive, fair, timely, and personal.
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Appraisal should be an ongoing continuous process, never a once-a-year exercise. You must
communicate your standards for performance and frequently communicate to employees how they are
doing against those standards. Communicating this is the responsibility of the owner/manager.
JOB SERVICE
The Wisconsin Job Service provides a variety of services free of charge to employers.
•
Personalized recruitment assistance to help employers in hiring personnel in all categories.
•
Helps employers in training employees through various financial assistance programs.
•
Provides labor market information (wages, etc.),
•
Handout on requirements for posting notifications about laws.
•
Statewide electronic data base https://jobcenterofwisconsin.com/
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