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Align HR practices with your objectives and keep your company competitive A company's ability to grow and stay on top of customer demand has always depended heavily on the quality of its people. Now, more than ever, businesses recognize that finding (and keeping) a highly skilled and motivated workforce is pivotal to success. Maybe you're a business owner and your company is growing, or you're an employee at a small- to midsize-company and management has asked you to take on some--or all--of their HR functions. Either way, knowing how to set up and implement successful HR practices (not to mention navigating the legal minefields in today's increasingly regulated environment) can be tricky. Human Resources Kit For Dummies is your one-stop resource for learning the nuts and bolts of HR. It gives you forms and templates that you can put to immediate and productive use. * New information on anti-discrimination legislation; measuring performance; hiring, firing, and retaining employees; and training and development plans * The latest info on online and social media policies * Updated forms and contracts, from job application forms and sample employee policies to performance appraisals and benefit plan worksheets If you're currently working in Human Resources or are responsible for employees in your business, the tools presented here help you maximize the effectiveness of your own HR program.
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Table of Contents
Human Resources Kit For Dummies For Dummies®, 3rd Edition
by Max Messmer
Human Resources Kit For Dummies®, 3rd Edition
Published byJohn Wiley & Sons, Inc.111 River St.Hoboken, NJ 07030-5774
www.wiley.com
Copyright © 2013 by John Wiley & Sons, Inc., Hoboken, New Jersey
Copyright © 2013 Robert Half International, Inc., as to Author-Created Materials
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Library of Congress Control Number: 2012949802
ISBN 978-1-118-42289-2 (pbk); ISBN 978-1-118-42292-2 (ebk); ISBN 978-1-118-42294-6 (ebk); ISBN 978-1-118-42295-3 (ebk)
Manufactured in the United States of America
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About the Author
Harold M. “Max” Messmer, Jr., is chairman and CEO of Robert Half International, the world’s largest specialized staffing firm. He is one of the foremost experts on human resources and employment issues. Messmer’s entire business is built on the premise that any company’s success is based on the extent to which attracting and keeping outstanding talent is a top priority.
In 2011, Messmer received the prestigious Staffing Innovator Award from Staffing Industry Analysts and was named the Bay Area’s Most Admired CEO in the large public company category by the San Francisco Business Times. In 2010, Messmer was inducted by the San Francisco–based Bay Area Council into its Bay Area Business Hall of Fame.
For the past 26 years, Messmer has served as CEO of Robert Half. He also has served on the boards of numerous major corporations. His community involvement includes service on the University of California, San Francisco (UCSF) Medical Center Executive Council and the Eisenhower Medical Center Board of Directors. He also is a past member of the board of overseers of the Hoover Institution at Stanford University.
Messmer, who began his career as a law firm associate and then partner, was valedictorian of his graduating class at Loyola University and graduated cum laude from the New York University (NYU) School of Law. In 2000, he received the prestigious Alumni Achievement Award from NYU’s Law Alumni Association.
A frequent author, Messmer’s other books in the For Dummies series include Job Hunting For Dummies, 2nd Edition; Managing Your Career For Dummies; and Motivating Employees For Dummies. He also has written countless articles on job seeking, employment, and management topics and is the author of the popular column “Resumania,” distributed by Scripps Howard News Service.
Founded in 1948, Robert Half is a recognized leader in professional consulting and staffing services and is the parent company of Protiviti, a global consulting and internal audit firm. The company’s specialized staffing divisions include Accountemps, Robert Half Finance & Accounting, and Robert Half Management Resources, for temporary, full-time, and senior-level project professionals, respectively, in the fields of accounting and finance; OfficeTeam, for highly skilled temporary administrative support personnel; Robert Half Technology, for information technology professionals; Robert Half Legal, for legal personnel; and The Creative Group, for interactive, design, marketing, advertising, and public relations professionals.
Robert Half International (NYSE: RHI) is a member of Standard & Poor’s widely tracked S&P 500 Index. The company consistently appears on Fortune magazine’s “World’s Most Admired Companies” list, ranking number one in the staffing industry in 2012 (March 19, 2012).
Dedication
To my wife, Marcia, and my sons, Michael and Matthew, and their families, all of whom are my daily reminders that people are the most important source of inspiration — in life and in work.
Author’s Acknowledgments
In preparing this third edition of Human Resources Kit For Dummies, I relied on the advice and assistance of a number of talented individuals whose contributions made this book possible. I want to thank Jeff Wuorio, Allen Scott, and Robert McCauley for their research and recommendations on the fast-changing world of human resources management. I also want to acknowledge the valuable insight of Reesa Staten, senior vice president of corporate communications at Robert Half, and Lynne Smith, director of talent management and staffing at Robert Half. I would be remiss if I didn’t acknowledge those individuals who made the previous editions of Human Resources Kit For Dummies possible, most notably Joel Drucker, Barry Tarshis, and Lynn Taylor. In addition, I’m indebted to Stacy Kennedy, acquisitions editor at John Wiley & Sons, Inc., who saw the need to provide new insight on this important subject, and to the editors and reviewers whose efforts carried this third edition through to completion, Elizabeth Kuball and Debra Tenenbaum.
My sincere thanks also go to the highly respected law firm of Paul Hastings LLP, whose collaboration was essential to the whole project. Paul Hastings is a leading international law firm that serves many of the world’s top financial institutions and Fortune Global 500 companies with 19 offices across Asia, Europe, and the United States. As legal issues continue to shape key HR practices, I believe our readers will benefit greatly from the insights provided by Kirby Wilcox, one of the firm’s senior partners and a leading employment law expert, and Brit Seifert, an attorney with the firm’s employment law department. I would also like to acknowledge with gratitude the law firm of O’Melveny & Myers, which was a valuable source of expert advice in the first two editions of this book.
A final acknowledgment goes to the founder of our company, the late Robert Half, who was a close friend. Bob established a corporate motto years ago: “Ethics First” — two words that continue to be the indispensable cornerstone of any successful business.
Publisher’s Acknowledgments
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Introduction
A company’s ability to grow and stay on top of customer demand has always depended heavily on the quality of its people. Today, this relationship is even more relevant. In bottom-line terms, employees represent the intellectual capital that can make or break a firm’s efforts to remain competitive. Businesses are now, more than ever, recognizing that a highly skilled and motivated workforce is pivotal to success.
About This Book
Managers and business owners with loyal teams that consistently delight customers and make money for the firm aren’t hard to spot. They’re the people who know how to attract and nurture these teams. In short, they’re very good at managing human resources.
But recruiting and managing a first-rate staff is no small feat. In any job market, competition exists for the most desirable candidates, and, once hired, these top performers are only a competitor’s phone call away from leaving you. Not only that, but the human resources (HR) function now encompasses everything from creating a strategic workforce plan to launching effective training initiatives, interpreting federal and state codes, and implementing policies and benefits that safeguard workers while protecting company interests. And the stakes are high. The legal and economic consequences of a major HR misstep can be enormous.
As a business owner or manager, you’ve probably already faced these and other challenges. You may not think of yourself as an “HR person,” but you recognize that you need to hire the best people you can and motivate them to do their best work for you. In the past, you likely took on some aspects of finding and keeping top talent, with perhaps someone else on your team handling the details. Now, as your organization has grown, you’re no doubt finding that your company’s HR responsibilities have become more complicated. Whether you’re a business owner who would like to make sure that you’re up-to-date on employment regulations and HR best practices, or you’re a manager who has been asked to take on HR-related duties, you’re going to need a resource. Even if you attend outside courses in people management, you won’t remember everything you hear. Ultimately, you need a straightforward yet comprehensive resource with information, insights, and tools to help align your company’s HR practices and policies with the overall objectives of your business. That’s why I decided to write Human Resources Kit For Dummies.
Some companies are lucky enough to have their own HR professional or even an entire HR department. Most of these HR specialists have developed their skills through years of education and on-the-job experience. In writing this book, my aim is not to pretend that I can magically turn you into a seasoned HR professional by the time you read the last page. I do believe, though, that I can give you a fair representation of the issues HR people deal with, how the best of them approach these challenges, and enough background to help you better oversee or handle the HR function for your organization — both today and as you continue to grow.
As you can see from the table of contents, human resources is a very broad and varied discipline. One book can’t possibly tell you everything you need to know about this continually evolving subject area. So, don’t worry — I won’t overwhelm you with information. On the contrary, everything you read in this book and every tool available on the included CD directly relates to the operational issues most companies deal with daily.
What can you expect to gain from this book? For starters, you’ll be better able to
Evaluate your company’s current HR policies and practices to ensure that they’ve kept pace with changes in the HR landscape.
Understand the HR-related issues (changing demographics, for example) that are affecting the workplace of the future — and make the necessary long-term plans for success.
Develop and implement an HR program that responds to the needs and resources of your firm.
Understand the key regulatory issues that apply to many business owners and managers and, thus, put yourself in a better position to guard against costly legal disputes.
Develop a strategic staffing mindset, ensuring that hiring and staffing practices and decisions are linked to long-term and short-term business objectives.
Examine what today’s most successful and progressive companies are doing with respect to such basic HR areas as recruiting, benefits, training, performance management, and staff retention.
Gain insight into practices (flextime and telecommuting, for example) that have become basic components of today’s “employee-friendly” workplace, determine which ones are right for your company, and administer them successfully and cost-effectively.
This book provides general guidelines on how to set up and implement successful HR practices, as well as actual tools — forms, templates, web links, and so on — that you can use right away. Human Resources Kit For Dummies, in other words, is not simply a book to read; it’s a book to use.
Conventions Used in This Book
I don’t use many conventions in this book, but I do use a few to help you find the information you need quickly and easily:
When I introduce a new term, I italicize it and define it shortly thereafter (often in parentheses).
I use monofont for all web and e-mail addresses.
Note: When this book was printed, some web addresses may have needed to break across two lines of text. If that happened, rest assured that we haven’t put in any extra characters (such as hyphens) to indicate the break. So, when using one of these web addresses, just type in exactly what you see in this book, pretending as though the line break doesn’t exist.
What You’re Not to Read
You can skip sidebars (that’s the text in gray boxes). Although the sidebars are interesting, they’re not critical to your understanding of the subject at hand. You also can skip anything marked with the Technical Stuff icon (see “Icons Used in This Book,” later, for more information).
Foolish Assumptions
In writing Human Resources Kit For Dummies, I had to make certain assumptions about you, the reader. Because I’m not sure exactly what your background and needs are, I wrote the book with two broad audiences in mind:
Business owners who find that their growing companies are demanding a greater portion of their time and attention in managing one or more of the most common HR functions, such as hiring, benefits administration, performance evaluation, training, and regulatory issues
Individuals in small to mid-size companies who have only a limited knowledge of HR functions but whose management has asked them to take on some or all of these roles
Although seasoned HR professionals may find much of the information a handy reference, my primary audience is people who are new to the field or are eager to discover new HR practices to gain competitive advantages for their companies.
First and foremost, I want to address you as a businessperson — someone who, after reading the book, is knowledgeable not only about the nuts and bolts of HR but also about how to approach the function with the goal of becoming a major player in helping to run your company.
Finally, when I use the term senior management at various points in this book, don’t misconstrue it to refer exclusively to CEOs and other higher-ups at larger companies. Rather, I take it to also include the people I just mentioned — owners of small, growing companies and key managers in mid-size businesses, among others. The overriding point is, if you need a comprehensive overview of what HR involves, this book is designed to fit your needs, no matter what your day job is.
How This Book Is Organized
Human Resources Kit For Dummies is divided into six parts, each of which is further divided into chapters, totaling 21 chapters in all. It also includes a CD with forms, templates, and other tools that correspond to the topics covered in particular chapters. Every chapter contains not just information but also concrete advice on how to put this information to practical use.
Following is a brief description of what I cover in each part.
Part I: Scoping Out the HR Role
In this part, I introduce the fundamental responsibilities expected of someone in an HR role. Then I outline the key issues affecting the human resources field today. Throughout the book, I discuss various HR technology tools, but in this part, I talk about them as a group and explain how they can benefit even the smallest HR shop.
Part II: Putting the Right People in the Right Places
Here I get down to brass tacks. I focus specifically on the hiring process, beginning with the foundation that supports all your staffing activities. Successful staffing in today’s workplace is a multistage process, with each phase linked to the others. I give you the background and tools you and your company’s line managers need to recruit, interview, and select employees, or to engage contingent workers, who will be pivotal in growing your business.
Part III: Keeping Your Best People
This part covers policies that can either enhance or stand in the way of your ability to retain valued staff after you’ve attracted them to your organization. That effort starts on the first day a new employee walks in the front door. I then cover elements such as compensation, benefits, training, and establishing a culture that can give your company a reputation as a great place to work.
Part IV: Developing Your Employees
Here you discover how to offer training that’s tied to your business goals, as well as career development opportunities that can help your people grow professionally. I also offer tips on the right way to measure employee performance.
Part V: Law and Order
This part addresses the legal challenges of hiring and managing your employees. I cover discrimination and a number of federal labor laws and guidelines. This part also includes a chapter on how to deal with difficult situations, such as grievances, layoffs, dismissals, and sexual harassment.
Part VI: The Part of Tens
The final chapters of this book provide you with useful supplementary information to help you build and maintain a productive, loyal workforce. Here, you find ten keys to HR success in the future, ten ways to become a great HR professional, and ten HR-related websites worth exploring.
Appendix
One last thing: I also include an About the CD appendix that covers — you guessed it — how to use the CD included with this book.
The CD
From sample job descriptions to sample employee policies, you get a variety of tools you need to implement state-of-the-art HR practices and procedures. Some of these forms are turnkey — ready to use immediately. Others are sample templates that you may want to adapt.
The collection of forms is pretty comprehensive, but your situation may be unique. When in doubt, the best practice is always to contact a knowledgeable and experienced lawyer who specializes in this area.
Icons Used in This Book
When I want you to pay close attention to a specific piece of information, I place little pictures, called icons, next to the text in the margin. Here’s what the icons mean:
This icon flags what I consider to be good and practical advice.
I flag important conceptual information with this icon.
This icon indicates something that is particularly sensitive and could get you into legal trouble if not handled properly. Always contact an attorney if you’re unsure if something is legally risky (regardless of whether it’s flagged by a Warning icon).
This icon flags legal jargon and technical discussions.
Whenever I mention a document that you can reference on the CD, I use this icon.
Where to Go from Here
Every chapter in this book covers a topic of importance to the HR function. But you’ll likely find that some chapters have greater relevance to your situation than others. If you’re completely new to the HR role, for instance, you’ll want to start with Part I to build your baseline knowledge. If you have some experience hiring and managing staff, you may instead choose to start with the later chapters to discover the finer points of these activities. You don’t have to read this book from start to finish to get the most out of it. Look through the table of contents and index so you can find those chapters or sections that address the issues you currently face.
Part I
Scoping Out the HR Role
In this part . . .
I give you a 30,000-foot view of human resources. I lay out the fundamental categories of HR responsibilities and give you a quick summary of the steps involved in recruiting and retaining strong teams. I provide an overview of some of the most important trends in the HR field, such as the growing need to offer policies that support employees’ desire to achieve work/life balance and the wider adoption of flexible staffing models. Another key trend, the continued effect of technology, is so rapidly changing the HR role that I devote an entire chapter to it.
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