As companies continue to find their footing in this slippery and unpredictable economy, you shouldn’t lose sight of the importance of solid HR practices in your company. Despite the desire to cut costs – and perhaps cut corners – solid HR is critical in protecting your company against lawsuits, and in weathering the economic storm. We ask our prospects the following five questions when considering, How does their HR bottom line look?
- Is your employee handbook up-to-date?
- Do your managers understand and comply with progressive discipline practices?
- Do you have detailed job descriptions to hold employees to objective standards?
- Do your Human Resources practices reduce your liabilities as an employer?
- Are you prepared to adapt to changes in Human Resources/Benefits regulations?
If you answered No, or I’m Not Sure, to any of the questions above, you may be placing your company in jeopardy. Recent reports support the tale that during an economic downturn, employment lawsuits rise. A recent overview of the legal landscape by The Legal 500, a 20-year old publication providing comprehensive worldwide coverage on legal services providers, confirmed this fact:
The onslaught of wage and hour litigation continues unabated, although the focus has now turned to cases of greater complexity or those relating to specific industries such as pharmaceuticals or construction. The other main development in this area is the increase in litigation resulting from widespread reductions in force. As the hostile economic climate of 2009 forced workers to scrutinize the reasons for their termination in more detail it made them more likely to pursue claims of wrongful termination when they couldn’t secure employment elsewhere. Along with these trends, new legislation continues to fuel changes in the employment landscape.
What are you doing to protect yourself?
In our next post, we will discuss two cost-effective ways employers can protect themselves from the ever-growing tide of employment lawsuits.
Earlier this month, a troubled employee fatally shot nine people (including himself) and wounded eight others when he arrived to the warehouse where he worked for the last two years. He was there to meet his manager for a disciplinary hearing.
As the tight economy continues with no foreseeable end in sight, employers are challenged to find ways to compensate, motivate and reward employees while adding minimal costs to their bottom line. As health insurance premiums continue to skyrocket, many employers are utilizing paid time off (PTO) as a recruiting tool to entice qualified applicants to join their company. PTO policies such as paid vacation, sick, holiday, and jury duty are common-place within the workforce; however, state regulations restrict how employers may implement such policies. Non-compliance with these regulations may result in wage and hour lawsuits that can be costly for employers. In the next two posts, we review some important PTO rules and guidelines.
For the second consecutive year, we are proud to announce that CPEhr was named one of the ‘Best Places to Work” by the Los Angeles Business Journal. Thousands of businesses participate in the annal “Best Places to Work” competition.