Thinking of Taking the New Career or New Business Leap?
Ah, strategic job jumping! This topic is in my mind because I am currently leading a committee with Santa Clara County Chamber of Commerce that is putting together an event about career transition and starting your own business. Whether you are transitioning into a new career or looking to start your own business, there are four fundamental elements you should have in place before you leap.
Research, Research, Research
Anytime you embark on a new venture, do the research. In the case of starting a new business, decide what type of business appeals to you. Spend time online learning about the industry. Utilize the services libraries offer. Ask family, colleagues and friends who own a business what they enjoy about being a business owner: what are their likes and dislikes about being a business owner? Visit businesses and observe the environment.
Once you have decided you want to pursue a business idea, assess your level of comfort with risk, both financially and personally. What type of entrepreneurial options fit you best? Do you want to purchase an existing business? Do you want to pursue a franchise? Perhaps neither option is right for you. Is contract work the right option for you?
Job seekers – the same is true for you. If you are interested in making a strategic job jump, research your desired field. Conduct informational interviews with people working in the profession you are interested in changing to. Decide the type of job and environment that fits you best. Do you prefer to work in teams or on your own? Do you want to work remotely or onsite? Do you want to be an individual contributor or do you want to manage people? Answers to these questions will guide you in the right direction.
Make a Plan
Once you have decided to make your move, it’s time to put your plan together. In business, this means putting together a business plan. This is important to determine several factors. Who is your competition? What is your marketing plan? What are your financial goals? How much do you need to invest in your business? What is your breakeven point?
Job seekers, you also need to create a plan. Every week, have a campaign in place outlining who you contacted online and in person, what networking groups you attended and what ads you responded to.
Mentoring and Support
Build yourself a support system. Making a career move or building a business is not easy. It takes a lot of work and dedication! Engage your family and friends in your decision; gain their support ahead of time and they can be your biggest cheerleaders when things get tough. Do you need structure and accountability? Hire a coach. Career coaches can make a big difference when you are looking for a new job. In the long-run, a business coach can shave off time and often save you money as you get your business off the ground.
Build Your Network
As you embark on your transition, build your network. Networking sites such as LinkedIn will help you build relationships and connections with your desired field or business community. Join online forums or groups who can help you stay motivated and engaged.
I’ve made many career transitions in my life. By following these four essential elements, I’ve been able to make strategic job jumps both in the corporate world and now, as a business owner. They’ve worked for me and I know they’ll work for you. With planning, support and connections you can be successful in a career transition or starting a new business.
If you are in Santa Clara, CA, check-out: Women’s Event: Career Transitions & Starting a New Business on July 28th.
Don’t Believe Everything You Read !!!!
Over the past several weeks, a variety of newspapers in Silicon Valley are writing about a dip in the economy. Really? I confess: I’m surprised, frustrated and angry! Here is what I know: the technology industry and a variety of other industries are coming back, and coming back strong. A recent report published by Robert Half International stated 92% of 4,000 executives surveyed plan to grow their companies. Check out the article at: Robert Half Report
Focusing on the negative certainly sells more newspapers, but there are too many indicators telling us the economy is coming back.
Silicon Valley is a special place. We have Facebook, Google, Apple, Twitter and LinkedIn right in our backyard. There are so many companies that are doing well and keeping our local economy strong. In other parts of the country my colleagues remind me they are facing a very different economic reality.
When it comes to jobs in Silicon Valley, I remain optimistic! In the last two weeks, I helped a start-up company hire 24 new employees nationwide. Another small business client of mine said he plans to add 20 staff members to his company nationwide over the next 30 days. Does that sound like a dip? Not to me! These two clients aren’t alone – several others have come to me with similar workforce plans.
More good news: I saw an advertisement for a diversity fair to be held in San Jose on June 22nd. For more details, please click on: City Career Fair. The best part of this career fair is that it’s being held nationwide and is coming to a city near you.
To my small business clients and job seekers: stay optimistic! There are positive signs all around you – look for them! Take note of your colleagues’ successes and know that you, too, will grow your business or find your ideal job. Overall, the trend is up! Here’s to 2011!
Hiring Unpaid Interns in California
I’ve been noticing an interesting trend among my fellow small business owners. Many are interested in hiring interns as they expand and grow their businesses. Paid internships should be treated like any other employment relationship and should follow the same wage and hour laws. Make sure you have workers compensation for your interns and withhold the appropriate payroll taxes. If you are a California employer thinking of hiring unpaid interns, here are some things to keep in mind.
A new ruling last April by the California Labor Commissioner adopted a six-factor test used under the Fair Labor Standards Act (April 2010) to determine if an internship can be unpaid in the “for-profit” sector. If an employer can abide by the 6-factors then the intern may be exempt from being paid wages and overtime pay in California. Otherwise, an intern in the “for-profit” private sector, who qualifies as an employee rather than a intern, typically must be paid at least the minimum wage and overtime compensation. Here are the criteria:
1.) Training, even though it includes actual operation of the employer’s facilities, is similar to that which would be given in a vocational school.
2.) The training is for the benefit of the interns or students
3.) The interns or students do not displace regular employees, but rather work under their close supervision
4.) The employer derives no immediate advantage from the activities of the interns or students, and on occasion the employer’s operations may be actually impeded
5.) The interns or students are not necessarily entitled to a job at the conclusion of the training period
6.) The employer and the interns or students under that the interns or students are not entitled to wages for the time spent in training
For further information, check-out the California Department of Labor (Fact Sheet #71).
California employers need to consider several things before deciding to work with an unpaid intern. Is the internship experience more beneficial to the employer or is it a benefit for the intern? Interns should not be used as “free” labor. An internship should be a learning experience for the student or intern, with no expectation of a job at the end of the internship. An internship shouldn’t be used as a way to “test” a potential employee. This is very important: make sure the intern understands upfront they will not be paid for their time. I recommend that the terms and conditions of the internship be written down and reviewed by a California employment law attorney.
One final note: there may be an exception for individuals who volunteer their time, freely and without anticipation of compensation for religious, charitable, civic, or humanitarian purposes to non-profit organizations. Unpaid internships in the public sector and for non-profit charitable organizations, where the intern volunteers without expectation of compensation, are generally permissible. If you are not sure if you fall under this exception, seek advice from a California employment law attorney.
I hope this information is helpful. If anyone has questions of a general nature regarding this topic, please feel free to contact me. For specific legal advice, contact a California employment law attorney.
Job trend reports suggest hiring is on the rise.
While preparing for my upcoming presentation on May 23 at Phase2Careers on the impact of social media on job searching (http://www.phase2careers.org), I came across a couple of interesting articles I’d like to share with you.
The Silicon Valley Business Journal highlights, “after returning to prerecession levels, nationwide job openings continued to increase in April with 33.9 percent year-over-year growth and 6.7 percent month-over-month, according to a report by SimplyHired.com.” According to the SimplyHired.com report, “Hiring in the retail industry increased 23.6%, the largest growth across all industries. The concurrent 92.0% increase in job openings for retail salespersons signifies the beginning of summer seasonal hiring for retailers.”
What this means for employers and job seekers:
For employers who are thinking of hiring this year – do not delay! There are job seekers with great skills who are in transition and ready to get to work. Take advantage of this talent pool before the competition scoops them up!
Job-seekers, the good news is that a variety of industries are hiring again. Get those resumes prepared, create your LinkedIn profile and get ready to accept that perfect job! And, check out organizations such as Phase2Careers who offer free or low-cost workshops such as the presentation I will be giving on May 23rd where I will discuss the importance of social media in your job search.
Let’s get to work!
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For more information on the April job trend reports read the press release or view the full report by visiting the Simply Hired Blog: http://blog.simplyhired.com/2011/05/simplyhiredcom-releases-april-job-trends-report.html#ixzz1M9zuuXTj
You can also read the Silicon Valley Business Journal article at http://www.bizjournals.com/sanjose/news/2011/05/04/report-hiring-passes-pre-recession.html.
You’re Hired!
2011, I believe will be the year that the labor market strengthens. Over the past several months, unemployment has decreased and hiring has increased. Since January, I have received inquiries from business owners in my local area seeking help in hiring new employees. I’m also helping several job seekers who need assistance revamp their resumes and cover letters. With hiring on the rise, I will be discussing different aspects of recruitment. In this blog posting, I will give a high-level overview of the recruitment process and best practices. Subsequent posts will focus on key areas of the recruitment cycle and pitfalls to avoid.
Whenever you hire, establish the job requirements and have well-written job descriptions. The goal of a job description is to establish the essential function of a job, the minimum qualifications and any additional skills or qualities required to perform the job. A job description should enable a hiring manager to objectively measure the applicant against the actual requirements of the job. Having good descriptions can also ward off complaints of discrimination.
Once you have found an ideal candidate for the job, prior to an offer being made, the hiring manager should consider having an applicant fill out an application form. It is also recommended that all new hires undergo a background check and that references checks are conducted. In some industries, such as the transportation where safety is a concern, a drug and alcohol test may be administered. For certain positions such as a financial role, a credit check is appropriate. If you decided to conduct references, background checks, drug and alcohol testing and credit checks, here are some things to keep in mind:
1.) If you use an outside vendor to conduct background checks make sure you use a “consumer reporting agency” under the Fair Credit Reporting Act (FCRA).
2.) When conducting a drug and alcohol test obtain the sample privately. All test results should remain confidential and kept in a separate file from other personnel records.
3.) While an employer may refuse to hire an applicant currently using alcohol or drugs, they may not discriminate against an applicant who has successfully rehabilitated and no longer uses alcohol and drugs.
3.) If using a credit report to make a hiring decision, make sure the applicant is given a “Summary of Your Rights Under the FCRA.” The applicant should be notified of their right to dispute the accuracy/completeness of the report and his/her right to a free copy of the consumer report.
As employers, it is important to use written employment agreements (offer letters). These agreements should be signed by the employees prior to starting their new job and should contain the essential terms and conditions of employment. It is also very important to make sure to include an “at will” termination provision in the agreement.
If you have any questions about the recruitment process, please leave a comment below.
Do you have a particular topic you are interested in learning about? Let me hear from you!
Listen to a Message from Connect to HR
www.connecttohr.com/employee_handbook
My mission is to help educate business owners on how to avoid lawsuits. One great way to protect yourself if you are a small business owner is to create an employee handbook. I can guide you through the process of putting one together for your business.
Remember, your Customized Employee Handbook will:
» Clarify company policies and procedures. When policies and procedures are written down, they are easier to enforce.
» It can save you time. You won’t need to spend time answering common questions.
» Prevent problems and misunderstandings with employees. With an employee handbook in place, employees will understand what is expected of them regarding their behavior and communication.
» Outline rights and obligations under both Federal and State laws. This is for the protection of both the employer and employee.
Please contact me if you’re considering ordering your customized employee handbook package and need more information. Contact Connect to HR by sending an email to connecttohr@yahoo.com.
Feedback from a Happy Client
“Working with Connect to HR was one of the easiest transactions working with another business. Michelle’s final product far exceeded my expectations. I was extremely happy with the work and service that went along with it. I would definitely recommend Michelle Mendoza to a friend or colleague.” Ravinder L. (UPS Store #4636)
Exempt vs. Non-exempt…. How Can I Tell?
Companies large and small struggle with the issue of who must be paid overtime and who can be exempt. For example, some employers think because a person is salaried, rather than hourly, the employee is exempt from the requirement to pay for overtime. This is not true! Whether a person is salaried or hourly is not the determining factor.
California law provides greater protection to an employee than the FLSA (Fair Labor Standards Act ). Therefore, if you are an employer with employees in California, you must ensure you are adhering to the California Labor Code, because it provides broader protection for employees and thus trumps the FLSA.
Defining Exempt Status:
The most widely used exemptions are often referred to as the “executive,” “professional” and “administrative”. Unless a job falls under these exemptions, an employer must pay overtime to their employees. In California, non-exempt, hourly employees are entitled to overtime pay for any hours worked over 8 in a day and over 40 in a week. Also, the exemption must meet the following requirements:
1. Is “engaged in work which is primarily intellectual, managerial, or creative,” and “which requires exercise of discretion and independent judgment,” and
2. Is paid a monthly salary equivalent to at least twice the state minimum wage for full time employees.
Another important distinction between FLSA and the California labor code is that an employee must be “primarily” engaged in intellectual, managerial, or creative work for 50% or more of his or her work time. Thus, California law focuses on the amount of time the employee spends on his or her specific duties. This law is very different than the comparable law under the FLSA, which focuses on the “primary duty” or the reason for which the employee was hired.
Another frequent misunderstanding about exempt classification has to do with titles. For example, having a title that on the surface would appear to fit under one of the exemptions is not enough. In fact, on October 15, 2010, a class action lawsuit was certified by the Alameda County Superior court against Oracle. The lawsuit challenges the exempt status of the following positions:
1. Technical Analyst
2. Project Manager
3. Quality Assurance
After investigating the job duties, it was found the positions with titles: technical analyst, project managers and quality assurance lacked the discretion and independent judgment needed to satisfy the exemptions under California labor codes.
Another common misconception is that employees who are paid commissions are automatically exempt. This is also not true. Although there is an exemption for sales people who “customarily and regularly work more than half the working time away from the employer’s place of business selling tangible or intangible items or obtaining orders or contracts for products, services or use of facilities,” there is no exemption for inside sales people.
What Does This Mean to YOU?
Employers should keep in mind that in California if the employer fails to compensate an employee for overtime pay, the employer is subject not only to the unpaid wages, but to liquidated damages in an amount equal to the overtime wages, interest, the employee’s attorney’s fees, and costs.
How to Avoid the Pitfalls:
I recommend that a fact-specific inquiry must be thoughtfully applied prior to every position being made “exempt” from the overtime provisions of the wage and hour laws. Also, employers should work with legal counsel to conduct an attorney-client privilege audit of any currently classified exempt positions.
THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION. THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.
Connect to HR presented at Santa Clara Chamber
On March 4, 2011, I spoke at the Santa Clara Chamber of Commerce on the topic of the 3 most common employee mistakes business owners make. Although, these mistakes are 100% preventable, left unattended can lead to costly lawsuits of up to $100,000. As you can imagine, the presentation was well received, and because I want to make sure everyone benefits from the valuable information, I have created a special report addressing this very topic. If you want to make sure that you are not making the same mistakes that other business owners make leading to costly lawsuits, download your very own copy of the report right away:
Special Report
I know my report will help you consider how you can implement changes in your workforce to avoid a potential lawsuit. Once you have read it, feel free to email me your comments or forward on the link to others who could benefit from this valuable information as well.
Meals and Rest Periods: A Hotbed for Wage and Hour Lawsuits
Lawsuits regarding meal periods and rest breaks have received publicity in recent years. According to a white paper published by law firm, Hopkins & Carley, in December of 2005, an Alameda County jury in the state of California awarded $172 million including $115 million in punitive damages to a group of Wal-Mart employees in a class action lawsuit concerning required breaks (Daniel F. Pyne III, 2010).
Because small business owners are operating on lean budgets and trying to be as productive as possible with every dollar and every hour, they commonly fail to provide meal periods and rest breaks to their non-exempt, hourly employees.
In a typical eight (8) hour workday, California law requires that companies offer a minimum of two (2) ten-minute breaks. Federal and California law generally require a 30-minute meal break if a non-exempt employee works more than five (5) hours on a given day. Penalties accrue for every day that the employer fails to provide these breaks. If you are involved in an audit, the EEOC will typically ask to review payroll records going back from 2 to 5 years for both current and past employees.
How can you avoid being out of compliance and accruing penalties?
Here are some recommendations:
1.) Employers should adopt or update written policies in their employee handbook concerning meal periods and rest breaks. The policy should state that meal periods and rest breaks are available to all non-exempt employees. It is important that employees acknowledge this practice in writing.
2.) Rest breaks need to be provided at appropriate intervals in the workday rather than being combined and taken as one large chunk of non-work time during, or at the end of the day.
3.) Employers should utilize an appropriate mechanism such as a time card for capturing all hours worked as well as any meal periods and rest breaks taken. Also, the employee should sign the time card themselves.
4.) Employers should require non-exempt employers to record the actual times at which they begin and conclude their meal periods and rest breaks.
Remember: Require your employees to sign a timecard. Require your employees to take meal periods and rest breaks. It’s not just a law but also a good practice to have. Meal periods and rest breaks help employees recharge their battery and avoid injury.
The 5 Minute Solution to Performance Feedback
The number one HR-related question I am asked has to do with giving feedback to employees. Many clients ask me if they have to put feedback in writing. The truth is if it’s not in writing, it did not happen. You, as the employer, must prove you did not violate the law. Simply talking about bad behavior is not enough. Writing down employment issues serves two purposes. First, it provides the paper trail necessary to prove you have a legitimate reason for corrective action or termination. Secondly, it holds the employee accountable for their actions.
If you want to keep the conversation with one of your poor performers low-key that’s ok but make sure you follow-up after the conversation with written documentation. Documentation doesn’t have to take up a lot of time. It can be as simple as sending an email to the problem employee or writing a short memo that includes one or two sentences about the incident, time, place, date it occurred and corrective action.
Here’s a sample email:
From: Supervisor
Date: July 30, 2010
To: Problem Employee
Subject: Following up on our conversation
Hello John Doe,
It was good talking with you today about [x problem], and I’m glad that we were able to identify the best solution moving forward. I expect [insert expectation of conduct or performance here]. Let me know if I can be of further assistance to you or if you have any further questions.
Sincerely,
Supervisor
Sending an email has many benefits. First, it puts a date/time stamp on a document that identifies the problem. Secondly, it sets forth the expectation for the employee. Finally, the email has the added benefit of demonstrating the sender’s willingness to work with the employee to achieve improvement.
It takes less than 5 minutes to draft the follow-up correspondence which is a lot less time than spending hours, days, and weeks dealing with a pending lawsuit, producing volumes of reports and documents to prove you did not do anything wrong. So, take the time to document!
THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION. THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.
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