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Things to Consider When Hiring Outside of California

As “work from anywhere” becomes a more common practice in our new world of work, many organizations are hiring employees who live in other parts of the U.S., or even outside of the U.S.

Since we have the technology for a remote workforce, it shouldn’t matter where they are, right? Wrong!

Here are some of the items you need to consider:

Do you need to establish a local business entity? Most states in the U.S. and foreign countries require this.
What is the job market paying in the location where your employee works? Is it similar or different from your corporate location? Will you pay a differential if the person works remotely?
What about wage and hour laws or meal and rest breaks in the city, state, or country where the employee works?
How do you ensure equity in benefits, for example, vacation and holidays? European employees typically receive more vacation than U.S. employees. How do you handle that?
What other benefits are required by the employee’s location?
What about leave laws? How are parental, medical, and other types of leaves handled? Canada and many European countries offer up to a year of paid time off for certain leaves.
What are the local requirements for laying off or firing an employee? Many European countries require lengthy advance notice for a layoff, for example.

If the majority of your employees are in California, where required benefits may be more generous than in other parts of the U.S., do you offer your employees in other states California benefits? Can you afford to? If not, follow the laws where the work is performed and consider taking small steps to reach equity with your California employees.

It’s important to note that if a manager is working elsewhere but manages people in California, the California law requiring that managers receive anti-harassment training every two years applies.

Employment laws vary from state to state and certainly from country to country. To be in compliance, you need to follow the laws related to the state or country where your employees are located. It’s important to work with an employment attorney who is familiar with the legal requirements for recruiting, hiring, terminating, paying, and managing employees in that specific area.

First Impressions Count!

If you’ve been following my last few articles, then you know I’ve been sharing success tips for both hiring organizations and job seekers in the candidate/job search process.

Here’s a recap of what I’ve covered so far:

For hiring managers:

Be sure that you review and update job descriptions before posting to ensure that they align with your needs today and into the future.
Don’t rely solely on applicant tracking systems – they often overlook good candidates through their keyword filters; leverage your networks.
Train all interviewers, and prepare good questions that evaluate skills, experience, and behaviors that are a fit for the job and the organization.

For job seekers:

Before updating/posting your resume, take time to gain clarity about what you want next – the skills you want to use, the type of organization, the work environment, etc.
Do the research (or work with a coach) to ensure that your marketing tools (resume, LinkedIn profile) reflect your career vision and that you have a job search plan; leverage your networks.
Spend time before each interview researching the company, preparing answers to anticipated questions, and preparing questions to ask. Practice, practice, practice.

Now I’d like to talk about the importance of making a good first impression.

These tips apply to both the hiring organization (HR, hiring manager, all interviewers, even the receptionist) and job seeker.

Be on time. Whether it’s an in-person interview or, as so many are today, a Zoom interview, be ready at least 5 minutes in advance so you can start on time.

Test your technology. For remote interviews, be sure you are familiar with the technology being used and that you are set up in a quiet place where you won’t be disturbed. Don’t forget to turn your camera and speakers on.

Dress for success. Whether in person or remote, dress professionally.

Pay attention to your body language. Nonverbals speak volumes. Sit up straight, make eye contact, smile, and convey that you are engaged in the conversation. Consciously suppress any little habits you may have, e.g., tapping your pen, as these can be a distraction.

Are you planning to look for a new opportunity in 2022? My Landing Your Dream Job career coaching package includes all the job seeker tips I’ve talked about so far and much, much more.

Contact me today and schedule a meeting to learn how my services can help you. https://calendly.com/michellemendoza-connecttohr. You can also reach me directly at michelle@connecttohr.com.

Thinking of Hiring Employees? Start with a Strong Foundation

One of the things that I think has helped my business grow and thrive for the past 10 years is that I spent significant time at the beginning building a strong foundation.

As I mentioned last time, I went to a SCORE workshop to learn about the requirements (and challenges) of running a small business. I also made sure that I put the proper systems in place to manage my finances, do required reporting, etc. I invested in getting a basic website up and developing quality marketing materials to create Connect to HR awareness. I researched and joined relevant networking groups to build business connections.

Starting and maintaining a strong foundation will help see you through the good times and the challenging ones.

If you have or plan to have employees, there are additional foundational steps you need to take. Here are some key foundational HR items you need to address.

Effective hiring. As you identify the need to hire employees, be sure that you have developed a workforce plan that clearly defines job roles and requirements. Check out my previous blog about effective workforce planning for some tips. Don’t forget, in California there are required notices and forms that employers must provide new hires. Connect to HR offers a new hire tool kit that makes it easy for companies to understand their compliance requirements in the new hire process.

Job descriptions. Detailed and up-to-date job descriptions will help you recruit the right talent and assess their performance. They are also key in ensuring that you are legally compliant. A detailed job description not only protects you when you terminate an employee for non-performance, it also ensures that you comply with the Fair Labor Standards Act (FLSA), the Americans with Disabilities Act (ADA) and other legal requirements.

Goals and objectives. Setting and communicating clear goals and objectives for employees (that are tied to company goals) will help reduce performance issues and keep employees engaged. Goals are a great tool to help monitor performance with clear standards. We suggest you review them with employees monthly, at a minimum, to ensure they are still relevant over time.

Labor law posters. Be sure you post all the required federal and state employment posters and have a system in place for managing your HR records. These posters are required for all businesses with two or more employees.

Employee Handbook. It’s important to have an Employee Handbook that includes basic employment policies as well as policies specific to your company. You can avoid employee and legal issues if you clearly communicate expectations about work hours, conduct, etc.

Health and safety. Company management is responsible for creating and maintaining a safe and healthy work environment. In California, all employers should have an Injury Illness and Prevention Program (IIPP).

Terminations. Just as it’s important to have an effective hiring process, it’s important that you have an effective (and legally compliant) process for terminating employees. Creating and following a Termination Checklist will help ensure that you cover all the bases. Terminating an employee is never easy, but putting some structure around it can make it less stressful for both you and the employee.

Please reach out to me at michelle@connecttohr.com if you need guidance on any of these items.

Walk the Talk: Creating a Culture of Diversity, Inclusion and Belonging

As competition for attracting and keeping top talent heats up, companies who demonstrate that they have a culture of diversity and inclusion will have a significant advantage. Not only are these companies likely to perform better financially, as we discussed in my last blog, they are also more likely to engage and retain their high performing employees. And…attract new ones!

According to LinkedIn Talent Solutions’ 2018 Global Recruiting Trends report, “diversity is the biggest game-changer” among recruiting trends for 2018. Seventy-eight percent of their survey respondents indicated that diversity is very or extremely important in shaping their recruiting and hiring efforts for 2018. And it’s not just diversity – it’s diversity, inclusion, and belonging, all key elements in attracting, engaging and retaining employees.

Companies are focusing their efforts on a wide definition of diversity, including gender (71%), racial and ethnic (49%), age/generational (48%), educational (43%), disability (32%), religious (19%) and other (6%).

Yet despite this focus, companies still have a challenge in attracting diverse candidates. Here are some things to consider as you work on making your candidate pool more diverse, and your culture one of diversity, inclusion and belonging.

Demonstrate your commitment to diversity through the images on your website and in recruiting collateral. Show that you walk the talk.

Review job posting language through the lens of diversity and inclusion. Words matter. Terms such as “rockstar, “ninja” or “guru” may discourage some perfectly qualified people from applying. Use gender neutral language. Sometimes it’s as simple as changing “manage” to “develop.” A recent KQED article noted that “if you say manage a team, the applicants are primarily male. If you say develop a team, it tends to be female. And when you say lead a team, it tends to be neutral.”

Emphasize the impact of the role. Studies show that men will apply for jobs when they meet only 60% of the requirements, whereas women don’t feel confident to apply unless they meet 100% of the requirements. Consider only including the must-have requirements (versus adding all of the nice-to-haves) and focusing more on the impact the candidate would make in the position.

Be sure diversity is reflected in your culture. Consider incorporating things like time off for important holidays for diverse religions, providing parental leave, and implementing LGBTQ-friendly policies. Identify and eliminate workplace practices and attitudes that are anti-diversity-inclusion-belonging.

Confirm your commitment to diversity and inclusion on a regular basis by ensuring that teams, projects, promotions and other opportunities are open to the broader definition of diverse individuals – gender, ethnicity, points of view, sexual orientation, etc.

If you need help in incorporating diversity into your hiring practices and/or culture, please contact me at michelle@connecttohr.com.

Improve Company Performance Through Diversity and Inclusion

There has been much discussion recently about the disparity in pay and opportunity for women and minorities across a variety of industries. And although Silicon Valley companies have created many initiatives over the years to close the gap, the gap in hi-tech remains. But here’s the thing. Those companies who have successfully increased diversity and inclusion – especially at the senior management level – are significantly outperforming those who haven’t.

According to a recent McKinsey & Company report, companies that ranked in the top quartile on executive-level gender diversity outperformed their less diverse peers by 21%. Companies with the most ethnically diverse executive teams outperformed their peers by 33%. Conversely, the report showed that the least diverse companies underperformed their industry peers by 29%. Clearly there’s a correlation between diversity and the bottom line.

In addition to improving financial performance, proactively creating a culture of diversity and inclusion improves employee engagement and helps attract new talent. Companies that embrace differences and provide opportunities for all are far more attractive and motivating workplaces. This is important for leaders to remember, especially now that we’re in an environment where there’s competition for talent.

Although the McKinsey report looked at diversity primarily through the lens of gender and ethnicity, I think it’s important to consider a broader definition. All too often leaders fall into the trap of hiring someone very much like them – similar personality, similar background, similar way of approaching a problem or decision. Yet there is so much to be learned and gained from building a team and organization that includes a variety of personalities, backgrounds, and approaches. When different viewpoints and approaches are brought to the table it spurs innovation, which contributes to the organization’s competitive edge.

Creating a culture of diversity and inclusion can also help attract customers. Today’s consumers have myriad choices, and many are looking to do business with companies that demonstrate they care by providing opportunities, development and advancement for all.

Next time we’ll talk about some things you can do to promote diversity and inclusion in your culture and hiring practices.

New Criminal History “Ban the Box” Law Takes Effect January 1, 2018

A new law recently signed by Gov. Jerry Brown will prohibit employers in California from including criminal history inquiries on employment applications before making a conditional offer of employment. AB 1008 applies to all California employers with 5 or more employees and will go into effect January 1. California has had a “ban the box” law for city, county and state employers since 2014. The new law extends the ban to private sector employers. Fifteen local jurisdictions, including San Francisco and Los Angeles, already have such private sector bans in place.

The goal is to give Californians with a prior arrest or conviction a fair chance at finding a job and moving forward.

AB 1008 makes it unlawful for employers to:

Include questions on employment applications about criminal history
Ask about or consider the conviction history of an applicant before the applicant receives a conditional offer of employment; and
Consider, distribute, or disseminate information about arrests that did not result in a conviction.

The bill also requires that, before rejecting an applicant based on criminal history, the employer must first make an “individual assessment” to determine whether the applicant’s conviction history has a direct and adverse relationship with the specific duties of the job. The employer must consider each of the following:

The nature and gravity of the offense or conduct;
The time that has passed since the offense or conduct and completion of the sentence; and
The nature of the job held or sought.

If the employer makes a preliminary decision not to hire the applicant in part or solely due their criminal history, they must notify the applicant in writing and give them at least 5 business days to respond. If the applicant notifies the employer in a timely manner that they dispute the accuracy of the conviction history, and are taking steps to obtain evidence to prove its inaccuracy, the employer must provide the applicant 5 additional business days to respond. By law, the employer must consider the applicant’s response before making a final decision.

From a business perspective, banning “the box” can expand the pool of potential employees in what is a very competitive market. Individuals with arrest records or convictions for even minor offenses often have difficulty getting that first opportunity to begin turning their life around. A former client of mine who gave someone that opportunity had a very positive experience. Through a program with the EDD, she hired someone who had served time for a minor offense to work in the company call center. The individual was anxious to get some experience, and to be able to support their family. The program had very specific requirements that the employee had to adhere to, e.g., weekly drug testing, and attending meetings with their parole officer. It turned out to be a win-win. The employer got a motivated employee, and the employee got a fresh start.

Remember that in light of the new law, AB 1008, you may need to make changes to your employment application form and hiring procedures. Please contact me if you need help in doing so.

New Minimum Wage and Hiring Rules in Effect

As of July 1, the minimum wage has increased in a number of California cities. If you have employees in any of the following cities, be sure that you have changed their pay rates accordingly. Note that in some cities, the minimum hourly wage is based on the number of employees. Also, if an employee works in (or telecommutes from) a city with a higher minimum wage than the state, the employer must follow both the state wage requirements and the city’s wage requirements for that employee. The current minimum wage in the state of California is $10.50/hour for employers with 26 or more employees, and $10/hour for employers with 25 or fewer employees.

New minimum wages are as follows:

San Jose: $12/hour
Milpitas: $11/hour
San Francisco: $14/hour
San Leandro: $12/hour
Emeryville:
• $15.20/hour for companies with 56 or more employees
• $14/hour for companies with 55 or fewer employees
Los Angeles, Malibu, Pasadena, Santa Monica, and unincorporated areas in Los Angeles County:
• $12/hour for companies with 26 or more employees
• $10.50 for companies with 25 or fewer employees

Effective January 1, 2018, the state-wide minimum wage will increase to $11/hour for employers with 26 or more employees and $10.50/hour for employers with 25 or fewer employees.

Use of Criminal Histories in Hiring Decisions
Also effective July 1, the Fair Employment and Housing Council implemented new rules regarding the use of criminal history in hiring decisions.

The new rules require that employers consider whether their use of criminal histories will have an adverse impact on any protected class. If an applicant or employee claims that the policy or practice of using criminal histories has an adverse impact on a protected class, the employer will have to show that the policy was job-related and consistent with business necessity.

Employers must also be able to show that there wasn’t a less-discriminatory policy or practice that could have achieved the same result. Employer policies must allow for an individual assessment that considers the nature of the offense, how long ago it took place, and how it relates to the position, if at all.

In addition, applicants or employees must be notified if an adverse action will be taken because of their criminal history, and they must be given an opportunity to address any factual inaccuracies. If a record is shown to be inaccurate, it must not be considered.

Please note that the following criminal records should not be considered in California:

• Arrests that did not result in conviction (unless trial is pending)
• Detentions that did not result in conviction
• Sealed records
• Convictions that have been judicially dismissed, including through expungement
• Misdemeanor marijuana convictions more than two years old
• Participation in pre-trial or post-trial diversions programs
• Proceedings in juvenile court

If you have questions about a specific hiring situation, contact your employment counsel.

Identifying and Preventing Workplace Bullying

In a survey conducted by Dr. Judy Blando of the University of Phoenix, nearly 75% of respondents said they had been affected by workplace bullying, either as a target or a witness. That’s shocking. What’s even more shocking is that so often bullying goes unreported, and when it is reported the targets are often the ones that bear the consequences. According to a recent article in business.com, targets lose their jobs at a significantly higher rate than perpetrators (82% vs. 18 %).

This is short-sighted on the part of employers, because bullying impacts not only the targets, but other employees who witness it, as well as customers. Chances are if someone is a bully to those inside your organization, they will be a bully to those outside the organization.

I’ve seen this first-hand. A company I was working with hired a new sales manager. Over time, the sales manager’s team began to complain about a number of things. He wasn’t cooperating with the rest of the team. He would get in people’s faces. He took credit for other people’s work. He would over promise to customers, and when he couldn’t deliver, he would blame others for it. All of these are signs of a bully. The company owner was reluctant to take action. It was hard for him to admit he’d made a bad hire. This is pretty typical. In fact, according to the Workplace Bullying Institute, 72% of employers deny, discount, encourage, rationalize or defend bullying.

I encouraged the owner to explore what was happening internally, and to consider that it might be impacting the company’s image externally. Following an investigation, the sales manager was fired. Not long after that, two customers called the owner to say that they had been on the verge of moving their business because of the way this individual had treated them. Bad behavior is bad for business!

Often bullying can be subtle. And often bullies pick on targets whom others describe as amiable, easy-going, kind. Bullying is abuse, plain and simple. Here are some things to watch for. A bully may:

Consistently ignore the target, or exclude them from team meetings, conversations, or outings
Be overly critical of the target’s work, with the goal of making them feel inadequate or unworthy
Create a hostile work environment by igniting conflict or competition among team members
Yell or use abusive language to others
Physically block the target from entering or exiting, or invade the target’s personal space
Take credit for work that is not their own
Blame others for their mistakes
Give false information or withhold information to discredit the target
Purposely prevent the target’s progress on a work project

Preventing bullying in the workplace starts by making good hires. Craft your behavioral interview questions to draw out any red flags from the candidate’s previous experience. Communicate to employees that abusive behavior/bullying will not be tolerated. Create an environment where all employees feel comfortable sharing concerns with their leader or HR. Be observant. Notice and take action when you see bad behavior. Develop and communicate a process for reporting and response. Keep accurate records.

If you have concerns about bullying in your organization, please feel free to contact me.

Compensation Step One – Developing a Pay Philosophy

For the past couple of blogs, I’ve been talking about various aspects of HR planning and the importance of being proactive vs. reactive around people-related activities. One of the most important activities to plan for is compensation. What have you budgeted for compensation, and how will you allocate it for merit increases and adjustments needed to attract and retain the skills identified in your workforce plan?

Step one is clarifying your pay philosophy. A pay philosophy is a set of guiding principles that identifies compensation priorities, and supports organizational values and goals. It explains why the company makes the decisions it does about employee pay, and creates a framework for consistency across the organization. Although a pay philosophy will differ from company to company, all are aligned in the goal of attracting, retaining and motivating the best talent.

Some factors to consider in creating your pay philosophy are company size, financial position, level of difficulty in finding needed talent, the industry, and market salary data. An example might be that you know you have to pay a starting salary slightly above the market in order to attract the right people. Or, your financial position is such that you have to pay slightly below market, but make up for it with a more generous vacation benefit.

As you define your pay philosophy, be sure to consider total compensation – base salary, incentive pay, and benefits. Examples of incentive pay are bonuses, commissions, and profit sharing. Benefits may include medical, dental, and vision insurance; life insurance; paid vacation; leave policies and 401(k) programs. Some companies choose to match 401(k) contributions up to a certain amount, which is an attractive benefit. Recognition is another factor to consider, especially from the perspective of motivating employees. Recognition can include cash awards, or non-cash awards such as sports event tickets, travel vouchers or other “thank you” gifts.

Once you’ve defined your philosophy, commit it to paper and review it periodically to assess how it’s working and identify any changes needed based on changing company circumstances, the market or the economy in general.

If you need more information or need a sounding board as you create your philosophy, please contact me.

5 Ways to Attract and Retain Millennials

Millennials (those people born between 1980 and 2000) are now the nation’s largest living generation, surpassing Baby Boomers, according to the U.S. Census Bureau. In fact, it’s projected that by 2025, Millennials will make up 75% of the workforce. This means that finding ways to effectively attract and retain them will become essential in keeping the wheels of your business churning!

Here are some tips for recruiting and keeping employees from this now-dominant generation.

Use social media. To attract Millennials, you need to go where they are. And that’s on social media. A recent article in Inc. Magazine said 66.7% of first time job seekers use social media to look for work. Make sure your recruiting messages present your brand well, and are mobile friendly. Anyone with a family member in this age group knows that their smartphone is a key source of information and communication. Use the latest tools available, such as LinkedIn’s recruiting tools and video interviewing.

Give them insight. Millennials want to work somewhere that provides stability and financial security. A collaborative environment is also important to them. They care about company culture. Be sure your website and your social media presence convey a sense of what it’s like to work at your company. Think about the images and content on those sites – do they accurately tell the story of who you are?

Show you care. According to a Deloitte survey, 60% of Millennials say they chose to join their current employer in part because of the organization’s sense of purpose. Do you give back to your local community? Include that on your website and in your recruiting materials and messages. Also, consider giving employees time off to volunteer or matching their monetary donations.

Develop and grow them. Millennials are motivated by a competitive compensation package, professional development, and opportunities for advancement. Give them a clear vision of their career path and how they can advance. Provide training and mentoring opportunities. They also prefer leaders who empower their employees, and who give them frequent, constructive feedback.

Provide flexibility. Millenials favor work/life balance. They want to work hard and get ahead, but they also want to have enough time to pursue their personal interests. Consider offering flexible work schedules.

Matching your recruitment efforts to the needs of Millennials will help ensure that you keep your candidate pipeline active!

Please contact me if you need more ideas or help in implementing any of these.