Tuesday, March 30, 2010

Why Technology can be a Double-Edged Sword

Recently I was reviewing an article about technology in the workplace and how productive laptops and “Blackberrys” made workers. The article was aimed at warning employers that when those technological tools are used could have a significant impact on wage and hour issues. (That is of course a very real issue and one I will comment on at a different time.)

I actually began to think about the danger to an employer such tools can have, when employers permit access to their systems. Traditionally, when the employer assigned a laptop or cell phone to an employee, a policy on appropriate use of device along with notice that the employer could and will monitor use and improper use of the device could lead to discipline.

Last night as I watched a commercial for one of the cell phone companies touting a Blackberry for $99, it occurred to me that more and more employees are buying their own laptop and smartphone and then getting access to the employer’s system. Many employers embrace this because their employees are more productive and accessible and the employer does not have to purchase or provide the asset. It also makes working remotely cost effective and viable.

Then, I heard about the lawsuit!! The wife of a male employee sued her husband’s employer after her husband using his own laptop had posted pictures of their young daughter on a kid porn website through the husband’s employer’s internet connection. The woman sued arguing that the employer had a duty to monitor the usage of its internet connection and its failure to do so damaged their family. (The case is still ongoing, and how it will turn out is anyone’s guess, but you don’t want to be the company who foots the legal bill to defend such a case…particularly when the solution is easy and cost effective.)

If an employer chooses to allow its employees to access its resources and assets, it must establish policies for permissible use and make sure that every employee is aware of the policy and the consequences of ignoring the policy. Then, the employer must actually monitor its employees’ use of the company assets including email and internet use and strongly enforce its established policy.

Allowing employee access to the company’s computer files also raise other privacy questions and hinders the security of your electronic information and trade secrets. Accessing data from an offsite location or an employee’s private electronic computers is risky without adequate measures to control how and when your assets are being used.

Getting increased employee productivity is an admirable goal, but it can come at a significant price if you don’t make sure that you protect your assets, and prevent employee misuse. If you don’t have a policy that clearly spells out your expectations and what is allowed and prohibited, write one, publish it to your workforce and closely monitor who gets access to your email and internet systems and how they use it. HR professionals (such as G & J Consultants) can assist you in reviewing your current equipment/internet usage policies and even draft a new comprehensive policy should you need one. The investment and the protection a well crafted and enforced policy provides is worth it!

Monday, March 15, 2010

Discharging an Employee and Save Unemployment Costs

During this time of employee contraction, (U.S. Gov’t report that job losses have SLOWED not stopped.) employers tend to focus on the unpleasant task of actually terminating employees when the employee does something wrong. However, often the needs of the business demand that positions be cut and employees be terminated. When a reduction in force is required, employees file for and get unemployment costs. The employer is required to pay into the unemployment system, and the amount of the annual assessment is based on the amount of unemployment paid out to the employer’s terminated personnel.

These costs are totally controllable and when an employee is terminated for cause, unemployment funds are not paid to the former employee and the employer is not charged.

When I directed the HR department for a heath care company, I advised managers to use a procedure that not only made the termination process easier and less emotional, (for both parties) but also set up the employer to be in a win/win situation.

Let’s face it, after the time and expense of training an individual to be productive and fit into the business and pull their own weight, if you could maintain the individual the replacement costs (e.g. recruiting and training) would be saved and not paying unemployment would positively affect the business financial health.

How to do it? Use a process of discipline that includes a short suspension to give the employee an opportunity to turn around and become a productive member of the team. In the health care company, when an employee’s performance suffered to the extent that termination was being considered, I would ask the manager what level of performance the employee would need to meet to be retained. Past performance would be reviewed and a level of performance would be spelled out in a memo of expectations. The employee would meet with their manager and be informed that their job was in jeopardy, and that the employee was being suspended for 1 to 2 days to consider their position in the company and the level of performance that was expected of that person while in that position. The employee was asked to come back to a meeting with a signed document that stated if they would meet the performance and timeline expected by the employer. Failure to bring the document or show for the meeting was considered a voluntary termination.

Voluntary terminations are not eligible for unemployment benefits. If the employee did come back and did not perform to the company’s expectation, then “good cause” for the termination was established. If the employee did not return for the meeting or failed to bring the required document, that was grounds for termination based on insubordination.

What we found after instituting this policy and training managers on how to implement it, 66% of the employees returned to work as productive members of the team. Those employees, who failed to come back or never met the requirements for the job and were terminated, did not obtain unemployment benefits.

Take control of an easily controlled cost. Don’t keep paying out large unemployment premiums. G & J Consultants show you how to reduce your unemployment premiums and employee replacement costs while retaining those employees you want to keep.

Glenn Brown is the CEO of G & J Consultants, LLC. In addition to having directed the HR Department of a health care services company, Glenn is a licensed attorney with 15 years experience assisting businesses of all sizes and industries in complying with employment and labor legal issues. G & J Consultants specializes in providing small and medium sized businesses with traditional HR services as well as compliance with employment laws and regulations.