Your business’ productivity could suffer because employees are chaining themselves to their desks.  But why are employees spending so many days at work and shunning the personal leave they once relished?  New studies show employees are afraid to—or genuinely unable to—step away from their desks.  Even a nasty head cold or the beckoning of a Caribbean vacation won’t unlock those chains.

As for the head cold, a recent CareerBuilder survey found 72 percent of workers report for work when they’re legitimately sick.  Most respondents (55 percent) do this because they feel guilty about missing work.  While this seemingly demonstrates amazing loyalty, how loyal is it to show up to spread germs to healthy coworkers?  Furthermore, does an office full of runny-nosed people slumped at their desks promote productivity?

And then there’s that Caribbean vacation.  A Right Management poll found 46 percent of workers didn’t use all their vacation time in 2010.  Workers either couldn’t get away from their desks or felt like they couldn’t get away to enjoy their annual vacations.

Whatever the case, employees are spending more days at their desks.  With so many businesses short staffed, with more duties falling to fewer employees, taking personal time is a legitimate concern for many workers.  Employees also worry that if they miss work, even for a day or two, their employers will realize either the worker or the position isn’t vital.  Employees are afraid to step away because their jobs may not be there when they come back.

If your employees aren’t taking the personal time they need, they’re at risk for employee burnout.  Workers who don’t feel like they can get a break from work, either to get healthy or to have fun, are more likely to suffer persistently high stress levels.  In turn, high stress levels can lead to employee turnover, which can quickly have your business flipping through job applications.  So what to do with employees who won’t unlock that desk chain?

Hand them the keys.  Now, more than ever, it’s important to tell employees it’s OK to miss work—and it needs to genuinely be OK.  Remind employees that their jobs will be waiting when they come back, and then train coworkers to fill in for sick or vacationing employees.  At the end of the day, employees able to take time off work will be healthier and happier, and will respond with increased loyalty and productivity.

Is your business ready for January 31, 2011?  No, we’re not talking about W-2 distribution—we’re talking about the deadline for employers to apply new Social Security withholding tables and the new 4.2-percent tax rate.

These new numbers are effective under the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010’s “Social Security tax holiday.”  Under this “holiday,” employees earning up to a low six-figure salary will pay 4.2 percent in Social Security taxes, while employers will continue to pay the full 6.2 percent.

As if those changes aren’t enough to remember, employers who didn’t implement the new tax tables by the first pay period of 2011 will find they have withheld too much tax from their employees’ paychecks.  This may be a common inaccuracy due to the tax tables’ late-December release; however, withholdings should be corrected as soon as possible and no later than March 31.

If the influx of tax and payroll changes has you scratching your head, let GHRO look out for you.  We monitor the latest legislation and regulations to keep your business running at its best, so you can focus on core business matters.  Let us do the work for you.  Call us today for a free quote!

New research from the Economic Policy Institute shows public sector employees may be getting a bad rap.

According to this research, contrary to popular belief, public sector employees are not paid better than private sector employees.  Government workers actually earn an annual average of $6,061 less than their private sector counterparts.  Even including the government’s oft-touted benefits packages, public workers still make $2,001 less per year.  The study also made a point of controlling factors such as education and number of hours worked, since public sector employees tend to be more highly educated and work fewer hours.

These findings may come as a surprise to the half of Americans who, according to a Washington Post poll, think federal government employees are overpaid.  The poll also found a third of Americans think private sector employees are more skilled than government workers.  A whopping three-quarters of Americans believe federal employees receive higher pay and benefits than their private sector counterparts.

It’s clear old stereotypes are hard to break, but an interesting trend may be afoot.  The Washington Post poll noted adults over 65 harbored more negativity toward government workers, while adults under 30 were far more likely to believe government employees were fairly compensated—or better yet, not compensated enough.

I’m assuming that many of you are active Human Resources professionals, and as such you’re responsible for everything from evaluating candidates, posting job descriptions, to handling employee’s questions regarding their retirement, and making sure their benefits are in order. However, for the focus of this post, I’d like to offer some insights regarding the hiring process from the perspective of a candidate who has been searching for a job for quite a while. Anyhow, take from my thoughts what you will! I hope I can be of some help.

The first area I’d like to offer my advice in is to say this: avoid confusing job descriptions. Now, I’m sure you do your best to write good job descriptions, but I still want to counsel you to try to look at what you’re writing from the perspective of a desperate job hunter. The vague job descriptions bring in all sorts of desperate people, many of whom are unqualified, who justify their applying for a job they’re clearly not capable of doing because the job description is unclear.

Secondly, you should try to make the interview process as easy as possible for the candidate to navigate. This means telling the candidate the basic information up front. You’d be surprised at how many interviews I’ve been invited to attend, only to have to call back later and ask for directions, for the names and positions of the people who will be interviewing me, and how long I can expect the interview to last and any other special considerations. Job candidates who are asked to interview are already stressed as it is; try to make the process easy on them.

Finally, once the interview is over, be in touch with the candidate, regardless of the outcome. I’ve sat through interviews that I thought were going well, only to leave without knowing what the process going forward is. I’ve had several places not call me to inform me of their decision. If you invite someone in for an interview, it’s only right that you follow up, even if that person did not make the cut.

I realize that many of you are already doing your jobs well, and probably do these things above all the time. So this isn’t a criticism at all. Instead, it’s just a gentle hello from the other side of the job application website, saying “Don’t forget about me!”

By-line:

This guest post is contributed by Alisa Gilbert, who writes on the topics of bachelors degree.  She welcomes your comments at her email Id: alisagilbert599@gmail.com.

So far, you’ve learned when to update your business’ employee handbook and how to avoid potential handbook horrors.  In our third and final entry into our employee handbook series, you’ll find out key points to include in any effective handbook.

When properly prepared, the employee handbook should be a critical communication tool between your business and its employees.  Your handbook should explain your business’ expectations from its employees and establish what your employees can expect from the business.  This information should be presented in a clear and easy-to-understand fashion.

Here are ten essential items that should be included in every employee handbook:

1. A form acknowledging the employee’s receipt of the handbook
2. A disclaimer reserving the employer’s right to change the handbook’s content in the future
3. The organization’s mission statement
4. Recruitment practices, including how open positions are posted and filled
5. Salary administration practices, including merit increases and performance reviews
6. Computer and Internet use policy
7. Employee code of conduct
8. Absence policy, including maternity leave, bereavement leave, and jury duty
9. Complaint and grievance procedures
10. Guidelines for employment termination

If your employee handbook was last updated in the age of high hair and parachute pants, it lacks key legislative changes such as the Americans With Disabilities Act, the Family and Medical Leave Act, and the Polygraph Protection Act.  Relying on an out-of-date handbook is a surefire way to invite litigation!

Your HR team should continually review the handbook for necessary updates.  Employment law is constantly changing, so your HR team should check new laws against your employee handbook’s policies.  Your HR team should also confirm handbook policies match actual practices.  The last thing anyone wants is to be cornered by an employee armed with a handbook offering six weeks’ vacation, when current company policy only offers four.

Having an up-to-date handbook provides many benefits beyond avoiding uncomfortable confrontations.  Not only does the handbook provide guidance to employees and supervisors, but it also establishes consistent policies important to risk management.  Consistent policies also ensure a more harmonious work environment, since everyone knows what to expect.

If it’s time to update your employee handbook, consider the following steps:

1. Regularly review the handbook to ensure the most current policies.
2. Have an attorney review the handbook at each phase.
3. Implement a plan to address policy updates and how to communicate them to everyone in the business.
4. Train management staff to consistently follow handbook policy.
5. Record all updates and changes in a log.

Check back soon for Parts Two and Three of our Employee Handbook series!

According to a recent survey by the Profit Sharing/401k Council of America, 401(k) plans will remain a top priority in 2011 as many companies plan to restore contributions that were reduced or suspended due to economic troubles.

Of the 14.8 percent of companies forced to shelve matching contributions during 2008–2010, over a third have already restored contributions, with an additional third planning to restore contributions by mid-2011.  During that same two-year period, over 70 percent of companies’ matching contributions remained unchanged, while 10 percent actually increased.

The survey also found employee participation in 401(k) plans rests largely on matching funds. Of companies with suspended matches, 78.1 percent reported a decrease in employee participation.  Of companies with non-suspended 401(k) matches, nearly a third reported an increase in employees contributing to the plans.

Additionally, the survey showed that companies are more actively involved in managing their 401(k) plans and disseminating information to their employees.  Companies also focused on employee education, investment advice, and monitoring their plans for optimal returns.  In 2010, the vast majority of 401(k) plans changed their investment lineups to replace underperforming funds.  Plan fees have also come under greater scrutiny.  This increased attention to plan management may be a result of companies appointing committees to review fund performance—94 percent of surveyed companies used such a committee.

According to CNNMoney, this New Year may bring new hope—and new jobs—to the unemployed 9 percent of America’s workforce.

Some leading economists project 2011 will bring 2.5–3 million jobs to U.S. payrolls.  This forecasted increase is triple 2010’s expected job gains and marks the biggest one-year increase since the ripe dot-com labor market of 1999.  While these jobs will not be enough to restore the 8 million jobs lost during the economic slump, nor will they significantly impact the unemployment rate, they indicate an encouraging trend.

Why do economists think this trend is coming?  First, job openings increased 17 percent from June to October 2010, which is up approximately a third from earlier in the year.  Second, initial jobless claims recently fell to their lowest rates since the summer of 2008.  Third, on the business side of things, capital expenditures have been increasing, which are good indicators of future hiring and expansion.  The final, and arguably most interesting, measurement of the pending trend is a slow but steady increase in the number of day-care workers, which signals more parents have jobs.

New job creation is a heartening indicator of pending economic recovery.  More jobs mean more income is distributed to the American people, which mean those people have more money to spend and to stimulate businesses.

As we look toward a new year, many of us start thinking about how to change ourselves for the better.  That’s where the New Year’s resolution comes in.  Several consistently popular resolutions across the years: to lose weight, to exercise more, to manage stress, to quit smoking, and to drink less alcohol.  What do all these resolutions have in common?  They’re related to health and longevity.  As we look toward a new year, why not consider giving your employees the gift of health through an employee wellness program?

Wellness programs focus on employees’ physical well being, including medical requirements and general health.  Wellness programs offer a variety of health-related solutions, which may include weight loss plans, stress management training, smoking cessation programs, nutrition coaching, physical fitness advice, behavioral health therapy, and physiological testing, like blood pressure screenings and cholesterol checks.  If your business already offers an employee wellness program, why not give the gift of a special alternative therapy, such as a massage session?  Your employees will thank you well into the New Year.

How can healthy employees benefit your small business?  Perhaps the most obvious way is through reduced absenteeism.  Healthy employees show up ready to work and to keep productivity levels high.  They also arrive with improved morale and loyalty, since well-cared-for employees are more likely to feel appreciated by and connected to their employer.  This also contributes to the invaluable harmonious workplace.  Healthy employees also provide the business with reduced health care and insurance costs and, indeed, lower overall costs.  Dollar for dollar, the investment into an employee wellness program is well worth the return.

If your business is interested in establishing an employee health and wellness program—or improving upon an existing program—GHRO can help with our HR Total Solutions Package.  With GHRO Total Solutions, your business will be on its way to an employee wellness program, and it will also have direct access to unlimited services, such as asset protection, cost containment strategies, and turnover reduction strategies.  With nearly one hundred years of combined HR experience, GHRO’s team is committed to meeting your HR needs.  Visit our website to receive a free quote.

Ah, December—a busy and tumultuous time for many businesses . . . a time of holiday office parties, secret Santa exchanges, and most important to many—time off to spend with family and friends.  When December rolls around and employees are itching to clock out, does your company’s holiday pay policy look more like It’s a Wonderful Life or does it look more like How the Grinch Stole Christmas? Much of how your company shapes its policy will depend on the needs of the business (and of course, the holiday spirit!), but when it comes to legal requirements for holiday pay, this employer’s guide to common questions and answers can help.

Q: Must employees get paid time off for nationally recognized holidays?

A: No.  Federal law doesn’t require employers to provide holiday time off, paid or unpaid.

Q: What about accommodating a religious holiday?

A: In short, yes, employers must accommodate their employees’ religious practices unless the business would suffer an undue hardship.

What is reasonable accommodation?  Allowing an employee to use a floating holiday, a vacation day, or unpaid time off are all reasonable ways to accommodate religious observances.

Q: Must employees be paid for employer-provided holiday time off?

A: This answer depends on the employee’s classification.  Employers are not required to pay hourly employees for holiday time off; employees must only be paid for time they actually worked.  On the other hand, employers are required to pay salaried employees who work without regard to overtime for holiday time off if they worked any hours in the holiday week.

Q: Must paid time off be included in determining an employee’s entitlement to overtime?

A: No.  Employer-provided paid holiday hours are not required to count toward an employee’s hours worked ,for the purposes of determining overtime eligibility.  Typically, an employee must work 40 hours in a week to become eligible for overtime.  This may be overridden, however, by collective bargaining agreements.

Q: Can conditions be attached to holiday pay?

A: Yes, but those conditions should always be in writing.  As examples, an employer may prorate holiday pay for part-time employees or may require a certain amount of service time before an employee becomes eligible for holiday pay.

Q: If an employee works a holiday, must they get premium pay?

A: While a common practice (and a kind gesture) to pay a premium to employees who work holidays, it is not a legal requirement.

Q: Must the same holiday benefits be extended to all employees?

A: No, as long as any differences are not a result of potential discrimination, such as age or gender.  Employers can, for instance, grant holiday pay to full-time employees only, or to office workers instead of field workers.

Q: What happens if a holiday falls on an employee’s regular day off or on a non-business day?

A: No legal requirement governs this area; however, a popular practice is to allow employees to take another day off during that pay period.  This is typically seen when holidays like Christmas fall on a Sunday and employees are given the following Monday off.

When it comes to managing your company’s payroll services, GHRO can help!  Our seasoned professionals have years of experience in Human Resources and can help you develop the best policies for you and your employees.  For more information about how GHRO can meet your business needs, visit our website.