Human Resources Kit FOR DUMmIES ‰ 2ND EDITION by Max Messmer 01_049308 ffirs.qxp 10/24/06 10:49 AM Page i Human Resources Kit For Dummies ® , 2nd Edition Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2007 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. 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Library of Congress Control Number: 2006934827 ISBN-13: 978-0-470-04930-3 ISBN-10: 0-470-04930-8 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 2O/RU/RR/QW/IN 01_049308 ffirs.qxp 10/24/06 10:49 AM Page ii About the Author As chairman and CEO of Robert Half International Inc., the world’s largest specialized staffing firm, Harold M. “Max” Messmer Jr. is one of the foremost experts on human resources and employment issues. His entire business is built on the premise that the success of any company is based on the extent to which attracting and keeping outstanding talent is a top priority. Messmer has written several critically acclaimed books, including Staffing Europe (Acropolis Books Ltd.) and 50 Ways to Get Hired (William Morrow and Co.), as well as The Fast Forward MBA in Hiring, Job Hunting For Dummies, Managing Your Career For Dummies, and Motivating Employees For Dummies (Wiley Publishing, Inc.). Messmer’s expertise has been featured in major busi- ness publications such as Fortune, Forbes, and The Wall Street Journal. He also has written countless articles and columns on job seeking, employment, and management topics. In 2006, Messmer was named one of America’s top CEOs by Institutional Investor magazine. He also was named 2003 CEO of the Year by Morningstar, an independent research firm. Messmer is a member of the board of directors of Health Care Property Investors, Inc., and previously served on the boards of Airborne Freight Corp., First Interstate Bancorp, NationsBank, Pacific Enterprises, and Southern California Gas Co., among others. During the Reagan administration, he served on the President’s Advisory Committee on Trade Negotiations. Messmer was valedictorian of his graduating class at Loyola University and graduated cum laude from the New York University School of Law. In 2000, he received the Alumni Achievement Award from NYU’s Law Alumni Association. Messmer’s community involvement includes service on the board of gover- nors of the San Francisco Symphony and the UCSF Medical Center Executive Council, as well as the board of overseers of the Hoover Institution at Stanford University. Robert Half International (NYSE: RHI) is a member of Standard & Poor’s widely tracked S&P 500 index. The company has repeatedly been listed on the Forbes Platinum 400 list of the best big companies in America, ranking as one of the top U.S. business services firms for investor returns and growth. RHI also has consistently appeared on Fortune magazine’s list of “America’s Most Admired Companies.” 01_049308 ffirs.qxp 10/24/06 10:49 AM Page iii Founded in 1948, RHI is a recognized leader in professional consulting and staffing services and is the parent company of Protiviti, a leading indepen- dent internal-audit and risk consulting firm. The company’s specialized staffing divisions include Accountemps, Robert Half Finance & Accounting, and Robert Half Management Resources, for temporary, full-time, and project professionals, respectively, in the fields of accounting and finance; OfficeTeam, for highly skilled temporary administrative support personnel; Robert Half Technology, for information technology professionals; Robert Half Legal, for legal personnel; and The Creative Group, for advertising, marketing, and web- design professionals. The company serves its clients and candidates through more than 400 staffing and consulting services locations worldwide. For expert advice on the legal issues currently impacting HR, Human Resources Kit For Dummies, 2nd Edition incorporates the sage counsel of O’Melveny & Myers LLP, one of the world’s largest and most preeminent law firms and a leading specialist in labor and employment law. The Los Angeles–based firm was founded in 1885 and today has offices throughout the United States and abroad. O’Melveny & Myers’s capabilities span virtually every area of legal practice: Antitrust/Competition; Appellate; Class Actions, Mass Torts & Aggregated Litigation; Corporate; Corporate Finance; Electronic Discovery; Entertainment & Media; Global Enforcement & Criminal Defense; Health Care & Life Sciences; Insurance; Intellectual Property & Technology; Labor & Employment; Mergers & Acquisitions; Private Equity; Project Development & Real Estate; Restructuring; Securities Enforcement & Regulatory Counseling; Securities Litigation; Strategic Counseling; Tax; and Trial & Litigation. Of par- ticular value were the contributions of one of the firm’s senior partners, Scott Dunham, a top employment law expert. 01_049308 ffirs.qxp 10/24/06 10:49 AM Page iv Dedication To my wife, Marcia, and my sons, Michael and Matthew, who are my daily reminders that people are the most important source of inspiration — in life and in work. Author’s Acknowledgments In preparing this second edition of Human Resources Kit For Dummies, I relied on the advice and assistance of a number of talented individuals whose con- tributions made this book possible. I want to thank Allen Scott, Joel Drucker, and Robert McCauley for their research and recommendations on the fast- changing world of human resources management. I also want to acknowledge the valuable insight of Reesa McCoy Staten, Vice President of Corporate Communications at Robert Half International Inc., and thank the many other professionals at Robert Half International who provided their expertise, including Linda Blandford-Beringsmith, Amanda Beck, Frank Lyons, Lynne Smith, Marilyn Sohmer, and Mark Wagoner. I would also be remiss if I did not acknowledge those individuals who made the first edition of Human Resources Kit For Dummies possible, most notably Barry Tarshis and Lynn Taylor. In addition, I’m indebted to Stacy Kennedy, Acquisitions Editor, at John Wiley & Sons, Inc., who saw the need to provide new insight on this important sub- ject, and to the editors and reviewers whose efforts carried this second edi- tion through to completion: Kelly Ewing and Debbie Casados. My sincere thanks also go to the highly respected law firm of O’Melveny & Myers, whose collaboration was essential to the whole project. As legal issues continue to shape key HR practices, I believe our readers will benefit greatly from the insights provided by Scott Dunham, one of the firm’s senior partners and a leading employment law expert. A final acknowledgment goes to the founder of our company, the late Robert Half, who was a close friend. Bob established a corporate motto years ago — “Ethics First”— two words that continue to be the indispensable cornerstone of any successful business. 01_049308 ffirs.qxp 10/24/06 10:49 AM Page v Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register. Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Media Development Project Editor: Kelly Ewing (Previous Edition: Tim Gallan) Acquisitions Editor: Stacy Kennedy Copy Editor: Kelly Ewing (Previous Edition: William A. Barton) General Reviewer: Debbie Casados Media Development Specialist: Kate Jenkins Media Project Supervisor: Laura Moss Editorial Manager: Michelle Hacker Editorial Supervisor: Carmen Krikorian Editorial Assistant: Erin Calligan Cartoons: Rich Tennant ( www.the5thwave.com) Composition Services Project Coordinator: Ryan Steffen Layout and Graphics: Carl Byers, Lavonne Cook, Denny Hager, Barry Offringa, Lynsey Osborn Anniversary Logo Design: Richard Pacifico Proofreaders: John Greenough, Jessica Kramer, Susan Moritz, Ethel M. Winslow Indexer: Techbooks Publishing and Editorial for Consumer Dummies Diane Graves Steele, Vice President and Publisher, Consumer Dummies Joyce Pepple, Acquisitions Director, Consumer Dummies Kristin A. Cocks, Product Development Director, Consumer Dummies Michael Spring, Vice President and Publisher, Travel Kelly Regan, Editorial Director, Travel Publishing for Technology Dummies Andy Cummings, Vice President and Publisher, Dummies Technology/General User Composition Services Gerry Fahey, Vice President of Production Services Debbie Stailey, Director of Composition Services 01_049308 ffirs.qxp 10/24/06 10:49 AM Page vi Contents at a Glance Introduction 1 Part I: Building the Framework 7 Chapter 1: The Big Picture 9 Chapter 2: Law and Order: Navigating the Legal Minefield of Hiring and Managing 23 Part II: The Right People in the Right Places 41 Chapter 3: Building a Staffing Strategy 43 Chapter 4: Smart Start to Hiring: Kicking Off the Hiring Process 51 Chapter 5: Resourceful Recruiting 65 Chapter 6: Narrowing Down the Field 87 Chapter 7: One on One: Getting the Most Out of Interviewing 103 Chapter 8: The Home Stretch: Making the Final Decision 121 Chapter 9: Starting Off on the Right Foot 143 Part III: Retention: Critical in Any Business Environment 161 Chapter 10: Ensuring an Effective Compensation Structure 163 Chapter 11: Creating the Right Benefits Package 185 Chapter 12: Creating an Employee-Friendly Work Environment 207 Chapter 13: Getting Permanent Benefit from Interim Staffing 225 Chapter 14: Training and Development 237 Part IV: Keeping Things Together: Monitoring Ongoing Performance 255 Chapter 15: Assessing Employee Performance 257 Chapter 16: Encouraging Extraordinary Performance 277 Chapter 17: Handling Difficult Situations 291 Part V: The Part of Tens 311 Chapter 18: Ten Keys to HR Success in the Future 313 Chapter 19: Ten Ways to Become an HR Strategist 319 02_049308 ftoc.qxp 10/24/06 10:49 AM Page vii Chapter 20: Ten HR-Related Web Sites Worth Exploring 325 Chapter 21: Ten HR-Related Associations You Should Know About 331 Chapter 22: The Ten Most Important HR-Related Laws 335 Appendix: About the CD 339 Index 347 02_049308 ftoc.qxp 10/24/06 10:49 AM Page viii Table of Contents Introduction 1 About This Book 2 Conventions Used in This Book 3 Foolish Assumptions 3 How This Book Is Organized 4 Part I: Building the Framework 4 Part II: The Right People in the Right Places 4 Part III: Retention: Critical in Any Business Environment 5 Part IV: Keeping Things Together: Monitoring Ongoing Performance 5 Part V: The Part of Tens 5 Appendix 5 The CD-ROM 5 Icons Used in This Book 5 Part I: Building the Framework 7 Chapter 1: The Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Scoping Out the HR Role 9 Strategist versus administrator 11 Adapting to the changing workplace 12 Easing the work/life conflict 13 Avoiding the baby boom bust 14 Workforce diversity: Making it work 14 Rising healthcare costs 15 Keeping pace with technology 16 Rules and regulations: Ethics first 17 Making HR a Strategic Partner 18 Staying Ahead with HR Software 19 Become an educated buyer 20 HR software: A features checklist 21 Chapter 2: Law and Order: Navigating the Legal Minefield of Hiring and Managing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Legal Matters: The Big Picture 24 Keeping the Peace 25 Discrimination 25 Disparate Impact 26 The Equal Employment Opportunity Commission (EEOC) 27 02_049308 ftoc.qxp 10/24/06 10:49 AM Page ix The EEO Family: A Closer Look 29 ADEA: The Age Discrimination in Employment Act (1967) 29 AC-21: American Competitiveness in the 21st Century Act (2000) 29 ADA: Americans with Disabilities Act (1990) 30 COBRA: Consolidated Omnibus Budget Reconciliation Act (1985) 30 Equal Pay Act (1963) 31 FMLA: Family and Medical Leave Act (1993) 31 FLSA: Fair Labor Standards Act (1938) 31 FUTA: Federal Unemployment Tax Act (1939) 32 HIPAA: Health Insurance Portability and Accountability Act (1996) 32 IRCA: Immigration Reform and Control Act (1986, 1990, and 1996) 32 OWBA: Older Workers Benefit Protection Act (1990) 33 Patriot Act (2001) 33 Pregnancy Discrimination Act (1978) 33 Rehabilitation Act (1973 and 1998) 34 Sarbanes-Oxley Act (2002) 34 Title VII of the Civil Rights Act (1964) 35 WARN: Worker Adjustment and Retraining Notification Act (1988) 35 Sexual Harassment: Keep Your Workplace Free of It 35 Spread the word 36 Create a reporting process 37 Treat all complaints about sexual harassment seriously 38 Take decisive action 38 Document every complaint 38 International Expansion: Stranger in a Strange Land 38 Forms on the CD 39 Part II: The Right People in the Right Places 41 Chapter 3: Building a Staffing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . .43 Breaking Out of a Hiring Rut 43 Grasping the Big Picture 45 Consider a mix of resources 46 Reassess goals annually 47 Finding New Employees 47 Inner peace: Filling jobs from within the organization 47 New horizons: Looking for staff outside the company 49 Outsourcing: The role of HR 49 Chapter 4: Smart Start to Hiring: Kicking Off the Hiring Process . . . .51 The Costs of a Bad Hire 51 Hiring: Think “Strategy” 52 Human Resources Kit For Dummies, 2nd Edition x 02_049308 ftoc.qxp 10/24/06 10:49 AM Page x [...]... progress in your role, you may find another of my books, Motivating Employees For Dummies, helpful 3 4 Human Resources Kit For Dummies, 2nd Edition How This Book Is Organized Human Resources Kit For Dummies consists of 22 chapters and a CD-ROM with forms, templates, and other tools that correspond to the topics in particular chapters For the most part, each chapter deals with a single aspect of the HR function... you a fair representation of the issues HR people deal 2 Human Resources Kit For Dummies, 2nd Edition with, how the best of them approach these challenges, and enough background to help you better handle the HR function for your organization — both today and as you continue to grow About This Book As you can see from the table of contents, human resources is a very broad and varied discipline, and one... 85 Government employment services 86 Forms on the CD 86 xi xii Human Resources Kit For Dummies, 2nd Edition Chapter 6: Narrowing Down the Field 87 Job Applications: Are They Obsolete? 87 Setting up the application 88 Using the application as an evaluation tool 90 Setting Up a System for Evaluating Candidates 91 Resume Roulette:... .304 Think through the criteria .305 xvii xviii Human Resources Kit For Dummies, 2nd Edition Ease the burden 305 Hire outplacement specialists 305 Take advantage of staffing services 306 Address the concerns of those who remain 306 Reduce the need for layoffs 307 Dealing with Workplace Violence .307 Forms on the CD 310 Part V: The Part of Tens... the human side of business for granted And that’s why the human resources function itself has begun to assume so much more importance For several decades now, people responsible for the human resources function have ceased to be viewed merely as “personnel administrators” or strictly “support.” The shift in terms from “personnel” to human resources reflects this thinking But today’s HR professionals... money for the firm aren’t hard to spot They are the ones who thoroughly understand the company’s most important needs, know how to attract the best people and are intent on improving their work environment so their employees feel free to draw on all of their competencies In short, they’re very good at managing human resources For many, human resources management is an intimidating prospect, especially for. .. at the end .234 xv xvi Human Resources Kit For Dummies, 2nd Edition Avoiding Legal Hassles 235 Equal coverage 235 Workplace injuries 236 Chapter 14: Training and Development 237 Organizational Development Never Stops 237 The Changing Face of Training and Development 238 Creating the Right Environment for Training 240 Assessing... mentoring to build a solid foundation .154 Feedback: How good is your program? 156 xiii xiv Human Resources Kit For Dummies, 2nd Edition Policy and Procedures Manual: Yes, You Need One 157 Paying attention to presentation 158 Knowing what to include 159 Playing it safe 160 Forms on the CD 160 Part III: Retention: Critical in Any Business Environment ... pictures, called icons, next to the text in the margin Here’s what the icons mean: This icon flags what I consider to be good and practical advice I flag important conceptual information using this icon 5 6 Human Resources Kit For Dummies, 2nd Edition This icon indicates that if you don’t heed what I’m telling you, you may get into legal trouble Whenever I mention a document that you can reference on the CD-ROM,... this book, I cover the organizational aspects of human resources management However, I must stress that no cookie-cutter formulas for effective HR management are available Every company — regardless of size, location, or purpose — must deal with human resources issues in a way that’s best suited to its needs and situation If you run a small business, for example, you probably function as your own HR . Human Resources Kit FOR DUMmIES ‰ 2ND EDITION by Max Messmer 01_049308 ffirs.qxp 10/24/06 10:49 AM Page i Human Resources Kit For Dummies ® , 2nd Edition Published by Wiley. 327 Society for Human Resource Management (SHRM) 327 WorldatWork 328 American Society for Training & Development (ASTD) 328 Workforce Online 329 Human Resources Kit For Dummies, 2nd Edition. management 267 Give employees a say in establishing performance criteria 267 Choose performance measures with care 268 Human Resources Kit For Dummies, 2nd Edition xvi 02_049308 ftoc.qxp 10/24/06 10:49