FEBRUARY 27, 2014

HIRING TOOLS FOR 2014 & BEYOND PRESENTATION

Disclaimer The opinions offered in this presentation are from experienced human resource professionals and should in no way be construed as legal advice. This presentation is based on our interpretation of current laws, rules and regulations, which are subject to change. If you have any questions as to how the topics of today’s discussion will affect your specific company, please consult your legal advisor.

Talking Points

• Statistics - Today’s Labor Force

• Hiring Best Practices •  Labor Law •  Technology

HIRING TOOLS FOR 2014 & BEYOND

Statistics - Today’s Labor Force Hampton Roads 2013

Population 1,695,139 Employment 882,886 Average Earnings $52,509 Unemployed 8/2013 53,509 Graduates 2012 27,713

Statistics - Today’s Labor Force Employment

Trends

2013 2018 Talent Market Employment Employment % Change Hampton Roads 882,886 934,991 5.9% All States 150,564,810 158,702,309 5.4%

Source: Careerbuilder!

Statistics - Today’s Labor Force Largest Openings / Graduate Gaps

Related Annual Occupation Graduates Openings Military Occupations 0 163 Elementary School Teachers 199 352 Ship Engineers 0 81 Captains, Mates & Pilots 0 79 Logisticians 0 74

Source: Careerbuilder!

Statistics - Today’s Labor Force Growing/Declining Occupations

Change In Employment Occupation (2013-2018) Personal Care Aides 2,074 Retail Salespersons 2,073 Office Clerks, General 1,367 Meat, Poultry & Fish Cutters/Trimmers -144 Farmers, Ranchers & Other Agricultural -152 Telemarketers -358

Source: Careerbuilder!

Statistics - Today’s Labor Force Growing/Declining Industries

Change In Employment Occupation (2013-2018) Elementary & Secondary Schools 3,372 Offices of Physicians (Except Mental Health) 3,007 Full-Service Restaurants 2,465 Telemarketing Bureaus & Other Contact Ctrs -636 Department Stores (Except Discount) -812 New Single-Family Housing Construction -830

Source: Careerbuilder!

Statistics - Today’s Labor Force 2013 Age Demographics

26%!

29%!

27%!

15%! 3%!

Under 20 years! 20 to 39 years! 40 to 59 years!60 to 79 years! 80 years and older!

Source: Careerbuilder!

Statistics - Today’s Labor Force 2013 Educational Attainment

Source: Careerbuilder!

27%!

26%!18%!

10%!

9%!9%! 2%!

High School Diploma!Some College!BS Degree!Graduate Degree and Higher!9th Grade to 12 Grade!Associate's Degree!Less Than 9th Grade!

Statistics - Today’s Labor Force Five Key Issues Facing Small Business

Source: CNBC!

Taxes Health Care Skilled Worker Shortage Lending On-Shoring

Statistics - Today’s Labor Force Five Hiring Trends for 2014

•  Part-time hiring picks up 17 % will recruit part-time workers this year and 12% are doing so due

to the Affordable Care Act •  Look for on-shoring of jobs

Nearly 1 in 4 will bring jobs back to the U.S. •  Training takes center stage

No more waiting on the perfect candidates; 1/2 are now willing to train •  Building a pipeline with future generations

1 in 4 will showcase their company to high-school students or even younger in 2014

Source: Careerbuilder!

Statistics - Today’s Labor Force Top Eight Takeaways on 2014 Salary Trends

Source: Monster!

• Workers begin to feel empowered as job-loss fears abate •  In real terms, wages have backtracked in recent years • Market forces will temper merit increases •  IT, healthcare, energy will earn significantly more • Accounting/finance compensation will trend a bit higher than

average • Performance pay will rise with business success • Big salary increases will be for new hires only • Hot specialists can earn outsized pay hikes - if they change

employers

Bottom-line strategy: reward essential workers

Hiring Best Practices Standardize Your Hiring Practices

• Standardization • Now Hiring: Make a Plan •  Ideal Candidate •  Legal Basics • Hiring Plan •  Job Description •  Formal Application •  Interview Questions • Systems

Hiring Best Practices Standardize Your Hiring Practices

• Critical that all recruiters and hiring managers follow the same practice when hiring

•  Education and certification are very important •  Interviews and on-boarding conducted with equal attention •  There is little room for error when hiring today

Hiring Best Practices Now Hiring: Make A Plan

• We hire to grow or because we have grown • Hiring can be intimidating

• Best person, screening applicants, legal requirements • Make a plan: what are the parameters

•  The job •  The ideal candidate • What info is needed and what is not

Hiring Best Practices Know Your Ideal Candidate

•  Job research •  Experience •  Education and certifications • Skills and other qualifications

•  Don’t assume the position remains the same when "

replacing employees •  Don’t assume an exact replica is best

Hiring Best Practices Legal Basics

• Some information can be requested in a "job ad or interview: •  Education •  Skills

• Some can not:

• Race, sex, orientation, age, marital status, religion, disability, national origin, genetic information

• Don’t cross the line

Hiring Best Practices Hiring Plan

•  Job description •  Formal application •  Interview questions • Systems for:

•  Checking references and background •  Keeping and filing application information •  Making and accepting job offers

Hiring Best Practices Job Description

Write out what you developed when considering the job: duties, tasks, roles, reporting •  Desired outcomes •  Requirements (experience, education, etc.) •  Logistics of job (hours, dress code, environment) •  How to apply

Hiring Best Practices Formal Application

• Captures essential legal information about applicants •  Transmits legal information to them

•  Their rights and your rights in the application process • Can be completed on paper or online • Must include a signature

Hiring Best Practices Interview Questions

•  Focus on finding out how closely candidates match the ideal candidate •  How they have developed and used their skills •  What they have learned in their work experience •  How they’d respond to work situations

• Keep EEOC information (what you can and can’t ask) close by

Hiring Best Practices Systems

• Checks: references, background •  Same check for all candidates or positions

• Records:

•  Know your document retention rules •  Job offers:

•  Have a system for making, accepting and recording offers • On-boarding:

•  Spend time with a new employee to help them adjust to their new position

Labor Law Lack of Knowledge Does Not "

Exempt You from the Law •  I-9 & E-Verify •  FMLA - Family Medical Leave Act •  EEOC - Equal Employment Opportunity Commission • Pay Deductions • Document Retention •  Termination Recommendations

Labor Law I-9 & E-Verify

• Use only Form I-9 Enhanced 318 Revision • Complete E-Verify no later than 3 days from start

• Complete on Day 1 if working less than 3 days • Phone and email are optional •  Essential that employee name is on Section 2 •  If work authorization expires, Section 3 can be used for re-

verification • Retain both new and old I-9s when re-verifying

Labor Law FMLA

• Request for FMLA by employee • Adoption • Birth • Serious health condition

•  Triggering Event - 30 days advance notice if foreseeable •  Employer initial response on eligibility • Medical certification • Designation of qualification

Labor Law FMLA - Family Medical Leave Act "

(Military, Exigency or Military Caregiver) •  Triggering Event

•  Exigency leave (12 weeks) • Caregiver (26 weeks)

•  Initial eligibility response • Designation of qualification

Labor Law EEO Complaint

• Designate a credible investigator • Determine whether interim measures are needed •  Exercise caution as to communication/notes •  Interview the complainant and obtain all facts •  Interview other persons with knowledge •  Interview the alleged violator • Conclude the investigation • Make a decision •  Inform both complainant and alleged violator results • Be succinct, objective and truthful with follow-up

Labor Law Pay Deductions

• No work performed in a workweek • Absence due to personal reasons • Absence due to sickness or disability •  Jury duty • Safety rule violations • Suspensions for violation of workplace conduct rules • Advanced vacation or sick leave •  FMLA absences •  Inclement weather

Labor Law Document Retention

• Pre-employment information • General personnel • Medical records • Benefit plan • Corporate and legal • Government compliance •  Tax • Drug testing • Motor carrier safety for commercial drivers •  Litigation hold matters

Labor Law Termination Recommendations

• Summary dismissals create problems • Conduct a thorough investigation before termination • Give the employee a second chance when possible •  Identify/address inflexibility • Hold a structured termination meeting • Voluntary vs. involuntary terminations • Wage deductions • Prompt pay of last check •  Training replacement • What will you say to the employee’s co-workers

Technology Technology Is Great, But Don’t Overuse It!

• Solid HRMS system • Accurate payroll system or service • Online applicant processing • Social media & advertising

•  Facebook & LinkedIN •  Monster •  Careerbuilder •  Indeed •  Texting

• People first

Closing

• When uncertain, consult your legal counsel and get the right advice

• Very little room for error •  This stuff is expensive; get it right the first time

Thank You!

Tom Sarach, Jr. President Reliance Staffing & Recruiting 757-490-1700 tsarach@reliancestaffing.com