Human Resources Overview of Business Plan Products.
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Transcript of Human Resources Overview of Business Plan Products.
• Proposed Budget for Human Resources
– Payroll = $7,231,000– Benefits = $2,381,857– Department Technology = $21,510– Recruiting Costs = $98,736
• Total Budget of $9,783,103
Components of Compensation
• Salary• Benefits
– Required by Law• Healthcare insurance• FUTA, FICA, Disability
Insurance• Workers Compensation• Days off (jury duty,
military)
– Optional• Life insurance• Retirement plans• Days off (vacation, sick,
personal)
• Incentives– Tangible
• Stock Options
– Intangible• Work Environment
Our Philosophy on Salary: An Example
Salary of HR Director
$181,976
$132,590 $148,951
$0
$50,000
$100,000
$150,000
$200,000
25th %ile
50th %ile 75th %ile
Percentile
Sala
ry
Salary Example Cont.
• Example– Role: Human Resources Director– Median: $148,951– Location: Hackensack, New Jersey– We offer $140,000
Traditional Healthcare
• Indemnity
• Freedom to choose doctors
• Reimburse employees 80%
• Deductible: Out-of-pocket maximum
• About 10% more expensive than HMO
Sample Analysis: Oxford
Freedom Plan C $572.96 monthly
Employee pays: $114.59
(20%)
Company pays: $458.37
(80%)
What is an HMO?
• Health Maintenance Organization (HMO)– Set network of doctors– Premium dependent on:
• Marital status• Co-pay
– No deductible– 100% coverage
An Example: Blue Cross Blue Shield (HMO)
Annual Out-of-Pocket Maximum (includes deductible)
$3,000 per single
Annual Deductible No deductible
Co-pay for Office Visits $10
Monthly Rates Individual: $226
Two-Party: $444
What is a PPO?
• Combination of HMO and traditional
• Doctor from network– No deductible– Required co-pay
• Doctor out of network– Traditional
Status Co-pay Price
Individual $40 $98
Two-Party $40 $189
Family $40 $311
Individual $30 $166
Two-Party $30 $323
Family $30 $532
Copay vs. Premium
Our Options: Brokers, Providers, or Alliances
• Brokers– Require salary
• Providers– Direct
• Alliances– More attractive– Receive competitive rates
How do you know it’s time to hire?
• When expansion is needed• When producing more products or
serving more clients• When trying to gain more customers• In anticipation of job openings within
the company
Considerations When Hiring
• Full-time employees• Part-time employees• Family• Temporary help• Leased workers
Job Qualifications
• Experience• Education• Ability• English language
ability• Physical effort ability
How to attract potential employees?
• NEWSPAPERS– The New York Times
• TRADE JOURNALS– The New Jersey Journal
• ONLINE POSTING– NationJob.com– HotJobs.com– CareerBuilder.com
What are the essential components of a good job ad?
• Including information that will draw responses from the best candidates
• Avoiding discriminatory language
Candidate Data Collection • Type of Information Required
– Requiring applications designed by us– Requiring resumes for the applicants to give us the
information they want us to have • Responding to Applicants
– Writing letters to acknowledge inquiries and to advise unsuitable applicants that they will not be considered for employment
• Testing Applicants: Examples– Achievement Tests– Aptitude Tests– Drug Tests– Medical Tests
Cost Effectiveness of Advertisement
• How do you determine cost effectiveness of an advertisement?– Making sure that the method of advertisement
(newspapers, online postings, and trade postings) is targeted to the appropriate candidates
– Because the company is seeking professional and sophisticated employees, popular newspapers and trade journals such as The New York Times and The New Jersey Trade Journal will be used to attract these types of people
• Defining the target and principal audience– The audience is based on the company’s reputation and
principal product manufacturing
Options: Outsourcing the Search
• Public Employment Services– State offices affiliated with the USDLTES– Services– Large pool of job seekers
• Private Employment Services
• Temp Agencies
Image FX is a company with seventy-twoemployees. In order to make certain that
each employee is working productively and to hisor her fullest ability, assessments must becompleted at regular intervals.
• Ensure that the employee is working to his or her fullest potential
• Ensure that he or she is promoting a healthy work environment
• Ensure that he or she is working towards the company’s mission
Why should we evaluate our employees?
What?Summative
Assessment- Generic
Formative Assessment- Department specific
When?Annual SummativeQuarterly Formative
- 360 Degree Feedback Assessment
Our Performance Assessment System
Pros:- Quicker - Simpler
Cons:• Is not detailed enough• Too general• Cannot make
personalized statements
The Checklist
Pros:- It is more personal- Can help both the
employee and employer
- Detailed and specific
Cons:• Takes too much time
• Tedious
The Narrative
•It gives room for personal statement as well as general commentary.
•It is both general, yet specific, being more useful to the employee.
•It does not consume too much time, yet enough to allow for a productive evaluation.
Our System: The Best of Both Worlds
The Summative Assessment will be doneannually. It will be generic and completedby the upper-management personnel. It will
beaimed at assessing an employee’s work
habits.
It will involve:A. ChecklistB. Narrative
Summative
The Formative Assessment will be donequarterly and will be department specific. It
willbe aimed at assessing an employee’s progresstowards the company’s mission.
It will involve:A. Checklist (by upper-management)B. Narrative (by upper-management)C. Narrative (two by peers)
Formative
- This process is to provide employees with a better understanding of how and when he or she accomplishes their work.
- The employees will not be evaluated only by the upper-management levels, but also by fellow co-workers.
360 Degree Feedback
Case 1• Who: Jon Doe• Basis: The recruiting and hiring practices of Image FX
violated Title VII of the Civil Rights Act of 1964. • Background Information: Applied for the position of
Marketing Director • Claimed he was as qualified as the female candidate who was hired
for the position.
• Claimed he was denied the position because of his gender
• Claimed Image FX made it a priority to hire more female candidates in management roles.
Executive Order 11246• The contractor will take affirmative action to
ensure that certain applicants are employed.• Forces companies to hire members of the
discriminated party.• Affirmative action - policy that seeks to
redress past discrimination to ensure equal opportunity.
Legal Precedence Johnson vs. Transportation Agency- was a similar case
to the one presented. Diane Joyce was promoted to road dispatcher
over Paul Johnson. Both candidates were qualified for the job.
As an affirmative action employer, the Agency took into account the sex of the applicants in making the promotion decision.
Transportation Agency was forced to higher Diane Joyce due to affirmative action.
Conclusion: Case 1
• Due to the EEOC laws regarding affirmative action, Image FX was entirely within its rights, if not obligated to hire Jane Doe as opposed to Jon Doe.
Case 2• Who: Jane Doe • Basis: The hiring and recruiting practices of Image FX
violated Title VII of the Civil Rights Act of 1964. • Background Information: Applied for the position of
Director of Finance • Claimed that the requirement of an MBA degree
discriminated against minority applicants• Claimed that it prevented a disproportionate
number of minorities from even applying for the position.
Title VII of Civil Rights Act
• It is not unlawful employment practice for an employer to give and to act upon the results of any professionally developed ability test provided that such test, isn’t used to discriminate because of race, color, religion, sex or national origin.
Section 703(h)
Legal Precedence• Griggs vs. Duke Power Company
– Willie filed a class action, on behalf of several fellow African-American employees.
– Griggs challenged Duke’s requiring employees to register a minimum score on two separate aptitude tests in addition to having a high school education
– Griggs claimed that policy discriminated against African-American employees in violation to Title VII of the 1964 Civil Rights Act by causing a disproportionately low number to apply.
• Neither the high school graduation requirement nor the two aptitude tests was directed or intended to measure an employee's ability to learn or perform a particular job or category of jobs within the company.
• Court concluded…
Conclusion to Case 2• Due to the job description of Director of
Finance the requirement of an MBA is directly connected to the performance of that job.
• Image FX has the ability to screen those who do not possess this requirement.
Statistics• (Survey conducted by the Society for Human Resource
Management):• 31% of the female workers claimed to have been
sexually harassed at work• 7% of the male workers claimed to have been sexually
harassed at work• 62% of targets took no action• 100% of woman claimed the harasser was a male• 59% of the men claimed the harasser was a female
What is sexual harassment?• According to the EEOC:
– …a form of sex discrimination that includes unwelcome sexual advances, remark, or other conduct of this sexual nature when…
• Submission to this conduct is made a term or condition of employment.
• Submission to or rejection in response to the advance has an effect on the individual’s employment.
• The conduct may effect and/or interfere with the individual’s work performance or create an unfriendly work environment.
Image FX Philosophy
• Image FX supports a NO TOLERANCE policy.If the company receives a complaint or indication that this conduct might be taking place…
- Action will be taken immediately
- A thorough investigation will be carried out
- All results of the investigation will be kept private and retaliation is strictly prohibited.
What you should do if you have been harassed?
• …inform the offending party that his or her conduct is offensive and inappropriate.
• …if harassment continues, behavior should be reported to Samantha Dickson (Director of Personnel) or Noelle Hozumi (VP of Human Resources).
• …keeping a journal or record of harassments may be helpful to the investigation.
If Employees are Unhappy with the Results of the Investigation…
• He or she may contact the following agencies:– Harassment Hotline: (805) 489 8203– Equal Employment Opportunity Commission:
(617) 565 3200• Complaints must be lodged within 300 days of the alleged
sexual harassment.
– New Jersey DCR Civil Rights Commission: (973) 977 4500
• Complaints must be lodged within 180
days of the alleged sexual harassment.