May 2019
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55 Talent Acquisition Experts on Top Recruiting Trends for 2017

In addition to Lori’s prediction below, find out what other experts in the recruiting field are predicting for 2017! holding a glass ball

“We will see a focus on more proactive networking and building vital long-term relationships. Even before a particular job becomes available, a recruiter may have a great fit in mind because they have taken the time to connect with professionals in that trade. A proactive approach allows recruiters to be aware of rising stars, instead of just posting an ad and being at the mercy of who responds to it. It’s also a valuable way to find someone who is not even actively looking for a new role.

Relationship-building helps to ensure a quality fit not only for the position itself, but also for the company culture—a key area to a successful recruitment and the ongoing well-being of a company. It’s often difficult to gauge a person’s true personality over the course of a few interviews where everyone is on their best behavior. Relationship-building gives the recruiter opportunities to know potential candidates on a much deeper level over a longer period of time.

While it may seem like a longer process on the front-end, this approach results in a better flow of applicants and a more informed hiring decision. It’s important to view the recruiting process and networking as brand-building opportunities to grow a company’s image, which is becoming more important to attract and retain talent. It can actually even be a resource-saving measure by building loyalty with the new hire and ultimately increasing job retention.”

                                                                          –Lori Moynihan, SPHR, Owner, Moynihan Consulting

Best Approaches for New FLSA Ruling

Spacer2FLSAblogpostimageThe new regulations regarding the Fair Labor Standards Act (FLSA) exempt status have businesses unsure how to classify many of their employees. The dilemma includes determining whether an employee falls under the exempt status, what action to take if they don’t, and how to avoid causing internal strife with other employees.

Understanding the Details and Options

The first step is to become very familiar with the new ruling taking effect on December 1, 2016, (that may seem like a short timeline to comply, but legally, the FLSA was only required to give a 60-day timeline for compliance). Details of the ruling include:

  • Determination if a position passes the appropriate exemption criteria, which can fall under the categories of administrative, professional, executive, sales, etc. It’s important to review the ruling for each particular situation, located on the  U.S. Department of Labor website. One important feature includes ensuring the employee is compensated on a salaried basis, not per hour, so compensation doesn’t fluctuate based on quality or quantity of work. Decision-making ability, specialized knowledge, and particular tasks are also taken into account.
  • Ensuring an employee meets the minimum compensation required for exempt status, which was raised to $913 per week; $47,476 annually.
  • The new salary feature will be re-evaluated automatically every three years and adjusted as appropriate.

It’s important to review all roles within a company to determine if they fall into the exempt or non-exempt category. If a non-exempt status better fits a position, there are a few options available, such as:

  1. Raise a salary to the minimum requirement for an exempt employee and maintain exempt designation, as long as the other requirements are met.
  2. Reclassify a position to non-exempt, making it eligible for overtime pay.
  3. Designate an employee as salaried, non-exempt. This includes compensating the employee with a consistent salary instead of an hourly rate based on actual hours worked. If taking this route, it’s important to track time and ensure any hours over 40 per workweek are documented and compensated as overtime pay.

Considering All Aspects

The best approach depends on each particular position—even each particular employee. Some factors to take into consideration include:

Current compensation. If an employee’s compensation falls within a close range of the minimum requirement, the best option may be to meet the cut off amount—particularly if they tend to work over forty hours per week. The extra compensation may actually be a cost-savings measure that would avoid overtime pay. When considering this option, make sure to take into account “hidden overtime,” such as travel, training, or waiting times.

Tenure with company. If an employee just started with a company, an immediate raise might not be a good option. Or alternately, if someone has been a long-term member of the team, increasing compensation to the minimum might be closely in line with their performance evaluation timeline.

Job description, tasks, and experience.  Look closely at different aspects of the job description and make sure it accurately reflects the employee’s daily role within a company. Research whether they have any supervisory duties, the extent of decision-making abilities, and the depth of KSA’s brought to the table. If necessary, certain exempt tasks may have to be adjusted and linked to another role.

Situations within a company. Unscheduled changes in pay or job assignments may impact the organization and its employees negatively so it’s important to take into account employee morale, current policies, and organizational climate when determining the best approach to fulfill the new requirements.

Compensation review. A comprehensive compensation review that takes into account all salaries throughout the organization, (even those not directly affected by the new ruling), will help to ensure internal equitability and avoid any discrimination accusations based on minority or gender.

Legal Requirements. It’s always a good idea to seek a legal review to ensure compliance when maneuvering though the new regulations and any classification changes. Since serious financial consequences can result from violations, a legal review can help avoid these situations.

 Avoiding Discord

Regardless of the action decided upon, the best approach is to couple it with solid employee communications. No doubt employees have heard about the new requirements through extensive media coverage, or even office buzz, so it’s important to provide an open communication environment for people to understand the ruling, ask questions, and voice their concerns or ideas as necessary. This will help to avoid future internal employee relations issues.

With so much to take into account and act upon, it’s understandable for companies to get thrown into a tailspin over trying to comply with new regulations and keeping employees happy at the same time.

Moynihan HR Consulting can assist your company in navigating these new rulings by answering your questions or assisting you in evaluating the most appropriate method for your organization to address these new legal changes. We can also help facilitate any new administrative changes resulting from the new ruling, such as updating policies and procedures, tracking hourly wages, processing payroll, changing benefits, and training employees to comply with new processes.

About Moynihan Counsulting

At Moynihan Consulting, we have a proven track record of building Human Resource infrastructure and processes. These include organizational development, recruiting and hiring, compensation, benefits, employee engagement, and performance management. We can operate as your full-scale Human Resource Partner or we can work on a project or case-by-case basis. Whatever your needs, we are here to assist you.

Cost of High Turnover

The problem of employee turnover is a dilemma for any organization. One would think that during an era of high unemployment that turnover rates would be low, but the reality is far from that. We have all heard how costly high employee turnover is for companies. But are we talking hundreds, thousands, or millions of dollars? Exactly how much does it cost an employer to replace an employee? A review of 30 case studies between 1992 and 2007 found a remarkable commonality. For almost every type of position, from jobs paying $30,000 to jobs paying $75,000 and even for physicians and executives, the average cost of replacement is about one-fifth of the employee’s salary (Boushey and Glynn 2012). So, for an employee making $30,000 per year, their replacement cost is $6,000now hiring and for an employee making $75,000 per year, their replacement cost is $15,000!

These numbers may seem steep, but the costs accrue at every step of the process. A company encounters direct costs stemming from severance pay, overtime for other staff to cover an employee’s duties, replacement costs for advertising, interviewing, and testing, and training costs such as orientations and certifications. Companies also have to deal with the indirect costs of lost productivity and reduced morale.

So, is it really any wonder why there is such a strong link between companies with high turnover and low financial performance? The first step in addressing this issue is an understanding that it is vital to learn the importance of hiring well in order to be a successful company.

First, the company should nail down the numbers. Figure out exactly how much turnover is costing the organization. This is necessary to impress upon senior staff and company leaders the necessity of finding the right person for each job. They will be more open to finding solutions if the impact is tangible. Moreover, when reviewing the data look for patterns. If you can successfully predict turnover, then you have a better chance to prevent it.

Second, when recruiting, consider the attributes of your most successful employees. The most effective way to reduce turnover costs is to focus on finding an employee that fits within the culture of your organization and possesses the closest match for the skills necessary to perform the position instead of trying to simply hire people quickly. Figure out what makes current employees successful, and then search for those traits in the potential candidates.

Thirdly, develop a culture that promotes employee engagement from their first day on the job to their last. The best way to do this is to LISTEN to employees and encourage their input. You must trust your employees if you expect them to trust you. This can be accomplished by instituting regular employee surveys or an open door policy. Ask them to be honest about areas that need improvement.

Retention strategies and hiring well will drastically reduce the costs of turnover. Most importantly, however, a company with low turnover is more productive. Not only do the employees know and trust each other and their employer, but low turnover also makes it easier for the company to focus its time and energy on the business at hand rather than adjusting to new staff.



What should we measure?

HR leaders today face challenges in making the most of their human capital investment.  In order for organizations to be successful in today’s environment, HR will need to review and redesign professional tools and processes to be able to measure data and facts to ensure a competitive edge.  In order for Us as HR leaders are challenged today more than ever to make sound business decisions.  For us and our leadership teams to make decisions we need to have correct data and facts.    But we continue to struggle and ask “What should we measure?”

Historically we have measured areas such as cost per hire, absenteeism, benefit cost per employee and turnover rate.   While these have been important we should consider the future of our human capital investment and measure the areas that help us make decisions for today and growing into tomorrow.  The areas measured on the past do not have predicative or strategic planning value.  These items only report the past HR activities but do not provide guidance as to what can or should be done to improve the effectiveness of HR for the organization.  As HR professionals, we need to develop forward looking analytics designed to improve understanding of employee desires and engagement. These analytics are metrics that can be used to alter the HR strategy for better hiring and retention practices in the future.  Following are four metrics that an HR leader can consider for implementation and assistance with the forward facing view of human capital:

metrics 2

Retention rate of employees in critical roles:  Which roles have the biggest impact on your organization’s success and which roles are the most difficult to fill?  What is the retention rate for each of these positions?  This information will allow you to see if you are spending money on repeating the recruitment of these roles.  Once you determine which roles are key and are low retention you can figure out the reasons for the turnover.  Is it the workload? Is assistance needed?  By understanding the reasons, you can develop an action plan to identify and retain good talent.

Career progression metrics:  These can be metrics to measure the average amount of time in a position before a promotion or change in job title.  Many employees site career progression as key criteria when seeking other employment positions.  Use these metrics to see how attractive your organization looks to prospective candidates.  This measurement can also be an indicator of the number of employees not being promoted or moved into other positions.   By determining the reasons, solutions can be implemented to ensure future candidates have the opportunity to advance, and may assist incumbents with mobility.

Percent of employees that support organizational change:  Employees that do not support organizational change are not likely to stay.  Each time a substantial change is implemented survey employees to see how they feel about the change.  If you find that change is not accepted within your organization this could be a reason for turnover.

Employee engagement index:  If employees are not engaged and happy they will ultimately leave an organization.  Find a way to measure engagement within your organization.  Many companies use an employee survey to measure happiness in a few areas within the organization.  By having this information goals can be developed and specifics for causes can be derived from the survey questions.

Traditional HR metrics remain useful but not predicitive for the future success of an organization as it relates to human capital and strategic decision making for HR.


Audits Done in the 4th Quarter

Audits done in the 4th Quarter enable clients to:

  • Clean out files for 2013
  • Get in compliance for 2013
  • Get organized for 2013
  • Get ready for 2013

Look for an upcoming offer to receive $ off any Audits done in the 4th Quarter!

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