With the unemployment rate at more than 9%, talk of layoffs, and the closing of numerous businesses, it’s easy to see why many organizations are tightening their reins.  However, it is important to maintain, or create, an atmosphere of security, flexibility, and contentment for employees especially during an economic crisis.  The temptation may be to put more emphasis on the bottom line than on those that create the bottom line.  This could create more cost than you think.  For example, turnover rates for 2008 (both voluntary and involuntary) averaged 18.7%.  According to Watson Wyatt, total turnover costs including hard dollars and lost productivity are approximately 48% – 61% of salary.  If a company has 60 employees with an average salary of $40,000, that could mean a cost of $215,424 to $273,768!

So how does an employer stay competitive without spending a lot of money?  There are several things employers can do that cost little, but can go a long way in eye of an employee.

1.       Communicate.

Communication creates a sense of security for an employee.  Not only communication about operations and product offerings, but culturally and structurally as well.  If people feel that they have a good understanding of where the company is going and how it is going to get there, they are generally more connected and invested in it.  Communication creates a purpose and meaning to come and work every day.

2.       Be flexible.

Increasing flex-time or being more flexible with work schedules is a great way to add value in the eye of the employee.  Being aware of the scheduling needs of employees and then trying to meet those needs creates a loyalty and appreciation to your company.

3.       Recognition and Rewards.

Recognizing a job well done or rewarding employees that have just finished a project shows that they are appreciated for their efforts and it is noticed.  Rewards could be anything from an extra vacation day or a gift card to a restaurant.  They don’t have to cost a lot to have a significant impact.

These are just a few ways employers can keep their employees productive, content, and loyal through wage freezes or layoffs.  Eventually the economy will turn and the last thing an employer needs to worry about when this happens is finding good employees.  Remember, investing in the your human capital doesn’t have to cost much, but will pay huge dividends in the future.

Exit interviews, when conducted properly, are a source of valuable information. They can tell us a lot about the quality of our hiring decisions, why people leave our organization, the state of employee morale, and the quality of supervision.

In order to draw valid conclusions from the information, exit interviews should be conducted with all separating employees, whether voluntary, discharged, or laid off. To ensure 100% participation, the best way to conduct an exit interview is in person, one on one. If the in-person contact is not feasible, the interview should be conducted by telephone. A third option, which is by far the least effective, is to have the former employee complete a mail-in questionnaire.

Whoever conducts the interview should be a member of management, but not involved in the employee’s day-to-day supervision if possible. Give the separating employee a copy of the questionnaire to follow as you ask the questions and write out the responses. Interpret the employee’s words objectively. Throughout the interview, clarify, summarize, and verify your understanding of the employees words. Upon completing the interview, have the employee read what youve written to verify accuracy or make changes.

When conducting an exit interview with a discharged employee, don’t ask why the employee is leaving, but do ask all questions that are appropriate. Begin the interview by asking, “How might we have prevented this situation? or What could management have done differently to prevent you from losing your job?” A discharged employee may give angry replies, but the information is no less important. In fact, discharged employees are often more candid in their feedback than those who voluntarily quit and are concerned about burning bridges.

Exit interviews provide important information about turnover statistics. Even if you lose only one person a year due to turnover, always conduct exit interviews so you can begin to establish a historical body of data. Group questionnaires by department or employee classification can be used to identify important trends.

To conduct an effective exit interview, keep the following suggestions in mind:

• Arrange the interview as one of the employee’s last activities.
• Ensure confidentiality and privacy.
• Encourage employees to speak candidly. If employees are hesitant, offer them the option of writing their thoughts.
• Collect all company property, such as keys, handbooks, uniforms, etc.
• Wish the employee well on future endeavors.

For assistance with terminations or exit interviews, contact your Staff One Client Service Executive.

From USCIS

On August 27th, U.S. Citizenship and Immigration Services (USCIS) announced that the Office of Management and Budget has extended its approval of Form I-9 (Employment Eligibility Verification) to Aug. 31, 2012. Consequently, USCIS has amended the form to reflect a new revision date of Aug. 7, 2009.

Employers may use the Form I-9 with the revision date of either Aug. 7, 2009 or Feb. 2, 2009. The revision dates are located on the bottom right-hand portion of the form.

Staff One clients should begin using the revised I-9 form for all new hires, effective immediately. The new form can be found at www.staffone.com

It is rare that so many business and personal issues for a PEO and its clients and employees align as perfectly as they do now; let me explain.

1. The severity of the current recession has dramatically affected personal behavior in one important area – saving. A few years ago America had a negative savings rate, meaning that most spent more than they made. Today, the savings rate exceeds 7%. There is no more efficient and cost-effective way to save than through a 401k. Employees want it; soon they could be demanding it.
2. The greatest value proposition offered by a PEO is arguably the 401k. It leverages the big company benefit to the small employer virtually like no other benefit. Most small companies do not have retirement plans because of the cost, complexity and simply the hassle-factor. The PEO overcomes all of these problems.
3. In this time of shrinking payrolls and tight budgets, the PEO is vulnerable to losing clients. Our studies prove that a client company is five times more likely to stay with you than leave if our 401k plans is in place.

If your 401k plan is under-performing or is just a non-factor most of the time, you are likely missing a great opportunity to better market to new clients and retain current clients. The alignment of personal needs of employee, a greater value proposition to client company owners and finally to you in retaining clients exists right now.

John Slavic
President of Slavic 401(k)

The vaccine for H1N1 (swine flu) is expected to be available in October, and the country is gearing up for the fall flu season. What is Aetna is doing, and how can your own organization prepare?

H1N1 and Seasonal Flu Vaccines
Aetna will cover H1N1 flu vaccine administration for members whose benefit plan covers preventive services, just as we have always covered the seasonal flu vaccine. We will pay for one or two doses of the H1N1 vaccine, based on recommendations of the Centers for Disease Control and Prevention (CDC).

The federal government will pay for the H1N1 vaccines and the supplies needed to administer them. Aetna will reimburse providers for administration of the vaccine.

State and local public health departments will designate which public and private sites will be given the vaccine. Public sites could include public health clinics and clinics located in schools. Private sites could include provider offices, workplaces or retail settings. Aetna is encouraging participating providers to register with their state’s Department of Health to become vaccinators. A number of retail sites, including Minute Clinics/CVS, Take Care Health, and RediClinics, also are expected to be vaccinators. We will encourage our members to seek vaccines at any of these available outlets (note that emergency rooms are not the appropriate place to seek vaccines).

Employers can seek to be designated by their state or local public health department as vaccinators and have vaccine shipped to them, or they can hire a commercial designated vaccinator that will provide the vaccine on-site. We expect that at least some of the corporate seasonal flu shot vendors used by Aetna will be able to offer H1N1 vaccines at employer worksites, but this may vary by state. We can share more information on this once the vendors are able to register and be designated as vaccinators by the states.

It is expected that each person will need to have two H1N1 vaccines, three to four weeks apart. A separate vaccine is needed for the seasonal flu.

Primary target groups for H1N1 vaccination will be:

• Pregnant women
• Contacts of infants <6 months old
• People 6 months to 24 years old
• Health care workers/emergency personnel
• Adults under 65 years old with high-risk medical conditions
• The next group after this is healthy adults 25-64 years old
• The final group is adults 65 and older
• Aetna will rely on providers to make determinations about when an individual should receive the vaccine, in accordance with CDC guidelines.

Should any of your plan members become ill, we treat H1N1 as any other disease under all of our plans. We do cover the prescription drugs Tamiflu and Relenza, which can be used to treat the H1N1 virus.

Updated Guidance for Businesses and Employers

Your own organization is probably working to ensure it has its own plans in place to deal with H1N1. Updated federal guidelines offer businesses and employers a range of options for responding to 2009 H1N1 influenza, depending on how severe the flu may be in their communities. The guidance says business planners should assess their business functions to determine the threshold of absenteeism that would be potentially disruptive and plan ahead to take increasing measures as absenteeism escalates toward those thresholds. More information and helpful communications for employers are available at:

• CDC Guidance for Businesses, Employers, and Workplaces to Plan and Respond to 2009 H1N1 Influenza
• Preparing for the Flu: A Communication Toolkit for Businesses and Employers

If you would like information on Aetna’s business continuity planning, please see our Overview of Aetna’s Preparedness for Pandemic. This section of the employer site on aetna.com includes a high-level look at Aetna’s business continuity plans for a pandemic, as well as frequently asked questions on our preparations and a list of resources.

A business coalition, including the U.S. Chamber and SHRM, has lost in its effort to have a court overturn the federal regulation requiring federal contractors to start using the E-Verify Program for federal contracts that are entered into or modified after September 8, 2009. The U.S. District Court for the Southern District of Maryland on August 26, 2009, turned down all arguments raised by the plaintiffs and has opened the door for the rule to be applicable as planned on September 8, 2009. There is no word on whether or not the decision will be appealed. The USCIS Web site has a federal contractor page as well as a series of Q&As on the rule that explains its provisions and application.

Source http://www.irs.gov

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.

• To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
• If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
• There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
• Current and prior year tax forms and instructions are available on the Forms and Publications web page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).
• Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

• Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
• You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
• You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
• If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Source http://www.dol.gov/esa/whd/flsa/

The federal minimum wage will increase from $6.55 per hour to $7.25 per hour, effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

From HRMorining.com

To further prove that immigration reform is still on the front burner, Immigration and Customs Enforcement announced its plan to implement a nationwide audit of employer I-9s.

ICE announced that it’s drawing up Notices of Inspection to review the I-9 records of 652 employers — names not released yet. In some instances, the notices will include subpoenas for records such as

>> quarterly wage reports
>> EINs
>> business licenses
>> correspondence from Social Security Administration regarding no-match letters, and
>> payroll data.

Employers whose I-9-related records don’t pass muster with ICE will then receive Notices of Intent to Fine. Also in the announcement, ICE officials said the audit is just a “first step,” so employers probably can expect more audits and inspections.

What happens if you’re contacted for an audit? Make sure you know:

The name and contact information of company legal counsel. If the company’s legal counsel is not in-house, there should be written instructions for personnel to contact outside counsel immediately.
Who, in HR or otherwise, will be the the company’s representative for the ICE investigation or audit. You’ll want all communication with ICE channeled through that person to avoid redundancy or contradictions in information.
The names of company managers who should be informed of an ICE investigation or audit.
And keep in mind:

>> An investigator may contact you and ask for an interview, but you have the right to refer the investigator to an attorney.
>> An investigator has no right to files and records without a search warrant or subpoena.
>> Once you’re informed of an intent to investigate, take special care to secure all related records. Destruction or loss of records after notification could be seen as an attempt to destroy evidence or sabotage the investigation.

Article: http://www.hrmorning.com/feds-launch-nationwide-i-9-audit/