HR & EMPLOYMENT GUIDE by SNMG Interactive

FEBRUARY | 2016

HR & EMPLOYMENT GUIDE

A publication of

elcome to the 2016 Human Resources & Employment Guide! The Northern Nevada Human Resources Association (NNHRA), in conjunction with the Northern Nevada Business Weekly (NNBW), has published this Guide since 2003. We are pleased to present you with information on the latest trends in human resources management. This guide will touch on topics such as the Affordable Care Act (ACA), wage and hour lawsuits, succession management, medical marijuana, emotional intelligence, learning cultures, inclusive workplaces, leadership challenges, and answers to frequently asked human resources questions. Northern Nevada is anticipating 50,000 new jobs by 2020. As we welcome new companies to our region, employers must focus on strategies to effectively manage operations and attract and retain talent. NNHRA is here to help you rise to this challenge. For 48 years, NNHRA has remained committed to the philosophy of the founders; to provide a forum for practitioners to discuss challenges and to provide a medium for professional development. Our mission is to “serve the professional and advance the profession.” As President of NNHRA for 2016, I encourage all business leaders to Get Involved, Get Noticed, and Get Ahead!

Teresa Finn 2016 President

GET INVOLVED

GET AHEAD

NNHRA proudly serves over 400 members in the Reno, Sparks and Carson City areas. Monthly Chapter Meetings in Reno and Carson City offer valuable programming and networking. We provide education and advocacy for Diversity, Workforce Readiness, College Relations, Young Professionals, SHRM Certification, and Best Places to Work initiatives, just to name a few.

NNHRA has the reputation for being Northern Nevada’s leader in human resources expertise. We look forward to continuing this tradition by providing HR professionals and business Leaders with the most relevant information crucial to build and grow your business. Participation in NNHRA and SHRM gives you the resources you need to tackle your most challenging human resources initiatives.

GET NOTICED

The NNHRA Board of Directors is grateful to NNBW for their continued partnership and commitment to sharing quality and relevant information in the field of human resources. We also thank our members who contributed articles to this publication. These authors are representative of the volunteers that make NNHRA a thriving SHRM chapter. We invite you to join our organization and explore our resources and opportunities. For more information, please visit our website at www.nnhra.org.

NNHRA is proud to recognize the premier employers in the region by continuing to sponsor the Best Places to Work Awards Program and Celebration. The Best Places to Work initiative rewards companies that have designed positive work environments and creates a forum for employers to share best practices. Winners of the 2016 Best Places to Work in Nevada will be announced at the awards ceremony on April 21st at Silver Legacy.

2016 NNHRA BOARD OF DIRECTORS President

Diversity

Best Places to Work

Teresa Finn

Jeromy Manke

Brad Stewart

President Elect

Karla Rice

Server Technology

Karyn Jensen

Strategic HR Partners

Consultant

The Human Resource Connection

Secretary | Historian Johnny Skowronek Square1 Solutions

Treasurer

Certification Elizabeth Cassidy Patagonia

Steve Blackhall EP Minerals, LLC

Starlene Regalado

Nichols Consulting Engineers

VP of Membership Leah Wagner

Chase International Real Estate

Communications | Publicity Cindy Saunders

Tahoe Resources Inc.

College Relations Laura Cox

Programs Becky Bruch

Erickson, Thorpe & Swainston

Molly Rezac

Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

Workforce Readiness Cathy Norris

Sensational Leadership

ProLogistix

Stallar Lufrano UNR

Young Professionals Network Josh Grace

Healing Health

Past President Brad Stewart ProLogistix

Carson Chair Kellie George

United Federal Credit Union

Carson Chair Elect Dawn Morgan North Sails

Carson Treasurer Leah Goldman

Benefit Resource Group

The Ramada Inn

SHRM Foundation

Carson Membership

Kevin Monaghan

L/P Insurance Services

Nicole Williams

Administrator Frances Farley

02 FEB 2016 HR & EMPLOYMENT GUIDE

Resource MFG/ProLogistix

TABLE OF CONTENTS

4 UP IN SMOKE

An inside look at Medical Marijuana in Nevada and what it means for you as an employer.

12 HEALTHCARE REFORM What are the regulatory and compliance items that must be followed, and what innovative ideas or solutions should an employer consider?

14 LEADERSHIP DEVELOPMENT

BUILDING A CULTURE OF LEARNING

What you need to know to create leaders for succession management.

Attract talent by building a robust employee learning culture.

8 NAVIGATING COMPLIANCE AND INCLUSION IN THE WORKPLACE Setting aside all moral and humanitarian arguments, we have a compliance issue at hand when it comes to Transgender Employees.

10 THE BUSINESS CASE FOR EMOTIONAL INTELLIGENCE IN LEADERS The business case for emotional intelligence is simple: leaders higher in emotional intelligence (EI) outperform those low in EI.

WHAT EMPLOYERS NEED TO KNOW TO PROTECT THEMSELVES Employers are facing more wage and hour lawsuits than ever before.

TRANSITIONING FROM PEER TO LEADER Relationships must change.

19 HUMAN RESOURCES FAQâ&#x20AC;&#x2122;S Structure and procedures within HR.

HR & EMPLOYMENT GUIDE

FEB 2016

IS YOUR WORKPLACE

UP IN SMOKE? Medical Marijuana in Nevada BY REBECCA BRUCH, ESQ.

edical marijuana is the law of the land in Nevada. However, its impact remains hazy for employers and employees alike. While you might think attempts to monitor your workplace and the safety of your employees, customers and the general public are up in smoke, there is hope that employers can find an answer to some of their questions. Twenty-three states, the District of Columbia and Guam permit medical marijuana. The political climate and acceptance of medical and recreational marijuana has changed dramatically, from President Clinton professing that he didn’t inhale, to President Obama saying, “That was the point.” Despite the fast-paced trend of legalization from state-to-state, there is no doubt that federal law prohibits the use or possession of marijuana for any purpose. Under federal law, there is no way to legally get marijuana. So how do employers reconcile the conflict between state and federal law? How do employers reconcile this conflict between state and federal law? NRS 453A.800 is the Nevada statute which addresses medical marijuana. There is much confusion about what it does and does not require. The law does not require any employer to allow the medical use of marijuana at the actual workplace site. Employees do not have to be allowed at work if they are impaired. The law does not require an employer to modify the job or working conditions based upon the reasonable business purposes of the employer.

REASONABLE PURPOSES

Employers need to take various issues into consideration: 1. Does the use of marijuana pose a threat of harm or danger to persons or property? 2. Does the use prevent the employee from fulfilling his or her job responsibilities? 3. If the employee is under the influence, could they harm another person or property? Although conclusions to these questions vary, employers who fall under the Drug-Free Workplace Act must enforce a zerotolerance policy. The Drug-Free Workplace Act applies to employers with $150,000 in primary services contracts from the federal government, or any amount of grant money from federal sources. Those contractors must publish a policy prohibiting

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illegal drug use. Those employers must discipline those who violate the policy, and report drug-related crimes occurring in the workplace. Failure to comply puts the contracts and grants at risk. For other employers, it is not that simple.

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REASONABLE ACCOMMODATION Nevada is one of nine states that require a reasonable accommodation and interactive process. Once again, employers have been given little guidance about a reasonable accommodation for an employee’s legal use of medical marijuana. Does an employer need to allow an employee to show up at work under the obvious influence of some substance, whether legal or illegal? The answer is no. The analysis is no different than employees who show up at work impaired by legal alcohol use after hours and off-site. But if an employee has a medical marijuana certificate, and if that has been verified, the employer should consider what might be a reasonable accommodation. Is it reasonable to restructure a job, at least temporarily? How about a modified work schedule or reassignment to a different position? Could the employer provide modified equipment to facilitate the employee’s condition as a result of legal medical marijuana use? These and other alternatives need to be considered so long as they do not cause an undue hardship for the employer. AMERICANS WITH DISABILITIES ACT (ADA) The ADA is a federal law, and does not require an employer to accommodate the use of medical marijuana. But remember, any employee who has a medical marijuana card received that card because a doctor declared that the employee suffers from some medical condition that would be helped by marijuana use. Whether the condition is chronic headaches, stressrelated conditions, difficulty sleeping, or any infinite number of conditions which may qualify as a disability under the ADA, employers may have an obligation to engage in an interactive process to determine whether a reasonable accommodation is necessary for that condition. And to add to the tightrope employers walk, they must be sensitive to privacy rights that employees have regarding their medical conditions.

WHAT’S AN EMPLOYER TO DO? All employers must have a policy. The structure of the policy depends on the workplace. If the employer falls under the requirements of the Drug-Free Workplace Act, the employer must have a zero-tolerance policy. Companies may want to consider a zero-tolerance policy for some departments, but not others. But remember, if you receive federal funds or federal grants, there can be no separate policies which allow testing positive for medical marijuana at any levels. The standard is “no detectable amount.” If the employer’s policy makes it clear that all use is prohibited under both state and/or federal law, it is more likely a termination will be upheld. If you do not fall under the Drug-Free Workplace Act, a modified policy is critical to effectively monitor the safety and operations of the business. The measuring stick should be whether the employee is “under the influence.” The policy must articulate that provision. The policy must define what constitutes drug use so it is clear that prohibitions extend to illegal drugs under both state and/or federal law. The policy needs to allow for drug testing, and define how it will be implemented. If it is random, ensure it is properly administered and documented. Train your managers about confidentiality issues, including drug test results and requests for accommodations for medical conditions for which marijuana is prescribed. Consult with your attorney to review policies and procedures. With a little work, there is no reason for your workplace to go to pot.

Rebecca Bruch is a shareholder at Erickson, Thorpe & Swainston, with primary practice in management-side employment law, investigations, administrative proceedings including EEOC, NERC, OSHA, DETR, EMRB, and DOL. She has written and provided training locally and nationwide, and is admitted to practice in Nevada, California, the Ninth Circuit Court of Appeals, and the U.S. Supreme Court. Contact her at rbruch@etsreno.com or 775-786-3930.

Awards Celebration at Silver Legacy APRIL 21, 2016

HR & EMPLOYMENT GUIDE

FEB 2016

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SEVEN STRATEGIES

U W t o E w m c C s i e a

TO BUILD A CULTURE OF LEARNING BY DIANE SCHROEDER, SPHR (L) AND LISA DUC (R)

hat are leading U.S. employers doing to attract talent? Offering a good salary? Yes. Providing comprehensive benefits? Yes. However, it turns out that one of the top and possibly most rewarding ways to attract talent is to build a robust employee learning culture. The Association for Talent Development characterizes a learning culture as: “….. a community of workers continuously and collectively seeking improvement through new knowledge, new skills, and new applications of knowledge and skills to achieve the goals of the organization. A learning culture is a culture of inquiry; an environment in which employees feel safe asking tough questions about the purpose and quality of what they are doing for customers, themselves, and other stakeholders. The pursuit of learning is woven into the fabric of organizational life.” “A learning culture is a win for both employee and employer.” Employees are continuously challenged to learn and grow, resulting in increased retention, engagement, productivity, motivation, and enjoyment. Employers realize a return on investment by developing stronger employee skill sets that keep pace or exceed those of the competition. Increased employee retention, which can be challenging in high-demand, high-skill jobs maximizes the employer’s long-term employee development investments. Employees know their employer has committed to their future by providing ongoing opportunities to learn and grow. A learning culture helps create a collaborative “Best Places to Work” environment, which becomes a long-term competitive advantage. How do you begin building a learning culture? ONLINE, ON-DEMAND LEARNING This does not necessarily mean a sizeable investment in a robust Learning Content Management Platform. Consider using Department or job-specific folders on an existing file server or web site to store and make available key training and support documents. If information is sensitive, you will need to implement

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folder and/or file-level security. The important point is to ensure learning materials are posted, available, and accessible on-demand whether at work, at home, or traveling. CREATE AN E-LIBRARY OF KEY PROCESSES Besides providing training materials online and on-demand, it’s important to provide online versions of processes, procedures, and process flow charts. These can be organized by job function or Department and are likely to be in a Portable Document Format (PDF). The benefits to PDF include ease of accessibility on any technology platform using a PDF Reader, and they are “read-only” to prevent editing. USE GROUP DISCUSSIONS TO SUPPORT TRAINING Building a learning culture means creating and leveraging the social community that already exists within your workplace. Some group strategies to use for your next training event can include posting the course agenda well in advance and inviting comments and suggestions to the subject matter. You can also provide a forum for learners to post comments about their learning experience, share relevant work examples to support a training topic, post questions for other participants to answer or comment on, and extend engagement with their instructor. You can use a website’s Blog feature for this purpose, or create a social sharing site like Yammer, which provides for threaded conversations and search capabilities. PROVIDE INDUSTRY CERTIFICATION TRAINING With few exceptions, your business or industry has one or more sanctioning bodies that provide certification opportunities for your employees. For example, Project Managers have the Project Management Institute®, which provides certifications for Project Management Professional (PMP®) and Certified Associate in Project Management (CAPM®). Human Resource professionals have the Society for Human Resource Management, which provides SHRM Certified Professional (SHRM-CP®) and SHRM Senior Certified Professional (SHRM-SCP®) certifications. While these and other certification courses and exams can be expensive, they’re a worthwhile investment that provides a strategic and competitive advantage. An industry recognized certification confirms an

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employee’s competence baseline. When submitting bids or proposals, having one or more certified resources to offer can make the difference between winning and losing. By paying for some or all of the certification and exam costs, it shows appreciation to your employees, and a willingness to invest in them. As an organization, you can position the company as an industry leader with a certified team to back it up. USE SME’S FOR SHARED LEARNING While having experienced trainers or outside training resources teach or lead a class can be necessary, don’t overlook the wealth of built-in, practical, and proven knowledge in your Subject Matter Experts (SMEs). Granted, your SME team may not be “trainers,” but when it comes to supplementing a learning event, nothing brings more relevance than someone who works for your company, is competent in what they do, and has “been there, and done that.” Consider bringing one or more SMEs into training sessions to lend support to a new system, process, or learning topic, explain how it fits in to daily work life, and generally help you generate that elusive “buy-in” that is so important to long-term training success and adoption.

PROMOTE “SOCIAL LEARNING” People are generally social and competitive by nature. Adding “Gamification” to your next training event can take advantage of this tendency and catapult learning effectiveness to another level. Consider creating an online leaderboard for test and quiz scores, completing course content, and distributing bonus points for asking or answering training-related questions. Award inexpensive prizes so training participants have a tangible item that shows their achievements. These prizes can be small and inexpensive. You can also issue a kind of virtual game currency that can be awarded and then exchanged for a prize.

Lisa Duc, HR Generalist and Diane Schroder, SPHR, CAPM – VP of Operations,are a Human Resources team with over 26 years of experience. They bring their knowledge of best practices to everyday decision making at Apex Performance Solutions. Contact them at 775-337-2739 or www.solutionsbyapex.com.

MAKE LEARNING MOBILE Ensure content is consumable on small screen devices such as tablets and smart phones. For mobile learning consumption, it’s also important to keep training subject matter in small “chunks” that take 1-5 minutes to complete. Long, scrolling content is off-putting on mobile devices. Instead, include pictures, embedded video, and “InfoGraphics” to get a point across quickly and efficiently.

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HR & EMPLOYMENT GUIDE

FEB 2016

NAVIGATING COMPLIANCE AND INCLUSION: Transgender Employees BY CINDY DAVIS, SPHR AND JEROMY MANKE, PHR

hen Caitlyn Jenner announced that she would live her life as a female, the often uncomfortable and misunderstood topic of gender identity and expression was again thrust into the public eye. With the trend toward providing protections and equality continuing, potential affects on business are increasing. Despite individual opinions or beliefs on the topic, it is crucial that professionals in management and Human Resources take proactive steps to ensure compliance with regulations, promote a productive work environment, and provide an inclusive workplace. Admittedly, this is a challenging area in which to maneuver. Emotions are high and individuals are polarized on the subject. Yet, return on investment remains the primary driver for most company decisions, which dictates the need to maintain a work environment that maximizes productivity, employee wellbeing, and teamwork. Therefore, strategies need to be implemented to provide for continuing returns, while creating an inclusive and accepting work environment for everyone, including transgender employees. According to the Williams Institute at the University of California – Los Angeles, there are an estimated 700,000 transgender individuals in the United States, meaning their internal gender identity is different from the sex they were assigned at birth or listed on their birth certificate. This represented about 0.3% of American adults, although some estimates are higher. Despite being a small percentage of the population, these individuals are disproportionately subjected to discrimination. The recent survey from the National Center for Transgender Equality showed that 26% of trans people lost a job

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and 50% were harassed on the job. These rates are believed to be higher for trans people of color. The effects of discrimination and the corresponding negativity in the work environment extend beyond the victim, and can dramatically impact work productivity and general employee wellbeing. Setting aside all moral and humanitarian arguments, we have a compliance issue at hand. According to the Human Rights Campaign, employees in over 225 cities and counties, eighteen states, the Federal government and contractors are now protected by non-discrimination laws and regulations regarding gender identity. Nevada is one of these. The state legislature passed NRS 233.010, which includes “gender identity and expression” as a protected class under the Employee Non-Discrimination Act. This extends protections throughout all stages of employment, from hiring to termination, and can have major implications on the workplace, especially as many employers might be unaware or

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unconcerned about potential consequences. By educating supervisors, managers and employees about the regulations that are in place and clearly expressing the company’s expectations of fair treatment, employers can mitigate potential liability and proactively work to avoid issues that might otherwise arise. No leader wants a NERC or EEOC complaint, the resulting investigation, or a potential lawsuit. In 2015, Occupational Safety and Health Administration (OSHA) came out with guidelines regarding restroom access for transgender workers. Based on the foundation that all employers under OSHA jurisdiction are required to provide sanitary and available toilet facilities for their employees when needed, clear expectations of employers were given. “All employees, including transgender employees, should have access to restrooms that correspond to their gender identity.” It is also stated that employees should not be asked to provide medical or legal documentation of their gender identity or required to use separate facilities. Often times, the issue of bathroom use becomes highly contested. With OSHA’s new guidelines, employers now have access to sample best practices to use in response. Additionally, the Nevada Insurance Commissioner issued a bulletin in June 2015 stating that exclusionary language that denied medical health services on the basis of gender identity or expression would not be permitted in Nevada health insurance plans. Taking these compliance aspects into account, it is vital that employers take a careful look at current internal policies and procedures. Following revisions, education on the subject is critical to reduce potential liability. Issues may not be presently evident with an employee, due to the high propensity for individuals to hide their gender identity in an attempt to avoid negative situations. By taking the proactive step of changing policies, companies can promote a positive work environment. In moving into the fundamentals of organizational development, it is important that we consider Maslow’s hierarchy of needs. For those unfamiliar, we must all have our physiological and safety needs met to progress to belonging, esteem, and self-actualization. It is at these latter levels that we are most productive. By creating an accepting environment that provides safety and supportive conditions for transgender individuals, employers can maximize the potential of employees. This extends to all employees, by making it clear that the company and work environment will not tolerate harassment and/or discrimination on any level. With high rates of discrimination, and statistically double the unemployment rate for transgender individuals, an employee who is fortunate enough to find a supportive employer will likely exhibit increased loyalty and productivity. This can directly effect the ROI realized by the employer. When magnified across a company that enforces and communicates inclusive policies, the productivity of

happy employees increases exponentially... According to Forbes, revenues increased by 22.2% for 2014 Fortune 100 Best Companies to Work For. This inclusive environment effects other areas of business as well, including reductions in turnover. Employees and business leaders alike are now, more than ever before, exposed to a newfound awareness of transgender individuals and protections. Conversations that were once shrouded in secrecy are becoming mainstream, and no one can deny that society is moving toward greater equality. The question remains whether you are ready to help bring your company along, or face the potentially negative consequences of exclusion. Navigating through compliance matters, building a more positive work environment, and promoting inclusion can be difficult tasks. Yet, those that are successful at doing each will realize higher returns, and not just from a monetary standpoint.

“ By taking the proactive step of changing policies, companies can promote a positive work environment.”

Cindy Davis, SPHR, is the Founder and Chief People Officer at Strategic HR Partners. Jeromy Manke, PHR, is an HR Business Partner at Strategic HR Partners. Contact them at Cindy@strategicpartners-hr.com, Jeromy@ strategicpartners-hr.com or 775-722-0514.

NEVADA ASSOCIATION OF EMPLOYERS

Nevada’s HR Resource For Over 75 Years! The Nevada Association of Employers devotes time to ensure that employers are able to compete lawfully, ethically and efficiently in the state of Nevada. NAE members receive sound advice from our responsive, pleasant and experienced staff with expertise in all facets of human resources, on both federal and state levels, employee relations and training.

For more information, please contact us at 775.329.4241

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www.nae-online.org HR & EMPLOYMENT GUIDE

FEB 2016

THE BUSINESS CASE FOR EMOTIONAL INTELLIGENCE IN LEADERS

H F I

BY CATHY NORRIS, M.A.ED.

he business case for emotional intelligence is simple: leaders higher in emotional intelligence (EI) outperform those low in EI. Think back over the managers you’ve worked for. Who was your favorite and why? What did that manager do that set him or her apart? What adjectives would you use to describe him or her? Did he trust you, have faith in you, and help you work in your areas of interest? Did she give you autonomy, opportunities to lead, and accurate feedback? Was he positive, encouraging, and understanding? Was she ethical and honest? Now, think about your performance during that time. Were you more productive? Did you increase your abilities or develop new skills under that person? How well did your team or organization work together to get things done? Did it reach its goals and perhaps new heights of accomplishments? A DIFFERENT KIND OF INTELLIGENCE If you’re wondering exactly how emotional intelligence is defined, the following description comes from the first research that coined the term in 1990: “Emotional intelligence is the ability to accurately perceive your own and others’ emotions; to understand the signals that emotions send about relationships; and to manage your own and others’ emotions.”

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EMOTIONAL INTELLIGENCE SKILLS ARE OFTEN CATEGORIZED INTO THESE FOUR AREAS:

SELF-AWARENESS Accurate self-assessment, emotional awareness and personal power

SOCIAL AWARENESS Empathy, awareness of power relationships and organizational awareness

SELF-MANAGEMENT Resilience, impulse control, stress management and achievement drive

RELATIONSHIP MANAGEMENT Communication, conflict management, collaboration and teamwork

THE HARD CASE FOR SOFT SKILLS Author Daniel Goleman has written extensively about EI. He brought the term to the public’s attention in 1995 with the best seller, Emotional Intelligence. He has also written seminal articles and books on the relationship between EI and leadership effectiveness, including “What Makes a Leader” in the Harvard Business Review and his book, Primal Leadership. In studying models of 181 companies, Goleman found two thirds of competencies identified for effective performance were emotional competencies. In other words, emotional skills mattered twice as much as technical or cognitive skills, the other types of skills in those models.

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HERE IS A SAMPLING OF RESULTS REPORTED FROM IMPLEMENTING EMOTIONAL INTELLIGENCE INITIATIVES IN MAJOR COMPANIES: • American Express increased financial advisors’ revenues by 2%, resulting in millions of extra earnings • Sheraton increased market share by 24%, increased guest satisfaction and reduced turnover • The UK’s Whitbread group increased organizational productivity and higher annual profit growth correlated to managers with high emotional intelligence • At PepsiCo, executives selected for emotional intelligence competencies generated 10% more productivity • A manufacturing plant reduced accidents by 50%, grievances from 15 to 3 a year, and the plant exceeded productivity goals by $250,000 THE LEADERSHIP EDGE The connection between leadership and emotional intelligence has also been extensively studied. Goleman and other researchers found a link between an executive’s emotional intelligence and his or her financial performance due to the climate the executive creates. The leader’s mood and behaviors act like a contagion, driving everyone’s moods and behaviors like electricity through wires. In a 2009 study, 186 executives were tested on emotional intelligence scores compared with their company’s profitability. The executives with higher levels of emotional intelligence (including empathy and accurate self-awareness) were more likely to be highly profitable. What is the impact for leaders who have low EI? The Center for Creative Leadership found that 75% of careers are derailed for reasons related to emotional competencies, including inability to handle interpersonal problems; unsatisfactory team leadership during times of difficulty or conflict; or inability to adapt to change or elicit trust. In my own work, clients have shared what works for them

“ The Center for Creative Leadership found that 75% of careers are derailed for reasons related to emotional competencies, including inability to handle interpersonal problems”

correlating to their high scores on EI assessments. Ralph, a director of an IT division, sees relationships as more important than deadlines. He schedules time in his day to walk the halls and talk to his employees. He also schedules regular one-on-one meetings with his staff just to get to know them better. Sally, a state agency supervisor, has a shared management approach with her team and frequently asks for their input. She is conscious about the effect her comments may have on her team and aware that the slightest reprimand or off-the-cuff comment may demotivate them. THE GOOD NEWS The good news is that people can change emotional intelligence with the same type of effort they apply to changing any behavior or habit. It may seem difficult to change old habits. However, neuroscientists have discovered we can train our brains to form new neural connections. A growing, vast amount of research shows that when individuals take steps to increase their EI, they see positive results which correlate to benefits in their relationships, their performance results, and their well-being. HOW TO INCREASE EI IN THE WORKPLACE 1. Identify key emotional competencies needed for job roles. 2. Assess and provide feedback to employees with an EI assessment that allows them to be rated by others who work with them. 3. Provide customized training programs for individual work groups. 4. Help employees set clear goals and create action plans for changing behaviors. 5. Ensure feedback is provided through a mentor, coach, supervisor or accountability partner. THE NEED FOR EI IS GROWING As the increase of rapid change and complexity mounts in our global, interconnected world, EI has become the most important skillset for success for our modern age. The old “command and control” style of leadership is widely recognized as ineffective. Here is the bottom line: High levels of emotional intelligence such as showing interest, kindness and encouragement, create climates of high collaboration. This elevated environment results in information sharing, trust, healthy risk-taking, and learning. Low levels of emotional intelligence create climates of fear and anxiety. Which environment would you perform better in?

Cathy Norris is the Founder and CEO of Sensational Leadership, an executive coaching and leadership development company and Emergence Mentor with Emergence Team (emergenceteam.com). Contact her at 775-232-3394 or cathy@cathynorris.net.

HR & EMPLOYMENT GUIDE

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ARE YOU READY FOR HEALTHCARE REFORM? BY MICHAEL F. DILLON, JR., MBA

he reason health insurance coverage is confusing, is because: it is. For business owners, there are high penalties and new rules regarding which businesses need to provide coverage. Many changes have just started and more are on the way. Health benefits were once thought of as a requirement of big business with 100 or more employees. This is no longer true. There are sweeping changes in the Affordable Care Act. This act has put businesses at risk of massive fines, high costs, taxes and government regulation. Employers face two primary issues on Healthcare Reform. What are the regulatory and compliance items that must be followed, and what innovative ideas or solutions should an employer consider? WHAT YOU NEED TO KNOW The employer penalty for not offering an ACA compliant plan; meeting requirements of Minimum Essential Coverage (MEC), is $2,000 per employee (minus the first 30 employees). This penalty is not tax deductible. The second fine is a $3,000 per employee shared responsibility payment. This fine applies if an employee receives a subsidy and the employer plan does not meet the “minimum value” or “affordability”

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test. Minimum value means the plan must pay at least 60 percent of the total allowed costs of benefits for the year. The “affordability” requirement states employees may not pay more than 9.5 percent of their total family income for an employer sponsored plan. There are three safe harbors which may be used to calculate affordability. The “pay or play” mandate for health insurance for businesses has officially started for employers with 50 employees or the equivalent of 50 full time employees. Last year’s mandate required businesses to provide health insurance with 100 or more employees. This is significant because employers cannot keep employees under 30 hours to avoid the mandate. REPORTING AND INCREASED COMPLIANCE On December 28, 2015 the Internal Revenue Service extended the deadlines for 2015 Section 6055 and 6056 reporting for individuals, employers and providers. These onerous regulations apply to employers with 50 or more employees and full-time employees, as well as self-funded employers of any size. Entire articles may be written on 1094 and 1095 reporting related to this IRS section, but the best advice is to include all of your professional service professionals, especially your broker, to make sure you file correctly with the IRS. COMPLIANCE CHECKLIST AND MORE TAXES In addition to 1094 and 1095 reporting, more ACA compliance issues face employers and are typically handled inconsistently by employers.

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Mike Dillon serves as the Healthcare Reform Expert of the Employee Benefits Brokerage at Dillon Health. His company is the endorsed agency for employee benefits products for four large associations in Nevada and California. He uses the strength of these associations, representing over 2600 companies, to negotiate the strongest coverages at the lowest cost for his clients. Contact him at mdillon@DillonHealth.com or 775-560-7006.

Employers should implement an “Employer Checklist” which includes ACA reporting. It must include additional requirements of notifying open enrollment properly to all eligible employees, complying with HIPAA privacy issues, notifying employees of COBRA rights, and the Family and Medical Leave Act. Employers must also notify all employees of changes in the “marketplace.” In December of 2015, Congress delayed implementation of the ACA’s so-called “Cadillac” tax by two years. Extended now to 2020, this tax may significantly penalize those with plans that exceed a value of $10,200 in coverage. SOLUTIONS FOR SMALL AND LARGE EMPLOYERS The private sector has devised innovative plans that meet the requirements of the ACA. These plans have been designed for industries with a difficult time providing benefits including staffing agencies, restaurants, and seasonal workers such as those in the construction industry. Another option to consider is participating in an Employer Benefit Trust. These are 501c9 organizations typically sponsored by a 501c6 association or educational institution. If structured properly, they provide fully-insured products with competitive pricing. It allows small groups to participate in large group benefits and underwriting. These plans are ACA compliant and may provide significant savings and unique features. The Level-Funded premium model has a self-funded component to it, but it looks, acts, and feels like a fully-insured product. In a self-funded plan, there are three primary components: Stop-Loss Reinsurance, Admin Costs (network access, customer service, TPA, cobra administration), and a claims fund. Under this model, the employer pays the premium at the maximum exposure each month. If there are large claims early and no money in the claims fund, the stop-loss carrier agrees to front the money and is paid

back by the end of the plan year. The upside is the group receives great data on the group claims and can actively change behaviors with employees. The employer has the option to take back any funds left in the claim fund. Employers who are selffunded should truly consider a cost savings model called “referenced base pricing” for facility charges for imaging, lab, outpatient and inpatient services. The plan still maintains a provider network for primary care, OBGYN, pediatricians and specialists. Provider network contracts may grossly overpay facilities. There are many examples of network contracts paying varying inpatient and outpatient facilities. Aggressive wellness programs should be implemented. Specific populations of employees with wellness plans have very successful results. Employees should be educated on Medicare and Medicaid options. Plans can be structured with employee contributions, but still keep the door open for alternatives. With age-banded rates becoming the norm, it is transparent how important this strategy can be for an employer. Moving to a Defined Contribution model, where employers provide a dollar figure for employees to use for their cafeteria plan of benefits is popular in the industry now. The regulatory environment of the ACA is becoming more complex. This year and beyond there will be increases in premiums and significant plan design changes. The key for businesses is to start working on solutions with a health care reform expert who can navigate issues now and prepare for the future.

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STRATEGIC COMPETENCIES: Leadership Development for Succession Management BY DR. JAMES KING, PMP, SPHR

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P Every chief executive and human resources professional clearly understands the need to retain and develop top talent in their organizations. As noted in recent research by the Corporate Executive Board, 61% percent of human resources leaders surveyed indicated succession management is a top talent concern for their Boards of Directors; and, nearly 63% of human resources leaders believe succession management is a greater priority now than five years ago. Unfortunately, this concern is not new, yet empirical solutions seem to elude even the savviest of those in the HR profession. As such, this article addresses the question; why is succession management still a top concern?

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P ORGANIZATIONS ARE RIGHTLY CONCERNED BECAUSE OF PRESSURE AMONG THREE ESSENTIAL COMPONENTS OF SUCCESSION MANAGEMENT: • • •

Retention - decrease the impact and cost of replacing key employees and leaders. Identification - distinguish high-potential talent and management candidates. Development - enhance the readiness of the organization’s bench-strength.

uman resources leaders charged with controlling these pressures are responsible for identifying experienced and capable employees to fill key positions, and developing future leaders so they are ready to assume these key positions when the time comes. It is important to note that succession management is not simply about current leadership competencies; rather, it is about projecting leadership competencies for the future. Ideally, fully qualified and competent leaders emerge as a result of an effectively executed succession management program. Unfortunately, this is not the case for a number of reasons: a) enterprise leaders may require experience in more than one functional or operational domain; b) emerging technologies and rapidly changing competitive environments create the need for expertise that is in short supply; and, c) outside hiring practices often result in leaders that are not aligned with organizational priorities and lack leadership competencies needed for the future. That said, what are future leadership competencies? And, where do we turn to improve our collective effort to develop these competencies? Leadership literature in both academic and practitioner contexts is replete with long lists of competencies needed by future leaders. Unfortunately, long comprehensive lists are problematic. At the individual level, it is difficult to assess one’s leadership ability when the lists suggest

that a strategic leader must “Be, Know, and Do” just about everything. At the organizational level, the long lists make it difficult to focus attention and resources on leader development when the desired end state is so broad. Hence, the task of identifying future leadership competencies becomes one of reducing lists to a few strategic competencies aligned with the vision of the organization and: a) direct leader development efforts to focus on essential strategic competencies; and, b) facilitate development of performance, potential, and preparedness assessments used by chief executives and human resources leaders responsible for succession management. For the purpose of this article, competencies are the collection of knowledge, skills, and process abilities possessed by an individual that are instrumental to accomplishing the requirements of a job. As such, this article advances the concepts of enterprise knowledge, integration skills, problem-solving skills, and people skills as strategic competencies in the context of succession management. Collectively, these strategic competencies; a) manage the complexity surrounding stakeholder relationships and competitive environmental factors, b) recognize and create synergies across the organization, c) motivate inputs from all stakeholders that contribute to problem solving, decision-making, and learning; and, d) accelerate the leaders’ rates of learning new roles.

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ENTERPRISE KNOWLEDGE Enterprise knowledge provides a cognitive map for leaders to structure problem solving, maintain a strategic orientation for the enterprise in the context of its competitive environment, and contribute to comprehensive decision-making. Enterprise knowledge development prepares leaders to:

• Evaluate essential knowledge about stakeholders, partners, and customers. • Analyze environmental strengths and weaknesses to define new opportunities. • Apply foundational skills to develop, implement, and evaluate strategic initiatives.

INTEGRATION SKILLS Integration skills foster collaborative interactions among experts, and create more sophisticated definitions of problems, issues, and opportunities resulting in robust solutions and outcomes for the enterprise. These skills will prepare leaders to: • Maximize organizational knowledge assets to enhance learning. • Improve functional interactions to improve organizational processes and capabilities. • Recognize and apply innovative solutions through participatory decision-making.

PROBLEM SOLVING SKILLS

Problem-solving skills are essential for leaders to reduce complexity in their decision space, define issues, develop solutions, and advance enterprise knowledge. Problemsolving skills are important to diagnose problems and develop comprehensive solutions. Strong problem solving skills equip leaders to:

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• Deconstruct problems into component parts and unify constructive relationships. • Find a critical path through complexity and critique processes for flaws. • Structure solutions to align with strategic objectives and performance requirements.

PEOPLE SKILLS People skills are a simple label for a very complex set of skills that facilitate information flow, decision-making, and learning. Leaders with people skills create an environment for continuous learning, participatory decision-making, and comprehensive results. Leaders with highly developed people skills will: • Create the context for engagement and learning. • Address communication barriers and manage organizational climate. • Close gaps accompanying functional and organizational integration. • Analyze how to connect with stakeholders and build strategic relationships.

CONCLUSION AND RECOMMENDATIONS If an organization chooses to leverage its existing learning and development system to increase the number and readiness of high-potentials possessing these competencies, leadership development curricula should emphasize at least three subject areas: First: Develop organizational assessment and analysis tools and techniques, which develop the ability to analyze desired leadership competencies and organizational capabilities. Second: Advance systems-level problem-solving strategies through education and training, rotational assignments, coaching, and development-focused work assignments. Third: Conduct communications analysis to improve techniques to analyze stakeholder and subordinate knowledge levels. These techniques also support efforts to establish common understandings of complex issues. Developing leaders for the future is not only a commitment to be made by business organizations, it is also a commitment for all of us to advance the future of our communities and provide for the well-being of our society.

Dr. James King, PMP, SPHR, is Founder and Operating Manager at Pro Development International, LLC. Contact him at 775-525-5646 or JamesKing@ProDevIntl.com. HR & EMPLOYMENT GUIDE

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WHAT EMPLOYERS NEED TO KNOW TO PROTECT THEMSELVES Record-High Wage and Hour Class Actions BY LAURA R. JACOBSEN, ESQ.

mployers are facing more wage and hour lawsuits than ever before. Suits filed under the Fair Labor Standards Act (FLSA) hit a record high in 2015, up 8% since 2014 and over 450% since 2000. There is no reason to believe that 2016 will be any different. In addition, the Department of Labor has announced that it will change the exemption standard with new regulations in 2016, expanding the FLSA and its overtime requirements to more employees than ever before. The FLSA generally requires employers to pay a minimum wage and to pay overtime wages at a rate of one-and-half times their normal rate. Employers rarely intentionally violate the FLSA. Rather, the problem stems from confusion as to whether employees are exempt from the FLSA’s minimum wage and overtime pay requirements. Certain technological and engineering jobs projected to flood the Northern Nevada economy may prove to be problematic for employers, where the line between blue- and white-collar is more blurry than ever before. In general, so-called “white collar” employees engaged in executive, administrative, professional, outside sales, or computerrelated occupations are exempt from the FLSA. Unfortunately, many employers have mistakenly interpreted the “white-collar” exemption to mean an employee is exempt if he or she is paid on a salary basis, has a specialized degree, or has “manager” in his or her job title. But the test for whether an employee fits the exemption is not simple. There are three tests that regulate who is exempt: a salary basis test, a salary

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level test, and a duties test. Each test is complex, each depends upon the individual circumstances of each employee, and each must be met in order for the exemption to apply. These tests are easy to misapply, and the stakes are high. FLSA suits are particularly dangerous to employers for two primary reasons. First, the threshold for an employee to obtain certification of a FLSA class is much lower than in a regular class action. Thus, class certification happens early and often in FLSA cases. Once this easy threshold is met, the employee’s attorneys may contact each and every “similarly-situated” employee and solicit their participation in the suit. Second, employers found to have violated the FLSA owe employees not just unpaid wages, but also “liquidated damages” in an amount equal to the pay the employees should have received. Simply put, employees can recover double backpay. Where an entire class of employees has been misclassified under a single policy, the liability may be enormous. Fortunately, there are a number of ways for employers to limit exposure of a potential FLSA class action. Of course, the best way to prevent a FLSA suit is to properly classify employees as exempt or nonexempt. When in doubt, the employer should consult legal counsel experienced in employment law to assist in determining proper classification. But what if an employer faces a situation where it believes it may have misclassified employees? Can the employer ask misclassified employees to sign a release of FLSA claims? Yes and no. While an employee can waive the right to bring almost every other type of claim, i.e. a discrimination claim, most courts have held that individual releases of FLSA claims are not enforceable unless supervised by a federal court or the Department of Labor. (The Ninth Circuit Court of Appeals and the Nevada courts have yet to weigh in on this issue.) For that reason, the usual waivers found in employee handbooks, employment agreements, and separation agreements will not prevent a FLSA lawsuit.

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The good news is that a carefully crafted agreement can prevent a class action and force misclassified employees to litigate on an individual basis, rather than as a group. Often, this is enough to defeat a FLSA lawsuit altogether, because it is usually not worth the time and money it takes to litigate an individual claim for unpaid overtime wages. However, the courts are in disagreement as to whether these types of agreements are enforceable. The Sixth Circuit Court of Appeals recently held that employees cannot waive the right to bring a FLSA class action. (The Ninth Circuit and the Nevada courts have not yet ruled on this issue, either.) That being said, tying the class action waiver to a requirement to arbitrate employment-related claims may do the trick. It is critical for employers to understand that the normal agreements may not prevent FLSA class actions, and building a working relationship with proper legal counsel for guidance on such matters positions the employer for the best outcome. Even after a complaint is filed, there are still steps an employer may take to limit exposure. However, an employer must tread lightly because the courts are inherently suspicious of post-complaint actions. For example, an employer may communicate to its employees about a pending FLSA lawsuit, but must scrupulously avoid any amount of coercion or misrepresentation. An employer may also ask employees to sign an enforceable arbitration agreement waiving the right to bring or participate in a FLSA class action, but only if it fully explains the nature of the pending suit, the right of the employee to participate in the suit, the rights the employee is giving up if he or she signs the agreement, and potentially the plaintiff’s attorneys’ contact information. Where a court finds that an employer hid any of these facts or in any way coerced or misled employees, it will strike the agreements and issue corrective notices alerting every similar employee of the lawsuit.

Consider taking a closer look at your current employee exemption classifications. Are the lines blurred with respect to traditional “white-collar” employee classification within your organization? An investment of your time and attention to this matter early this year may pay dividends down the road.

“ Unfortunately, many

employers have mistakenly interpreted the “whitecollar” exemption to mean an employee is exempt if he or she is paid on a salary basis, has a specialized degree, or has “manager” in his or her job title. ”

A Reno native, Laura Jacobsen is an associate at McDonald Carano Wilson LLP and a member of the firm’s employment and labor law group. Laura has experience advising employers and litigating on their behalf in both Nevada and California. Contact her at 775-788-2000 or ljacobsen@mcdonaldcarano.com.

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TRANSITIONING FROM PEER TO LEADER: Relationships Must Change BY ALICIA GORDON, PHR, SHRM-CP

he Friday before my promotion was official, I was still joking with my teammates. We were laughing about everything from weekend plans and significant others, to bonding over shared management complaints. The following Monday, I suddenly became the management I used to criticize. While I was over-the-moon for my promotion, I had no idea how difficult the transition would be. The first day in my new role, my supervisor asked me to address a member of my staff who had arrived late the previous day. This particular employee and I were pretty good work friends. In fact, we had exchanged many hearty laughs together watching silly cat videos during lunch breaks. To make matters worse, she had also trained me when I was new to the department. Though we shared a love of watching felines in hilarious predicaments, it didn’t change the fact: I was now her boss. As I stumbled through my first crucial conversation, I knew it wasn’t going well when she said, “Oh Alicia! I have the funniest kitten video to show you when we’re finished!” Fast forward a few years to my next brush with the peer to leader jump. I was tapped to lead a team with whom I had worked closely with for some time. As I was deciding where to put my dusty fake fern in my new office, two of my peers-turned-direct-reports popped in to ask if I wanted to join them for drinks to celebrate my new gig. They had been my friends--and karaoke buddies---but now, I was their boss. I had a tough decision to make. In over 12 years as a leader, I have lived on both coasts and worked in a wide array of fields including art, manufacturing, logistics, retail and health care. I picked up lots of miles on my car and just as many leadership lessons. These are a few of my most valuable lessons concerning the challenging transition from staff to supervisor.

CALL OUT THE ‘ELEPHANT IN THE ROOM’

BE AWARE OF WHO IS LISTENING TO YOUR COMPLAINTS

Simon Cowell was always my favorite judge on ‘American Idol’. He was honest, even if it didn’t always feel good. While I tend to choose words more carefully than Simon, I always tried to bring up whatever “taboo” topic already on everyone’s mind. We can’t address a problem we are afraid to bring up. My first day leading a new team, I’d call a meeting: “Team, I know this transition might be hard for you, and you may wonder how this may change how we work together. I’ll admit it’s a little awkward for me too. I’m sure some of you have questions or concerns. Feel free to come and chat, my door is always open.”

One of the best pieces of advice I’ve ever received is to be thoughtful about who you complain to. While venting to your cube-mate about another new “dumb” policy may have been the norm as a peer, it’s 100% unacceptable as a leader. Complain up to your leader and never down to your staff, because your team looks to you for strength and follows your lead on behavior.

START ONE-ON-ONE MEETINGS RIGHT AWAY According to Gallup’s State of the American Manager: Analytics and Advice for Leaders, employees who have regular one-on-one meetings with their managers are almost three times as likely to be engaged. Sit down privately with each person to talk about concerns. You can also take time to set clear boundaries in the new, changing relationship. Something as harmless as a drink after work might be misinterpreted or perceived as favoritism. To make it easier, you might say, “My new role is keeping me pretty busy these days. I don’t think I can make it.” or “I know we’ve shared some laughs in the past, but I have the same expectations of you as I do the rest of the team. It’s my job to hold everyone accountable to the same standards.”

YOUR JOB IS TO SUPPORT YOUR TEAM TOWARD RESULTS It’s human nature to want to be liked. But I haven’t seen a job description yet where “being liked” is a requirement. On the path toward achieving results, hard decisions must be made and relationships will evolve. If given the choice, I’d rather be respected than liked. Four out of ten newly promoted managers fail within the first 18 months in their new positions (Manchester International, 2001). You don’t have to be one of those four! While the transition can be difficult, these are actions you can take to make it easier for you and your new staff. It starts with acknowledging the change and being honest about the challenge. Establish boundaries early, and begin regular one-on-ones to immediately address concerns. Communication and a dose of humility are the cornerstones to building trust and cohesion.

JUST DELIVER You may find yourself in the situation of being promoted into a position someone else wanted. You may know they harbor resentment towards you, and yet, you have to see them daily in your new role as their supervisor. They also may doubt your ability to perform the job. A good approach in this scenario is to use other’s doubts as motivation. Once you simply keep doing your job, folks have to stop saying you can’t. The more often and consistently you deliver, the better reputation you’ll build.

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Alicia Gordon is an Organizational Development Specialist with Renown Health in Reno, NV. Originally from the Washington, DC area, Alicia holds a Professional in Human Resources (PHR) certification and is a SHRM Certified Professional. Contact her at agordon@renown.org or 775-982-4664.

HUMAN RESOURCES

FAQ’S

BY MELISSA MARSH, SPHR, SHRM-SCP

hen it comes to HR questions, I am frequently asked about structure and procedures, particularly around hiring, firing and discipline. I often talk to clients about questions in these areas:

AT WHAT POINT DOES COMPANY SIZE AFFECT LABOR LAWS?

There are many labor laws, but not all of them apply when the employer has fewer than 50 employees. Some laws are driven by headcount. With just one employee, employers must comply with regulations that direct pay practices, specific types of leaves of absence, fair labor practices, providing notices, proper record keeping, wage/hour, unemployment insurance and safety. As company headcounts grow, more complicated laws apply that require compliance. At more than 10 employees, an employer must comply with OSHA recordkeeping requirements. With headcount of 15 or more, Equal Employment Opportunity (EEO) laws including anti-discrimination and harassment apply. With 20 or more employees, employers must comply with age discrimination and COBRA laws mandating that employees can continue insurance, at employee cost, after termination. When headcount reaches 50 or more, employers must comply with the Patient Protection and Affordable Care Act, requiring Americans carry minimum health coverage, and the Family Medical Leave Act that protects an employee’s job while allowing unpaid leave for qualified medical and family reasons. WHAT IS THE PROPER WAY TO COMPLETE FORM I-9 FOR EMPLOYMENT ELIGIBILITY VERIFICATION?

Form I-9 comes with lengthy instructions— about six pages long. Review completed forms to ensure the first page is correct. If you find an error, ask the employee to complete a new form. Then, complete the employer section while looking at the employee’s identification on the day of hire. Employers may choose whether or not to keep a copy of the employee’s identification. If you do so, you must consistently keep copies from all employees and securely store them.

If you have inherited I-9s that need clean-up, conduct an internal audit and document your actions. Some problems can’t be rectified, for example, when an employee no longer works at the company. However, efforts to rectify will be helpful if you experience an audit. For audit tips, visit The Society for Human Resource Management website at shrm.org. HOW CAN WE ENHANCE THE PERFORMANCE EVALUATION EXPERIENCE?

Ah, the performance evaluation! Often the most dreaded process for managers. When conducted once per year, the piles of paperwork can get high and the luxury of being thorough can dramatically decrease. I recommend developing a structure for raises tied to performance. Use the incentive of a raise to increase work quality and output. Most importantly, use this process to set significant goals and to explain how meeting goals benefits the company and the employee, resulting in another raise the following year. WHAT STEPS MUST BE TAKEN WHEN AN EMPLOYEE NEEDS DISCIPLINARY ACTION?

When you start thinking about firing an employee—or correcting actions or work quality— document, document, document! You must write down the facts. Do not ignore it, hoping it will get better. Alternately, do not assume you know why there are problems. Remember the EEO laws (mentioned above) that apply with 15 or more employees? Never assume someone is struggling at work because they are disabled or have a drug problem. These are areas protected by law that can add liability to the company. Stick to the facts and have a conversation about the work problem or policy violation—and then document that conversation. Approach the situation with kindness and a genuine, invested interest in helping the employee improve. An employee who is positively coached toward improvement can later become a dedicated and valuable employee. Often, employees don’t understand or realize what they are doing is wrong or has problematic ramifications. If the problem continues, document it in writing and give that document

to the employee. Being specific is helpful and proactive. The employee often reacts positively when expectations and work parameters are clearly written. Ensure the employee signs the document to indicate receipt and understanding of the expectations. At minimum, this documentation may help if you need to contest an unemployment claim or defend discrimination or wrongful termination claims. When corrective action is approached with care and with the goal of employee improvement—instead of termination—the employee will likely feel helped. Instead of feeling punished, the employee can emerge with an understanding of how to improve and with new motivation. HOW DOES A COMPANY FIRE AN EMPLOYEE WITHOUT FACING LIABILITY?

Did I say document? About 95% of the time, I recommend that employers prepare written documentation of corrective action before termination. Be cautious of wording used in the termination meeting. While it is important to give some reason behind the decision, only say enough to give a valid reason for the termination. Avoid unrelated tangents or discussions about what has happened. The past is the past and rehashing—or allowing the employee to rehash— will accomplish nothing. Also, there is no value in arguing points with employees. To my clients who are preparing for a termination meeting, I often recommend they repeat themselves, instead of becoming drawn into a debate. It is ok to say, repeatedly if you have to, “the decision has been made” without giving further detail. Lastly, have a witness at the meeting and document what was said.

Melissa Marsh, SPHR, SHRM-SCP, is Chair, Workforce Readiness on the Nevada State SHRM Council and founder of HRinDemand, a human resources company offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth. Contact her at 775400-1322 ormelissa.marsh@hrindemand.com.

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