How To Handle Difficult Employees

Every employer will have to deal with a difficult employee eventually. Sometimes, a serious conversation is all that’s needed to solve the problem. At other times, you might need to bring in HR. Here are seven types of troublesome employees and what you can do to handle the issues they bring.

The LOAFER: Known for goofing off, the loafer does just enough work to get by, while other employees have to pick up the slack. Unsurprisingly, this can cause resentment. Have a candid conversation, telling the loafer to focus on doing their job, not on wasting time. And reward those who pick up the slack.

The MALCONTENT: The grump in the group, the malcontent can squelch other’s ideas and lower morale with just a few words. Talk with them to discover the cause of their discontent and encourage them to offer potential solutions alongside any complaints they raise.

The MEDDLER: Extremely nosy, the meddler is known to ask personal or rude questions. Worse yet, they’re quick to share what they’ve learned. If your goal is a harmonious workplace, have the difficult conversation. Tell the meddler to focus on their work, not other people’s business.

The NARCISSIST: Desperate to be the center of attention, the narcissist puts their ego above the needs of the company. Assign them to projects where their strengths and skills will shine, while encouraging them to give credit to their hardworking coworkers.

The THIEF: Shady and manipulative, the thief lies and maybe even steals from your company. This makes other employees uneasy and scared. Don’t let your guard down when dealing with the thief. Instead, investigate discreetly. If you have hard evidence they’ve stolen from you, seek legal advice before confronting them.

The VICTIM: Excuses, excuses. With the victim, it’s always someone else’s fault. Counter this behavior by explaining it’s not about assigning blame. You don’t expect perfection, but you do expect people to help solve problems when they arise, not point a finger.

The YELLER: From shrieking laughter to loud chatter, the yeller can distract and annoy others. Sure, they may not realize how disruptive they are, but people need to get work done. Be direct and tactful when you tell them to lower their volume. After all, what you’re asking is reasonable.

Legal Requirements to Fulfill Before Hiring Employees

Your business may be raring to hire its first employee, but have you taken all the necessary steps to set yourself up as a lawful employer?

Beyond the sheer decision of whether to add new employees to your business, there are several steps required by the federal and state government that must be taken before you can hire someone.

Here’s a look at 10 legal requirements every employer must do before taking on a new hire:

1. Apply for an EIN.

Every employer—even if you just employ one person—is required to have a federal Employer Identification Number (EIN) that serves as the entity’s tax ID. The Internal Revenue Service (IRS) offers several ways to apply: The fastest and preferred way to file is online using the Internet application, which allows you to receive your EIN immediately.

But you can also apply by phone, standard mail or fax. All you need to apply is the taxpayer ID number, such as the Social Security number, of the principal officer or owner of the company and basic information about the company, such as whether and how it’s incorporated.

2. Register with your state’s unemployment insurance office.

For every employee you hire, including the first one, you will need to pay unemployment taxes to your state. This generally requires registering with the state office that oversees unemployment insurance and then reporting quarterly wage details of each employee along with making the required payments into the fund. The taxes can typically be paid electronically.

Each state has its own rules and deadlines for payments, so it’s important to familiarize yourself with your state’s rules. All states now have online resources to inform employers on their requirements regarding unemployment insurance. Do a Google search for “unemployment insurance,” “employers” and your state’s name to find your state’s website with that information.

3. Verify each prospective hire’s eligibility to work.

Before you hire someone, you need to verify that they are who they say they are, and that they are legally able to work inside in the United States. This is done through filling out the U.S. Citizenship and Immigration Services’ Form I-9 with the new worker after they’ve accepted the job offer.

Along with filling out the form, the new employee will have to provide an original document (such as a U.S. passport) or documents (such as a state driver’s license and a Social Security card) that prove their identity and legal status to work in the U.S. You’ll need to examine the documents for authenticity (and perhaps photocopy them). A Form I-9 must be completed within three days of a worker’s first day on the job.

You don’t need to file Form I-9s with USCIS, but you will need to have them on file for three years after hire (or one year after employment ends, whatever is later). It is best to keep all your Form I-9s in a file or binder that only a few people in human resources are able to access, according to the Society for Human Resource Management. You’ll need to be able to produce I-9s should Immigration and Customs Enforcement come calling.

4. Look into your state’s workers’ compensation insurance rules—and get coverage.

Most states require employers to carry workers’ compensation coverage in case an employee gets injured on the job, though some exempt very small employers. It’s important to find out your state’s particular rules and get the required coverage. This database gives a brief summary of each state’s worker’s compensation rules along with links to the applicable state website where you can find more detailed information.

5. Report new employees to state registry.

You will want to keep employee records—such as full names, contact information and Social Security number—for your own administrative purposes. But you’re also required by law to collect that information.

Federal law requires employers to report basic information on new employees within 20 days of hire to the state in which the employee will work. (Some states have even tighter deadlines.) This information is put into the National Directory of New Hires that is used to locate and withhold income from people who owe child support.

The information required includes the new employee’s full name, address and Social Security, your EIN and address and the employee’s date of hire. Most employers collect this information by using an employee information form that all new hires must fill out. (Read eight tips for creating an employee information form.)

6. Set up a payroll and tax withholding system.

You’ll need to withhold federal and state income taxes, as well as federal Social Security and Medicare payroll taxes, from each employee’s paycheck. A reputable third-party payroll provider makes all of this this easy by providing you with a solution in which you can simply type each employee’s compensation, employee benefit deduction and tax withholding information into the system and it will automatically create regular paychecks (paper or electronic) for you while deducting the correct amount for each type of tax withholding for each pay period.

Many large payroll providers also bundle in extra services, such as human resources. Make sure to thoroughly review your options and find a payroll provider that meets all your needs at the right price. You’ll want to find a payroll provider that also has strong customer service and support in case you encounter any problems or have questions.

7. Have all employees fill out form W-4.

Before you can start paying an employee, you need to know how many “allowances” he or she wants withheld for taxes. The more allowances an employee decides to take, the less tax that will be withheld from their paycheck.

Again, payroll providers typically provide a W-4 form and make it easy to enter the information into the system. You just have to ensure every new hire fills it out and submits it. You can also download the W-4 form from IRS.gov.

8. Get and post employee notices.

There are a number of federal labor laws that require employers to post their requirements in conspicuous places in the workplace so that workers understand their rights under the law. For example, you’ll likely need to display a poster about the Fair Labor Standards Act and its rules establishing a minimum wage, overtime pay rules, child labor restrictions, nursing mother protections and more.

What you’re required to post depends on such factors as the size and nature of your business, which state you’re in, whether you have federal contracts or employee disabled or foreign workers, and more. The U.S. Department of Labor has a FirstStep Poster Advisor that will guide you through a series of questions and then provide you PDFs of the posters you likely need to display.

Also note that individual states may have their own poster display requirements. So it makes sense to also contact your state’s labor department for guidance. The U.S. Department of Labor keeps an online contact list of state labor offices.

9. Comply with OSHA rules.

Employing workers also means that you must comply with the federal Occupational Safety and Health Administration (OSHA) and its rules, which go back to the Occupational Safety and Health Act of 1970.

OSHA rules cover a variety of workplace conditions. Think having safe tools and equipment, safe use and maintenance of the equipment, safe handling of hazardous chemicals and much more.

You’ll need to use codes, posters, labels and signs to warn your workers about dangers, as well as provide them necessary training and medical examinations. The OSHA poster, or its state-level equivalent, must be displayed in a prominent workplace location.

10. Establish any necessary employee benefits.

Small businesses with fewer than 50 full-time-equivalent (FTE) employees are exempt from the Affordable Care Act (ACA) mandate that requires larger businesses to carry health insurance for their employees or pay an annual penalty. That said, the federal government offers incentives for small employers who do offer insurance.

Employers with fewer than 50 FTE employees can get their employees insurance through the Small Business Health Options Program (SHOP) exchanges. Those with fewer than 25 FTE employees can qualify for tax credits worth up to 50% the cost of the health insurance premium.

Depending on your industry and market, offering health insurance to employees may be a smart, competitive move even if you’re not required by law to offer it. Several states are also in the process of enacting regulations that will require employers who don’t offer their employees a standard retirement plan—such as a 401(k) or pension—a state-sponsored retirement plan.

California, for example, is phasing in rules requiring employers with five or more employees to either automatically make IRA payroll deductions for each employee through its CalSavers Program or offer an employer-sponsored retirement plan.

Covering Your Bases

Though these are the main steps employers must take that are required by federal or state law, there are other smart things to do before you start employing people. These include writing an employee handbook, so there are no questions about your rules and protocols for employees (even your first hire), and creating a personnel file for every employee.

While keeping personnel files is not technically required by aw, it protects you if you ever get sued by an employee. It also makes it easy for you to quickly find any relevant information about an employee, including their basic information, work and performance history, and benefits enrollment information, and workplace injury history.

Medical records, any disciplinary actions taken against the employee, and I-9 forms should be kept outside the personnel file. (Nolo offers tips on what should—and shouldn’t—go into an employee’s personnel file.) Once you create personnel files, it’s important to have an organized and consistent system for maintaining those files. For example, you’ll need to limit who can access the files to just supervisors of the employee. States also have various rules for how much access employers must give employees to their personnel files, if requested.

Before you hire, it’s essential to thoroughly review all the required steps you need to ensure you’re not exposing yourself to legal problems. The payroll provider you choose to go with may be able to help you with several of the steps, depending on the level of service you choose.

Once you get the right processes and procedures in place, adding new employees should be much easier and faster. It’s just getting set up in the first place that takes time.

4 Hiring Challenges Facing Small Business Owners

Hiring professional talent in today’s market can be extremely difficult. Find out why it can be so tough for companies, while also learning how to deal with the stress of finding the right candidates.

For many small business owners, the last few years have been the best of times. As the economy has grown, their businesses have grown. New clients have appeared, and existing clients have increased orders. Growth is exciting.

As companies grow, however, they often need to hire new people for positions that did not previously exist. Suddenly, a function needs to be professionalized. Ten years ago a company could promote a warehouse worker to a shipping supervisor role, but after years of expansion, the business needs a supply chain manager to handle the more complex relationships that stem from a growing company. A decade ago, an office manager could double as a personnel manager at a 25-employee company. With 120 staff members today, that same firm needs at least a professional HR manager, if not a director.

Unless properly managed, these hiring projects could lead to the worst of times. For a business owner, hiring professional talent in today’s market can be problematic. Here are a few reasons why hiring can cause a headache for small businesses, and how to help your business stand out in the hiring process.

It’s a tight market

With a 4 percent unemployment rate, there is a limited pool of unemployed job candidates. Your ideal hire might be working somewhere else and needs a reason to quit their job and work for you. When a promising talent is not looking for work, they need to be identified and attracted to your company.

Employers have built stronger cultures

Since the last recession, most companies, large and small, have improved their culture and business. In 2008, a candidate might have been eager to escape a horrible boss or bad culture. Thankfully, there are fewer of both now, but relying on another company to be worse than yours is a bad strategy.

The skills you want reside in larger firms

In the past, small companies could attract talent from larger firms by emphasizing work flexibility and a family atmosphere. Over the years, most large companies have invested a fortune in work-life balance alternatives, as well as other bells and whistles. Don’t expect a candidate to take a pay cut to work at a smaller firm just because you won’t make them use a vacation day for a child’s doctor visit. Realistically, is that worth $10,000 less in salary and a cut in a 401(k) match?

Candidates have options

The traditional mindset is that a candidate applies for a job – basically asking an employer to consider them. In reality, the balance of power has now shifted. Employers ask the candidate to join them. Many small companies let their egos get in the way of this newfound practice. They think the candidate needs to show they want the job and make some type of sacrifice. This is a self-defeating philosophy, especially when a candidate is considering multiple employers. The choice is not between a candidate’s existing employer and your company. It is between the existing employer and any of two, three or five companies that will appear over the next few months. In a good economy, everyone grows. Other companies have grown and need the same skilled candidates as you.

The solution

The first thing you need to do is create a clear message for attracting talented candidates. If your team can’t answer the question, “Why should I quit my job and work for you?” then you need to revisit your message and, potentially, your team members. The answer can’t be “because we are nice people.” It needs to be a clearly defined message.

The second step is determining the type of person you want to hire. Attributes like experience level, current job and the type of company or industry someone is currently working in should all be analyzed and considered. Select and define the factors most important to your business. Identify your market, and then figure out a way to get that message to your market. Ads, recruitment firms and aggressive referral programs are all useful tools.

Lastly, have an employment process that is candidate friendly. Don’t make a candidate leave work in the middle of the day for a half-hour screening interview. Don’t have an interviewer who thinks it is their job to ask questions but not answer them. Engage with the candidate. If you don’t do that with them now, they will project that behavior onto themselves as a potential employee and stop the hiring process before it ever really gets started.

How to Create a Talent Management Process

If you want to get the best out of your employees and attract new talent, you must implement an efficient talent management process.

Employees are the most important part of an organization, offering passion, personality, hard work and unique assets from all angles. This is the mentality you should have when developing your team – and your talent management process.

Some employers act on the notion that workers can be replaced, viewing them not as humans but as machines that simply get the job done. Instead, you should recognize and build on superior talent within your organization, focusing on their personal strengths and interests, and how they fit into your business.

Such a strategy is known as a talent management process, which seeks to recruit, develop and retain top talent.

Today’s employees want to know that they have been selected for positions because they have the ability to succeed in those positions and that the organization is going to continue to develop them into top performers. They are looking for companies with strong talent management systems that will recognize their individual efforts, reward their performance, and give them opportunities for growth and development.

Your talent management process exists to support your employees without trying to change them. It’s a crucial addition to every business. To get the best out of your employees and continue to attract new talent, you’ll want to implement an efficient talent management process. Here’s how.

Creating a talent management process

The first step is to ensure that there are channels and pathways for expectation setting, training, two-way feedback, and coaching to enable a continuous cycle of talent management and performance.

Transparency is key. Employees search for more than monetary rewards and a glamorous office. Sure, those incentives are attractive and beneficial, but workers want to know that they share the vision and values of their potential company. That’s why it’s crucial to identify your organization’s mission from the get-go.

The organization must have a solid idea of what they are about, what they want to accomplish and who they want to be as they journey there. This may take the form of a mission statement, organization goal and/or a list of no-compromise values.

Given how tight the labor market is today, it’s critical that you’re able to differentiate the experience your company or team will provide for a potential candidate and, eventually, employee. Part of how this is accomplished is by sharing company values and telling their story – things that must be proved out once someone is hired. It can’t just be lip service.

Your vision and values as a company will influence every part of your talent management process, from recruitment and hiring to retention and employee development. For instance, an applicant might be a talented individual with tons of experience, but if their objectives don’t match yours, they won’t serve your organization the way you need. Or, if a current employee isn’t progressing in a way that suits your mission, you’ll better know how to approach the issue for both parties.

Areas of focus

There are many issues to address in your talent management process:

  • Organizational and job design: Which skills, abilities and performance are needed to meet goals and objectives?
  • Workforce planning: What is your strategy or plan for developing teams with the necessary skills and capabilities? Which skills are critical to hire, and which can be built through training and coaching?
  • Talent acquisition: How will you source, screen and hire talent with the right skills, abilities and characteristics?
  • Onboarding and orientation: What are your pre-arrival and arrival logistics? What will your new-hire orientation entail? How will you ensure effective expectation setting, team integration, and cultural alignment and assimilation?
  • Learning and development: How will you customize training for each worker in line with company goals and objectives? How will you integrate this development into day-to-day performance, management, feedback and coaching?
  • Performance management: How will you provide continuous opportunities for performance review, appraisal, feedback and planning? How will you ensure clarity of expectations and nurture a culture of coaching and performance?
  • Leadership development: How will you review employee performance and potential? How will you develop and prepare individuals for possible leadership roles?
  • Employee engagement: How will you continuously gauge employee engagement levels? How will you align their work with the company’s vision, objectives, beliefs, roles and values?

As a small business looking to make initial inroads around effective talent management, it is important to focus on the components and levers that are most impactful for your team or organization.

 

Your HR Partner

Contact Us

Social

Newsletter

Enter your email address here always to be updated. We promise not to spam!