Clean Out Your Closets

By Eileen M. Levitt

I recently cleaned out my closet and discovered an outfit that I last wore to my 10-year reunion. Let's just say that my 20th has come and gone, so finding that outfit was a surprise. It then occurred to me, "What can an organization carry in its human resources area that hasn't been looked at in over 10 years?"

For example, are you still calling your human resources operation "Personnel"? That dated term refers to the largely administrative and clerical function of an organization, which has evolved into human resources, which is much more strategic and focused on an organization's mission.

Recruitment. Are you using the Internet to find job candidates? More and more applicants are using the Internet to search for jobs, and fewer and fewer are looking in traditional newspapers. In addition, over the past few years, online communities like Craig's List and Linked In are filling more and more jobs.

Employee handbooks. They can fall out of fashion, too. Almost every major labor law has had some revision over the past 10 years, and a great number within the past three. In addition, just like clothing styles, organizations change: they grow, they shrink, and sometimes they change business directions. So what was appropriate a few years ago may not be now.

In addition, organizations may not be aware that in many instances a poorly written handbook is far worse than no handbook. In reality, it can increase a company's risk of legal problems.  For example, a handbook may unknowingly make a promise to employees of "permanent" employment, or that they won't be fired after three months; both are bad ideas.

Of course, a good handbook does more than outline policies, procedures, pay scale and benefits. It should convey the company's culture, values and organizational structure as well, and it should reflect current state and local employment law. For this reason, it's best to have the handbook reviewed by an employment lawyer before distributing it.

Employee satisfaction. When was the last time you asked your employees what they thought? Are they happy? How do you know? Several recently published surveys have indicated that as many as two-thirds of employees may be passively or actively looking for a job at any given time.

Job descriptions. Do your company's job descriptions still match the jobs being performed? Chances are, many employees are doing significantly more -- or less -- than is expected. While updating job descriptions is not exactly fun, accuracy is important so that your organization can not only set proper performance expectation but also comply with the Americans with Disabilities Act, the Fair Labor Standards Act and more.

Time-off policies. Review your approach to paid leave. Many organizations are changing the way they structure paid time off, lumping all the time together instead of separating it into vacation, sick leave, personal days, etc. This approach not only addresses employees' need for flexibility to deal with sudden emergencies, such as a sick child, car trouble, a child care snafu, or simply the need for a "mental health day"; it also allows employees to be responsible for managing all their time. Surprisingly (but not really), organizations that shift to this model are seeing a decrease in employee sick time.

Benefits. How is your benefits package? Do you have a flexible spending account, retirement plan (401(k), Simple, Roth and more)? Are your benefits competitive? Do they meet the needs of your employees? When was the last time you put your plans out for a competitive bid to see what else is out there?

Compensation. Are your employees fairly compensated? Do you compare your compensation structure to that of other organizations that are like yours?

Training. Do you train your employees on a regular basis to keep them fresh in your industry? Do you provide training that helps your employees grow as individuals and as organizational contributors?

Performance. Is your review a form or a process? When was your process last reviewed? Studies have shown that regular and effective feedback is essential to an employee's success. Yet, many organizations simply wait until an employee review to provide that feedback and even then, the feedback isn't necessarily valuable.

Employee Files. Accurate record-keeping is critical if an employee must be terminated. Does your record-keeping system comply with HIPAA? Are you following your record retention policy? Do you even have a record retention policy? Many times, organizations keep information either for too long or not long enough. Neither is good. Find out what the rules are, and follow them to the letter.

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