Hiring

Savvy Separations

How hiring and firing correctly can help you reduce your SUI Tax Rate

Have employees acknowledge in writing that they know the rules

Clearly establish your rules and guidelines in an employee manual or handbook. At the very least, post a list of rules in a prominent place. Have employees sign an acknowledgment that they have received and read these rules.

Make sure that all new hires receive an orientation that covers expectations, policies, and procedures. Have them sign a document confirming that they underwent orientation and what it covered.

Use progressive discipline to document that rules were broken

When an employee exhibits problem behavior, quickly begin a process of progressive discipline. A supervisor should meet with the employee and explain:

• The issue at hand
• The rules broken
• What the proper behavior should have been
• That the employee's job is in jeopardy because of this misconduct

Have the employee sign a document that acknowledges this and affirms that the behavior in question will not be repeated. Include details of the problem behavior, but leave out opinions about the situation. Supportable facts count in an appeal hearing, opinions do not.

If the employee refuses to sign, have a witness sign a confirmation that the employee received this notice.

Maintain a professional tone during disciplinary meetings

Conduct disciplinary meetings in private and set a dignified, professional tone. Avoid emotional confrontations. Stick to the situation at hand, be specific on areas needing correction, and don't wander into areas unconnected to the infraction.

Since the discipline is justified, there is no need to be apologetic or feel guilty. The purpose is to help the worker become a better employee. Give the employee plenty of opportunity to explain the behavior in question. Convey a feeling that, “We invested in recruiting and training you. We want this to work out.”

Make it clear when you are giving the “final warning”

If an employee fails to improve, conduct an additional disciplinary meeting during which you inform the employee that he or she faces termination if the problem behavior occurs again. Have the employee sign a written acknowledgment of this and offer him or her a copy.

Have the employee sign a summary of the reasons for termination

Termination should preferably happen on the day of the final incident, or as soon as possible thereafter. Protect yourself from harassment charges by having both a male and female supervisor at this meeting. Have the employee sign a document that recounts past performance problems and states the reason for discharge.

Avoid firing by not hiring problem employees

The best time to get rid of problem employees is before you hire them. Watch for these warning signs in your job applicants:

• A wide disparity in either direction between the pay offered and the pay desired
• Applicant experience that differs significantly from what the job requires (over qualification or underpayment increase the risk of separation)
• Verify the candidate's work history before making a job offer. Have them explain any gaps in their experience, and then you should independently confirm those explanations

Even though you may be anxious to fill a vacancy, give the applicant a realistic picture of the responsibilities and nature of the job. There should be no surprises or disappointments when they start work.

NOTE: Because many factors go into determining the outcome of an unemployment claims hearing, following the suggestions in this guide does not necessarily guarantee that your company will prevail in contesting a claim.

State unemployment insurance premiums are your only controllable tax

Your company's State Unemployment Insurance (SUI) premiums can be as low as $0 or as high as $1,836 – per year – per employee. Your actual rate varies, depending on 1) your state jurisdiction, and 2) the number of former employees who have successfully filed for unemployment benefits. You can take concrete steps to manage the second factor.

When an employee files for unemployment benefits, your company has the option of protesting that claim. If you can prove through proper documentation that the employee was terminated for just cause, there is a good chance that the employee's claim will be denied. Your company's SUI premium will not increase.

You must be able to prove four things

When your company protests an unemployment insurance claim, it must be able to document:

• That the employee knew your company's policies and procedures
• That the employee knowingly and intentionally failed to follow those procedures
• That the employee was given advance warning and ample opportunity to correct his or her behavior
• That the employee knew that continuing his or her behavior would lead to termination

Article taken from www.adp.com - Automatic Data Processing, Inc.