Come see Organizational Architecture present at The OSCPA Cleveland Accounting Show on Wednesday October 25 and Thursday October 26, as we cover the topic Finding and Keeping the Right People During Times of Transition during our session.
Also stop by our exhibition booth to meet us and learn more about our organizational design and human resources consulting services.
The Ohio Department of Commerce has announced that Ohio’s minimum wage is to increase on January 1 2018. It will increase to $8.30 per hour for non-tipped employees and $4.15 per hour for tipped employees. The minimum wage will apply to employees of businesses with annual gross receipts of more than $305,000 per year.
The current 2017 Ohio minimum wage is $8.15 per hour for non-tipped employees and $4.08 for tipped employees. The 2017 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $299,000 per year.
The Constitutional Amendment [II-34a] passed by Ohio voters in November 2006 states that Ohio’s minimum wage shall increase on January 1 of each year by the rate of inflation. The state minimum wage is tied to the Consumer Price Index [CPI-W] for urban wage earners and clerical workers for the 12-month period prior to September. This CPI-W index increased by 1.9 percent over the twelve-month period from September 1 2016 to August 31 2017. You can access the Constitutional Amendment online.
Employers should remember to post the Ohio Minimum Wage 2018 in their place of business. Additionally, we remind employers to stay up to date on the required postings for their state. Click here to access the list of required postings in the State of Ohio.
In our last post, we shared some details about the new version of the Form I-9 employers have been required to use since September 18. After the recent release of the new version in an atmosphere of increase enforcement, companies need to stay on top of I-9 compliance. The U.S. Department Security’s Immigration and Customs Enforcement [ICE] can examine your business’s records at will, so it is best practice to regularly conduct I-9 compliance audits. Here are some things you should do when undergoing an I-9 compliance check:
- Fill out all sections properly and completely. Pay special attention to sections 1 and 2 which will be reviewed for accuracy in an audit. Section 3 will only be reviewed if changes have been made such as employment status, reverification, and rehires.
- Update your roster of employees. Remember, all employees hired on or after November 6 1986 must have an I-9 filled out. If you discover than an I-9 is not present for an employee, make sure to obtain one as soon as possible.
- Have valid I-9 documentation. After you review your roster, check that all documentation is account for. Remember, documentation for former employees is only needed for one year after separation or three years from date of hire [whichever is later].
- Obtain all necessary signatures. It is crucial to carefully look over all three sections of the I-9 once it has been completed to ensure you’ve signed in all the required areas.
Conducting a self-audit is the best way to ensure you are up to date on I-9 documentation. For more details on Form I-9, check out the USCIS’s I-9 Central webpage, which contains instructions for handling the Form I-9 and publishes current announcements on any updates and changes.
As of September 18 2017, employers have been required to use the new version of the Form I-9 dated 07/17/17 which can be found here.
The U.S. Citizenship and Immigration Services [USCIS] first published the form in July. It has an expiration date of August 31 2019 and applies to new hires only. Meaning that employers should not complete new forms for current employees. Further, current storage and retention rules have not change.
The revisions primarily deal with USCIS’s List of Acceptable Documents and specifically update List C to reflect the most current version of birth certification or report issued by the U.S. state department. Additionally, employers completing Form I-9 on a computer can now select the Consular Report of Birth Abroad Form FS-240. This allows employers to accommodate those employees who submit this form for eligibility verification.
The new form also changes the form’s instructions to clarify that Section 1 must be filled out at the time of hire. As such, employers may want to revisit their I-9 policies and procedures to ensure the section is completed no later than when the employee starts to work. Lastly, the form acknowledges the name change of the Department of Justice’s Office of Special Counsel for Immigration-Related Unfair Employment Practices to its new name, the Immigration and Employee Rights Section.
Although the changes are minimal, failure to use the new form can result in fines. You can always check out the USCIS’s I-9 Central webpage for complete details on the Form I-9. There you can find the Handbook for Employers, which is a valuable resource for those handling Form I-9 issues. The website also publishes current announcements on any form updates or changes.
In our last post, we recognized that October often marks the beginning of salary budget planning for the next year and shared merit increase expectations for 2018. We also mentioned that many organizations are moving away from the traditional performance appraisal process to better reward employee performance. One way to change your performance review system is to focus on having a conversation with your employees about performance. Some benefits of a conversational review are:
- Employees’ performance is measured against their achievements, goals, and objectives. This allows for detailed documenting of performance which can be used to accurately reward the employee.
- Employers can learn what employees need to succeed. Together they can discuss what needs to change in the future and managers can help their employees perform to the best of their ability.
- Employees are given an evaluation beyond just a number. This is more valuable for improving performance and allows for honesty between the manager and the employee.
Employees focus on accomplishing goals when pay is based on goal achievement. So, if you do edit your performance appraisal system, it is also a good idea to review and update your merit increase practices. For example, if performance conversations become a regular practice every quarter, it might make sense to adjust merit rewards to a quarterly schedule. Another potential way to revise merit practices is to offer variable compensation. Variable pay as a percent of salary can reward performance at every job level and connects compensation to corporate, department, and team goal achievement.
If your company is thinking about adjusting their performance review system to increase employee engagement and improve productivity or revise their merit increase system, contact us and check out our blog for more helpful resources.
As the month of October begins, many organizations are getting deeper into their budgeting and planning process for 2018. One area they are focusing on is merit increase and salary budget planning.
Keep this in mind as you make your compensation plans for next year:
- Most survey data show an average salary budget increase of 3%. This means that organizations will use 3% as the basis for awarding merit increases based on performance. Further, this is on par with actual 2017 salary increases which were reported at 3%.
- Most organizations are moving to a focus [versus anniversary] based performance appraisal cycle because it focuses the organization on preparing and delivering performance appraisals at one time which helps ensure they all get completed, and salary increases are applied at one time and it is easier for the organization to budget for them.
- There has been a lot written about organizations moving away from performance reviews in favor of ongoing coaching conversations. In theory this is good, but the practical reality is that it is less apt to happen given managers’ other priorities. Consequently, performance is not documented making corrective action, coaching, and possibly terminations, more difficult.
If salary budget planning is new to you or you, now is a good time to think about your process and assess whether you are getting the most out of your merit increase dollars or if your performance appraisal system is as effective as it should be. If you need assistance with this or other compensation consulting needs, contact us and check out our blog for more helpful resources.
Organizational Architecture participated in the Women for Economic and Leadership Development Cleveland Leadership Series on Tuesday September 19 2017. We talked specifically about how women can gain the confidence to ask for what they want in the workplace. Click here to view our key discussion points. Thank you to our friends at WELD for inviting us to speak and to everyone who attended the event.
This month’s success story highlights how Organizational Architecture assisted its client with a recruiting challenge.
Keith D Weiner & Associates Co., LPA is a creditors’ rights law firm founded in 1985 with offices in Ohio and Wisconsin. Their practice is limited to commercial and retail collections, foreclosures, bankruptcy, replevins, evictions, and civil litigation related to these areas. They strive to build rewarding and long-lasting attorney/client relationships based upon a foundation of value, accountability, reliability, and integrity.
They found they needed help filling their Human Resources Manager position. We stepped in to assist them with the sourcing, screening, and selection process for their new HR leader.
We began this project by having discussions with the firm’s leadership team about the position and its responsibilities as well as the role of HR in a law firm. Before engaging with any potential candidates, we needed to understand the position description and skills necessary to be successful in this role to ensure we found the right person for the job.
Keith D. Weiner, founder and principal of the firm said:
Organizational Architecture helped simplify the recruitment process and guided us to find the right person for this opening. They listened to our needs, asked insightful questions, and took the time to clearly understand what we were looking for and how this role fit into our firm.
They kept us informed throughout the process and took into consideration our feedback every step of the way. They helped us determine exactly what competencies and technical expertise were needed to perform the duties required of the job and found candidates with those skills. They also helped us consider the applicants’ strengths and how they would complement our team and lead our HR, personnel administration, and payroll functions. They provided quality guidance, support, and expertise throughout the engagement.
The candidate we selected had all the characteristics we were looking for…we are extremely pleased with our experience working with Organizational Architecture.
Spending time evaluating the responsibilities of the role before searching for candidates is critical for successful recruitment. Identifying these screening criteria helped make our recruitment fast, efficient, and effective.