Author: Site Staff

Last year, basketball superstar Michael Jordan made $300,000 a game, or roughly $10,000 a minute.

Assuming he made roughly $40 million in endorsements, Jordan made roughly $178,100 a day, working or not.

Assuming he slept seven hours a night, Jordan made $52,000 every night while visions of sugar plums danced in his head.

Every time Jordan went to see a movie, it may have cost him $7, but he made $18,550 while he was there.

He made $618 while boiling every five-minute egg he cooked.

He made $3,710 while watching an hour of TV.

If he had wanted to save for a new Acura NSX (a $90,000 car), it would have taken him a whole 12 hours.

If you were given a tenth of a cent for every dollar he made, you’d be living comfortably at $65,000 a year.

While the common person spent $20 for a meal in a trendy Chicago restaurant, Jordan pulled in about $5,600.

If Jordan had decided to play this season, he would have made more than twice as much as all the past U.S. presidents for all their terms combined.

Amazing, isn’t it?

But Jordan would have to save 100 percent of his income for approximately 800 years to have a net worth equal to that of Microsoft superstar Bill Gates.

SOURCE: Humor Space, http://www.humorspace.com

Workforce, February 1999, Vol. 78, No. 2, p. 24.

A lot of prospective employees know how to talk their way through an interview. But do HR managers know how to read between the lines?

Why did you leave your last job?
What they tell you: I felt my talents and abilities were underutilized.
What they really mean: It sucked.

What are your weaknesses?
What they tell you: I’m a workaholic. I just don’t know when to put down my work.
What they really mean: I can’t concentrate for more than five minutes, hate all forms of authority and tend to fall asleep at my desk.

What does the word “success” mean to you?
What they tell you: Success would be knowing I’m making a difference, working with a team of people to make a more profitable enterprise.
What they really mean: It means I don’t have to drag my sorry ass out of bed to kiss yours.

Do you ever get angry with your co-workers?
What they tell you: Nothing angers me more than to see a co-worker not pulling his weight, goofing off or stealing. Yes, sometimes I do get angry with co-workers.
What they really mean: I don’t get angry, I get even.

SOURCE: Disgruntled: The Darker Side of the World of Work by Daniel S. Levine (Boulevard Books, 1998).

Workforce, February 1999, Vol. 78, No. 2, p. 25.

Here are some important issues to address when interviewing a reference for an executive-level candidate.

1. How well does he/she make decisions, particularly when dealing with incomplete or ambiguous information? Ask the person to expand on the answer.
2. Using a specific project as a point of reference, describe how the candidate’s problem-solving skills were exhibited, and how he or she contributed to its success.
3. How well does the candidate work with others including supervisors, subordinates, peers and people outside the organization? Can you give me an example?
4. Describe how the candidate sells ideas and projects to others?
5. How does the candidate work in a structured environment? Is he or she better in a hierarchical, entrepreneurial or team environment?

SOURCE: Michael D. Zinn & Associates, Inc., Princeton, NJ, Feb. 16, 1999.

The purpose of an employee review is not to ‘fix’ behavior once a year. If an employee has poor behavior, less than adequate performance or attitude problems, don’t wait a year to fix them. Regular on-going coaching can not be replaced with an annual employee review. 

There are a number of positive benefits to an employee review and there are number of disadvantages to not conducting routine reviews. 

Advantages of reviews:

• They give the employee the opportunity to better understand expectations, standards and rules.
• They give the manager an opportunity to ‘get to know’ the employee better.
• They give the employee the opportunity to learn what behaviors and attitudes they need to improve or modify.
• They send a message to the employee that you care about their performance as well as them as a person.
• They can help you chart a better course for the future of the employee.
• They can help the manager identify weaknesses and strengths that may not have surfaced on a day by day basis.

Disadvantages of irregular or no reviews:

• They send a message that you are satisfied with performance, attitudes and behavior.
• They say to the employee they are not important enough for you to take the time for a review.

SOURCE: Tim Connor, Connor Resource Group, February 22, 1999.

Issue: Your firm wishes to bolster its lineup of accountants for the upcoming tax season. You would prefer to hire independent contractors, mainly because the company would not be responsible for the employer’s share of FICA taxes, overtime pay, or other company benefits. However, you are aware that the IRS has aggressively conducted worker classification audits and that the IRS assumes that a worker is an employee unless the company proves otherwise. What steps can you take that would influence the retention of independent contractor status for these additional workers?

Answer: The IRS currently uses a 20-factor test to determine whether a worker is an independent contractor or an employee. This test is not precise; there is no special number of factors that a company must pass in order to prove independent contractor status. Rather, a company should keep these 20 factors in mind during the employment process and try and convince the IRS agent of its workers’ independent contractor status.

20 Factors Used by the IRS to Determine Worker Status

1. Instructions—A worker who must obey company instructions about how the job is to be performed is usually determined to be an employee of the company.


2. Training—An independent contractor comes to a company fully trained.


3. Integration—The closer the relationship between the work of the company and the work of the worker, the more likely the worker is an employee.


4. Services Rendered Personally—If the company demands that services be performed personally by the worker, this shows control by the company over the worker, which makes it more likely that the worker is an employee.


5. Hiring, Supervising, and Paying Assistants—If a company hires, supervises, and pays a worker’s assistants, this also shows company control, making the worker most likely an employee.


6. Continuing Relationship—A continuing relationship between worker and company tends to show an employer-employee relationship.


7. Set Hours of Work—Independent contractors have the freedom to plan their own workday.


8. Full-time Work—An independent contractor should be free to accept or reject a job offered by the company.


9. Place of Business—An independent contractor should possess his or her own place of business separate from that of the company’s.


10. Work Schedule—An independent contractor will set his or her own work schedule.


11. Reports—Employees are often required by employers to turn in reports, which are viewed by the IRS as evidence of control.


12. Method of Payment—Payment to independent contractors should be by the job, rather than by the day or by the hour.


13. Business/Travel Expenses—An independent contractor should pay for all of his or her own expenses.


14. Furnishing Tools, Equipment, and Materials—If a company covers the cost of a worker’s tools, materials, or equipment, independent contractor status is weakened.


15. Significant Investment—The larger the worker’s investment in his or her own business, the more likely the IRS will accept independent contractor status.


16. Realization of Profit or Loss—An independent contractor should be capable of either realizing a profit or suffering a loss.


17. Working For More Than One Company—Independent contractor status is strengthened where a worker has a diverse and significant client base. However, a worker can perform services for several companies and still be classified as an employee at of one or all of them.


18. Making Services Available to the General Public—An independent contractor’s name should be advertised or held out to the general public as being in business for him or herself.


19. Right to Discharge—While an employer may discharge an employee, parties to an independent contractor agreement have an obligation to terminate their contract with a notice requirement.


20. Right to Quit—If a worker can terminate employment with a company at any time without incurring liability, it is suggestive of an employee-at-will relationship. An independent contractor, on the other hand, cannot simply walk away from a contractual relationship with a company.

Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.

Do you provide training for sales staff in your organization? If so, here are some good tips you’ll want to provide them.

It’s not about you, it’s about them
Stephan Schiffman, president of D.E.I. Management Group in New York, tells the story of the filming of Sleepless in Seattle. Director Rob Reiner took the two stars aside before the final scene of the movie and told each the same message. “This scene is not about you,” Reiner said. “It’s about the other person.” By focusing on each other, Meg Ryan and Tom Hanks created one of the more memorable scenes in movie history, on top of the Empire State Building.

Take notes
Don’t pretend to take notes. Actually do it. Don’t ask for permission or apologize for it. You’re job as a salesperson is to get information.

Ask, “How did you get this job?”
A lot of salespeople try to form business alliances without asking this question. It’s a good bridge-builder.

Ask, “What are you doing now in such-and-such area?”
Find out how the prospect or customer is dealing with issues in your area of specialty. Follow up with appropriate “how” and “why” questions, and you’ll get a good idea of how things work.

Ask, “What are you trying to accomplish in such-and-such area?”
This is a great question that people enjoy answering.

Encourage the other person to tell stories.
Nod with approval, or say things like “I see,” and “uh-huh.” This, rather than staring absentmindedly, will invite the person to continue speaking.

SOURCE: Stephan Schiffman, D.E.I. Management Group, New York, January 13, 1999.

When you notice that your star employee is not performing like he or she used to, what should you do? Here are three steps to re-energize a star performer.

Acknowledge the change in performance.
Let the employee know that you have observed a change in his performance level, and invite the employee to share his/her perspective of his recent performance. Be careful not to sound accusing. This is also a good opportunity to highlight some of his/her past achievements.

Uncover the real issues.
What is the reason for the recent change? Help the employee determine the real issues underlying the performance problem. Is there something happening in the employee’s personal life? If the issues are business-related, you can probably find a solution.

A change in performance may stem from incidents that caused hurt feelings or poor morale—such as being passed over for a deserved promotion. Other reasons may be skills-based. Is the employee resisting new technology and now lacks the skills necessary to do the job? Also, the employee could be just plain burnt out, or no longer feels challenged.

Brainstorm solutions.
Once the problems are identified, involve the employee to develop and implement solutions that address the specific problem. For example, if the problem is skills-based, consider setting up a special training session or partnering the employee with someone experienced in the area he or she is having trouble. Solutions that address the “burnt out” employee may include giving new and more challenging assignments, providing help with the workload or offering vacation time. Expressing appreciation is also a powerful motivator.

SOURCE: Personnel Decisions International (PDI), Minneapolis, February 24, 1999.

The IRS has issued a settlement initiative covering audit disputes for certain accelerated deductions claimed by employers for accrued employee benefits. This includes vacation pay and severance pay for tax years ending on or before July 22, 1998. Under this settlement program, employers generally will be able to deduct half the expenses in the tax year they originally claimed them and the remaining half in the year the benefits were paid or were able to be included in the employees’ incomes.

Offer involves vacation and severance pay.
The audit issue involves deductions taken by employers for benefits, like vacation or severance pay, that employees may earn in one year but receive in a later year. Tax regulations generally consider vacation pay to be deferred compensation that is deductible by employers in the year paid to the employees. Other benefits may be deducted by an employer in the year they are able to be included in the employee’s income. However, the regulations provide an exception that allows employers to deduct accrued benefits received by employees within 2 1/2 months of the end of the year in which the benefits are earned.

Prior to July 22, 1998, companies sometimes purchased letters of credit, bonds, or other financial instruments to fund the payment of vacation and severance benefits within 2 1/2 months after the close of the tax year, and then claimed deductions for the accrued benefits. The Tax Court, in Schmidt Baking Company v. Commissioner, upheld such a deduction. The IRS Restructuring and Reform Act of 1998, which overruled the result in Schmidt Baking, disallows the deductions for tax years ending after July 22, 1998, but left unresolved outstanding audit disputes for earlier tax years.

Take advantage of the settlement program.
Employers currently under audit on this issue who are interested in accepting the IRS offer should contact the IRS agent handling their audit by October 1, 1999. The IRS advises employers that are not now being audited, but that are concerned that this could be an issue for them, to refer to the revenue procedure for specifics on taking advantage of this settlement initiative.

Cite: IRS Rev. Proc. 99-26, CCH Employee Benefits Management 475,178.

Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.

Conflicts are a part of life, but you can help ease them. Here are some suggestions for doing so:

• Set up a meeting to discuss the conflict. Don’t try to build Rome in a day here; just get the parties talking.
• Have the parties reintroduce themselves to each other. Reminding each other of their background and credentials helps to restore trust. Have them explain their business approach–what they believe to be the tools, techniques and strategy key to their success.
• Ask for examples. Instruct each person to give examples of how the other party’s behavior led to conflict and affected them. For example: “I don’t think it was such a good idea to criticize my project as you did. I would have preferred you did it this way …”
• Help them find common ground. Different personalities and working styles can mesh. Talk about the way to make things work next time around.
• Help guide solutions that will help the parties gain back their credibility around the office. They may learn to understand each other, but it’s important other people understand them, too.

SOURCE: Personnel Decisions International (PDI), Minneapolis, June 24, 1999.

The new breed of HR decision maker continually modifies, upgrades, and develops new HR systems due to changes in legislation, the company’s business opportunities, and management information requirements. In addition, new technologies create new opportunities.

Planned Changes to HRMS in Next Two Years	Workforce Magazine Subscribers with HRMS Function	Workforce Online Users with HRMS Function
Adding Network Capabilities	41%	36%
Integrating Payroll and HR Administration	37	28
Installing a new System	33	28
Adding Employee Self-Service	33	34
Adding Workstations	26	38
Adding Manager Self-Service	26	25
Switching to a New Product	24	31
Consolidating The System	17	17
Investigating Client-Server Software	14	21
Moving Payroll From a Service Vendor to Internal Administration	9	7
Using Thin Client, Windows Terminals or Net PC’s	7	7
Establishing a Data Warehouse/Datamart	6	9
Establishing Workflow	6	12
Downsizing from Mainframe	4	7
Moving Payroll from Internal Administration to a Service Vendor	4	9
Using Enterprise Resource Planning (ERP) Software	2	6

Source: Workforce Subscriber and Workforce Online User Studies, Globe Research Corporation, 1998.