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Posted on July 22, 1999July 10, 2018

Checking the References of Potential Execs

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.

Posted on July 21, 1999July 10, 2018

How Influenced Are You by the Nonverbal Behavior of Job Candidates

Editor’s Note: On a whim, Workforce Department Editor Scott Hays signed up for a class titled “Human Resources Management,” as part of the HR/Management Certificate Program at the University of California, Irvine. Each week, he’ll visit one nugget of knowledge from the course, helping you move slowly in the direction of becoming a more strategic partner.


It’s possible you’ve been hoodwinked in the past by the adept nonverbal interviewing skills of job applicants.


Ever hire what you thought was the perfect person for a job, only to realize later that he or she lacked the necessary job skills?


These days, people spend more hours developing the skills they need to excel at interviews than they do honing their job skills. Maybe that’s a slight exaggeration, but still … consider the title of one book on the market, The Interview Rehearsal Book: 7 Steps to Job-Winning Interviews Using Acting Skills You Never Knew You Had. Here, the directors of a consulting firm help viewers learn such “trade secrets” as how to research the role you’re playing, how to look the part, and how to use simple exercises to effective physical communication.


Well, Gary Dessler in his book, “Human Resource Management” (Prentice-Hall Inc., 1997), makes the point that interviewers can be influenced by these nonverbal behaviors. Dessler mentions several studies in which job candidates who demonstrated greater amount of eye contact, head moving and similar nonverbal behaviors were rated higher than candidates who demonstrated low eye contract, low energy and low voice modulation.


“An otherwise inferior candidate who is trained to ‘act right’ in an interview will often be appraised more highly than will a more competent applicant without the right nonverbal interviewing skills,” writes Dessler.


He also claims that an applicant’s attractiveness may play a role, and that according to one study, attractiveness was consistently an advantage for male applicants seeking white-collar jobs, and only for female applicants “when the job was non-managerial.”


So what can you do to avoid the pitfalls of hiring someone just because of he or she happens to be attractive or possesses exceptional nonverbal skills?


The Santa Rosa, California-based BrainwareMedia.com has produced two videos: “How To Hire the Best Person Every Time” and “Nonverbal Communication—the Silent Language.” Here are several suggestions from both videos:


  1. Communication during an interview takes place on several levels: 7 percent verbal, 38 percent tone of voice and 55 percent body language. While the job applicant may say one thing, the subconscious often reveals the truth through nonverbal behavior. By observing and correctly interpreting these communication skills, even if rehearsed, you can greatly improve your hiring decisions.
  2. Remember that certain gestures may be used differently by different cultures. Always probe deeper by asking more questions or rephrasing original questions to uncover the truth.
  3. Take copious notes during interviews on how each candidate responded to your questions and on the questions each person asked you.
  4. Develop a candidate-performance summary chart. Review the job description, review the primary technical and performance skills you’ve identified as essential for the job, and then review your notes and make your evaluation.

Source: “Human Resource Management” (Prentice-Hall Inc., 1997) by Gary Dessler.

Posted on July 21, 1999July 10, 2018

Should HR Managers Worry About ‘Testers’

Editor’s Note: On a whim, Workforce Department Editor Scott Hays signed up for a class titled “Human Resources Management,” as part of the HR/Management Certificate Program at the University of California, Irvine. Each week, he’ll visit one nugget of knowledge from the course, helping you move slowly in the direction of becoming a more strategic partner.


It’s not paranoid to think a potential job candidate may be working undercover to ferret out unlawful discriminatory hiring practices.


In one lawsuit, for example, a female job applicant alleged that she had been propositioned during a job interview with an employment-referral agency after she reported that she had no money to pay the agency’s referral fee. “Testers” were then sent to the same interviewer, all of whom claimed that they did not have the money for the referral fee. Female testers were routinely propositioned. A Superior Court jury in Washington D.C. heard the tester evidence and returned a verdict in favor of the plaintiffs.


As many of you already know, Title VII of the 1964 Civil Rights Act states that all public and private employers of 15 or more persons cannot discriminate on the basis of race, color, religion, sex or national origin with respect to employment.


Gary Dessler, in his book, “Human Resource Management” (Prentice-Hall Inc., 1997), makes the point that the increasing use of employment discrimination testers has made it that much more important for hiring mangers to avoid asking questions concerning, for instance, a candidate’s marital status, child-care arrangements, ethnic background, or workers’ compensation history.


“Although they’re not really seeking employment, testers have legal standing, both with the courts and with the EEOC,” writes Dessler.


Two years ago, the EEOC announced that it had contracted with two agencies to conduct pilot testing programs. Under the contracts, the agencies each received $100,000 to train and send testers to various employers.


A judicious human resources manager will take steps in planning the interview process and conducting the actual interviews to ensure that its interviewers avoid discrimination and tester claims. Dr. James Fharf is president of Fharf & Associations, an Alexandria, Virginia-based consulting firm. Fharf is the former chief psychologist at the EEOC and author of several sections of The Civil Rights Act of 1991. He says that since the advent of various tester programs, some companies have been motivated to begin training their managers and supervisors in nondiscriminatory hiring practices. Here are his suggestions for HR managers who are worried about testers:


  1. At a minimum, avoid using unstructured interviews. It’s hard to score the quality of each answer under this conversational-style approach. Also, a potential job candidate (or tester) may be able to prove that you treated him or her differently.
  2. Instead, use pattern or structured interviews. By asking the same questions of every job candidate, an employer can avoid the appearance of “disparate treatment,” the intentional disparity between the proportion of a protected group and the proportion getting the job.
  3. Revisit EEOC guidelines, and all local employment opportunity laws.
  4. Build an internal audit system to ensure that interviewers are treating all job candidates uniformly and consistently. Also, make sure they’re focusing on the skill requirements of the job and not on personal characteristics.

Source: “Human Resource Management” (Prentice-Hall Inc., 1997) by Gary Dessler.

Posted on July 21, 1999July 10, 2018

Keeping Independent Contractor Status Intact — the 20 Factors

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.


Posted on July 21, 1999July 10, 2018

Close the Door on Union Organizing

Editor’s Note: Workforce Department Editor Scott Hays signed up for a class titled “Human Resources Management,” as part of the HR/Management Certificate Program at the University of California, Irvine. Each week, he visits one nugget of knowledge from the course, helping you move in the direction of becoming a more strategic partner.


Today millions of U.S. workers belong to unions. And these aren’t just blue-collar workers, either. White-collar workers and public employees are also forming unions, mostly to get better working conditions and more pay, and to protect themselves from the whims of management.


In his book “Human Resource Management” (Prentice-Hall, Inc., 1997), Gary Dessler suggests companies develop strategies for human resources professionals to effectively deal with unionization, “lest they commit unfair labor practices.” For example, it’s an unfair labor practice for employers to interfere with an employee’s right to self-organize, it’s an unfair labor practice for companies to discriminate in any way against employees for legal union activities, and it’s an unfair labor practice for employers to refuse to bargain collectively with employees’ representative.


If a charge of unfair labor practice is filed with the National Labor Relations Board, an investigation could lead to an injunction or an order that the employer cease and desist. To avoid such problems, writes Dessler, “employers should have rules governing distribution of literature and solicitation of workers and train supervisors in how to apply them.”


Dessler uses several sources to compile a number of steps you can take to legally restrict union organizing:


  1. Non-employees can be barred from soliciting employees when they’re on duty, not on a break.
  2. Employers can usually stop employees from soliciting other employees if one or both are on paid-duty time and not on a break.
  3. Most employers can bar non-employees from the building’s interiors and work areas as a right of private property owners. In some cases, non-employees can be barred from exterior private property areas such as parking lots—if there’s a legitimate business reason and not just to interfere with union organizers.
  4. Employees can be denied access to interior or exterior areas if the employers can demonstrate that the rule is required for reasons of production, safety or discipline.

In addition, writes Dessler, there are guidelines you can use to preserve a union-free work environment, including: detecting union organizing activity as early as possible; “remember that your best source is probably first-line supervisors;” never voluntarily recognize a union without a secret election supervised by the NLRB; present your case to your employees forcefully and relentlessly;” and postpone any elections as long as possible.


Finally, consider the option of not staying union-free. “Union membership may make health benefits available at group rates … and industry-wide or association-wide wage agreements can remove the burden of having to negotiate salaries and raises with each of your employees.”


SOURCE: “Human Resource Management” (Prentice-Hall, Inc., 1997) by Gary Dessler.

Posted on July 21, 1999June 29, 2023

The Real Purpose of Employee Reviews

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.

Posted on July 21, 1999July 10, 2018

Does the 1991 Civil Rights Act Apply to Expats

Editor’s Note: On a whim, Workforce Department Editor Scott Hays signed up for a class titled “Human Resources Management,” as part of the HR/Management Certificate Program at the University of California, Irvine. Each week, he’ll visit one nugget of knowledge from the course, helping you move slowly in the direction of becoming a more strategic partner.


Never underestimate the long reach of the U.S. government when it comes to equal employment opportunity protections.


In theory, Title VII of the Civil Rights Act bars all public or private employers (of 15 or more people) from discriminating against employees on the basis of race, color, religion, sex or national origin. The new and improved version of 1991 makes it even more important for human resources managers to adhere to both the spirit and letter of all equal employment opportunity laws.


But as a practical matter, does the 1991 Civil Rights Act apply to U.S. citizens employed in a foreign country by a U.S.-owned company? Or can you surreptitiously fire an employee because of her race, or demote an employee before of his sexual orientation?


In his book, Human Resource Management (Prentice-Hall, Inc., 1997), Gary Dessler makes the point that, “at least theoretically, U.S. citizens now working overseas for U.S. companies enjoy the same equal employment opportunity protection as those working within U.S. borders.”


Notice the emphasis on the word “theoretically.” Most Congressional legislation only applies to people living within U.S. borders. A federal law prohibiting smoking in restaurants, for example, would be unenforceable in a Dublin pub. But recall, too, that the Equal Employment Opportunity Commission (EEOC) was created by Title VII to investigate job discrimination complaints and, if necessary, sue on behalf of the person or persons who filed the complaint. And yes, they can investigate complaints from U.S. citizens employed in a foreign country by a U.S.-owned company.


Dessler notes exceptions where civil rights protections may not be universal (for example, if Title VII guidelines violate the law of the host country).


That aside, it’s never smart to buck the U.S. government. Mike Loewe, managing director of Detroit, Michigan-based Lion Mobility Consulting Services, is a good source of info on issues related to equal employment opportunity protections and expats. Here are just a few of the highlights from our conversation:


  1. Educate and train employees to conduct themselves appropriately in accordance with local laws, as well as the policies and practices of your organization.
  2. Maintain a corporate policy in the host country that states clearly your company’s strict adherence to equal employment opportunity protections.
  3. Conduct site-specific cultural training and orientation programs before an employee leaves for his or her international assignment.
  4. Implement a mentor program in the host country to better acclimate an employee to the day-to-day office functions.
  5. Assign someone in your home office to serve as a counselor, of sorts, for expats with issues concerning equal employment opportunity protections.

Source: Human Resource Management (Prentice-Hall, Inc., 1997) by Gary Dessler.

Posted on July 20, 1999July 10, 2018

Sales is Not About You, It’s About Them

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.

Posted on July 19, 1999July 10, 2018

Re-energize a Star Employee

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.

Posted on July 19, 1999July 10, 2018

Disputed Employee Benefit Deductions IRS Offers Settlement

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.


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