8/9/2017

1

Master Human Resources Like a Bosswith Don Phin

2017 ARCSI Education Conference

September 11, 2017

About Don

• Attorney since 1983

• Sold HR That Works to ThinkHR in 2014

• Ran numerous HR groups

• Spoken to thousands of CEO, Insurance and HR executives

• Author of six books and dozens of training programs including Great HR Program

• Lives in Coronado, CA

Looking for New Strategies and Tools• HR contains great opportunity

• Administration, compliance 

and engagement

• HR as a business partner

• HR as a source of innovation

• Create learning organizations

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Know this:

“Only the mediocre are ever truly comfortable.”

Paulo Coelho

The True Cost of Your HR Practices

• Hiring

• Retention

• Performance management

• Poor performers

• Benefits and Rewards

• Work Comp

• EPLI

Question…

How many new cleaning jobs will it take to put $10,000 back to the bottom‐line?

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HIRING GREAT EMPLOYEES

Hire Only the Best

• Deming's 15% rule

• Collin’s manager rule

• Half are below average

• …and so many lies

The Wrong Employee Is…

Under qualified

Close-minded

Prone to error

Absent, late or lazy

Untrustworthy

Addicted

Violent

Unethical

Unhealthy

Disengaged

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The Right Employee Is…

Highly qualified

Anxious to learn

Responsible, punctual & attentive

Trustworthy

Focused

Healthy

Ethical

Loyal

Engaged

Take a Checklist Approach

Attract Great Employees

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Test for Skills

• Identify substantive and procedural competencies

• SHL.com

• Your own tests

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Assess for Character

• 2500 character assessment 

tools

• Validation studies

• Not a gatekeeper

• www.zeroriskhr.com/landing/

DonPhin

The Interview Process

• Pre-screening

• Time and place

• Be prepared!

• My favorite questions

• Create a FAQ

Dig Into Past Performance

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Reference and Background Checks

• Negligent hiring

• Criminal, credit, 

previous employer, 

DMV, education, 

licenses, immigration, 

past claims, etc.

• Global HR is the best!

• Who are the 3 people 

who know you best?

Post Offer Pre-Hire Fit for Duty Exam

• Condition job offer on being fit for duty

• Work with occ med specialist www.ghrr.comwww.acoem.org

• Accommodate disabilities (JAN)

Why We Hire the Wrong Employees

• Desperation

• Laziness

• Baggage

• Infatuation

• Recommendations

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Working with Temp Agencies, Recruiters and RPOs

• Clarity of expectations

• Hiring process they follow

• Premium paid, cost to hire or cost of recruiting fee…is it worth it?

• Joint responsibilities

A Few Neat Hiring Ideas

• Always be recruiting

• Add a joke w resume

• How would they solve the problem?

• A great employee referral system

• Team interviews

Final Steps

•The Entrance Interview

•Collect Quality of Hire Data 90 Days Out

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Performance Management… that Works!

Overview

•A brief history

•So many problems

•A suggested approach

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A Brief History

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28

29

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Dr. Edwards Deming

"The worker is not the problem. The problem is at the top! Management!"

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Todays Approaches

•Management by Objective (MBO)

• Lean and Six Sigma

•Key Performance Indicators (KPI)

•Objectives and Key Results (OKRs)

•Agility•Do Great Work

The Two Most Important Questions…

1. What are the 3-5 most important

things you do every day?

2. How would you know if you were

doing them well, without you having

to ask, or without me having to tell

you?

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Keep it Simple

• 3-5 categories that are measurable

• Fails expectations

• Meets expectations

• Exceeds expectations

Time Management

35

Peter Drucker –On Time Management

• Know where time goes • Record it

• Manage it

• Consolidate it• This is the ultimate finite limiting

factor• Memory is not an accurate way to

record time36

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Managing Poor Performance• Is it the fault of the system?

Misfit?

• Poorly managed? Bad environment?

• Will instruction or training help?

• Create a performance plan?

• Are they better suited elsewhere?

• Proper notice

• Proper documentation

37

When to Let Them Go

If they quit…would you be relieved

or upset?

38

UPGRADE YOUR RETENTION PRACTICES

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The Engaged Employee

•Mindy•Body•Soul•Less than 1/3

The Disengaged

The Zappos Pay to Quit Experiment

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Cost of Turnover

• How much did it cost to lose the last

good employee?

• Employee Turnover Cost Calculator

• 1:1 at 50K

60 New Employee Survey

Why Do They Leave?

• Compensation/benefits

• Misfits

• No career growth

• The Boss

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Money, Money, Money

Don’t Hire Turnover

Career Planning

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The Boss

Show Them You Care

50

The Formula

4©donphin.com

Few executives fully understand the cost of their HR practices. Use this tool as a quick indication of your weak spots and financial growth opportunities.

How much did bad hires cost over the last 12 months? Use an average of 1:1 ratio of their annual pay. For example, an employee with a $50,000/year salary will cost $50,000.

How much did losing any good employees cost over the last 12 months? Again, use at least a 1:1 ratio.

What would be the bottom-line impact of improving total productivity by only 5%?Use 5% of total payroll. (For example: $1,000,000 x .05 = $50,000)

What is it costing you to keep poor employees? (Here’s the test: If they quit, would you be relieved or upset?) Use the impact they have on their entire team in your calculation. (For example: team payroll = $240,000 x .05 = $12,000)

What “bang for the buck” are you getting for any benefits paid? What if you improved that figure by 2%? (Use a benefits cost of 35% of payroll. For example: $350,000 x .02 = $7,000)

What added costs are you paying with your annual workers’ compensation modifier due to your risk management and return to work practices? (For example, a MOD of 1.2 means you pay more than your competition.)

Did you have to manage and/or settle even a low-level employee claim?(Statistically, 1 in 4 get sued every year with an average verdict of $250,000)

Your HR cost total: How much revenue will you have to bring in to put these HR dollars back into your pocket? Use at least a 3 to 1 ratio. Revenue total:

This is what your HR practices are costing you at the most basic level. Roughly half of the exposure is “out of pocket,” and the other half is “left on the table every day.” What would you be willing to invest in time and dollars to reduce this number? Would you invest at least 1/10th this amount to start somewhere? As you consider your answer, ask yourself this question: What sales activities and work would you have to do to match that revenue total? (i.e. sell 100 new cars, build two homes, get 50 new patients, book five more installations, etc.)

Now, what are you willing to invest in terms of time and money to reduce this figure?(For example, we are willing to invest $20,000 to reduce this number by $50,000.)

The True Cost of Your HR Practices

HIRING CHECKLIST

© 2017 www.donphin.com

Complete Position Request Form.

Write a Job Description describing essential job functions. (See www.onetcenter.org) Include any skill, education, experience or physical requirements.

Have the job description reviewed by current employees and supervisors.

Prepare or update Career Ladder. (See www.onetcenter.org) to show growth opportunities.

Contact a recruiting agency for executive searches.

When hiring rank and file consider an RPO like Source 2

Place help wanted ads in a wide range of sources.

Post on internal and external web sites.

Provide information on Our Hiring Process.

Accept résumés and job applications.

Screen resumes and job applications.

Conduct a Pre-Interview Questionnaire over the phone.

Prepare in person interview questions.

Conduct interviews. Involve co-employees. Consider group interviews.

Complete Applicant Appraisal Form.

Call references (employers, schools, etc.). Also call people other than listed “references.”

Obtain FCRA consent and perform background checks (DMV, credit, criminal background,

Inquire about any trade secret, non-compete, or confidentiality agreements with former employers.

Test for job skills. See www.shl.com.

immigration, education, licenses, etc.). See Global HR Research

Perform character assessment. See ZeroRiskHR

Write the offer or rejection letters.

Give necessary post-offer/pre-hire drug or physical tests. See Global HR Research

If over 15 employees consider possible job accommodation. See askjan.org.

Obtain I-9 Form & W-4 Form and any state withholding form.

Memorialize the terms of employment and have the employee sign any contracts.

Have the new employee review and sign the Employee Handbook, Employment Agreement, Arbitration Agreement, and any other applicable documents.

Introduce the new employee to your training and orientation program.

Pay any referral or retention bonuses.

Provide state required pamphlets or handouts (for example, sexual harassment and workers compensation in CA. See http://www.edd.ca.gov/payroll_taxes/Required_Notices_and_Pamphlets.htm

Report new hire to human resources/state agency.

Prepare for first day of work!

CONDITIONAL OFFER OF EMPLOYMENT

© 2017 www.hrherpas.com

Applicant: Position: Wage/Salary: Tentative Start Date: Employer Representative: Congratulations on being offered the above position with our company conditioned on being “fit for duty.” The next step in the hiring process is for you to successfully complete the required drug test, medical questionnaire, and physical examination scheduled on your behalf at the following Occupational Health Clinic: [Lakeside Occupational Medical Center, P.A.] Clinic: Location: Date: Time: Phone: At the Occupational Health Clinic, you will complete an extensive medical questionnaire, undergo a drug test, and physical examination. The clinic will have a copy of your job description, which we shared with you during the interview process. This medical exam is to determine whether you can safely and efficiently perform the job duties required without limitations. If you have a disability, as defined by the Americans with Disabilities Act, we will then see if we can reasonably accommodate you to do the job safely and efficiently. We will reasonably accommodate any physical or mental disability you have unless it should create an undue hardship for the company. This Conditional Offer of Employment may be withdrawn prior to the effective date of your employment if, based on the outcome of your physical exam and/or drug test and/or medical information, as well as any discussion surrounding any job accommodations, if it is indicated you are unable to safely or efficiently perform the job duties for which you are being considered. 1. Do you know of any physical or mental limitations you have that could affect or interfere with your ability to safely or effectively perform your job duties? Yes No If yes, please describe: 2. Have you ever been injured on the job or filed a workers’ compensation claim? Yes No If yes, please describe: By signing below, I acknowledge that I have read, understand, and agree to the above. I understand that any misrepresentation in the hiring process, including related to my medical condition, will result in not being hired, or terminated post-hire. I declare that the information I have provided above is true and correct pursuant to the penalty of perjuries of the laws of this state. In order to comply with the Genetic Information Nondiscrimination Act of 2008 (GINA) we are asking that you not provide any genetic information when responding to this request for medical information, including an individual’s family medical history, the results of an individual’s or family member’s genetic tests, the fact that an individual or an individual’s family member sought or received genetic services, and genetic information of a fetus or embryo unless the written request specifically requests the information and specifically mentions GINA.

Applicant Signature Date

Copyright 2016 HRSherpas, Inc. 

The Entrance Interview 

We do our best to hire great employees. Since you have just joined us you are in a great position to let 

us know what attracted us to you, we are doing well in the hiring process and how we can improve. 

Please answer the following questions: 

1. How did you find out about our company? 

2. What were you able to learn about us before your interview? (Online, conversations with existing 

employees, etc.) 

3. What were the top three reasons you decided to come to work for us? (Please rank) 

Compensation 

Benefits 

Location 

The work we do 

Size of company 

Career opportunity 

Friends with/know existing employees 

Training opportunities 

Other __________________ 

4. What did we do well in the recruitment process? 

5. What could we have done better? 

6. How have your first few days been? 

7. Anything  else you would like to share? 

 

Many thanks…and let us know if you have any questions or suggestions…anytime. 

THE 60 DAY NEW EMPLOYEE SURVEY

©2017www.thinkhr.com- 1 -

One of the best sources of knowledge and innovation is new employees. We want to know what you’ve learned about our company and how you think it can be improved. Please use extra paper where needed. You will be required to turn in a completed form on _____________________.

1. Background Name: Position Title: Date of Hire: Name of Current Department: 2. Job Description Please describe in your own words the three most important things you do in your job: 1. 2. 3. Do you feel that your job title is properly named: Yes No If “No,” what should it be? Name the three most enjoyable aspects of your job: 1. 2. 3. Name three suggestions that would make your job better: 1. 2. 3. 3. Hiring Process Was the job for which you were hired accurately described during the hiring process? Yes No Comment

- 2 -

What improvements can be made in the company's hiring process so that we can hire better employees?

4. Orientation and Training How can the company improve the orientation process which introduces new employees to the company's operations, personnel, products and services? What can the company do to provide you with skills training so that you can excel at your job?

Would you be interested in future cross training in another department? Yes No

If so, please state job position you would be interested in training for: 5. Wage and Hour Issues Are you unclear about any wage or hour issues (pay, overtime, vacation, missed time from work, etc.)? Yes No If so, please indicate any questions that you have: 6. Company Policies and Procedures Are you unclear about any company policies or procedures as set forth in the employee handbook or by your supervisor? Yes No If so, please indicate any questions you may have: 7. Performance

Do you have a Performance Agreement and 90 Day Game Plan? Yes No

If so, please indicate any questions you may have:

- 3 -

8. Are you aware of the following services available to you? (Check those that are a “yes”)

□ Employee Assistance Program (EAP) □ Employee Wellness Program □ Financial Planning

9. I am interested in information on the following:

□ Company history □ Our products and services □ Car pooling □ Child care □ Community outreach programs □ Wellness programs and resources □ Financial fitness □ Company benefits □ Stress management

If you are interested in receiving further information in the following areas please contact [Name] at [email] or [phone].

10. Comments

If you are aware of any possible improvements to the way we run our business or how you

do your job, please give us your comments or suggestions: Thank you! Signature: Date:

OVERTIME REQUEST FORM

© 2013 www.hrthatworks.com

Employee Name: Date:

Title: Department:

Overtime needed from: _______________ to: _______________ on: _______________.

Total overtime not to exceed ___________ hours.

DETAILED EXPLANATION WHY OVERTIME IS REQUIRED:

CUSTOMER(S)/CLIENT(S) OVERTIME IS NEEDED FOR:

EMPLOYEE SIGNATURE: DATE:

MANAGER’S RESPONSE TO OVERTIME REQUEST

Overtime approved from: _______________ to: _______________ on: _______________.

Total approved overtime not to exceed ___________ hours.

Overtime not approved.

EXPLANATION OF WHY OVERTIME IS APPROVED/NOT APPROVED:

Charge to a specific

job/project/client:

SUPERVISOR SIGNATURE: DATE: .

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HRAVERAGE

Which HR Executive are You?

HRAVERAGE

HRGREAT HR

GREAT

Come to work just

for the paycheck

Love doing great work

$

Constant learners

Read regularly

Embrace change

Plan for success

Great health habits

Motivated by a

sense of excellence

Takes responsibility

Idea machine

Hate wasting time

Team leader

Fun to be around

No desire to learn

new things

Don’t read

Resist change

Don’t plan

Poor health habits

Motivated out of fear

Blame or justify

Never contribute new ideas

Love wasting time

Poor teammates

A drag to be around

© Don Phin, Esq.

Employees are both your greatest headache…and your greatest opportunity!

Here are seven ways I can help your company…

1. Train your management team and employees. It could be in leadership, emotional intelligence, or

sexual harassment prevention. The cost of that will range from $2,500 to $5,000 depending on circumstances.

2. Make sure you don’t get sued- by providing access to the Think HR Program. I sold my company to Think HR and love this program. It includes “hotline” services, online resources, and a training platform with more than 200 training titles. A great deal at $197 / mo. or $1997 for a year. Let me know if you would like to do a quick demo of the program with me.

3. Take advantage of the strategic opportunities by taking the Great HR Program – this program addresses the non-compliance, strategic needs of an organization and HR career. It is a one-time fee of $197 and contains 12 videos and dozens of great tools. If you purchase Think HR access I offer access to the Great HR Program for free as a bonus.

4. Help manage your HR executive. I believe HR Executives are poorly managed at most companies. The goal of the HR Coaching program is to close the gap between HR and the strategic needs of the company. That cost is $300 mo. for two 30-minute coaching sessions as well as a $1,000 initial diagnosis fee.

5. Consulting and Investigation Services as needed. At this stage in my career I do both of these services well. Whether you are wanting to grow the company and culture or investigate some wrong doing, I am here to help!

6. Recommendations to other HR providers, vendors, etc. Over the years clients have asked who do I recommend for background checks, pre-hire physicals, testing and assessment and more. I created the HR Sherpas website to identity my preferred HR resources. I personally know the executives of any vendor I recommend.

7. Last, check out all the free tools I’ve created. I’m sure many of them will resonate with you!

What comes along with any of these services is my dedication to helping you solve problems

and exploit opportunities. Help is only a phone call away.

All the best, Don

Don Phin, Esq.

don@donphin.com

(619) 852-4580

www.donphin.com