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4 HR Mistakes to Avoid on Groundhog Day … and Every Day

4 HR Mistakes to Avoid on Groundhog Day … and Every Day

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4 HR Mistakes to Avoid on Groundhog Day … and Every Day

In the 1993 movie Groundhog Day, Bill Murray’s character of Phil Connors finds himself stuck in a time loop that keeps repeating Feb. 2. Brash and egotistical, Phil views the situation as a pass for misconduct, since technically, there is no tomorrow. And if there is no tomorrow, consequences for today’s actions do not exist.

The more he’s forced to re-live the same day, the more he misbehaves. Still, nothing changes beyond his level of mischief. Eventually, Phil begins to change from within, into a humane person whom everyone comes to adore. Only then does the time loop end.

The beauty of Groundhog Day lies in the lesson it portrays: For an outcome to change, the process must change. This rings true, even from an HR perspective. As we celebrate Groundhog Day, let’s review four HR mistakes that employers should avoid … so they don’t get stuck erring time and time again.

  1. Poor Hiring Decisions

A CareerBuilder survey revealed that 69 percent of employers said that a poor hiring decision had put pressure on their company; 24 percent reported a financial cost of more than $50,000 per employee, while 41 percent cited a loss around $25,000.

In a survey by Robert Half International, 39 percent of chief financial officers stated that hiring the wrong employee caused a decline in productivity, with supervisors having to spend 17 percent of their time managing underperformers.

To avoid the cost of a poor fit, it is important to hire the right talent.

  1. Improper Handling of Wage-and-Hour Laws

According to the U.S. Department of Labor, the agency collected an average of $730,000 in back wages for employees each day in 2016. The most common areas of wage-and-hour violation include:

  • minimum wage, including for tipped workers
  • overtime, including for salaried-nonexempt employees
  • misclassification of exempt and nonexempt workers
  • paycheck deductions
  • meal and rest break
  • child labor
  • record keeping, including time and labor

To prevent noncompliance, employers must know which of these laws are relevant to their organization, and accurately administer them.

  1. Failure to Provide a Safe Work Environment

In fiscal year 2015, the U.S. Occupational Safety and Health Administration performed 35,820 inspections, resulting in 65,044 violations. Of that total, serious violations equaled 47,934, with 527 cases deemed willful violations.

Establishing a culture of safety not only helps with government compliance, but also leads to increased productivity and reduced health care costs, absenteeism and injury rates, according to the American Psychological Association.

  1. Lack of Training and Development

An IBM publication reported that employees who feel they cannot reach their career goals at their present employer are 12 times more likely to quit. New hires are even more vulnerable, at 30 times.

In general, well-trained employees are more confident, capable and productive in their roles. A study of more than 3,100 workplaces by the National Center on the Educational Quality of the Workforce found that just a 10 percent increase in workforce education led to an 8.6 percent rise in total productivity.

Nearly a quarter-century after playing at a theater near you, the comedy Groundhog Day remains a beloved and memorable movie, in part because it drives home the point that its protagonist would not experience positive change until he stopped repeating his mistakes. Similarly, the above four HR mistakes are not only costly for employers, but also luckily avoidable.

Rod Lott

by Rod Lott

Author Bio: As Paycom’s Creative Services Manager, Rod Lott brings more than two decades of experience in marketing, advertising, branding and journalism. A published author and a graduate of the University of Oklahoma, he has worked with such brands as Blue Cross Blue Shield, Sonic Drive-In and OU.

Unconscious Bias

3 Steps to Prevent Unconscious Bias in the Interview Process

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You do it. I do it. We all do it.

No, I’m not talking about converting oxygen into carbon dioxide – although you may need to take a deep breath before reading further. I’m talking about that unquestionably human habit of prejudging someone or something, whether in a positive or negative light.

That little prejudge is known as unconscious bias. Most people harbor some bias, although they may not realize it. For employers, unconscious bias can cause big trouble if interviewers unfairly favor or dismiss a candidate during the hiring process.

According to Harvard Business Review, when interviewers without standardized questions are left to decide which candidate to hire, their decisions tend to be subjective and unconsciously influenced by fixed thoughts on race, gender and ethnicity. Considering the strict regulations set forth by the U.S.  Equal Employment Opportunity Commission (EEOC), interviewers can get into hot water quickly, without even realizing they’re doing something wrong.

To help avoid risk, empower your hiring managers to follow these three steps.

Introduce performance-based questions

As the great equalizers, performance-based questions center on what employees must do to be successful in their roles. This includes questions to assess how they have addressed challenges in other roles, and hypothetical questions to judge how candidates would approach the challenges your company faces. The trick is to ask each candidate the same questions so you have a fair assessment.

If you’re wondering what a performance-based question sounds like, here’s an example: “Thinking about a time in which a project didn’t go as planned, what actions did you take to correct it as quickly as possible?”

Measure applicants’ answers

Performance-based questions are worth nothing unless you have a system to compare applicants’ answers. Next, you’ll want to compare their responses with something called a standardized rubric. Using a rubric means everyone involved in the hiring process agrees on what the important questions are and what an excellent answer would be. Without it, comparisons simply are not apples-to-apples. You easily can create a rubric by asking those who already perform the role what success looks like.

Train your staff

Finally, train your staff to recognize and counter biases during the hiring process. This is especially important when multiple interviewers screen for an open position. Make sure everyone knows to take good notes so they can compare candidates’ answers with the rubric. It’s important that everyone involved is on the same page, especially with which elements indicate future success.

Eliminating unconscious bias in the interview process is hard, especially when multiple parties are involved. That’s why it’s critical to factor performance-based questions into the equation, making it much easier to focus on candidates who possess the right skill set for the position at hand.

Learn more by downloading our free e-book, Discover What Your Front-Line Managers Need to Know About Hiring, Diversity Inclusion and EEOC Compliance.

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Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, Compliance, Employment Law, Featured

Monica Johnson

by Monica Johnson

Author Bio: As Paycom’s client marketing specialist, Monica Johnson utilizes a mixture of marketing and human capital management knowledge gained from years of industry experience. A graduate from the University of Central Oklahoma, Johnson has been with Paycom since 2013 and has served in numerous roles during her career with the company. In her spare time, she enjoys baking, exploring Oklahoma City and sipping coffee, while reading a good book, at one of her favorite local shops.

June 1: National Doughnut Day

5 Offbeat Holidays to Celebrate at Work … and Boost Employee Engagement

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Halloween, Thanksgiving and the “holiday season” all fall in the fourth quarter, meaning the last three months of the year are jam-packed with celebrations and events, not only in your employees’ personal lives, but likely in your workplace as well.

But that festive atmosphere doesn’t have to fall only when the leaves do. Thanks to little-known holidays or theme days, you can easily discover things to celebrate throughout the year with your team. In fact, businesses may see benefits by doing so.

Impact on morale

Gallup found that 51% of employees who have a close work friendship consider themselves engaged, while 75% who have a best friend at work said they plan to be employed at their current company one year from now. Furthermore, those reporting having best friends at work were found to have higher levels of health stress management, even though they experienced the same stress as those who did not have good friends at work.

Building time for your team members to get to know each other and strengthen relationships is clearly good for morale, which is good for business. So how can your employees really get to know each other? With your help. Celebrating holidays or theme days year-round gives your employees opportunities to build connections with each other without the extra stress the traditional holiday season often brings.

Bonus tip: Get leadership involved! If employees see their managers skipping the events to stay at their desks, they’ll feel like they shouldn’t participate, either. Make sure to get buy-in from everyone and clearly state the beneficial impact of engagement.

Start with these

You can give your employees something to look forward to every year if they know your business makes a regular workday a day to celebrate something small. Start a tradition that’s unique to your company. Here are a few holidays that might be right for your organization to celebrate.

Jan. 26: Fun at Work Day

Make this day one your employees won’t want to miss! Maybe you bring in food trucks for lunch or schedule a team-building activity at a local place that holds corporate events and specializes in team-building (like cooking or painting classes). For extra fun, keep the day’s activities a surprise and try to do something different every year.

March 14: National Pi Day

What better way to commemorate 3/14 by holding a bake-off with a trophy for the office’s best pie? The winner can keep the prize on his or her desk and have bragging rights for the year.

April 26: Take Your Sons and Daughters to Work Day

Every organization may not be able to have an event like this during the workday. If not, you could organize an event after work as an open house to encourage employees to share with their children what they do. It also will give your employees an opportunity to introduce their families to each other without having to wait for your holiday part. Plus, it’s never too early to start recruiting.

May 4: May the Fourth Be With You

Named for sounding similar to a catchphrase from a super-popular movie franchise, May 4 is a fun “holiday” to recognize at the office, particularly if you know you have fans of the galactic saga. You might organize a costume contest or perhaps play one of the films in the company cafeteria or a conference room.

June 1: National Doughnut Day

This one’s pretty easy: Buy doughnuts for your staff. Take a midmorning break and enjoy them together. Maybe spring for some coffee or bagels, too.

You can keep track of holidays like these, as well as critical HR and compliance deadlines, by downloading our free digital 2018 HR & Payroll Calendar.

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Posted in Blog, Employee Experience, HR Management

Callie Johnson

by Callie Johnson

Author Bio: As a writer for Paycom, Callie Johnson creates content for the company’s various marketing and communications initiatives. Having earned her bachelor’s degrees in journalism from the University of Oklahoma and web design/development from Full Sail University, she has written for companies of all sizes. Outside of the office, she enjoys hand-lettering, going to the movies and spending time with her family and dogs.

2018 Form W-4 Changes Employees Should Consider

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Ever since President Trump signed the Tax Cuts and Jobs Act (TCJA) into law last December, payroll professionals have been anticipating an updated IRS Form W-4. After issuing new federal income tax withholding guidance in January as a result of the TCJA, the IRS released the 2018 version of Form W-4, Employee’s Withholding Allowance Certificate, on Feb. 28.

The 2018 Form W-4 has been implemented in the Paycom system.

Interim guidance

The IRS previously released Notice 2018-14, which provided guidance on the usage of the existing 2017 version of Form W-4. Among other things, this notice:

  • extended the effective period of the 2017 version for purposes of claiming exemption from withholding temporarily until Feb. 28, 2018
  • described the procedures employees may claim exemption from withholding for 2018 using the 2017 Form W-4
  • temporarily suspended the requirement that employees must furnish a new Form W-4 within 10 days of changes in status that reduce withholding allowances they are entitled to claim
  • allowed employees (including newly hired employees) to use the 2017 Form W-4 to update their withholding allowances until 30 days after the 2018 Form W-4’s release (March 30)
  • stated that employees who furnish new Form W-4s using the 2017 version do not need to furnish a 2018 Form W-4 after it is released


Changes to consider

Solely due to the changes passed in the TCJA, the IRS is not requiring employees to submit a 2018 Form W-4 to their employer, although they may if they choose. However, substantial changes have been made to the worksheets associated with the 2018 Form W-4, so employees should consider how the new rules will affect their specific tax and withholding situation when making the decision.

Despite the TCJA’s removal of personal exemptions from year-end income tax calculations, Form W-4 still includes a Personal Allowances Worksheet. Its credits section has been revised to allow for:

  • the increased child tax credits as adjusted for income
  • adjustments for credits claimed for other dependents
  • a new line for “Other credits” that will be calculated by the employee using a worksheet found in the 2018 version of Publication 505 (yet to be released)

Additionally, the form’s Deductions and Adjustments Worksheet has been revised to adjust for the new values for standard deductions, as defined by the TCJA, while the Two-Earners/Multiple Jobs Worksheet contains updated wage brackets in the tables used to calculate allowances depending on multiple job households.

‘Paycheck checkup’

To help employees see the differences that completing a 2018 Form W-4 will affect their take-home pay, the IRS released an updated Withholding Calculator online.

The IRS encourages all employees use it to conduct “a quick ‘paycheck checkup’” and use the information it returns to determine if they would like to adjust their withholding. These values can be entered by the employee directly into Paycom’s Employee Self-Service tool to complete a new Form W-4.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, Compliance

Author Bio: Robert Barclay has been the Tax Research Team Lead at Paycom since 2012, and has been instrumental in such company projects as the development of its Affordable Care Act compliance product, implementation of geolocation services and redesign of Form W-2. He joined Paycom in 2011, bringing more than 20 years of experience with the capital markets consulting practices of Ernst & Young in Memphis, Tenn., and Birmingham, Ala.; and Causey Demgen & Moore in Denver, Colo. A native Oklahoman, Barclay is a graduate of Rhodes College in Memphis, where he played football as linebacker.


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