Temporary Assignment Limits and Concerns About Benefits Liability

February 15th, 2011

In the wake of historic employment litigation (e.g., Vizcaino v. Microsoft), some companies have adopted policies limiting assignment length for temporary and contract employees from staffing firms.  Why?  These employers view assignment limits as a way to protect themselves from the kind of “retro-benefits” claims Microsoft faced back in the 1990s.

Unfortunately, these assignment limit policies have downsides.  They can cause economic harm to on-time temporary or contract employees whose assignments are terminated prematurely, and they can disrupt your company’s business operations.  To better protect your organization, you should closely examine its staffing policies to ensure that such limits are truly necessary – and not based on misinformation.

If you have questions about co-employment law, as it relates to assignment limits and associated benefits, here is a great resource with the answers you need.  The American Staffing Association’s Staffing Smarts Intelligence Report:  Assignment Limits and Concerns About Benefits Liability, by Edward A. Lenz, Esq., General Counsel, reviews the basic principles of law that apply to employee benefits plans, and then describes steps employers can take to avoid retro-benefits exposure:

Create a plan that expressly excludes staffing firm employees. The report suggests template language (that your legal counsel should review)  you can use for the purpose of excluding staffing firm employees from participation in your Erisa plan.

Use employee waivers. In addition to amending benefits plans, you may be able to achieve additional protection through agreements in which the staffing firm’s employees expressly waive their right to the company’s benefits.

Allow the staffing firm to handle employment related functions for temporary and contract staff, such as:  recruiting, screening, determining wages, hiring, firing, assigning, resolving disputes, disciplining, etc.

Keep the lines between direct staff and contingent staff clear. The report includes several other steps (such as channeling social invitations through the staffing firm) you can take to avoid blurring the distinction between your core staff and temporary employees.

Make Co-Employment Work with Wood Personnel. Read our tips for successful co-employment, or contact Wood Personnel with your staffing questions.  Our goal is to help Middle Tennessee employers like you use staffing to achieve more.

Performance Management: Tips for More Action and Fewer Excuses

January 25th, 2011

“It is an immutable law in business that words are words, explanations are explanations, promises are promises but only performance is reality.”

Harold S. Geneen

If you’ve ever managed a single person, then you know that employees make excuses.  They procrastinate, miss deadlines and blame others when they fail.

So how do you get them to consistently perform to the best of their abilities?  Use these smart suggestions to get better results – and fewer excuses – from your staff every day:

Make performance management a daily activity.  Annual and quarterly reviews definitely play their part in gauging performance, but nothing replaces the day-to-day guidance you give to your staff.  So talk to them regularly, leveraging every opportunity to improve employee’s efforts:

  • Give them honest feedback about what they’re doing right – and what they need to improve.
  • Discuss new projects and the opportunities they present for employee development and growth.
  • Talk about overdue assignments or project difficulties and how to resolve them.
  • Reinforce the importance of consistently doing a great job.

Limit excuses.  Eliminate the external factors on which employees often blame their poor performance by:

  • Ensuring employees have the resources they need to do their jobs;
  • Ensuring employees are adequately trained to do their jobs;
  • Setting clear, mutually agreed-upon performance expectations for each employee.

Ask the right questions when problems arise.  Uncovering the cause of poor performance is the first step in creating a plan to remedy it.  So when an employee is failing at work, ask the following types of questions to diagnose the reasons why:

  • What about the work system (e.g., tools, time, training, support) is causing the employee to fail?
  • Does the employee know exactly what you want him/her to do, as well as the expected outcome?
  • Does the employee practice effective work management?
  • Does the employee feel valued, recognized and fairly compensated for his/her contributions?

Make performance goals SMART goals.  This goal-setting acronym is still widely used for one simple reason:  Specific, Measurable, Attainable, Relevant, Time-bound goals are more likely to be achieved.  So as you work with your employees to set higher standards for the next quarter or year, teach them how to create SMART performance goals that will get them there.

Create a “performance mentality” among team members.  Football players won’t play their hardest in a game where nobody keeps score.  Likewise, your employees won’t deliver superior results when they merely see themselves as “doing a job” everyday.  Foster a “performance mentality” by showing your team why their efforts matter – and what’s at stake.  Make sure employees understand your mission, how their jobs fit into the “big picture,” and what they need to do to help your company win.

Improve Performance with Wood Personnel

Performance management is a vital component in your organization’s continued success.  Ensure that success with Wood Personnel’s full complement of staffing solutions.  Whether you need to improve productivity, increase operating efficiencies or streamline your staffing function, we can custom design a solution to fuel exceptional performance throughout your company.  Contact us today to learn more.

Best Practices for Managing Contract Employees

December 7th, 2010

If yours is like most forward-thinking companies, you are integrating contract employees with direct staff to maximize resources and meet project objectives.  But are you getting the best results from your contract staff? 

To get the most from your contract personnel, you must understand their motivations and develop a culture in which they can succeed.  Here are a few best practices to help you successfully manage these valuable contingent resources:

Use Them Only When Appropriate.

Before you begin searching for a contract employee, ask yourself:

  • Is the assignment well-defined, with a tight deadline and a measurable end point?
  • Does it require special expertise?
  • Is it a “one time only” assignment?  (as opposed to repeatable work)
  • Do time or money considerations preclude you from hiring a direct employee?

If you answered “yes” to the questions applicable to your circumstances, you probably have a project well-suited for a contract employee.

Prepare Direct Employees.

Your direct staff may not know what to expect from contractors, or they may have misperceptions about them.  To ensure that the two groups work well together:

  • Define the roles of both contractors and direct staff.  Show the value that each brings to the table.
  • Assure direct employees that contractors do not pose a threat.  Instead, let them know that contractors’ skills complement their own and improve the chances of project success.
  • Cultivate working relationships between contract and direct staff, to encourage idea-sharing and develop rapport.

Communicate Regularly.

Lack of communication is often the greatest obstacle to successful working relationships with contract employees.  At each stage of their assignments, use the following suggestions to stay informed and ensure contractors won’t feel isolated:

  • Beginning of assignment.  Orient new contract employees by explaining the parameters of the job, outlining “big picture” impact of the project, and introducing them to the rest of the project team.
  • During the assignment. Throughout the project, involve contract employees in relevant meetings, include them in team memos and e-mails, ask for their opinions and ideas, and remember them when you celebrate project milestones.
  • End of assignment. Hold a debriefing session to ensure objectives were met, gather necessary documentation, and discuss issues that may arise in the future.

Need specialized talent for an upcoming project?

With over 20 years of IT staffing experience, Wood Personnel’s Contract Service Division allows you to access experienced Middle Tennessee IT professionals who have the skills to do the job right.  Whether you need to cover unique staffing challenges, to meet the interim staffing requirements between direct hires, or for long or short-term projects, we’re ready to help.  Contact Wood Personnel today.