Various states across the United States are increasing the minimum wage employers, in their state, can pay employees.  Depending upon the industry, some tipped positions also qualify for tipped wages paid to employee allowing the employer to receive a tip credit.

The following are the states that will have adjustments to their minimum wage and or tipped wages in 2016.

Why Exit Interviews are so Important?

Recently, an employee of client gave their resignation and asked when will my exit interview be.  The employees’s manager was not sure how or if this happened when an employee left the organization.  Upper management is aware that they have been done in the past, but not consistently.

Exit interviews, if done properly, can provide some valuable information and consistency of practices with exiting employees,

Being prepared for the interview is critical to stay on track and gather valuable information regarding why the employee is leaving the organization, how the organization treated the employee, how management treated the employee and whether or not there is some underlying reason for the employee to resign.  I recommend having a questionnaire that asks the same questions of all employees leaving the organization whether the employee termination is voluntary or involuntary.

Often times employees feel more comfortable sharing information about the company culture, pay and benefits when they are on their way out, that we may not learn while thy are employed.

Some questions to ask:

             Why are you leaving XYZ Company?  Compensation, benefits, other….

             Would you recommend XYZ Company to someone you know for employment?

             Did the Company provide you with the tools you needed to do your job?

             Did you feel that you had advancement opportunities available to you?

No matter how much we tell employees that retaliation for speaking up is not a legal practice, employees often wait until the exit interview to “Spill the Beans”.

During this exit interview, I learned some valuable information that I was able to provide to my client about the real reason this employee was leaving without sharing any confidential information received from the employee.  An employee who has been working for a company for many years, doesn’t all of a sudden make a career change unless there is a reason.  This employee was not leaving because they were getting more money, not because of the benefits……because they could not work for their manager any more and felt as if they were being bullied and had no other choice but to leave the work he/she loved.

At this point, it was too late to save the employee from leaving however, it raises concerns that will be addressed for those employees who remain.

My clients tell me, as an HR Consultant, the value that I bring to them is being able to uncover valuable information about their organization, their culture and their exposures without having any bias.  They want to be aware of the problems that may exist and retain their employees.  Their employees feel comfortable sharing and talking to someone who is not “employed” by the organization.

On June 30th, 2015, the Division of Labor announced an update on overtime changes that would extend overtime pay to nearly 5 million white collar workers. The Wage and Hour Division (WHD) developed a proposal that would raise the salary threshold for a family of four to a level of $970 per week ($50,440 annually) from the current salary threshold of $455 per week ($23,660 annually). This new proposal would guarantee overtime pay to most salaried workers earning less than the estimated $50,440 next year, meaning that employers should start planning for significant increases in the number of their employees who will be eligible for overtime compensation.

Although the proposed rule still needs to pass through the rule making procedure, it is intended to bring comfort and clarity for millions of workers who will be able to receive overtime pay. Published in the Huffington Post on June 29th, President Obama says that this change is “good for workers who want fair pay, and it’s good for business owners who are already paying their employees what they deserve”. However, many business owners are concerned. Many argue that the implementation of this new rule will cost millions of dollars for companies nationwide, and could be devastating for small and local businesses. Because of this, many companies may have to decrease the number of management positions they offer, which would therefore minimize career advancements for many.

Are you wondering how this could potentially affect your business? Any questions or concerns, give HR Synergy a call.