By Fatskills Exam Guides Team — the exam nerds behind 28,500+ quizzes and 2.1M practice questions across 500+ global exams.
The PHR® Exam Content From The Employee And Labor Relations Functional Area Covered In This Guide Consists Of The Following Responsibilities And Knowledge Areas. Responsibilities:
- Analyze functional effectiveness at each stage of the employee life cycle (for example: hiring, onboarding, development, retention, exit process, alumni program) and identify alternate approaches as needed - Collect, analyze, summarize, and communicate employee engagement data - Understand organizational culture, theories, and practices; identify opportunities and make recommendations - Understand and apply knowledge of programs, federal laws, and regulations to promote outreach, diversity and inclusion (for example: affirmative action, employee resource groups, community outreach, corporate responsibility) - Implement and support workplace programs relative to health, safety, security, and privacy following federal laws and regulations (for example: OSHA, workers’ compensation, emergency response, workplace violence, substance abuse, legal postings) - Promote organizational policies and procedures (for example: employee handbook, SOPs, time and attendance, expenses) - Manage complaints or concerns involving employment practices, behavior, or working conditions, and escalate by providing information to appropriate stakeholders - Promote techniques and tools for facilitating positive employee and labor relations with knowledge of applicable federal laws affecting union and nonunion workplaces (for example: dispute/conflict resolution, antidiscrimination policies, sexual harassment) - Support and consult with management in performance management process (for example: employee reviews, promotions, recognition programs) - Support performance activities and employment activities by managing corresponding legal risks
In Addition To The Preceding Responsibilities, An Individual Taking The PHR® Exam Should Have Working Knowledge Of The Following Areas, Usually Derived Through Practical Experience: - General employee relations activities and analysis (for example, conducting investigations, researching grievances, working conditions, reports, etc.) - Applicable federal laws and procedures affecting employment, labor relations, safety, and security - Human relations, culture and values concepts, and applications to employees and organizations - Review and analysis process for assessing employee attitudes, opinions, and satisfaction - Diversity and inclusion - Recordkeeping requirements - Occupational injury and illness prevention techniques - Workplace safety and security risks - Emergency response, business continuity, and disaster recovery process - Internal investigation, monitoring, and surveillance techniques - Data security and privacy - The collective bargaining process, terms, and concepts (for example: contract negotiation, costing, administration) - Performance management process, procedures, and analysis - Termination approaches, concepts, and terms
This guide focuses on the important tasks of human capital management: managing, monitoring, and promoting legally compliant programs and policies that impact the employee experience throughout the employee life cycle. Key points of knowledge for this guide include developing, implementing, administering, and evaluating the workplace to maintain relationships. Additionally, HR professionals have the responsibility to ensure safe and secure working conditions that balance employer and employee needs and rights in support of the organization’s goals and objectives. This functional area is 39 percent of the PHR® exam. The percentage for the exam demonstrates the overall importance and significance to HR professionals of this functional area. While employee and labor relations may not take up all the daily duties, HR professionals still execute some significant responsibilities in this functional area that are vital to a company.
The topic of this guide is more the organizational climate and its relationship to the ways employees behave. Specifically, these behaviors are the actions that must be aligned to the company values to achieve its goals and objectives. Employee and labor relations are, as the phrase implies, about fostering strong, positive relations with the workforce.
This guide also reviews risk management. It covers a wide array of threats to the organization, from internal and external sources, and the necessary actions to mitigate potential outcomes. This should not imply that every accident is preventable or that plans to prevent them are 100 percent effective. In fact, it is more likely that one of these significant events will occur within an organization than not, and therefore risk management is often about the response and actions taken after an incident has occurred to review what occurred, why, and what steps should be taken going forward. This section reviews the knowledge and responsibility required to provide a safe, secure working environment and to protect the organization from potential liability. Required Knowledge The general practice of employee and labor relations is a vast subset of an HR professional’s responsibilities, and there is a great deal of information to know and understand. Important aspects of the law that govern these areas are critical points of knowledge. However, it is also important to understand negotiation and working with groups with both competing and aligning interests. In much of business today, companies often seek out specialists who are entirely focused and experienced on this topic. Knowledge of labor practices, employee and employer rights, and how to foster a strong organizational climate are all required to be a successful HR professional. As with other functional areas covered in the PHR® exam, HR professionals must know the applicable laws and regulations at the federal level that will govern procedures and practices in an organization to ensure compliance. Beyond the laws, HR professionals should be familiar with the types of programs that are typically found in a company in its field and how they should be administered and developed. HR professionals will often execute the procedures across several different areas that impact risk management, including emergency response, business continuity, and investigations. Finally, HR professionals must know the categories of risks to be found in a company and the general practices that are undertaken to mitigate those risks and the damage that can be done to a company. General Practices, Laws, and Procedures Employee and labor relations requires HR professionals to have a working knowledge of key legislation related to this functional area. In this case, labor laws are a critical part. There are overlapping provisions of Title VII to ensure equal opportunity and consistency in how employee relations are handled, but there are also other provisions, addressed in the following sections. HR professionals must know general employee relations activities and be able to analyze the effectiveness of efforts by the company to engage their employees. Many of the laws covered here define compliance and the minimum required standards a company must have in place related to the health, safety, security, and privacy of employees. However, just because a company is compliant with the letter of the law doesn’t mean that it’s “safe.” The minimum standards are just that—the absolute minimum but not necessarily all that can be done. Once again, there is a balance the company must achieve and maintain: it must remain viable as a company but also do what it can to provide the best possible protection to its employees.
The behaviors of the company must align with its values and ethics. The conduct of the employees, managers, and executives when it comes to practices are no exception, and care should be taken that the company consistently places the value of its human capital above a product or sale. Union and Nonunion Environments There is a lot of discussion in the modern business world over the relevance and purpose of unions. Collective bargaining among workers has been part of the fabric of the United States for well over a century but continues to have both advocates and detractors. 28 states have some form of “right to work” provision that impact how unions operate within those states and require them to allow nonunion workers to be covered by the same provisions agreed to in collective bargaining without paying union dues or being a member. Essentially, these employees benefit from the work of the union without requiring union participation or financial support. Additionally, several states have provisions about union activity that add to federal statutes and must be followed. HR professionals must be knowledgeable about the specific legal requirements within their state to be effective in this functional area.
Companies have a responsibility to create a workspace that is free from discrimination and respects all employees. Harassment and equal opportunity legislation applies equally to union and nonunion companies. However, there may be requirements or provisions that are established in collective bargaining agreements that provide for procedures or policies to adjudicate these issues. HR professionals must possess the requisite knowledge of how these agreements have been implemented and practiced and work with legal counsel to ensure that they do not run counter to the law or subject the company to an unfair labor practice complaint. National Labor Relations Act The National Labor Relations Act (NLRA), also known as the Wagner Act, was created in 1935. Prior to this act, dating back to before the turn of the century, there were a series of legislative acts that tended to favor businesses over the employees. As industries grew and the need for skilled labor changed, especially during the times of World War I and II, organization of labor experienced changes.
The table below lists some of the legislation and its effect on labor relations over the years. TABLE: Historical labor laws
The NLRA took into consideration the needs of the employer and the rights of employees in the workplace. The act also established the National Labor Relations Board (NLRB) to be the oversight agency designated to enforce the provisions of the law. Over the years, it has issued regulations and interpretations to the law, some that have been challenged in court and others upheld. HR professionals must know the role the NLRB plays in the establishment of a union and during the collective bargaining process. One of the arguments about provisions in the NLRA, or about how the NLRB interprets them, is whether they have been superseded by later legislation such as the Fair Labor Standards Act (which sets rules for wages and compensation) and are no longer necessary. All of these laws intersect and overlap, but each serves a legitimate purpose in protecting the integrity of the labor system in the United States.
The HR professional’s knowledge of these various rules often directly contributes to a company’s ability to quickly address concerns, establish effective policies, and implement proper procedures. Title VII of the Civil Rights Act of 1964 This act is the centerpiece of antidiscrimination legislation in the United States. Along with the other laws, this act provides for the equal protection and opportunity of employees in the workplace. In this respect, these federal employment laws have made mandatory rights that formerly needed to be established by agreement between the employer and employee. What is now commonly accepted practice in companies once required the intervention of the NLRB and a collective bargaining agreement. Therefore, today’s function and purpose of unionization doesn’t need to cover the areas that are basic with respect to compensation and benefits or hiring and training practices under other laws. Instead, the focus is more often on training, equipment, standards, safety, and grievance procedures. The Workers Adjustment and Retraining Notification Act of 1988 The Workers Adjustment and Retraining Notification (WARN) Act creates provisions requiring an employer to notify employees 60 days prior to an action that results in the closing of a business unit or layoff that impacts more than 50 employees. The basic provisions are set in the law that generally applies to companies with more than 100 employees. The law establishes triggering events such as a plant closure or mass layoff, notification requirements, definitions of terms like “employment loss,” and exemptions to the rule. The intent of the legislation is to provide warning and notice to employees when a business decision is reached that will have a significant impact on the future employment of employees in the company to give them some time to prepare for transition, prepare for unemployment, or seek training for a change in profession. Closings covered include one company selling to another, in which case the provisions also address the responsibilities for both parties. HR professionals must know the timeline provisions and reporting requirements to remain in compliance. There are exceptions for the 60-day requirement, such as unforeseeable business circumstances and natural disasters, but the notices must still be made as soon as practical. The notices must be in writing and specific to the circumstances. Besides going to the employees, the notices in many cases must also go to the local subdivisions of government. Failure to make proper notification subjects the company to penalties that could include the back pay and wages of the employees up to the 60 days. A part of the act allows for the notification to go through the designated representative of workers supported by a union. Often, collective bargaining agreements will have provisions for such notice and the actions required. Occupational Safety and Health Act This law, passed in 1970, was the first of its kind to address safety standards and practices concerning safety in the workplace. It established the Occupational Safety and Health Administration (OSHA) as part of the U.S. Department of Labor as the regulatory oversight agency of the federal government. The goal of the law is to reduce hazards in the workplace and improve programs in organizations that are related to safety or health. The Secretary of Labor is tasked with developing or implementing required occupational safety and health practices. OSHA conducts studies and records data that shows trends in health and safety within companies, and it looks holistically at the information gathered to improve the overall physical well-being of the workforce in the workplace. When necessary, it has the power of enforcement to ensure that companies comply with necessary health or safety practices. It also places an important focus on training to improve the overall safety posture of companies. Employees have a fundamental right under the law to work in a place that is not hazardous or could cause injury or death to an employee as a direct or indirect result of the workplace conditions.
These rights are summarized as follows: - Safety and health are protected while working. - An employee can request an inspection that may be attended by a designated representative. - An employee may file a complaint and must be informed when hazards are discovered at the workplace free of reprisal or similar action. - An employer must correct or mitigate hazards when discovered. - Employees are entitled to be properly trained to identify and reduce hazards and risks related to safety or health.
OSHA Standards
The standard practices established by OSHA have four categories (general industry, maritime, construction, and agriculture) and can be reviewed further on its website (www.osha.gov). In general, these standards are the conditions that an employee should expect to have as part of the working environment. In fact, they are so common as to be expected in the modern business world, and today we often forget that not long ago these practices were not in place, resulting in serious injuries or deaths to workers. For example, companies must identify emergency exits and procedures on how to evacuate a building. It is common to see the red-lighted exit signs above doors in public buildings and commercial spaces. Other types of standards include noise and hearing protection, which covers annual hearing tests for employees exposed to loud noise; hazardous communication, which provides material safety data sheets (MSDSs) to tell employees about the hazards and necessary precautions needed around chemicals and other substances that they are exposed to in the workplace; and blood-borne pathogens, which present potential risk to health by entering the bloodstream of exposed workers, causing illness. There are also a variety of precautionary measures to reduce exposure to injury in confined spaces, around heavy machinery, and for jobs needing specialized protective equipment that must be worn by workers.
Documenting Illness and Injuries HR professionals must be familiar with the record-keeping requirements of OSHA, specifically, the standardized government forms that are to be completed and used to log work-related illness or injury. It is necessary to know when circumstances warrant the completion of these forms. In general, if the incident results in the death of an employee, loss or restriction of work, or a recordable illness or injury (often defined by a doctor with an employee having a chronic illness such as a terminal disease or acute injury such as broken limbs), it must be recorded. Further, these reports must be available for inspection by OSHA representatives and posted for employees to be advised about incidents.
Inspections The law provides for representatives to conduct inspections of the workplace without notice to ensure compliance with the standards. Employers do have a right to protect their proprietary work from release, but in most cases, confirming that working conditions are safe and reasonable should not create a risk of company trade secrets being disclosed. Therefore, companies must allow unfettered access by inspectors to verify the working conditions and report on any findings where standards are not being followed. The inspection process uses a series of tiers that are driven by the immediacy of the dangers posed to employees, with the most critical first and a programmed or routine inspection last. Upon arrival, it is expected that inspectors should communicate to management the purpose and intent of a visit and the inspection process; they should conclude the visit with a preliminary report, especially if critical findings exist.
Metrics HR professionals should know that evaluating the number of cases against the total time that labor is on the job provides an incident rate that can be compared against the industry to help gauge how effectively risk prevention, training, and communication are working in the company. When these rates lag the industry, it means that safety practices are not meeting requirements and could trigger inspections or create a need for an improvement plan. The intent is not to punish but to correct practices to improve the conditions of work for all concerned. Ultimately, safe practices established under OSHA will drive down costs that result from lost productivity and damage to equipment or from injury/illness to employees.
Violations As of January 2017, violations of OSHA can result in fines that are more than $12,000 per occurrence for serious violations or failure to abate a violation after the abatement date. For cases where the violation is determined to be willful, the amount is 10 times the fine at more than $126,000 per occurrence. Such fines and potential criminal repercussions indicate the importance of complying with the law. As a result of such strong enforcement and attention, today’s modern workforce has exponentially safer working conditions and environments and, just as importantly, organizational leadership that focuses on the well-being and safe practices of its employees factored into its business model. Drug-Free Workplace Act Companies that have federal contracts valued in excess of $100,000 or those that are given grants must certify that their organization is drug free and that programs and policies are maintained to keep the company drug free as well. It is permissible for the company to conduct random drug screening for its employees as part of the hiring process. This is usually done after there is an offer and acceptance by the applicant as part of the prehire process. As federal contractors, a company has an added incentive to maintain a drug-free workplace. This also requires the organization to maintain the appropriate documentation of inspections and results along with any training that is conducted to benefit the employees.
Note: Several states in recent years have changed their laws to allow the use of marijuana for medical or recreational purposes in their state. While these laws vary, the federal law prohibition is still in force, and therefore companies must abide by the federal standard to remain compliant as a federal contractor. As a matter of practice, it is a good idea to have a clear drug use policy and set the expectation across the organization.
Of course, there are cases where employees will fail random drug screening or have incidents resulting from drug use. The law requires that employers notify the federal contracting agency within 10 days of discovery of the violation. There must also be consequences to the employee for violation. This does not necessarily mean termination but may require treatment or rehabilitation as part of the mitigation and response by the company. It is also essential to understand that drug abuse is not limited to illegal substances but could be the abuse of prescription drugs. For example, a worker who has a physical injury, is prescribed narcotics as pain management, and then abuses them beyond the prescription can be considered or “in violation” of this act. Americans with Disabilities Act (and Amendments) This legislation also pertains to risk management. The Americans with Disabilities Act (ADA), including its amendments, imposes restrictions on employers and mandates reasonable accommodations to qualifying employees. These accommodations also must be considered in evaluating risk to the employee in the performance of their duties or with equipment or other accommodation to a disabled employee required to maintain safety standards. One area that is also considered under the ADA would be infectious diseases. In many medical facilities, universal safety protocols are in place to prevent transmission of disease between an employee and a patient. Individuals must be protected, and the organization is responsible for the enforcement of the practices and standards. Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act (HIPAA) is important to protect the medical information of employees and, for organizations in the medical industry, the patients and customers. Because of the sensitive nature of personal medical information, there is a compliance requirement that this information is safeguarded and disclosed only as required and authorized by the patient while properly informing the individual of the need and nature for disclosure. As part of risk management, HR professionals must know how to collect and safeguard this information to prevent unauthorized use. HIPAA information must be separate and distinct from employee personnel files. When dealing with a workers’ compensation incident, for example, the HR team must not disclose private medical information that is not needed to make a management decision or release information to parties without a legitimate need to know. Another limitation on risk management is on the implementation of fitness and wellness programs. Companies may choose these programs to reduce healthcare costs or improve physical abilities and therefore reduce illness and injuries that may occur on the job. However, they cannot mandate or force employees based on knowledge of previous illness or other medical conditions that is illegally obtained in violation of HIPAA. There are two specific rules associated with the law that pertain to risk management. For more information, visit the Department of Health and Human Services website on this topic located at www.hhs.gov/hipaa/for-professionals/index.html. The Privacy Rule sets the standards for protecting personally identifiable health information by certain entities. One such entity is any health plan that would impact businesses; the goal is to prevent unauthorized disclosure from health plan managers to other elements in the company. The second is the Security Rule, which protects the confidentiality of electronic health information. This is why it is imperative that in establishing electronic files, the HR team must keep employment and health information with separate access and restrictions. Health files should not be included among files normally accessible by managers and supervisors. Sarbanes-Oxley Act Sarbanes-Oxley (SOX) is legislation passed to prevent fraud and establish financial requirements and ethical conduct standards for public companies. Shareholders have an expectation that the company is being run properly with financial integrity and in compliance with governing laws and regulations. HR professionals must have knowledge of the principles and requirements of this law. Even for companies that are not publicly traded on the stock market, the foundation of this law shows the necessity for a company to develop and implement a variety of financial controls to protect the organization. Section 404 of the law outlines the required controls that an organization must have in place to mitigate fraud, waste, and abuse of the financial structure of the organization. The United States Securities and Exchange Commission has developed a guide for small businesses to help establish internal control practices that is available at www.sec.gov/info/smallbus/404guide/intro.shtml. While these companies are not necessarily subject to the full provisions of the law, following those provisions helps create good practices that would facilitate conversion to a publicly traded company in the future as the organization grows. Procedures for using corporate credit cards, purchasing, and other means of committing funds should be enacted and individuals in the company held accountable. Disclosing conflicts of interest and other financial obligations such as large debt can be part of policy, and the HR team must know how to properly develop and use such policies to include any regulatory limitations that could be protected by privacy restrictions. In reducing financial risk, the company demonstrates good stewardship of the resources that are available and provides confidence to shareholders and other external stakeholders affected by its financial practices. The intent of the law is to ensure that a company is not solely focused on profit or share price to the detriment of its long-term financial stability and that any actions that are taken to obscure the potential misconduct or financial mismanagement have penalties by force of law. Researching Grievances, Working Conditions, and Reporting HR professionals must know how to thoroughly research grievances of employees and assess the working conditions that may need to be adjusted. They must have working knowledge of the various means that employees can use to report problems in the workplace that require resolution by or involvement of management. For example, there may be an anonymous reporting line that allows employees to report a problem without identifying themselves. This encourages reporting without fear of retribution or reprisal. Employees must believe that issues concerning working conditions that are reported will be addressed in a timely and fair manner. When researching a grievance, HR professionals should be familiar with company practices and policies that are directly related to the complaint. They should be able to discuss concerns and listen to the employees who are aggrieved. They should know what the working conditions should be and determine whether there are any discrepancies. The goal in this process is to demonstrate a commitment to the employee’s well-being and to take all concerns that are raised seriously. Conducting Unbiased Investigations A key point of knowledge for all HR professionals is how to conduct an investigation. Most important is knowing when an investigation should or should not be handled by HR. The company should develop clear policies and guidance to determine which circumstances should be handled in an administrative capacity and which others require legal counsel, internal audit, or external oversight. Criminal matters should be handled by the appropriate law enforcement authority, and if during the course of any internal review or investigation HR believes that criminal conduct has occurred, HR should refer the matter to the authorities immediately. When the investigation is within the purview of HR, HR professionals must be deliberate, thorough, and complete in their investigation. They must collect and review the facts of the matter, keeping in mind that they hold no compelling powers for employees to provide information, nor is their communication privileged should there be any subpoena. Therefore, HR professionals should, to the best of their abilities, try to maintain discretion and confidentiality but understand that there are limits.
When conducting an investigation, HR should keep in mind the following: - Interview all parties involved in the incident under investigation as quickly as possible to limit possible collaboration of statements. - When possible, obtain statements in writing. - Maintain discretion and do not discuss findings until after the investigation has been completed and the findings submitted to the appropriate decision-makers. - Limit the scope and purpose of the investigation and where practical establish a time limit to avoid endless investigation that covers areas beyond what is germane to the incident. - Stick to the facts; do not let individuals speculate or add commentary to their statements. - Confer with legal counsel, internal auditors, or similar positions to interpret rules or regulations that may govern the investigation and provide guidance or expertise. - Ensure that you have the appropriate authority to conduct the investigation. Corporate Culture In an age when there is a shortage of available qualified talent, often corporate culture is what attracts and retains good employees. These workers seek a strong culture that is values-based and helps align their goals and promote growth within the organization. HR professionals should know the close correlation with culture and values and the impact on human relations in general. Additionally, the ways the company views diversity and inclusion and manages performance are all indicators of the corporate culture. Human Relations, Culture, and Values HR professionals are experts at relating to people and understanding their needs at a personal level. They must leverage this knowledge and capability to ensure the optimal performance of each employee. They must be astute at recognizing elements of emotional intelligence in themselves and others. Emotional intelligence measures how well an individual perceives their own emotional state and that of others and also how the emotions of others affect them and the impact of their emotions on others. Being self-aware of one’s emotions is an important skill for anyone, but especially for HR professionals. They must understand how emotions impact judgment and decisions and then be able to manage these emotional states. Being aware that you are angry and being able to manage that anger are two different skills to consider. Simultaneously, the individual must learn to sense the emotions of others and understand why those emotions are present. People with a strong emotional intelligence can predictably understand why certain emotions that they exhibit affect others in certain ways. Once someone can master these emotional intelligence concepts, they can improve and be more impactful to the organization. Another aspect of human relations is organizational culture, or how a company collectively acts based on certain parameters. This concept is important because the organizational dynamic is largely based on how the group behaves and responds to leaders and conditions that exist in the company. HR professionals who can accurately predict how the organization will respond to decisions, policy changes, accomplishments, and setbacks is valuable to modern business models. They can maximize the human capital potential in the organization through their understanding of human relations and the response to corporate culture. This culture is based on the values of the company and how the individuals and collective group prioritize values when they conflict. Diversity and Inclusion HR professionals should strive for a diverse organization to draw from different thoughts and experience within an organization. They should know concepts about diversity and how those apply in their company. Diversity is not just about the protected classes related to Title VII of the Civil Rights Act. It goes beyond those limits to look at differences among generations, cultures, and even learning styles. We are at a unique point in today’s business world with as many as five generations in the workforce. This unusual dynamic plays a crucial role in the introduction of technology to a company, the values the company espouses, and the general work ethos of each generation. The younger generations are more globally connected and have access to much more information in a shorter period of time. They will be challenged by synthesizing such vast data and being able to discern the reliability of the information available. At the other end of the timeline, older generations are more traditional and will have a harder time embracing new concepts or ways of doing business. While this doesn’t seem new as there is always generational overlap, the fact that people are working longer and life spans have increased, combined with the exponential advancements in technology, has greatly affected organizations. HR professionals must also be attuned to cultural competencies and understand the impact of globalization in the marketplace. Being aware of the role that culture can play in a company will help HR professionals develop diversity and inclusion programs that reach out to all cultures and respect their contributions to the company. These programs enhance an organization’s capabilities with respect to employee relations. These slight differences among all employees will impact how they each assimilate information that is learned by the organization. HR must know how to manage this process and ensure that no group is marginalized or not allowed to contribute to the growth and development of the organizational culture. Collective Bargaining One of the key processes in labor relations is collective bargaining. HR professionals must have extensive knowledge of the process, concepts, and strategies. At its core is the successful negotiation of an employment agreement between the management of a company and the union representatives that are authorized to negotiate on behalf of the company’s employees. This collective bargaining agreement is a contract that governs the working conditions and employment settings for the employees along with the responsibilities of both management and the workers. These agreements take into account many factors, including the labor skills, overall economy, prevailing wages and benefits, and accepted practices of employers. The agreement covers both mandatory and voluntary subjects. The voluntary subjects include areas such as retiree benefits for members of the union or processes for handling unfair labor practices. These may or may not be subject to negotiation. The National Labor Relations Act sets out which category a subject falls under, including those items that cannot be discussed under any agreement (illegal items such as requests that would violate other laws or regulations).
The mandatory subjects include the following: - Pay and Overtime - Terminations - Disciplinary and Grievance Procedures - Reductions in Force - Promotions and Seniority - Holidays, Vacations, Time Off - Promotions, Demotions, Transfers - Safety Procedures
Collective bargaining can be done by first negotiating with one company in an industry, such as an industry leader or one a union feels will create the best deal for workers, and then attempting to promulgate the agreement with other competing companies in the industry. While this was a prevalent method in the past, it is less common today because industries now have standard practices that cover most of what would be negotiated by a union and offer no competitive advantages to either side. A second option would be for a group of employers to negotiate with the union seeking to represent employees at the companies. In industries where there are multiple unions represented (such as the airline industry), the unions can coordinate their bargaining processes with the employer to maximize their negotiation power. Finally, the process can be broken up to discuss complex details in a variety of committees to reach a consensus. A collective bargaining agreement will have several articles that discuss each mandatory area and any voluntary area that is agreed to by the union and management. Within the agreement there will be provisions for who will be members and the dues and the rights of the union to exclusively represent the interests of the employees. If they work in a right-to-work state, HR professionals must understand that there are additional restrictions and provisions that limit a union’s ability to collect dues or fees for representation. The biggest difference is that in the right-to-work states, union shops are illegal, which means a union cannot require new employees to pay dues and become union members. While the employee’s employment is protected, they cannot attend union meetings or have a vote concerning the approval of an agreement without being union members. HR professionals must understand how contracts are administered and how various provisions are handled such as grievance procedures and arbitration. They must understand what actions should be taken in cases of litigation or allegations of unfair labor practices, as well as how to handle inquiries by the National Labor Relations Board if management is not negotiating in good faith as part of the collective bargaining process. They must also understand the protected activities that sometimes are the by-product of negotiations or failure to reach an agreement. Table 5.2 discusses some of these items and the role of the HR professional. TABLE: Activities related to collective bargaining
Performance Management To align behaviors of employees with the organizational goals, HR professionals should know how to provide evaluations, corrective actions, and coaching to identify an employee’s strengths and weakness. They should provide suggestions to managers on how to improve employee performance over time. Performance management is the entire process and includes the tools, such as formal reviews, and the procedures, such as one-on-one coaching sessions to discuss expectations and outcomes related to an individual’s performance. HR professionals must help employees understand the uses and limitations of a performance management system. There are a multitude of options available in the modern business environment, but there is no one-size-fits-all solution. However, if you view the ultimate goal of performance management as alignment of employee and organizational goals, then the required performance management is the system that most effectively accomplishes this task. Terminations When it is determined that an employee must be involuntarily separated from employment with the organization, HR must know the proper procedures and work with management to ensure that these steps are followed. Failure to do so may result in litigation over unlawful termination. Managers should refrain from firing an employee outright without first following the due process described earlier. It is better to put the employee on an administrative leave with or without pay until a determination can be reached. It is important to remember in the cases where an employee is suspended without pay that should a determination be made in favor of the employee, the back pay will be due to the employee. The determination should be made in the same manner as outlined previously after a thorough, complete, and timely investigation, with relevant facts and information that have been collected. The employer must lay out clearly the reasons for separation and promptly notify the employee. HR must be aware to document the incident and all related information on the case and maintain the file for record. HR professionals must recognize potential misuse of disciplinary procedures that may violate protected classes and jeopardize equal opportunity for employment. Disciplinary actions to include separations cannot be used as an alternative means to terminate someone who would otherwise be protected in their employment. Safe and Secure Workplace HR must have extensive knowledge of the variety of programs that protect employees from occupational illness and injury. Other programs also protect the company’s and employees’ rights on matters of substance abuse and the impact on operational risk. While the structure and execution of these kinds of programs are very different, both types are means of reducing risk to the organization with the goal of maintaining a strong and capable workforce. Record-Keeping Requirements The retention schedule of documents refers to how long documents must be stored by the organization and how they are disposed of at the end of the required storage period. HR professionals must know how documents are to be stored. They can be in hard copy form or electronic, although federal or state regulations may have specific requirements as to how documents must be physically maintained. In all cases, the documents must be readily available if required for validation or inspection during a review. Some documents may be required to be maintained until no longer needed for current operations. Other documents could be required to be kept for more than 20 years. HR professionals should be aware of the retention schedule of critical records because often a company keeps records beyond the required time. This can create additional risk or subject the company to additional scrutiny when documents are requested by outside agents. Finally, HR professionals should be aware of how to properly destroy records that are to be purged. While it may seem simple to shred physical files, with modern technology there are challenges to ensuring that data files that are kept electronically are in fact purged. Too often copies and backups exist that are beyond tracking for compliance purposes, which exposes a company to risk should it be determined that those files should have been destroyed. Injury and Illness Prevention General safety programs seek the reduction and elimination of hazards that cause injury or illness.
The table below provides some examples of creating the conditions to prevent incidents. HR professionals must know how to drive these programs and evaluate their effectiveness. In some cases, HR professionals in conjunction with managers will assign additional duties to an employee to be the responsible agent for safety in a particular department or division. TABLE : Prevention methods
In addition to individual appointments, HR professionals should understand how to implement committees to promote safety practices and general awareness of risks that employees are exposed to within the organization. They can help with incentives that are awarded to individuals and teams that are safety focused and have solid practices that result in a reduction of preventable illnesses and injuries in a company. Inspections and reviews are an important part of any safety program, and HR professionals should know how to conduct and record the results of these inspections. When incidents occur, part of the program must focus on understanding the proximate cause of an incident that resulted in illness or injury and quickly identify any failures in protocols or procedures that may have contributed. Real World Situation:Explosion on Set A licensed pyrotechnician on a movie set was working to rig explosives on cars for a scene to be filmed outside a warehouse. As the individual was carrying the charge to the place where it would be attached, it detonated, causing injury to the individual. Fortunately, the individual was following all of the established protocols for handling the explosive cord, including proper distance from the body and location. While the injury sustained was severe, it was not fatal. An investigation was conducted to examine whether the individual missed a procedure or created an unsafe condition. This included other witness statements and a review of the area. It was ultimately discovered that this particular remote location was a former factory with iron filings scattered in the soil surrounding the building. These filings happened to create sufficient static charge when walking across the lot that the explosives ignited. This was unforeseen by the production crew or the experienced technical expert. It shows that even with procedures and trained personnel, incidents can still occur. However, it also is worth noting that the severity of the occurrence was mitigated precisely because proper practices were being followed. Workers’ Compensation This benefit is an insurance product designed to cover employee compensation as a result of a work-related incident. HR professionals must know how this program works and how premiums are determined. It is based on results and claims, so companies and industries with higher likelihood of incidents will pay more as would be expected. These claims usually have a medical component for any treatment, along with any rehabilitation and a portion of wages lost. These packages can be several thousand dollars, so each claim will have a significant impact on the resulting premium increases. Workplace Safety Safety protocols are intended to reduce accidents and the extremely high costs associated with workers’ compensation and other financial liability. However, these safety points work only if they are implemented and followed by the employees. Generally, safety risks are those specific risks that come from hazards that result in physical illness or injury and subsequent losses in work time, productivity, efficiency, or resources (such as money). Hazards such as those that cause slips, trips, or falls can be reduced. Table 5.4 gives some examples of hazards, the possible losses that they cause, and the prevention or risk mitigation method. TABLE: Hazards and risk
Certain safety risks, as shown , require different means to reduce the threat. The measures needed to protect employees against tripping are quite different from the measures to protect against blood-borne pathogens, but the steps to identify these hazards and implement controls are the same. Workplace Security HR professionals should be familiar with a variety of security risks, from both physical and virtual aspects. Theft is a large risk that can create loss for an organization if access controls are not present; it’s also a risk if there are situations where employees or outsiders perceive an opportunity to steal, if the consequences are low, or if there is a low chance of being caught. Without proper standards, some employees may feel entitled to take company property or feel that it’s acceptable behavior. HR professionals must ensure that the company clearly defines the disciplinary outcome if a theft occurs. In addition to general theft, corporate espionage is a specific kind of theft that involves trade secrets and insider information about a company and its activities. This is an intentional act by someone who intends harm or damage to a company by stealing proprietary information that can be used to damage an organization’s reputation, market share, or products. This person seeks for an outside entity to gain a competitive advantage over the company by using deceptive means to gain access and use the information. In a similar fashion, sabotage doesn’t seek to take information out of the organization but to take action that harms the company from within. Sabotage is a deliberate act to disable, destroy, or break equipment that is needed for operations to delay or stop production or delivery of service. HR professionals should know how to reduce physical risk, by controlling access and establishing procedures for who may perform certain tasks in the company. For example, suppose a company that uses a direct deposit system for payroll transposes an account number, causing an employee to go unpaid. To correct the situation, the finance department generates a handwritten check to be issued to the employee. Without proper controls, the check could be approved for any amount. The accounting department, without knowledge of the transaction, could improperly report the payment as an error resulting in a stop to payment on behalf of the bank. These controls ensure that the right individual is approving money movement, and if there are any changes to procedure, that they are communicated throughout the organization to individuals who need to know this information to properly fulfill their duties. Business Continuity and Disaster Recovery Plans Like general emergency preparedness plans, business continuity and disaster recovery plans have components that HR professionals must know. Specifically, they must know the ways that their organization chooses to back up and protect sensitive data. This may include using a cloud service or third-party vendor to store data off-site. By having a backup of information stored at a separate location, the company reduces the risk that may be caused if an incident happens whereby the primary storage location is destroyed (fire, tornado, flood, and so on). HR professionals must take care to develop and know the parts of a disaster recovery plan, which includes items such as alternate work locations. In some situations, especially with companies that have multiple locations, it may be possible to re-establish work in another place while waiting for recovery operations to restore primary locations. Real World Situation: Hurricane Katrina In 2005, Hurricane Katrina devastated the Deep South of the United States and specifically was responsible for causing a catastrophic flood of New Orleans. The United States Military Entrance Processing Command (MEPCOM) is responsible for the accession and qualification of individuals joining the U.S. Armed Forces. It has 64 military entrance processing stations (MEPSs) around the United States, including New Orleans. At the time of the disaster, the personnel needed to evacuate themselves, along with files including hard copies and vital records such as birth certificates for those candidates who were in processing to the military and headed to basic training from that region. They successfully stored and secured thousands of files and moved them to alternative locations, including Atlanta and two other MEPSs to continue operations. These alternate work sites were able to take the increased workload and displaced workers until operations in New Orleans could resume. This is a great example of preparedness and planning in a short time to respond to a disaster. Internal Investigation, Monitoring, and Surveillance HR professionals must know the limitations and capabilities of monitoring employees in the workplace and surveillance techniques. This includes internal investigations of employees suspected of violating policies or those who may pose a risk to the organization. In the modern workplace, the most readily identifiable example of this type of activity is email monitoring and website visits. The IT department has the capability to track and store data elements that are transmitted across company equipment. HR must understand how to notify employees that they may be subject to this kind of surveillance as a condition of having access to and using company computer systems. HR professionals should know that communications transmitted in the conduct of work should not be considered private or personal and therefore may be accessed as part of routine work operations. It should be clearly communicated with active acknowledgment by the individual employee that they may be monitored while working. While a company should respect the privacy of its employees, it has an affirmative responsibility to protect its IT infrastructure, and any risk imposed by employees disregarding policies is too high. Data Integrity Data integrity means ensuring that the digital information a company collects and stores is authenticated and secure from intrusion. Modern organizations store much of their information digitally on servers located within the company or externally maintained by third-party vendors. In all cases, HR professionals should know common practices to reduce the risk associated with data breaches and how to report incidents if they occur. The greatest risk to a company’s data is the very personnel who work for it. In most cases, it’s not malicious actors from within but complacent employees who do not follow proper procedures and are unaware of threats to data integrity. Data transmitted across email or the Internet can be stolen. It is important that HR professionals know which critical data should be encrypted. Personally identifiable information (PII) such as social security numbers, bank information, and credit card data should be protected. Files that are stored on servers should be restricted for access to those individuals with a legitimate business interest. Shared folders, therefore, should be routinely checked to determine whether people have appropriate credentials for accessing the data contained in the files. Most files and computer systems are protected by passwords. It is an important practice in HR that passwords should not be shared to prevent unauthorized access or disclosure. Because employee complacency or negligence poses the greatest risk to data integrity, data hackers will exploit this vulnerability. One successful technique is social engineering. This is a construct where someone attempting to gain access uses a variety of practices that take advantage of the human nature to help or assist others. For example, someone may pose as a customer and ask questions in an attempt to get an employee to reveal sensitive information. This approach relies on good customer service standards and the employee’s desire to answer the client’s questions. Employees can be tricked into giving away passwords that can be used to gain unauthorized access to the data being protected. HR professionals must be aware that training and vigilance are the best risk mitigation strategies for any organization. Exam Tips: Understand the process of unionization. The terminology related to unions and the unionization process including card checks, petitions, elections, voter eligibility, and determination of bargaining units should be reviewed. More information can be reviewed at the National Labor Relations Board website (www.nlrb.gov). HR professionals should review what conduct is allowed and the restrictions on actions that could be considered as unfair labor practices to avoid unintentional violations. Understand how OSHA impacts an organization. Whether it is just the rules for general workplace safety or those for a specific industry such as manufacturing, a company is responsible for complying with OSHA regulations. You should review investigation procedures in your organization and especially any recent findings or notices where there may have been compliance violations. Talk with the individuals responsible for filing reports and maintaining documentation when accidents occur and understand their process. If possible, compare the practices of different organizations. Responsibilities The responsibilities of HR professionals for employee and labor relations can greatly impact the overall climate of the company and therefore organizational effectiveness. HR professionals must diligently execute these duties as part of the job. Often these responsibilities are neglected because the negative impact of neglect is not readily apparent. However, the consequences can be severe and long-lasting for inattention to this important role. While safe practices must be part of a company’s everyday operations, HR professionals must understand the importance of the responsibilities they have in this area. A personal investment in the well-being of all employees is often the hallmark of a good HR professional. This means the proper administration of the safety program is paramount. However, it’s not just about documentation and compliance; it is about developing and encouraging a culture of safety throughout the company. Effectively managing risk to prevent illness and injury will help the organization reduce loss and liability. HR professionals can demonstrate through their actions a continued commitment to the organization’s employees and their health and safety. Legal Requirements HR professionals are responsible for ensuring that an organization conducts labor relations in accordance with the applicable laws and regulations. They are the primary advisors to executives and management on the conduct of the organization during labor negotiations and when responding to labor complaints. It is imperative that the organization establish clear policies and procedures and that HR manage the process to avoid charges of unfair labor practices. Compliance HR professionals are responsible for ensuring that the organization is compliant with the rules under the National Labor Relations Act and other companion laws. If a company is union-free, HR professionals should work with management to continually create a positive, strong culture that keeps employees engaged. HR professionals have the responsibility to review labor practices with management to remind them of unfair labor practices and how to avoid them. Generally, there is a need for proper training and awareness of what constitutes unfair labor practices and the restrictions and limitations that are imposed on management with respect to union activities. If the company is currently going through a union-organizing process, the HR professionals have the responsibility for properly identifying the eligible employees to participate in the election process. They also work with management to help craft opinions and counterarguments to unions, which is permissible under the NLRA. If the union is successful in its organizing campaign, HR professionals will work with executives and management to liaison with union representatives for the purpose of collective bargaining. HR professionals are responsible for all records management for documents related to union activities. Policies and Procedures HR professionals are responsible for developing internal policies that govern the relations between employees and the company. Most often these take the form of an employee handbook that covers the expectations and standards for all employees. A handbook must be current and must be available to and understood by each employee to be enforceable in cases of disciplinary action or termination as a result of violating a policy contained in the handbook. Documenting changes and their distribution to employees should be maintained in the personnel files to alleviate questions about employees’ awareness of a particular policy. Policies should be routinely reviewed and updated to meet current practices. If a policy exists in a handbook but is not enforced, it could create challenges should an employee claim disparate treatment in being subjected to policy provisions. HR professionals can work with management to ensure that written policies are kept to the minimum required to successfully enforce standards so as not to limit the company’s available courses of action. They should encourage managers to review policies and standards before taking any actions on employee behavior to maintain consistency in their approach. It is also prudent to discuss changes or implementation of new policies with all affected parties before implementation to have all sides be heard. This will often prevent policies from being enacted in a knee-jerk fashion, usually following an employee incident. Providing employees with a chance to comment on new policies and get feedback demonstrates that they are valued by the company and builds positive relationships. Fostering and Cultivating Strong Employee Relations In fostering and cultivating strong employee relations, HR professionals must analyze functional effectiveness at each stage of the employee life cycle (hiring, onboarding, development, retention, exit process, and alumni). They will identify alternate processes and implement them to improve functionality.
The figure below shows the employee life-cycle stages and the HR role during each phase. FIGURE: The employee life cycle
HR professionals have a responsibility to help management create and maintain an organizational culture that fosters positive employee relations. They must assess the culture and climate, implement programs that build on the foundation of the company, and measure the effectiveness of the programs once created to ensure that the company stays on the right track. To do this effectively, HR professionals are responsible for responding to emerging issues in a timely and fair-handed manner, investigating the circumstances using an unbiased approach, and then addressing any employee grievances. When cases warrant such, HR professionals are responsible for carrying out legal termination procedures that can withstand legal scrutiny to mitigate or prevent litigation.
Employee Engagement Data
HR professionals will collect, analyze, summarize, and communicate employee engagement data with managers, employees, and key leaders throughout the organization. Through a variety of metrics such as turnover ratios, survey results, and customer feedback, HR professionals should be able to gauge the level of employee engagement. Employee engagement is directly correlated to a positive organizational climate.
Organizational climate can be considered the pulse of the company. If the pulse is weak, it indicates something is not healthy within the body, whereas a strong pulse indicates strength internally. In the same way, HR professionals can establish practices to assess the pulse of the organization and determine its relative strength. Many tools can be used to assess the climate. We have discussed the wide use of surveys to get a general sense of concerns or perceptions. This last point is important. Surveys measure perceptions as the employees see things, which may or may not reflect the truth. However, it doesn’t matter with respect to facts, as perceptions can often dictate actions that will impact the outcome. Strong employee relations mean that the HR professionals, management, and executives are managing the perceptions to better reflect the situation.
Other options for the HR professional include having sensing groups or internal meetings. This can take the form of skip-level interviews where HR bypasses management to go directly to line employees and get direct feedback. Doing so can result in an unfiltered assessment as the employees may see it. However, HR professionals must still be aware of perception bias. They must organize and conduct the sessions with employees and systematically solicit, organize, and present information and concerns shared by employees to develop an action plan to address them.
Using Metrics to Evaluate Employee Relations
Developing and using metrics and analytics are important responsibilities in the HR function. Since employee relations are tied to the corporate culture and have a significant impact on the recruiting and retention of a strong, positive workforce, it is imperative that HR professionals understand how to use these tools and metrics to advance the organizational climate in a positive direction. HR professionals may, for example, conduct exit interviews with employees, especially focusing on those voluntarily separating from the company. Individual reasons may not offer much insight, but collectively trends will be useful to see key reasons employees are choosing to leave. If those reasons are within the span of control of management, it is their responsibility to make adjustments.
In looking at trends, HR professionals can gather and present the turnover data on the overall cost to recruit or rehire replacements, the loss of productivity, and the average life span of an employee in the company. If a company is constantly rehiring and replacing key positions, it will be virtually impossible to grow or improve because the company will be using its limited resources on covering the same ground each time with new employees.
Developing Strong Employee Relations Programs
Maintaining or building a strong culture requires input and effort on the part of management. HR professionals are ultimately responsible for developing and implementing employee relations programs to inspire and encourage the workforce. These programs celebrate diversity in the workplace, recognize the accomplishments of employees, and highlight special events. HR professionals work with leaders to determine the focus for these programs and use a planning process to establish the parameters, goals, and objectives.
The table below gives some examples of these types of programs and their purpose.
TABLE 5.5 Employee relations programs risk matrix is created, the next step is to identify ways to reduce either the likelihood of occurrence or the severity of the loss. In this way, an HR professional can manage the risk and assist decision-makers in the company with establishing strong procedures that still allow the organization to achieve its mission and goals but do so in a consistently safe manner. Compliance Like other areas of human resources, risk management has a compliance component. Other compliance legislation is centered on ensuring that employees have equal opportunity and access to employment and training free from discrimination so that as employees, they are treated the same and paid fairly for their work. HR must also ensure that the company creates a workplace that considers and protects the health, safety, security, and privacy of the employees. HR must follow regulatory guidelines to protect the general safety of employees from routine hazards that can occur in any workplace. There also may be additional requirements based on the specific industry. Generally, the more dangerous the line of work, the more likely there will be further restrictions and compliance requirements that must be met. Protecting health and safety means ensuring the physical well-being of an employee and can pertain to short-term incidents such as slips, trips, and falls or to sustained health and safety hazards such as chemicals or toxic inhalation exposure. HR professionals must follow reporting requirements on accidents that result in losses, damages, or significant injuries. There are also requirements to investigate root causes thoroughly and establish prevention strategies when accidents do occur. When there are long-term, systemic risks, the organization is responsible for ensuring that proper training is conducted and documented as required to maintain certifications or operational compliance. In addition to training, there may be a need for proper protective equipment for employees. HR may be responsible for coordinating ordering or fitting employees for necessary safety equipment. An example might be breathing filter equipment for employees using aerosols. Security is both physical and virtual. Examples of physical security compliance are laws that are intended to prevent domestic or workplace violence. HR must be proactive in helping the organization secure its employees and prevent harm. Companies may have liability if they do not have proper protocols that could protect employees from physical threat or danger while on the job. From a virtual standpoint, this includes the safeguarding of every employee’s personally identifiable information from unauthorized release or disclosure. HR must also ensure that employee information is not used for any purpose that is unauthorized or inconsistent with regulations or law. For example, there are now laws that limit how a company can obtain information about credit history or criminal records of employees. Privacy cannot exist without security. A company may have security procedures, but privacy is how the company then chooses to share or release that information. Investigating Employee Complaints HR professionals must be capable of resolving conflicts and complaints by employees with respect to employment practices and working conditions. They are responsible for assisting and participating in investigations on actions filed with the National Labor Relations Board or other regulatory agencies with jurisdiction. In cases where there are validated complaints, HR professionals must work to comply with federal and state regulations. This may require working closely with outside resources that are specialists or experts on labor practices. Many companies choose to retain legal counsel that specializes in labor disputes for legal terminations or if charges of unfair labor practices are submitted against the organization. Working with these professionals, the HR team must collect and preserve documentation and provide policies and standard operating procedures, along with any statements collected or other correspondence that can dispute the claims. In some instances, companies and employees with complaints may seek or be required to use mediation or arbitration. This practice allows both parties to avoid costly litigation by having an independent, disinterested party review both sides and make a binding determination. In other words, both sides agree that the decision of the arbitrator will be final. Disciplinary Policy HR professionals are responsible for developing a discipline policy for the company. In doing so, they must consider the organizational culture and establish a strong ethical climate that seeks to administer discipline in a fair and judicious manner. HR professionals are instrumental in assisting the company executives to develop and promulgate a code of conduct that defines how employees should conduct themselves. In cases where there is a violation of these policies and standards, HR professionals are responsible for working with supervisors to determine the appropriate actions. Generally, a company will have a progressive disciplinary policy, which seeks to use the lowest form of discipline to resolve minor infractions but increases with each subsequent violation or for more severe violations. It is important to realize that a progressive policy is not intended to restrict or limit the company’s ability to separate employees who do not exhibit the required behaviors or align to the company’s values but to ensure that there is due process. It is also the responsibility of HR professionals to assess whether discipline practices create a disparate impact that would impact the equal employment opportunity of every employee. They should review actions to ensure that there are no potential exceptions to the “at-will” practices in employment, that they comply with laws and regulations, and that they are proportional to the circumstances to include actions in the past. HR professionals gather all documentation, show clearly why there is a need for disciplinary action, and recommend the appropriate course of action to take in the matter, up to and including termination. In cases where there is a union or arbitration clause, they coordinate with the stakeholders to determine a time to meet and resolve the issues. Ultimately, they ensure a fair process that can withstand the scrutiny of review. Grievance Procedures When resolving employee relations issues, HR professionals must be aware of and follow proper procedures. In instances of an employee disputing actions taken by the company for disciplinary reasons, there should be a process to handle grievances. In union settings, an employee has a right to have another individual attend interviews during investigation processes that could result in disciplinary actions being taken. These rights are formally known as the Weingarten rights, named after a legal labor case ruling by the Supreme Court. Usually there are formal steps that are part of a grievance.
The figure below shows a typical grievance process. FIGURE: Formal grievance process In the grievance process, HR professionals have the responsibility to do the following: - Investigate thoroughly and be prepared for any litigation or mediation that may result from a complaint. - Work with union officials that represent the employee and determine any company obligations as the result of union agreements. - Document all findings and maintain all notes, records, or other correspondence related to the investigation. - Avoid making individual concessions that set a precedent or conflict with existing policy or agreements with a union. - Settle a grievance if the company is, in fact, wrong on the merits of the case. - Continually communicate with the executives and decision-makers of the company on the progress of the dispute, grievance, and resolution.
The other circumstance in a grievance process is with performance. HR professionals must be responsible for ensuring that management has documented and truly performed the required steps in a performance improvement plan before dismissing an employee for failure to perform. This is certainly true in a union environment because it is likely that the collective bargaining agreement will have provisions that protect employees from being terminated for performance if these measures have not been done. HR professionals have the responsibility when developing performance policies to include the steps management must take to document employee performance deficiencies and corrective measures taken.
Note: In situations where a manager has a poorly performing employee, the manager will often seek HR’s help in “getting rid of the bad employee.” HR professionals must guard against this kind of action. This is because more often than not a manager has failed to document the deficiency properly and the failure has been going on for an extended period of time but there is now a catalyst that makes the manager want to take action. HR professionals must ensure that proper procedures are followed to avoid a grievance later. Termination HR professionals should develop and use a termination checklist when faced with separating an employee from employment with the company. This step-by-step procedure ensures that every termination is handled consistently and that nothing is left out that could result in litigation later. HR professionals are responsible for working with managers who have the authority to terminate an employee and cooperatively ensuring that the procedures are followed. This requires training for management in these practices, and HR should be present for any dismissal. Terminations will always be an emotional event; however, it is imperative that HR professionals maintain a professional atmosphere even in the most hostile or tense situations where an employee may act out. If HR professionals ensure that the conduct of the termination is handled with dignity and respect for the employee, this may set the tone and result in a cordial separation. Another responsibility of HR professionals in developing a termination process is to examine other potential separation actions. For example, if a company downsizes, it may be necessary to terminate employees in a reduction in force or other structured action. By establishing proper guidelines and working with union representatives, HR professionals ensure that the company avoids claims of equal opportunity violations on any protected classes during separations. Things to consider as part of the termination process are who attends, the talking points, the collection and recovery of any company property, the removal of access to information systems or facilities, the retrieval of personal items or property from the work area, the arrangement for the continuation of benefits under COBRA and other mandatory disclosures, and any announcements to colleagues informing them of a change in status of employment (protocols). Managing Labor Relations While the organized labor movement changes over time and may not be as strong as in the past, it is a significant part of the U.S. workforce and therefore an important responsibility for HR professionals. Understanding the collective bargaining process and the associated requirements and being able to execute the task is something HR professionals must know how to do. It may be that the employees of a company never seek to organize; however, there is a responsibility to the organization that HR be prepared to participate in the election process, contract negotiations, and administration. Senior HR professionals also have a responsibility to communicate with employees the benefits of remaining union free. However, they must ensure that they do not violate any rules that would result in an unfair labor practice charge, such as forming a select committee of employees to bring issues to management that would usurp a union’s bargaining authority. Exam Tips: Review those programs and actions that improve organizational climate and promote strong, positive employee relations. It is an important function of the HR team to coach and develop managers and executives in improving their relationship with employees. The addition of programs and recognition of the contributions of all employees will continually motivate and encourage participation throughout the company. HR professionals should be aware that these programs rely on communications between the employees and the company to get feedback on the types of programs that best fit the culture. Understand formal grievance and legal termination proceedings. Among the most difficult actions is the intentional removal from employment of an individual in the company. It is especially challenging if there are provisions within policies or contracts that require documentation or substantial justification to warrant termination. To avoid claims that could result in litigation or a successful grievance action, HR professionals must review each case and when necessary conduct an unbiased investigation and assessment for management to make a determination. It is important to consult with legal counsel to review procedures and case law. Summary The subject of employee and labor relations examines how to effectively manage the expectations and relationships between employees and management. It creates a framework to handle and resolve conflicts that arise between members of the team and, in some cases, provides guidance on disciplinary action. The labor laws of the United States are intricate and attempt to balance the needs of the company with the rights of the workers to have a fair wage with safe and reasonable working conditions. While union involvement and activity may not be as prevalent as in years past, they still play a vital role in labor within the United States and globally. It is vital that HR professionals understand the restrictions and limitations imposed by laws including the National Labor Relations Act. The HR generalist taking the PHR® exam may be located in a right-to-work state or in a company without organized labor representation. However, this topic is still required knowledge and remains relevant even in these circumstances.
It is still possible to violate provisions of the regulations and laws discussed here if one does not properly understand the context and requirements. Risk is a significant part of business, and great organizations take risks to ultimately succeed in their endeavors. However, unknown, unmitigated risks are unacceptable and will undoubtedly expose the organization to a great deal of potential litigation and liability. HR professionals must be able to effectively identify risks, understand how those risks can potentially disrupt the business, and offer solutions on how to reduce risk profile. They must champion safety practices and enforce standards that protect employees from illness and injury. At the same time, they must know proper procedures and practices to follow when an incident occurs and how to respond in the event of a disaster to recover the organization and maintain its viability. While there is technology available to use as tools to improve risk management, the most effective way is to have trained, knowledgeable workers and management that remain vigilant. Tip: On the day of the exam, it is critical to remain focused. Testing centers are quiet and usually full of other testers. It is an atmosphere that most people are unaccustomed to. Since there are a lot of technical questions requiring analysis and understanding, you must prepare your mind to be ready for the environment. Read the questions carefully, but do not overthink the answer. Remember that the correct response is the best answer for the given scenario and may not necessarily be the same as how your particular company may choose to perform.
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