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The Dreaded "NO-MATCH" Letter
by Roberta Pike
It is quite common for an employer who runs a business that employs numerous people to receive a "no-match" letter from the Social Security Administration(SSA). For those who have never received one, this is a letter that SSA sends out when the name(s) or social security number(s) listed on an employer's W-2 forms do not match SSA records. The purpose of the letter is to notify the workers and the employers of the discrepancy and to alert the workers that they are not getting the appropriate credit for their earnings, which may affect the worker's future retirement or disability benefits.
There could be a very innocent reason why the employee's name and social security number do not match SSA's records. Some of the discrepancies are legitimate clerical errors or cases where the employee's name has changed due to amrriage or divorce.
However, the discrepancy can also exist because the employee is an undocumented immigrant working in the United States illegally.
This is a matter of great concern to the Department of Homeland Security (DHS), and it has recently shifted its immigration fact, the DHS announced a regulation regarding SSA no-match letters, which was supposed to go into effect on September 14,2007. Under this new rule, employers must respond to the no-match letter and take affirmative steps to resolve the discrepancy within a specific timeframe )prior to the new rule, employers were not even required to respond to no-match letters: the letters were merely informational).
The regulation establishes a "safe harbor" provision to protect those employers who take the steps outlined within the prescribed timeframe. However, employers who do not take the required actions run the risk that DHS will deem that the employer had "constructive knowledge" of unauthorized alien employment. The employer will be in violation of federal immigration laws and can then be prosecuted by the DHS and subjected to civil fines, sanctions and criminal prosecution.
At the present time, there is an order in effect from a federal judge in California that blocks the government from enforcing the new rule. This order is a result of a lowsuit filed by a number of labor groups. The groups argued, among other things, that the new regulation violates workers' rights, imposes tremendous burdens on employers and could result in employers firing lawfully authorized workers, if the employers is unable to resolve the discrepancy within the allotted time.
Consequently, the future of the new regulation is unclear. However, if the new reugulations do take effect, employers should consult with counsel to extablish procedures for dealing with the new regulation. LD
Developing E-Mail and Internet Policies for your Company
The ground transportation industry is, as you know, highly dependent upon the use of the Internet and e-mail. It seems like it was only yesterday when a customer's primary method of obtaining service was to pick up a (wired) telephone and place a call with their transportation provider's reservationists. Today, a large and increasing percentage of the requests for service received in this industry arrive electronically through company websites. The Internet has also greatly improved customer service, permitting dispatching personnel to monitor flight delays, weather conditions, traffic conditions, and a host of other variables.
Along with these substantial benefits have come various problems. Employees can and do use the Internet for personal matters such as shopping, monitoring sporting events, playing games, reading and forwarding jokes, and other non-business activities during working hours. Some employees go further, using the Internet to view pornography and other inappropriate material. Aside from constituting an obvious waste of the money you are spending on such an employee, the viewing of inappropriate material can lead to employment-related claims from co-workers, such as sexual harassment claims. Similar claims can arise from non-business related e-mail use. For example, your company can find itself the subject of a race discrimination claim if an employee forwards to his co-workers "jokes" that target minorities, or which may be considered sexually offensive. Such conduct may be viewed by others as creating a hostile work environment. Discrimination and harassment claims aren't the only way employees' misuse of e-mail and the Internet can hurt you. Confidential customer data can be zapped out of your office in seconds by an unscrupulous employee. Computers used in criminal activities, such as drug dealing, can wind up being seized as evidence.
To ensure that your employees are using company resources for proper business purposes, and to reduce the likelihood of harassment and/or discrimination claims, it is important that you institute and distribute a policy governing Internet and e-mail usage. At a bare minimum, such a policy should clearly inform the employee that e-mail and the Internet may only be used to conduct company business, that their usage may be monitored, that they should not expect privacy with respect to their use of company computers, and that any viewing or downloading of pornography or other offensive material will result in discipline or termination. The policy should be distributed in duplicate to each of your employees with instructions that one copy should be signed and returned to management for inclusion in their personnel life. LD
Making Constructive Criticism Effective
by Amy Carter
Think about what you say and when you say it to make a positive impression with your staff.
It's my way or the highway." "There are three ways to do things: the right way, the wrong way and my way." Ever heard these statements? Perhaps you're guilty of uttering them to your employees on occasion. Chances are good they didn't have the desired effects.
Times are tight. Most managers are focusing their attention only on ways to increase profits and decrease costs. However, in this difficult economy, when this method is easier said than done, it's tempting to take out your frustrations on your employees when things don't go as well as you'd like.
Doing so affects how your employees view their jobs, which in turn affects how they treat your customers. Coming in to work only to be yelled at puts an employee in a bad mood. In this service-oriented industry, you can't afford to send disgruntled, unhappy chauffeurs out to pick up clients. Nor can you afford to have bitter reservationists answering questions and handling complaints. (They may agree with what they hear!) Their negative attitudes will certainly come out in every aspect of their job. You can kiss your repeat business good-bye!
"Criticism is part of training," explains Larry Price of Price Limousine & Transportation in San Antonio. "You have to train people and explain why things need to be done a certain way." Offering constructive criticism to your employees ensures that you and your staff are on the same track, striving for the same goal. What's important is that you offer criticism without alienating the people who ultimately make your business successful: your employees. Here are some tips to keep in mind when criticizing becomes necessary.
Think About What to Say Before You Say It
Get your thoughts in order before offering criticism. Gathering your thoughts and feelings about the situation allows you to stay focused on the problem at hand and ensures that you cover everything without forgetting important points. If you think you might forget something, make a list of things you want to cover.
Offer Criticism When It Is Relevant, Not Weeks Later
Don't let time lapse between a situation's occurrence and speaking with an employee about the problem. If confronted initially, an employee remembers the situation more accurately and can better understand the criticism with the incident still fresh in his mind. If something bothers you and you neglect to discuss it at the time, other things may begin to affect the situation that normally would not. Likewise, the situation will continue to grow, and you are more apt to "blow up" at the slightest incident. This undermines your position as well as the initial criticism - which was probably a valid one.
Ask Permission to Criticize
Unsolicited advice is about as pleasant as being stuck in traffic with no alternate route; you know what's ahead and there's no possible way to avoid it. So what do you do? You feel angry about it and are thankful when it's over. Ask before giving your opinions about the situation. "Would you mind if I offer a few suggestions that might improve our call productivity?" This lets the employee know what the ultimate goal is, as well as promotes the message that you are all working together. It also allows you to determine if perhaps an employee tried your suggestions, but was unsuccessful, in which case you can develop a successful solution together.
Know the Proper Time and Place for Criticism
Not only is it embarrassing for the employee to be reprimanded in front of his peers, but it's uncomfortable for other workers to witness the encounter. In private, the employee is more likely to open up about the problem. In public, the employee is more concerned with keeping his dignity in front of other people than hearing what you have to say. Remember: criticize in private, praise in public.
Sandwich the Negative Between Two Positives
Always deliver bad remarks with two counts of good. Let the employee know where he is exceeding your expectations before letting him know where improvements need to be made. Close letting the employee know what other aspects of his job he is performing well. Remind him that you are confident of his potential for success at the company and you are committed to ensuring it.
"You always follow up something negative with something positive" Price says. "Give the employee negative feedback and turn right around and say, 'But in this area you are really strong and doing a great job.'"
Criticize Behavior, Not a Person
Know the difference between criticizing what a person has done and actually criticizing that person. Criticizing a person will put him on the defensive very quickly, and your points will not only be ignored, they will be resented.
"If a guy doesn't quite wear the right suit, you don't go up and say, 'Your suit is outdated.' You say, 'I like your suit, but what we'd like to do is present this image,' and give a reason," Price explains.
Be Specific in Your Dialogue
Telling an employee that he "lacks focus" really does no good. Avoid such general labels as "impatient," "unmotivated," or "careless." They are attacks on character and only leave the person to guess what the true problem is. If the problem is a chauffeur's lack of consideration for customer comfort, let him or her know.
Keep it Simple
Avoid overwhelming the employee by discussing too many things at one time. Gauge his reactions, and be aware of when you should restate your point, ask for reactions or move on to something else.
Don't Criticize Just for Criticism's Sake
In other words, offer a few solutions to how the problem can be resolved. These solutions don't have to be the exact answers, but they should offer the employee an idea of what you're seeking and why the present situation will not meet that goal.
Price suggests having a written plan at the end of the meeting. "People can say they need to improve, but if they don't outline how they're going to improve and start a plan, they're not going to. It gives us a plan, rather than having people say, 'yeah, I understand,' and then just walking out."
Open the Discussion Up
Ask the employee for comments or questions about what you've discussed and if there is anything you can do to help any further. It's important not to lecture the employee about the problem, but rather discuss what has happened and how you both can resolve it. Stay away from phrases suggesting how you would have handled the situation, i.e., "Had I been in that situation I would have..."
Pay attention to the employee's perspective and background. Understand that your view of a situation may not be the exact way things are occurring, or other factors may be affecting the situation that you aren't aware of. "Always take a person's perspective - be it culture, background or upbringing - into consideration," Price says. "Personal issues may also have an effect on a problem. Allow the employee to bring that up if he needs to."
Watch Your Tone
Never raise your voice to employees. It automatically puts people in a defensive mode, and zaps any respect they once had for you. If you must yell to get your point across, perhaps the point wasn't a good one in the first place.
AVOIDING Hiring MISTAKES,
from the Beginning
By Dean Schuler
Starting out, hiring chauffeurs and staff can be a scary process. I recall when I finally broke down and acquired a veteran chauffeur to drive my one car so I could work on growing the business. I had accounts—plenty of them—but they didn't keep me busy on a day-to-day basis. When it was busy, I was running as many cars as the big boys through my local affiliate network. There is no law in the limousine business that says you have to grow to 100 cars. Many operators work in regions where this would be impossible, while others prefer to stay small or midsize to keep the quality high.
Whatever your preference, the day will come when you have to hire people to drive your vehicles, so let's take a look at the hiring process.
When you are writing your help-wanted ad, there are a few things to avoid. Your ad should direct applicants to mail their applications to a post office box not identified with your firm; the same applies to the fax numbers and e-mails you give out for contact. When I ran my ad for the first time in the newspaper some decades ago, I included the name of my firm and the street address. All kinds of characters showed up, some demanding jobs like it was their right. It was considerably harder to tell an applicant "no" in person than it was to reject them over the phone or by never scheduling an interview ... and some of them were harder to get rid of. Needless to say, I changed my ways and means of advertising for chauffeurs rather quickly.
Today we look far and wide for a high-quality applicant. We run the newspaper ads continuously along with Internet ads. We pay referral fees to our existing chauffeurs to bring in new talent. We have mailed advertisements to over 100 churches. Ads in the publications of large churches and synagogues are often quite effective.
Last year we had to staff up for a large event and we tried something new: a fax service that sends a newsletter to a large business list in our region. This worked out extremely well. Schools of all sorts are also an excellent resource; seminaries are at the top of our list. Networking at various local associations is helpful. The keys are to broaden your search and keep at it consistently. Always have your ad ready to run.
When I was a small service I often missed out on available talent because I simply didn't have the positions available.
One time the largest service in town had an exodus of a small group of chauffeurs of high-line, retrainable talent. These chauffeurs went to another large company and stayed there over 10 years until Katrina hit. They were the primary engine propelling their livery to increased market share. They left their first service—the best in town—simply because they did not want to work shifts driving a minibus shuttle contract the firm possessed. You don't want to let too much of this type of talent slip by.
However, I cautiously hire from this group of trained professionals. There are always veterans available in most markets to hire. Hiring personnel from other services usually means you are putting people out there who are set in their ways; it is much harder to retrain people than it is to train an industry newbie. You will find that you have to review hundreds of applications before finding a diamond. Look for people who will share your common vision on how to treat customers, but be prepared for the hard fact that no one will care about your cars like you do. Don't just hand over the keys and forget about the post-trip inspections. Training is essential.
You will inevitably get applicants from out-of-business services who sometimes possess impeccable skills. You will have to decide each case as it comes by your desk. Like many of us I was burned and burned good when I hired another service's cast-offs. I've decided that the applicant must be exceptional in order for me to hire him on full time. While they may have the skills to get the job, they often have a hard time of relearning another service's way to do
it. The best way to go is to ask your friends and accounts if they know anyone who might be interested in working for your service. Train them from the ground up and teach them your way of doing it.
A point to remember is to never try to fit a square peg in a round hole. Keep your pipeline full of new, up-and-coming talent. In the end it is your skill at developing the homegrown talent that makes all the difference. Your people have to be able to clearly see that good things happen at your agency for them. Treat them right and you will never go wrong. LD
Workers' Compensation — It's the Law
BUT IS IT A FINANCIAL DRAIN OR BUSINESS PARACHUTE?
By Jim A. Luff
History and Purpose
n 1902, the state of Maryland enacted the first laws covering and creating a program of workers' compensation. By 1949, all states had some type of program known as workman's compensation. The programs were design to reduce
the need for litigation and the need for injured workers to prove that injuries sustained in the workplace were the employer's "fault" in order to obtain medical treatment and other benefits.
Now known informally as workers' comp, the programs provide insurance to cover medical care and compensation for employees injured in the course of employment.
While programs differ between states, virtually all include weekly payments in place of wages as disability insurance, compensation for economic losses (past and future), reimbursement or payment of medical expenses, and benefits to the dependents of workers killed on the job. General damages for pain and suffering and punitive damages for employer negligence are generally not available in workers' compensation plans, so don't expect to he completely alleviated of civil or even criminal lawsuits as a result of an on-the-job-injury.
The cash benefits are established by state formulas with maximum payment amounts. The benefits are administered on a state level and states require most employers to maintain a workers' comp insurance policy. In a triple protection system applied specifically to our industry, Public Utilities Commissions and airports that grant operating authority frequently require evidence of workers' comp insurance to be maintained on file at all times as a condition of permitting.
Independent Contractors and Workers' Comp
Unfortunately, many operators who skirt IRS and state employment requirements by using so-called "independent contractors" (ICs) have learned the hard way how important and valuable this business parachute can be. When an IC is hurt while performing services and the state determines the IC was under the "direction and control" of the operator, and should have been covered by workers' comp policies, all medical payments, disability payments, and other expenses fall squarely on the operator.
Your general liability insurance doesn't cover worker injuries. Your vehicle insurance may cover some expenses of an injury in a motor vehicle accident, but if the IC hurts his back loading luggage, the expense of medical treatment and rehabilitation will come straight out of the pocket of the operator. Doctors are required to report "industrial injuries" or injuries that occur during the performance of work for compensation. This is how states build models and maintain statistics of injuries to the workforce of America.
The state will then investigate the nature of the job — the true relationship of the worker to the entity compensating the worker. Under a true IC relationship, the IC operates his own business, insures himself, and pays operating expenses out of his pocket. He is, as the term implies — independent. If he performs services for a company, in a car owned and insured by the company, and does not have any risk, he is probably going to be classified as an employee of the company, driving a company-owned vehicle for the company.
Premium Calculation
In most states, workers' comp is provided by private insurance companies, although 12 states maintain their own fund. The companies use a history model of injury types, frequency of occurrence, severity of injuries, and long-term prognosis of injuries, which are then assigned to a specific class of workers of a specific job type. The models are generally provided by state government based on reports of injuries provided on a form called "Doctor's First Report of Injury."
Unfortunately, there is no class for chauffeurs. Because of this, they are thrown in with charter bus drivers who are prone to back injuries from the constant loading of luggage and long hours of sitting. By contrast, chauffeurs spend a great deal of time standing and waiting on clients, yet the same rate for bus drivers is used to calculate the premium for chauffeurs. By comparison, office clerks have a much lower premium than chauffeurs but outside salespeople or anyone else who regularly drives (other than a chauffeur) will have a higher premium rate than the office clerk, simply because there is more risk involved in driving a vehicle.
Premiums are further calculated by the length of time a company is in business, the history of claims or losses, and the total of your payroll. The premium calculation will include a line item referred to as an "experience modifier" or more commonly known as an "EX MOD," which is basically a discount for experience. Obviously, the higher your total payroll, the more employees you have working, and/or the more work you are performing, the higher the risk of a claim being filed.
When calculating workers' comp premiums it is also important to remember to subtract any gratuities paid to your chauffeur on payroll checks. Gratuities are not included in the calculation of premiums. In the event you have submitted payroll amounts in which the gross pay included gratuity amounts, your insurance company will refund that amount at the end of the policy periocl if you ask.
Workers' comp represents a major cost of business for employers and it has always been a hot topic in the livery industry. For the past decade it has remained one of the Top 10 issues in surveys of industry concerns. There is constant political action by both business and labor groups to improve or overhaul the entire system, which is filled with problems ranging from false claims to termination of employees who file a claim. The major issues have remained that business groups seek to limit the cost of workers' compensation coverage, while labor groups seek to increase benefits paid to workers. Obviously, costs must go up to increase benefits.
Shopping for Insurance with Great Rates
0nly recently has the workers' comp insurance arena migrated toward competitive pricing, a move that state agencies have perpetuated to help the troubled market. But even so, the costs of workers' comp policies from one carrier to another remain basically the same.
So, how do you get the best rate? It begins with the application process. The application for insurance is generally completed with the assistance of your agent. The agent then submits the application to the carrier where an underwriter is assigned to review and make determinations about the acceptance, the risk factors, and ultimately the premium. Since it would be rare for you to speak to an underwriter directly, your application and supporting documents must paint an accurate picture of your operations. No one knows your business like you do, including your agent, and they are not going to know unless you tell them. Of course having an agent that specializes in the livery industry can immensely help your presentation of information.
The more documentation you can provide to show how responsibly your company operates, the better you will fare. For instance, if you have an operations policy manual, send it in along with your application. If you hold monthly or quarterly safety meetings, send a schedule of meeting dates, topic and presenter information, including qualifications. If you have a formal training program for new chauffeurs, send the details of the program. If you send your chauffeurs to a defensive driving course, submit the details and copies of contracts or invoices.
Of course, just as with buying any other type of insurance, the company will want a copy of your "loss runs" from your previous insurance carrier. These reports are basically a report card showing how many claims you have had during the term of the policy, what type of claims, and most importantly, how much money did your insurance pay out on your behalf, and what is the current status and expected closure of the claim. Any amount they pay out, such as medical payments, benefits, or other expenses, are considered a loss to the insurance company.
Usually, you will be asked to provide the "loss runs" for the past two or three years. The goal is obviously to have a clean loss run with no history of any claims.
Employee Position Agreements
Bring New Hires Up to Speed
NEW STAFFERS NEED A SOLID UNDERSTANDING OF HOW THEY'LL FIT INTO YOUR COMPANY,. AND WHAT YOU EXPECT FOR THEM TO SUCCEED.
By Renzo Ormsbee
You've worked hard trying to find the right employee for your growing company. You've read resumes, checked references, interviewed, and made your final choice for your new employee. Now what?
Even if you are fortunate enough to choose the best candidates on the first try, are they working daily toward all your company goals?
Position agreements have allowed us to get new employees up to speed quickly and produce at a consistent, high level. We are constantly complimented on our professionalism, and this is the primary reason why.
One of the best ways to start nurturing happy, productive employees is to give them a solid idea of how they fit into your organization.
Let them know your expectations up front for a new position. They must clearly understand what is expected of them daily.
The best way to do this is to start them off with a signed position agreement listing the minimum skills, duties, and responsibilities required for satisfactory completion of all employee tasks and assignments.
Position agreements are similar to job descriptions, but differ in scope and detail. They include verbiage on the reason for the agreement, what is expected physically and mentally of your team member, and skill sets required for each position. They also have an area for signatures to ensure complete buy-in on the items listed, which can prevent future misunderstandings.
The more time you spend designing these documents beforehand and the more times employees reference them during their tenure, the more likely you will end up with effective, quality team members.
Our position agreements have become extensive. Below are some abridged examples of wording in our chauffeurs' agreement.
Structuring Your Chauffeur Agreement
All our agreements start with a specific purpose or definitive statement:
"In return for wages provided to me by Elite Limousines of Houston, I agree to perform the following duties and exhibit the following characteristics as a condition of my employment.
" List duties, responsibilities, skills, and characteristics, such as:
• Drive defensively and safely and obey all traffic laws.
• Inspect tires daily for safety problems.
• Take advantage of customer service "miracle opportunities" to grow our clientele.
• Follow current run coding procedures.
Be specific, reference procedures, and build in redundancy with other position agreements. Note that it is the chauffeur's duty to check tires. This is also the maintenance technician's responsibility. End with "Other duties as assigned"; this keeps the document flexible.
List specific skills expected:
• Defensive driving skills
• Clear communication skills, etc.
Write this document while you are doing the job if possible.If starting from scratch, take time monthly to review it and see if there are any expectations originally omitted. If significant changes are made, take some time with employees to go over the new expectations.
Review the agreement on day one with new employees. Set aside plenty of time to explain each point. Print and go over all referenced procedures if necessary. Ensure questions are answered satisfactorily and have it signed. Make copies for employee reference during training, and keep originals in your locked employee file cabinet. Review the document with them again annually.
Assign mentors to assist new employees. In a large organization, choose employees with similar positions. In a
smaller business, this is probably you. Solicit feedback from mentors to see how your new employees are handling their new responsibilities, and follow up with additional training if necessary.
Your team is responsible for up to 90% of the interaction with your clients. Using position agreements along with ongoing training ensures they are always handling circumstances in the best way.
If your team understands exactly what's expected of them, you've taken your next step toward tremendous success.
LCT
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