Midterm Flashcards
Ownership top ten
Client work load Profitability of projects Safety Legal issues Union issues Finding enough people to staff the projects Cost impacts of people and Benifits on project profits Keeping the best people Keeping the rest in line Who will take over from me
Hr top ten
Health care costs Leadership development Performance Managment Retention Strategic hr Succession planning Benchmarking and metrics Future employee shortage Best practices in recruitment Effective use if technology
Recruitment
Referral systems- employee-management Traditional/internet College relations Head hunters- contingency- retained Direct sourcing
Key hr metrics
Head count Retention - total turnover -voluntary turnover -turnover by cohort Training hours/head Cost per hire Time to fill Revenue per fte Profit per fte
Measuring trends
Demographics Retention Head count Revenue per head -build predictive model by # key client facing jobs needed to support x $ volume in revenue
Measuring results
Changes in behavior
Increased % of women / minorities in field operations management
Increase/decrease in A players
Effectiveness measures
Effectiveness measures focus on whether hr programs and practices have the intended effect on employees or talent pools to which they are directed. For example- does training result in in handed job performance.
Measuring performance
Objective performance appraisals
Self assessments
Managers assessments
Frequency of measurement
Measuring quantifiable aspects of job performance
Rating subjective aspects of job performance
Competency based models
Smart goals
Specific Measurable Achievable Realistic Timely Cascade from business strategic loan to annual targets to department then individual level.
Hr dashboard
.Requires company wide ERP with robust talent management / HRIS functionality.
.Allows managers to monitor overall HR performance by key metric for company, division, their area of responsibility.
.Take ownership of managing talent thru metrics and technology.
457(b) plans
Also known as differed compensation plans DCP. They are limited to HCEs. Most plans are full voluntary and are supple tarty to defined benefit pension plans. May not be matched directly.
Human resources functions are successful when these three business objectives are achieved
Accomplishing the purposes of the employer
Supporting other functions interdependly
Returning more profitability than is expected
When human resource function cannot justify its existence with quantifiable numbers
It will not have the trust and support of top management
What are the guiding principals to promote discipline and order?
Principal 1- a sense of common purpose
Principal 2- contextual clarity. Clarify competitiveness realities.
Principle 3- ownership of outcomes
Staffing plan
Organization chart
Job description-essential functions, competences
Career paths-logical next steps, what does it take to move up.
Sourcing model- who owns recruiting
Legal issues
Fair labor standards act- exempt va non exempt
Equal pay act- equal pay for equal work
Age discrimination in employment act- over 40 protections
Title vii and executive order 11246- discrimination and affirmative action
Fair credit reporting act
Retention
4 top reasons people stay in their job
Meaningful, challenging work A chance to learn and grow A good boss Being part of a team Having a good friend at work
Typical sourcing ratios
College relations 5% Employee referrals 35% Manager / industry referrals 20% Direct sourcing 15% Fee paid recruiters 5% Internet 20%
Recruiting sources
Fee paid recruiters
- head hunters charge 1/3 up front
- contingency in 3 installments. Only get paid when you hire someone. Further down the food chain.
Types of recruiters
Employer always pays the fee
.contingency
-% of annual salary to a cap
- fee us earned only if the employer hires a candidate thru their actions
.retatiner
-% of first years total compensation to a cap plus expenses
-fee is earned whether the employer hires a candidate or not
-fee is paid in installments-1/3 on signing, 1/3 on presentation of first slate, final 1/3 on completion
Recruiting models
In house recruiters
- cold calling vs. managing the process
Leveraging hiring managers industry networks
Employee referral programs- bonus$s
Networking with subcontractors, architects, engineering & other project partners
Maintaining a warm bench- manager constantly interviewing for future needs
Or paying for expensive introductions
On boarding
Benifits overview given during recruiting and interview phase. Once offer is confirmed and accepted, detailed Benifits information provided. During the first 30 days, manager and new hire establish expectations as well as short and medium term goals
Healthcare government mandates
Workers compensation Unemployment insurances Federal and state Social security Disability
Flexible Benifits
Invented by an American Can engineer who changed career paths to hr and Benifits
Allowed employees to choose Benifit options offa menu and pay for them with pre tax dollars via payroll deduction.
The silver lining was used to distract employees while employers reduced Benifits and raised the employee share of the cost.
Cost models
Collectively, insured and uninsured health and welfare Benifits, combined with retirement Benifits make up fringe Benifits
They are budgeted as a % of base salary then tracked and passed almog to the client for all project billable staff.
Captives
As a add on to. General liability and other sophisticated risk management programs
Ocip, ccip
Potential profit center if claims can be reduced.
Defined benefit pension plans
Qualified plan under federal government regulation
Makes commitment on the amount of pension Benifits at normal retirement
Company guarantees future benefits and maintains a fund to create a pool from which these Benifits will be paid
Annual funding requirements and return on investments underwrite these future obligations.
DB2
The company takes all the risk
The employees future rearward depends on continued service with the company benefits are not portable
Funding requirements and return on investment assumptions make Db plans difficult to manage
Employees don’t usually understand how these plans work.
DB3
Common formula is x% of high five years of pay in the lat ten years before retirement
May or may not coordinate with social security
Unions continue to maintain their memberships entitlement to this expensive benefit
Construction firms have phased these out for their non union personnel
Db4
Roi have not lived up to the 8% assumption naked into most plans
Market volatility have made reaching long term pension goals unlikely without huge cash contributions
Changes in government regulations have made these plans more difficult to maintain and fund
Interest rate assumptions have created additional volatility
Union and municipalities are now struggling under the burden these plans create
Defined contributions
Any qualified retirement plan subject to federal government oversight that’s funded via a cash contribution to an account in which the employee becomes vested
Includes 401k profit sharing and defined contribution retirement plans
Company contributions are invested either by the company or the employee
Portability- employees can rollover their dc plan balances from plan to plan as they change employers
Dc2
Predictability cost for employers from year to year
Portability reflects employes realty. Gen x will change jobs and even careers far more frequent than baby boomers
Employees take theism associated with having enough saved to retire on
In most models employees manage their own investments within limits established by the employer
401 k
Invented in the 70’s as away for employees to save with tax free $ and supplement their employer Db plans
Today most major construction firms offers a combination of 401k and profit sharing plans
Typical match is .50- 1$ of salary deferred
Investments usually provide 1 choice from each quite style box
(Large cap, mid cap, small cap, vale, bled, equity, cash equivalents, bonds, internal equity
401k6
Employees have not proven to be savy investors
Employers educational efforts have not addressed this issue
Employees have not fared well in the. Armed downturns
Portability is an advantage but risk of future retirement security is not being met.
Profit sharing
Common in construction firms who migrated away from Db plans
Allows them to manage employee contributions based on annual profit performance
Not volatile or fixed % as in other models
Can be a % of pay or a % of profits then allocated based on pay of participants
Ps2
Allocation may favor more highly compensated by adding leverage for compensation above FICA cap
Gives construction firms a way to reward employees for creating profits using tax free dollars
Flexibility allows them to respond to the down cycles that are inherent to our industry
Non qualified- plans used to reward executives and. Other key employees- share in profits.
Serp- supplemental executive retirement plan
Ferried compensation- share of profits, long term incentatives, phantom stock,equity participation
Rabbit rust-funding mechanisms where assets from SERPS or deferred compensation are funding in cash and held by an arms length trustee- still considered to be part of a companies assets in a bankruptcy scenario
