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A New Era for Manufacturing

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As baby boomers reach retirement and generations X and Y tweet their way into the workforce, manufacturers face a shortage of skilled workers. No surprise there. Now, if only a small consensus of manufacturers were affected, a simple fix would get the job done: a little less social media and a lot more elbow grease. Unfortunately, the problem is more than hashtag-deep. (#FirstWorldProblems)

Here are three issues the manufacturing industry will need to address, if it hasn’t already.

Issue 1: Qualified workers are harder to find

The committed, hardworking employees keeping your doors open for years are hitting their 60s and starting to retire, leaving a shortage of skills behind. In a recent Deloitte study, 82 percent of manufacturers nationwide reported a moderate to serious shortage in skilled production workers. The same survey indicated that as a result, 75 percent of those manufacturers were unable to expand their business.

In a country where the manufacturing industry by itself could be the eighth largest economy in the world, a lack of solid labor is not for HR to fix alone. If not managed correctly, many vacant positions will be filled with workers whose comparative shortfall in experience and training makes them unable to produce at the same level as their predecessors. If these employees are not brought up to speed properly – and promptly – manufacturing companies will face a vicious turnover cycle.

Because aging is unavoidable, top talent must be recruited or developed.

Issue 2: External hiring may not be the best road

It won’t be long before the older workers in your company start to retire, so it is crucial you take proactive steps now to prevent future problems. Before running to Monster or LinkedIn for hiring, consider the obstacles of external hiring vs. internal mobility. According to a study from Wall Street Journal, external hires were 61 percent more likely to be fired from the new position and 21 percent more likely to leave the company on their own. If your external hire is gone within six months, you haven’t fixed anything. Consider, too, the monetary statistics included in the process.

In a separate study, research showed external hires were paid 18 percent to 20 percent more, yet received lower performance evaluations for several years into the job. To avoid this, consider the workers you already have in surrounding positions. They could produce more in the new position while doing it at a lower cost. When opting for internal mobility, there are fewer distractions and smaller obstacles for the promoted employee, whereas outsiders must deal with new relationships and new scenery while adapting to a high-paced environment. The inside hire is accustomed to the speed, already knows his fellow employees and can focus on learning the position.

Maintain high standards for production and do not pay more for an external hire when a lower-level employee could do it for less money. Looking for an external hire is not necessarily the wrong call, but that road will always be there.

Issue 3: How to leverage talent

Regardless of whether you hire externally, the talent you have still requires development. In the manufacturing industry, this means training and accountability. As manufacturing has evolved, the tools it operates have grown more complex. One tool in particular is Computer Numerical Control machinery (CNC). CNC works alongside Computer Aided Design (CAD) software to convert an image into numbers. These numbers are used like coordinates on a graph for a separate tool to cut a 3D image. Although it can be expensive, continuous employee training, especially with CNC machinery should be in place and up-to-date. One reason manufacturers report a shortage of skills is because managers are frugal in areas where they can’t afford to be. Stay ahead of the game by being mindful of areas where your workers need growth and devote the money to enhance their skills. The cost of frequent trainings will balance out in a reduced amount of manufacturing mistakes.

Second, accountability cannot be underestimated. Many employees go too long without sitting down with their boss and getting feedback on their performance. Regular one-on-ones are an opportunity to keep employees motivated, while challenging them in areas where they need growth. Employees can use this time to ask questions or discuss problems outside the workplace; doing so creates a more positive environment in which they know management cares.

The manufacturing field is vital to the nation and its continued economic growth. By addressing these talent issues, the industry can get the necessary lift to keep producing at a high level. Although they are losing many members of the workforce who helped them reach this point, manufacturers can mold the savvy, social-media-minded millennials into workers who reach heights their parents never could.


Aaron Santelmann

by Aaron Santelmann


Author Bio: A young and enthusiastic writer and researcher, Aaron is an instrumental member of Paycom’s lead generation and reporting team. Aaron is an engaging writer who maintains a strong presence on Paycom’s blog where he focuses on politics, government and compliance, tax guidelines and other employer regulations that impact businesses across the country. Outside of work, Aaron enjoys reading, exercising and spending time with his family.

reverification

Best Practices for Utilizing Section 3 of the Form I-9

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Best Practices for Utilizing Section 3 of the Form I-9

Employers are used to filling out Section 1 and Section 2 of Form I-9 because it’s required for every employee. However, Section 3 – otherwise known as the reverification process– can be a bit mystifying.

Who should be reverified?

Employees with expiring employment authorization or documentation should be reverified to ensure continued authorization to work in the United States. The need for reverification is determined by looking at the List A and List C documents that were presented when the I-9 was initially completed. The work authorization expiration date entered by the employee in Section 1, if any, also should be taken into consideration.

When should the reverification process be completed?

The reverification process should be completed prior to the expiration date of the employee’s authorization or documentation. The expiration date is found in two places: the date provided by the employee in Section 1, and the date recorded under List A or List C in Section 2. If these dates conflict, employers should use the earlier date to determine when reverification is necessary.

The United States Citizenship and Immigration Services (USCIS) recommends reminding employees that their documentation will expire at least 90 days ahead of the expiration date. This gives them time to present a List A or List C document or receipt showing continued work authorization. Paycom’s Document and Task Management system helps to ease the burden on employers by providing reminders 90 days prior to an employee’s reverification date.

When should the reverification process NOT be used?

Knowing when you cannot reverify an employee is important, too. U.S. citizens and noncitizen nationals should not be reverified. Additionally, lawful permanent residents should not be reverified if they provide a Form I-551, Permanent Resident or Alien Registration Receipt card for Section 2. An employee’s citizenship status is found in Section 1, as well as at the top of Section 2. Also, List B documents – even if they expire – should not be reverified.

How do you complete Section 3?

To complete Section 3, simply examine the unexpired documents presented by your employee to determine if they appear to be authentic and relate to your employee. Then, record the document title, document number and expiration date, if there is one. Lastly, sign and date this section. You must use Section 3 from the most recent Form I-9, even if the employee’s original form is an older version.  Likewise, if you previously have completed Section 3 for the employee, you should use Section 3 on a new version of the form and attach it to the employee’s original I-9.

 Other instances in which you can use Section 3

Employers also may complete Section 3 when an employee is rehired within three years of the date that the Form I-9 was originally completed. To complete Section 3 for rehires:

  • Confirm that the original I-9 relates to the employee.
  • Determine if the employee is still authorized to work or if reverification is required by reviewing Section.
  • Enter the date of rehire in Section 3 if the employee’s work authorization is still valid.
  • If expired, request the employee’s valid List A or List C document and complete a Section 3 reverification.
  • Sign and date Section 3.

 

Name Changes

You also can use Section 3 to record when your employee has a legal name change. You are not required to update Form I-9 for name changes. However, the USCIS recommends maintaining correct information on an employee’s Form I-9. Similarly, you are not required to request documentation of a name change from an employee, but it is recommended in order to be reasonably assured of your employee’s identity if the government ever asks to audit the Form I-9.

Paycom’s Document and Task Management solution automates employment verification from within the Paycom system to help ensure compliance and reduce your exposure to audits and penalties from Form I-9 violations. Employees and employers can complete the Form I-9 online, including Section 3, utilize electronic signature verification, and securely store completed Form I-9s and supporting documentation within the Paycom system.

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Posted in Blog, Compliance, Document Management, Featured

Alyssa Looney

by Alyssa Looney


Author Bio: As a compliance attorney for Paycom, Alyssa Looney monitors laws, rules and regulations to ensure that the Paycom software is up to date, specifically regarding immigration law and state law developments in the Western United States. She holds a JD and an MBA from Pennsylvania State University, as well as a bachelor’s degree from Texas A&M University. Outside of work, Alyssa enjoys cooking, being active, playing with her puppy and exploring Oklahoma City.

May the 4th

Disturbance in Your Workforce? May the 4th Be With You

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A short time ago in an employee suggestion box not far, far away, this note from a disengaged employee was discovered.

Dear Management,

Being a real trooper, I’ve faithfully served this empire for many parsecs. But lately, morale here is in the trash compactor. I’m close to “storming” out of here! Here’s why:

  • We don’t feel valued. It’s challenging to work for someone who acts like a dictator. (The black cape? A bit much.)
  • We want a comfortable working environment. These uniforms don’t exactly help. (I have to plan bathroom breaks 30 minutes in advance.)
  • We want to contribute, but we’re afraid the boss will choke us from across the room if he doesn’t like what we say. A little two-way constructive feedback could make a death star-sized difference. 
  • I find our lack of training disturbing. With the literal universe at our fingertips, why do we not have an online learning management system?

A disengaged staff is a real phantom menace. Don’t let this happen; awaken your workforce today with our “What Employees Want” toolkit to help you keep the force in your workforce as strong as possible.

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Posted in Blog, Employee Engagement, Featured, HR Management, Learning Management, What Employees Want

Rod Lott

by Rod Lott


Author Bio: As Paycom’s Creative Services Manager, Rod Lott brings more than two decades of experience in marketing, advertising, branding and journalism. A published author and a graduate of the University of Oklahoma, he has worked with such brands as Blue Cross Blue Shield, Sonic Drive-In and OU.

Paid Family Leave Program

New York to Implement Nation’s Most Comprehensive Paid Family Leave Program

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New York to Implement Nation’s Most Comprehensive Paid Family Leave Program

Private employers in the state of New York will soon be required to provide up to 12 weeks of paid family leave. The new law will apply to all employees of employers covered by the state’s worker’s compensation law and will be completely employee-funded via payroll deductions. Public employers are permitted to participate by opting-in to the program.

Growing Trend

These types of “paid family leave” laws continue to gain momentum. Three other states (California, New Jersey and Rhode Island) provide workers with partial pay during parental leave. Some cities have even joined in on the trend. San Francisco passed a paid family leave program in 2016, and Washington, D.C. also recently approved one that will take effect in 2020.

New York lawmakers championed this law as a pivotal step in the pursuit of equality and dignity in both the workplace and home. “New York enacted the strongest paid family leave plan in the nation to ensure that no one has to choose between losing a job and missing the birth of a child, or being able to spend time with a loved one in their final days,” said New York Governor, Andrew Cuomo, upon passage of the law.

Employee Eligibility

The New York legislation originally passed in April of 2016, but the obligations for employers and employees were announced just recently.

Beginning January 1, 2018, the state’s paid family leave program will provide employees with employment protection and partial wage replacement if they spend time away from work to:

  1. bond with a child (including fostering or adopting)
  2. help relieve family pressures when someone is called to active military service
  3. care for a close relative with a serious health condition

A “close relative” as defined under the law includes a spouse, domestic partner, child, parent (including in-law), grandparent and grandchild. An employee must be employed full-time for 26 weeks, or part-time for 175 days to be eligible for a paid family leave benefit. An employer may permit an employee to use vacation or sick leave while on leave, but may not require its use.

 Employer Impact

The complete 12-week benefit will not be implemented fully until 2021. The amount of paid family leave and the percentage of the employee’s salary paid will be realized over four years:

 

Year Weeks
Available
Max % of
Employee Salary
Cap % of State
Average Weekly Wage
1/1/2018 8 50% 50%
1/1/2019 10 55% 55%
1/1/2020 10 60% 60%
1/1/2021 12 67% 67%

 

Employers will be required to purchase a paid family leave insurance policy or self-insure. The employee will pay the premiums of the policy via payroll deductions, beginning July 1, 2017.

For more information about the phase-in process, calculation of the Average Weekly Wage, or general information on the program, visit the New York paid family leave website.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues problems.

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Posted in Blog, Employment Law, Featured, Pre-Employment, Talent Acquisition, Talent Management

Jason Hines

by Jason Hines


Author Bio: Jason Hines is a Paycom compliance attorney. With more than five years’ experience in the legal field, he monitors developments in human resource laws, rules and regulations to ensure any changes are promptly updated in Paycom’s system for our clients. Previously, he was an attorney at the Oklahoma City law firm Elias, Books, Brown & Nelson. Hines earned a bachelor’s degree from the University of Central Oklahoma and his juris doctor degree from the Oklahoma City University School of Law, where he graduated cum laude. A fan of the Oklahoma City Thunder, Hines also enjoys exploring the great outdoors with his wife and daughter.

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