VOL. 30, NO.

2 AUTUMN 2004

Employee Relations
L A W J O U R N A L

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Tel 856-661-1900
Fax 856-661-1919

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Egg Harbor Twp., NJ 08234
Tel 609-645-1881
Fax 609-645-9932
The Human Resources
89 Headquarters Plaza North
14th Floor, Suite 1472
Bank Account
Morristown, NJ 07960
Tel 973-605-1799
Fax 973-605-1344 By: Kenneth R. Gilberg
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Fax 302-351-1919
“Reprinted with permission from the Autumn 2004 issue of the
Employee Relations Law Journal”
www.flastergreenberg.com

The Human Resources Bank Account
Kenneth R. Gilberg
The author believes that developing and implementing
a proactive human relations strategy is crucial for businesses.
Here, he explores the components of such a strategy.
I nvesting—how, what, when and where? The in’s and out’s of
financial investing is a significant focus of many people today. But
let’s talk about a different type of investing - people investing.
The premise is simple. Invest in your people and continually make
“deposits” as often as possible because from time to time, you will have
to make withdrawals. The key is to make enough deposits so that you
don’t go bankrupt.
Bankrupt employee relations lead to poor productivity, poor quality,
unionization, and law suits from disgruntled employees. Developing and
implementing a proactive human relations strategy is the key to making
deposits and avoiding bankruptcy. The components of such a strategy
can be broken down into nine categories:
• Employee Recruitment and Selection
• Orientation
• Fair and Competitive Wages and Benefits
• Personnel Policies and Procedures
• Progressive, Corrective, Disciplinary System
• Educated and Trained Supervision
• Effective Two-Way Communications
• Employee Involvement and Identification
• Audit System/ Checks and Balances
Kenneth R. Gilberg is a shareholder in the Employment and Labor Law Practice Group
at Flaster/Greenberg P.C. You can reach Ken at 215-279-9915 or
kenneth.gilberg@flastergreenberg.com.
VOL. 30, NO. 2, Autumn 2004 68 Employee Relations Law Journal
The Human Resources Bank Account
EMPLOYEE RECRUITMENT AND SELECTION
Basic to the needs of any effective human resource strategy is the
development of a hiring system that will help you select the ideal
employee complement. Many employers talk about careful recruitment
and evaluation of potential employees, but few devote the time to
preparing questions to help select those individuals who will not only be
able to perform the task required but who also will fit into the “culture,
life style and physical environment” of the employer.
To begin, a composite or profile of the ideal employee should be
developed. Conversely, characteristics of the so-called employee from
hell also should be prepared. These are not personality characteristics,
but rather the behaviors and attitudes which will be the most desirable
and compatible (or least compatible) with your particular workplace.
Once the desirable characteristics have been determined, a series of
questions to help ascertain the ideal employee should be prepared. For
example, if imitative is an important behavior, a question to consider
asking would be: what do you consider to be the most important
contribution you have made at your last job? Multiple interviews and
scoring sheets help maintain accuracy and consistency in the selection
process, and also form an evidentiary base to defend against claims of
discriminatory hiring.
Since the screening and interview processes is critical in determining
what desired profile attributes a new hire possess, interviewers also must
be trained in reviewing and analyzing employment applications and
supporting documents. Sufficient time and an appropriate interview
environment signal the importance of the interview and provide a good
“first impression” for the applicant. It also begins the communication
process, one of the most essential components of a proactive employee
relations program. When implemented properly, the applicant should
leave with very positive feelings about the company which is obviously
helpful for recruiting purposes and also may lead to a positive public
perception about the company.
ORIENTATION
Most employers spend little time orienting a new employee into the
culture of the work place. Often the orientation is assigned to a
supervisor or employee who happens to be available at that particular
moment. Instead, a designated individual should be educated and trained
to introduce an employee to the workplace. In addition to task related
information, such as reporting times, how to clock in, location of locker
room, bathrooms, etc., sufficient time should be spent with the employee
informing them about the company, its culture, and how employee
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 The Human Resources Bank Account
problems are addressed and resolved. Information about the history of
the company, as well as its employee relations philosophy should be
reviewed and discussed.
A follow-up orientation 45 to 60 days after a new employee has
started can be an effective way to root out problems and concerns,
misinformation and misperceptions and is key to maintaining and
retaining a productive employee. Both the initial orientation and follow-
up orientation are valuable tools in the communication process that is so
critical to making deposits.
FAIR AND COMPETITIVE WAGES AND BENEFITS
Money and benefits are important to employees. However,
employees are often willing to accept less than they think they deserve
provided they believe the compensation is fair based on the company’s
economic status and treatment of employees. Business owners should
determine what other employers in their industry and competitors in
their geographic area pay their employees. Thereafter, a business
decision should be made to compensate employees at a certain
percentage of the market group. When business is strong it may be
prudent to increase the percentage. When business is weak and a
company cannot maintain its percentage, employees should be told why
and what needs to be done to increase the percentage.
When employees understand why a situation exists they are likely to
accept or go along with it. That does not mean employees agree with a
decision or situation - it simply means they are willing to go along with
it. Also, rather than being resentful, informed employees are likely to
give extra effort to help improve the situation or change it.
PERSONNEL POLICIES AND PROCEDURES
Many business owners are not comfortable with formalized policies
for hiring, firing, rewarding or developing employees. Instead, they
make personnel policy decisions based on personal preferences. But that
is an inconsistent and time consuming way of managing personnel and
can breed employee resentment, as well as law suits based on
discrimination. Eventually, most business owners find that personnel
administration is more successful when policies are uniformly applied
and documented in a handbook or policy manual that is easily read and
accessible to everyone.
Most companies, even those with just a few employees, would
benefit from an employee handbook. A carefully and properly drafted
handbook answers the most important questions employees ask about
such subjects as compensation, holidays, benefit programs, and leaves of
absence, without creating a contract of employment. It keeps all
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The Human Resources Bank Account
employees informed about company regulations governing working
hours and breaks, and also advises them about other important policies.
Legally required policies, such as a sexual harassment policy, also
should be included. Equally important, an employee handbook provides
supervisors with a reference point to make consistent policy decisions
and gives them the support needed to enforce policies.
PROGRESSIVE, CORRECTIVE, DISCIPLINARY SYSTEM
Employees want to be treated with dignity and respect. Most
employees also want to know what is expected of them, particularly
from a productivity and quality standpoint. Employees understand that
failure to meet required standards should result in disciplinary action,
including termination. When employees are made aware of rules,
policies, procedures and performance expectations and they have been
provided with the education, training and equipment necessary to
perform and rules are enforced consistently they can accept disciplinary
action. Just as important is the fact that when an employee is treated in
this way, the likelihood that the employee will bring a legal action is
reduced and often eliminated. Similarly, employees must be told why
they are being discharged. Employers often sugar coat the reason or
provide no reason for discharge and when no explanation or a false
explanation is provided, employees feel cheated and assume they have
been discharged for an unlawful reason.
EDUCATED AND TRAINED SUPERVISION
Properly trained managers and supervisors are critical to any
company’s success. They have a significant impact on employees’
attitude toward their work and the organization. Effective managers and
supervisors can maintain the high levels of productivity, quality and
morale needed for a company to prosper while also eliminating many of
the problems that contribute to employee dissatisfaction.
Likewise, a poorly trained manager faced with the difficulties of a
changing economy, new technologies, and differing worker attitudes,
may find it difficult to manage and motivate the workforce. An inability
to properly manage employees may breed discontent and lead to poor
productivity, poor quality and union organizational activity. In short,
supervisors must be educated to become mini human resource managers.
EFFECTIVE TWO-WAY COMMUNICATIONS
Keeping employees happy, developing trust and commitment to
organizational goals and philosophies, and maintaining productive
morale levels are virtually impossible without management’s ability to
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 The Human Resources Bank Account
effectively communicate with employees. In turn, employees must be
able to communicate to management their expectations, reactions, goals
and concerns. Failure to provide employees with adequate
communication channels results in decreased productivity, poor morale,
wasted resources and often, the intervention of undesired third parties,
such as labor unions and/or regulatory government agencies or plaintiff
oriented attorneys. Solid interactive communication may be the most
important component of the proactive human relations strategy.
There are numerous ways to communicate and it is important to
implement a comprehensive program. Communication styles and
methods must vary depending on the audience and message. For
example, e-mail is a fast and efficient way to reach your audience.
However, it is difficult to provide emotion in an e-mail and the reader
may not interpret it in the way the sender intended. The means to
communicate are endless. The key is to institute sound, open
communication programs to make employees feel good about
themselves, their jobs and their company.
The Human Resources Bank Account
CONCLUSION
Today’s businesses must maximize productivity and quality of product
or service while at the same time eliminating potential liability. Changing
technologies, new employee attitudes and a dramatic increase in the
expansion of individual employee rights coupled with numerous
governmental laws and regulations all place demands on companies that
make it difficult to obtain the level of productivity and profitability that is
so desirable. By implementing a sound, proactive labor relations program
and making deposits to the program and to your employees as often as
you can, your company will prosper and avoid bankrupt human relations.

EMPLOYEE INVOLVEMENT AND IDENTIFICATION

Employees want to feel part of the organization, and rightfully so
since employees often spend more time at work than they do with their
families or friends. Developing a caring, family environment with a true
sense of belonging helps foster commitment, trust, and responsibility.
Employees who do not want to be part of the team move on because of
peer pressure.

AUDIT SYSTEMS/CHECKS AND BALANCES

Auditing and monitoring individual employees, as well as the entire
workforce, on an ongoing basis are necessary. The audit system can be
used to verify the accuracy of the hiring system as well as monitoring
the attitudes and progress of new employees and the workforce in
general. The system also should monitor whether company policies are
being applied consistently and it must be able to evaluate the
effectiveness of management and supervision. Consideration also must
be given to levels of productivity, standards of equality, recruitment
efforts, employee turnover and the number and nature of employee
complaints and concerns. The results of these evaluations will indicate
what changes are needed and whether operating procedures are working
successfully.

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