Effective Hiring Process
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1 Effective Hiring Process Announcing an Opening Critical Application Components Screening and Interviewing Applicants Questions You Cannot Ask Background & Reference Checks Making Contingent Offers of Employment Employment Eligibility Verification (I-9) Post-Offer Medical Examinations Employee Orientation Other Resources Tool Kit: I-9 Form Sample RTW Policy Statement
2 Introduction Texas Mutual Insurance Company is committed to providing our policyholders excellent customer service. We support these services through education and consultations. We know that creating a safe and healthy work environment for your employees can be a complex challenge. The first steps toward meeting that challenge are to develop and implement an effective hiring process. We designed this guide to be a reference for employers. It is not a complete or comprehensive guide. It should be supplemented with more detailed information to ensure the professional and legal administration of your hiring process. It is not meant to replace legal guidance. You should address any questions about your legal responsibilities to an attorney experienced with employment laws. 08/2006 Total Safety Culture 2
3 Announcing an Opening Filling a vacant position or creating a new one does not have to be a dreaded task. With the right hiring process, it should be a positive experience for your company, a chance to energize your staff with fresh ideas from a new employee or an existing employee in a new position. The key, of course, is getting the right person for the job. There are at least six different approaches to posting a vacancy. Each method has advantages and disadvantages, and you should review them before choosing which method best suits your needs for filling a position. Method 1: Internal Postings Advantages Allow career advancement for existing personnel Have no advertising fees Can begin immediately without waiting on an external publication s schedule Can reduce training time (current employees may know more about the job requirements) Disadvantages Reach fewer prospects May not advance workplace diversity May be less likely to attract a fresh perspective to the position May lead to a quick-fix replacement who is not well-suited for the position s long-term needs Get quicker results, allowing the employer to fill the position faster Method 2: Internet Advertising Advantages Can reach a large, diverse population Is generally less expensive than traditional print advertising Is easy to post, using either the company s website or an online employment service Disadvantages Only reaches candidates with Web access Can lead to jumbled résumés due to formatting incompatibility May not reach qualified, employed applicants who won t post their résumés on the Internet for fear that their employers may find out 08/2006 Total Safety Culture 3
4 Method 3: Newspaper/Trade Publication Advertising Advantages Can target specific, hard-to-find skills Ensures good exposure in general population Disadvantages Is relatively expensive May not get noticed if the ad is small or is surrounded by larger ads Allows for diversity in applicants Method 4: Texas Workforce Commission Is inexpensive Advantages Reaches a large number of local potential candidates Disadvantages Limits access to highly skilled applicants Generally only reaches unemployed individuals, not those looking for a job change Can increase diversity in workplace Method 5: Publications or Job Fairs for Recent Graduates Advantages Reach educated, highly skilled applicants Can also help promote the company within the community Are relatively inexpensive Disadvantages May attract applicants who lack practical work experience May inundate company with potential candidates, requiring more time to sift through applications Exclude qualified, experienced candidates from search 08/2006 Total Safety Culture 4
5 Method 6: Private Employment Fee Company Advantages Can be effective in finding candidates with specific trades and skills Can increase diversity in the workplace Is expensive Can be slow Disadvantages 08/2006 Total Safety Culture 5
6 Critical Application Components Why require potential employees to complete a written application? An application allows you to get pertinent information from each potential employee in a standard format. Maintaining applications with their accompanying résumés helps you document your screening and hiring processes. Federal Equal Employment Opportunity regulations mandate that most employers keep completed applications and accompanying résumés for one year. Applications provide an effective means of alerting potential employees of your company s terms and conditions of employment. Tips on using applications Have your application form reviewed by qualified legal counsel for content. Educate your staff involved in the screening and hiring processes about lawful and unlawful questions to ask applicants. If you have no current job openings, do not issue applications. What should your company s application packets include? Your application packet should include: an Americans with Disability Act (ADA) accommodation statement, an Equal Opportunity Employer statement, space for the applicant s employment history, a certification of truthfulness, an acknowledgment of the company s at-will employment policy (for non-union shops), a post-offer physical examination authorization form, a drug testing authorization form, and if you are using a third party to conduct a background check, a consent form compliant with the Fair Credit Reporting Act. For detailed explanations of each of the application components listed above, see Pages 7 10 and /2006 Total Safety Culture 6
7 Americans with Disability Act (ADA) Accommodation Statement On the front cover or top of your company s application, include a statement such as the following: Consistent with the requirements of the Americans with Disability Act (ADA), applicants may request accommodations needed to participate in the application process. You should also make job information, including applications, available in a location that is accessible to people with mobility impairments. Should an applicant need assistance completing any application forms, your staff should be available to help. Equal Opportunity Employer Statement Make sure your applications state your compliance with anti-discrimination laws. See the sample statements below. The ABC Company is an equal opportunity employer dedicated to a policy of compliance with all federal, state and local laws regarding nondiscrimination in employment. No question on this application is intended to secure information to be used for unlawful purposes. Applicants are considered for all positions without regard to race, color, religion, sex, ancestry or national origin, age or veteran status. In addition, ABC Company does not discriminate on the basis of physical or mental disability where essential functions of the job, as reasonably accommodated, do not require such distinction. No question on this application is intended to secure information for unlawful purposes. Employment History Your application should ask the applicant to list employment history, starting with the most recent (and up to four previous) employers. The form should also ask the applicant to explain any gaps in his or her employment history. You should also ask for the names and telephone numbers of prior supervisors so you can check an applicant s references. Ask the applicant if he or she has ever been terminated or asked to resign from a previous position. 08/2006 Total Safety Culture 7
8 Certification of Truthfulness The application should include a statement for the applicant to read and sign, acknowledging that the statements contained on the form are truthful. See the sample statement below. I certify that all of the statements in this application or accompanying forms are true and complete. I understand that any offer of employment is conditioned on a background check. I hereby authorize ABC Company to investigate all statements contained in my application or accompanying forms, and to contact my former employers. I understand that any false statements, omissions, or misrepresentations will constitute sufficient cause and reason for either refusal to hire or termination from employment. At-Will Employment Acknowledgment (Non-Union) The application should state that employment is at-will. See the sample statement below. I understand, acknowledge and agree that unless otherwise expressly agreed to in writing signed by a duly authorized official of ABC company, if employed, my employment will be at-will and without fixed term and that either of us may terminate the employment at any time with or without prior notice and with or without cause. Post-Offer Physical Examination Authorization If your company requires a post-offer physical exam, you should require the applicant to sign a consent statement on the application form. See the sample statement below. If extended an offer of employment, I consent to undergo a physical examination by a health care professional selected by ABC Company. I understand that my employment is conditioned upon the results of this post-offer examination. Be sure that any post-offer physical exams comply with ADA requirements. Exams should be conducted only after the applicant has received a contingent offer of employment. You must require examinations of all company applicants or all applicants for a specific job title. In other words, if you require one applicant for a designated position to submit to a physical exam, you must require ALL applicants for that position to submit to a physical exam. 08/2006 Total Safety Culture 8
9 Drug Testing Authorization If your company requires a drug-screening test, then the application for employment should contain a consent statement for the applicant to sign. See the sample statement below. If extended an offer of employment, I consent to undergo a substance abuse test in accordance with ABC company policy. A copy of the company s substance abuse policy shall be provided to all applicants prior to administering the test. 08/2006 Total Safety Culture 9
10 Screening and Interviewing Applicants Organized processes for recruiting and hiring employees will help you fill vacancies efficiently. You may also use these processes as an effective defense should someone file a charge of employment discrimination against your company. Suggested starting points for organizing the hiring process Documentation Keep documentation (such as a file, notebook or electronic ledger) regarding your advertising and recruiting efforts for each job opening. Maintain records of the completed applications, along with accompanying documentation provided by the applicant, for at least one year after you fill the position. In your files, note the job title, the dates that you opened and filled the positions, and the name of the person you hired. In an electronic file, you can do this by using a spreadsheet or table format such as shown below. Position Date opened Date filled Name of hired employee Machinist 09/06/00 09/22/00 Pat Smith Sales 12/08/00 12/12/00 Kelly Jones Engineer 02/10/01 02/28/01 Chris Taylor Keep a record of the methods you used to advertise or recruit for the openings. Include copies of published advertisements, job notices sent to schools or employment agencies, and all other postings. Should a legal challenge occur, this documentation is vital. It may also provide valuable data to help you evaluate the cost effectiveness of each hiring method. Again, you can do this by using a spreadsheet or table format such as shown below. Position Date opened Advertising and recruiting methods Machinist 09/06/00 Dallas Morning News (09/06/00) Texas Workforce Commission (09/12/00) Mid-Cities Vocational School (09/12/00) Sales 12/08/00 Internal Posting (12/12/00) ABC Company Web site (12/15/00) Engineer 02/10/01 Jones Staffing Service (02/11/01) ABC Company Web site (02/11/01) Advertising method that reached hired employee Vocational School Internal posting Web site 08/2006 Total Safety Culture 10
11 Screening and Interviewing Qualified Applicants Review the résumés that you received in response to your advertisement or posting. Set aside those that do not qualify for the position. Provide an application for any applicant who physically visits your company and requests an application. Allow them to complete it onsite, mail it, or return it in person at a later date. For those top résumés or applications that meet the posted job qualifications, set aside time to conduct interviews. Contact all selected candidates to arrange times for interviews. Have each complete a standard application form before the interview. Use a copy of the written job description to help you review the applications. You may also want to keep it handy when interviewing candidates. You may want to conduct a telephone interview to help you screen candidates prior to setting up an onsite interview. Develop a list of predetermined, authorized questions to ask the candidate. This can make the interview flow easier. Hold onsite interviews in a location that is accessible for any person who may have mobility impairments. Be ready to make any reasonable accommodations to assist such a person with the interview process. 08/2006 Total Safety Culture 11
12 Questions You Can and Cannot Ask Below are some examples of questions that a prospective employer may and may not ask of a potential employee. Make sure whoever conducts your company s interviews is familiar with this list. You can ask: What relevant educational experience do you have? Tell me about your work experience. Have you ever been terminated or asked to resign from a job? If so, why? Have you ever been convicted of a crime? Our regular workday is 8:00 a.m. to 5:00 p.m. five days per week, with overtime as required. Are you willing and able to meet these requirements? This job requires lifting of boxes weighing up to 50 pounds. Are you able to perform this function? If not, is there an accommodation that would enable you to do so? This is a non-smoking workplace. Are you willing to comply with that policy? You cannot ask: Have you ever filed a workers compensation claim? Do you have health problems? Do you plan to have children in the future? How old are you? Do you have any emotional or mental problems? Are you an alcoholic? Do you smoke cigarettes? How much sick leave did you take last year? Keep a log of the applicants you interview. A sample log may look like this: Position: Machinist Date opened: 09/06/00 Date filled: 09/22/00 Applicant name Application Interview Disposition received date Sam Williams 09/07/00 09/09/00 rejection letter sent 09/10/00 Pat Adams 09/16/00 09/20/00 rejection letter sent 09/21/00 Pat Smith 09/15/00 09/19/00 contingent offer 09/21/00 hired 09/22/00 08/2006 Total Safety Culture 12
13 Background and Reference Checks You may wish to consider using a qualified third-party company to conduct applicant background checks. Depending on your requirements, background checks may involve a criminal record check, motor vehicle record check, credit check, education verification, and employment verification. In completing a background check, you must also comply with the Fair Credit Reporting Act, which requires you to get the applicant s consent beforehand. Some employers use a third-party company to provide an unbiased, consistent method of obtaining the needed information, thus freeing their staff for other duties. Third-party background checks can be expensive, depending on the amount of information you are requesting. It is prudent to limit your inquiries to information actually relevant to the hiring decision. For example, a position that does not involve handling money or valuables should not require a credit background check. If you reject a candidate due to credit information, ask your lawyer for legal advice before you notify the candidate of your decision. If you choose to conduct your own background checks, start by calling the candidate s personal references. Be sure to document each response about the candidate s reliability, trustworthiness, character and work ethic. When calling former employers, please note that many companies have a standard policy that limits the amount of information they will release about former employees. Generally, these companies will provide dates of employment and position held. Document the information they provide. If the candidate lists former supervisors, you should make an effort to contact them. Often, former supervisors are more forthcoming with information. Remember, however, not to ask any prohibited questions, such as shown at the top of Page 13. Again, be sure to document the responses. 08/2006 Total Safety Culture 13
14 Making Contingent Offers of Employment Make an offer of employment, contingent upon the successful completion of a post-offer physical examination or substance abuse test, if required. Document the offer in writing, noting any contingencies. Specify the starting pay and start date. Quote pay scale according to pay schedule (weekly, biweekly, monthly). Do not quote pay scale on an annual basis. The applicant could perceive an annual quote as a minimal annual contract. Do not represent that the employment is for any specified duration or terminable for cause only. 08/2006 Total Safety Culture 14
15 Employment Eligibility Verification, Form I-9 The U.S. Department of Justice Immigration and Naturalization Service requires that individuals you hire are legally eligible to work in the United States. They enforce these laws by requiring all new hires to complete and have on file an I-9 form. This form both establishes identity and employment eligibility. Failure to have the form completed and on file can lead to substantial fines and other penalties. The form should be completed on the first day of employment and cannot be used prior to that because of the possibility of the information being used to illegally discriminate. On the back of the form, there is a list of acceptable documents that establish both identity and employment eligibility, and employers cannot specify which of these documents they will accept from an employee. The form must be signed and dated by both the employee and representative of the employer. The I-9 form can be downloaded from: 08/2006 Total Safety Culture 15
16 Post-Offer Medical Examinations A post-offer medical examination is a good tool in helping to determine if a person can perform the essential functions of their job in a safe and effective manner. A well-designed and managed program is essential to the success of this tool. To comply with ADA regulations, the medical provider must conduct the medical examination as a separate, second step of the selection process, after the employer has extended a contingent offer of employment. The employer cannot select-out applicants with known or perceived disabilities for a medical examination. Use a qualified medical provider who is familiar with your company s operations and essential job functions. If possible, give the medical provider a tour of your facilities, and let him or her observe work in progress. Give him or her a copy of written job descriptions, and identify their physical requirements. Remember, the results of the physical examination should only address two concerns: 1. Is the candidate currently able to perform the specific job (with or without an accommodation)? 2. Can the candidate perform the job without posing a direct threat to the health and safety of self or others? Keep all information concerning medical examinations in a designated, confidential file. Only release the information to supervisors or managers if the employee requires restrictions on his or her work duties or in the event of a medical emergency involving the employee. 08/2006 Total Safety Culture 16
17 Employee Orientation Provide orientation training to all new employees before their initial work assignments and to all current employees who receive a different task or job. At a minimum, the orientation program should include a review of the company s policies and procedures, a tour of the facility, and appropriate training. Review of company policies and procedures An employee handbook is an effective method of documenting that you communicated company policies and procedures to an employee. Obtain a signoff sheet from the employee at the conclusion of the orientation session that verifies his or her receipt and understanding of covered information. If the employee cannot read or understand English, provide or translate the information into a language that the employee understands. Review company return-to-work policy A return-to-work policy helps minimize the human and monetary costs of on-thejob accidents. Your policy should explain how the company will help injured workers get well and return as productive members of the workforce. Tour of the facilities Give new employees a tour of the facilities. Show them the restrooms, their workstation area, and places where they may take lunch and other breaks. If applicable, show them how to use the time clock and where the locker room is located. Introduce them to their supervisor (if they have not already met) and their immediate co-workers. Training The supervisor should cover specific work and emergency procedures, equipment that is used, and safety requirements with new employees. The supervisor should encourage new employees to ask questions. Do not release new employees to work alone until the supervisor feels they are familiar with their surroundings and able to perform their assigned tasks in a safe, productive manner. 08/2006 Total Safety Culture 17
18 Other Resources Society for Human Resource Management Contact Information Society for Human Resource Management 1800 Duke Street Alexandria, Virginia Phone: (703) Fax: (703) Web: 08/2006 Total Safety Culture 18
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22 Sample Policy Statement for the Return-to-Work Process (Company Name) is committed to providing a safe and healthy workplace for our employees. Preventing injuries and illnesses is our primary objective. If an employee is injured, we will use our return-to-work process to provide assistance. We will get immediate, appropriate medical attention for employees who are injured on the job, and we will attempt to create opportunities for them to return to safe, productive work as soon as medically reasonable. Our ultimate goal is to return injured employees to their original jobs. If an injured employee is unable to perform all the tasks of the original job, we will make every effort to provide alternative productive work that meets the injured employee s capabilities. The support and participation of management and all employees are essential for the success of our return-to-work process. President 08/2006 Total Safety Culture 22
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