Holiday Hiring: HR Hiccups to Avoid
With the holidays upon us, seasonal hiring is well underway. This is especially true for the retail industry, where companies are eager to make a good impression on more than their usual number of customers during the biggest shopping time of year.
A recent holiday hiring forecast expects seasonal employment gains in the retail sector to significantly outpace 2013, when 786,200 workers were added to retail payrolls during the final three months of the year. This year, retailers alone could add more than 800,000 seasonal workers for the first time since 1999.
Whether they're hiring to fill a full-time position or a seasonal one, employers need to dedicate the proper resources to doing so. It's important to spend the time needed to find a job candidate that's a good fit; follow all standard new hire procedures; ensure proper pay practices; and comply with all federal and state laws.
When companies are forced to hire too quickly, fundamental hiring practices can be overlooked. Below you'll find a few tips for holiday hiring:
1. Understand Affordable Care Act (ACA) implications. Hiring new employees has the potential to alter ACA obligations. The federal government has published rules that provide guidance on the employer mandate, including rules relating to seasonal employees. As retailers ramp up for seasonal hiring, it's important to review these rules to ensure compliance.
2. Avoid misclassifying employees. In some instances, employers erroneously believe that they can classify temporary workers as independent contractors because of their temporary status. This isn't the case. Employers must satisfy specific federal and state tests, such as the IRS Common Law Test, in order to classify a worker as an independent contractor.
3. Don't rush to hire. When you need help quickly, it's tempting to cut corners to get employees working. Time is of the essence, but a bad hiring decision can impact your company for the long term. Hiring the wrong person for the holiday rush could negatively impact your current well-performing staff and, in turn, generate a negative workplace environment that ultimately affects customers.
4. Stick with your traditional training. Don't forgo employee training in order to pull someone on board quickly. You'll be doing your new employee and the whole company a disservice. Part-time and temporary employees should generally receive the same training as other new hires in the areas of anti-harassment, nondiscrimination, safety and other important workplace issues.
5. Don't overlook new hire requirements. Hiring a new employee triggers a number of responsibilities, from notice and reporting to documentation. Sometimes overlooked, these requirements aren't limited to full-time employees.
This holiday, retailers need to take their seasonal hiring seriously to avoid HR blunders. It's also important to keep in mind that good seasonal employees can turn into even better year-round employees if the need is there and the work is great — all the more reason to search carefully and dedicate the necessary time to bringing new employees on board properly.
Michael Pires is the division vice president of business development and innovation at ADP, of provider of payroll services, employee benefits administration and human capital management solutions.
