NUT 468 Chapter 7, Spring 2017

+ HUMAN RESOURCES NUTR 468 SPRING 2017 2 + TYPES OF EMPLOYEES 3 + Types of Employees In dietetics practice, four types of employees/workers predominate: 1. Professional Staff 2. Supervisory Personnel 3. Skilled Workers 4. Unskilled Workers The descriptions are meant to describe the groups, NOT individuals within the groups  careful from stereotyping 4 + 1-Professional Staff Individuals who have extensive formal education in a field Have acquired the knowledge & skills to make independent judgments and to function in that field with minimum supervision Entry-level dietetic professionals: have basic skills in nutritional assessment, MNT, community nutrition and foodservice systems  able to work independently as generalist dietitians, requiring minimum supervision  As they gain experience, they become more competent, leading to specialization in a practice area 5 + 1-Professional Staff Specialization: In-depth knowledge and skills in a narrow area of a profession  Practitioner becomes even more proficient and independent in the selected area of practice  Other skills needed for the generalist may be dulled or lost from lack of use Basic knowledge & skills are not synonymous with proficiency  Proficiency: ability to perform more routine jobs with less detailed forethought than the beginning professional needs  Experience is needed in order to be truly proficient 6 + 2-Supervisory Personnel Individuals with authority to oversee and direct the work of subordinates as well as having responsibility for their own work i.e. frontline manager Supervisors must be given an opportunity to acquire the necessary knowledge and skills before being asked to perform the task: i.e. schedule-writing for the first time  not all supervisors are professionals On-the-job training is essential for the supervisor who is not a professional 7 + 3-Skilled Worker Individual who has special training or skills to perform a specific job (i.e. cooks, secretaries, repairmen, etc.) Training/educational process for the skilled worker does not usually require a baccalaureate degree or any formal credentialing Skilled workers do not need micromanagement but may need more intensive supervision when they are new to a job 8 + 4-Unskilled Worker Employee who brings no marketable skills to the job and are trained in the workplace to perform the required tasks (i.e. foodservice workers, housekeeping staff etc.) Trainer may be an experienced peer or the supervisor Often earn minimum wage though not always the case Employer may provide workers with training on literacy 9 + EMPLOYEE EMPLOYMENT STATUS 10 + Employee Employment Status  Employment status:  Full-time  Part-time  Short-hour  Casual/on call  Job sharing  Probation  Temporary  Contract No standard definitions for many of these terms- may have different meaning from region to region or from employer to employer 11 + Employee Employment Status Keep in mind: It is cost-effective to retain employees whenever possible Minimum costs associated with hiring & training a new employee is around $2,500 USD Range can extend beyond $100,000 for upper-level executives 12 + Full-Time Individual designated to work a certain number of hours a week that is considered “full time” by the employer  Typically 40 hours/week (in some settings 37 ½ h/week)  8 h/day x 5 days/week = 40 hours/week 40 hours / week = 40 hours x52 weeks = 2,080 hours per year These 2,080 hours also include paid time off: vacation, holiday, sick, or personal leave Full-time workers may work more than the scheduled 40 hours but they are guaranteed a minimum of 40 hours each week 13 + Part-Time Also works a predetermined number of hours a week that is less than what is considered “full time” by the employer – usually less than 40 hours/week A typical part-time employee may work 24 hours each week Part-time employees may work more than the predetermined number of hours but are guaranteed only the predetermined work hours 14 + Short-Hour A short-hour employee is defined as one who works a predetermined number of hours a week that is less than half time (typically less than 20 hours/week). Usually not entitled to benefits such as health insurance, or retirement programs Some managers use short-hour employees in order to save on costs of providing benefits to workers 15 + Casual/ On Call A worker who is not guaranteed any set number of hours each week but who is scheduled for work as needed Also known as on call Casual is preferred to on call as a term because it recognizes that these employees are frequently scheduled in advance to cover for another employee who is on vacation 16 + Job Sharing  Relatively new concept of having two employees share one full-time job  Benefits: the employer has two individuals who bring their ideas, talents and skills to the job  Disadvantages  Lack of continuity and decreased productivity  A lot of time is spent communicating with each other to avoid duplication of effort or omission of essential elements of the job  No set patterns determining how benefits are allocated, or how vacations are scheduled-determined by employers 17 + Probation Probationary employee: one who is newly hired Has not demonstrated (yet) that he can successfully perform the job for which he was hired Given a set period of time, often 60 or 90 days to learn the job During this time, it is the manager’s prerogative to dismiss the worker “without cause” Dismissal should take place during the probationary period 18 + Temporary Hired for a finite period of time (i.e. to cover a leave of absence, transient need for more employees, students who cover summertime vacations of permanent workers) May or may not be placed on the employer’s payroll If placed on the employer’s payroll:  Usually work for several months which justifies the cost of hiring and training them  Typically work without benefits, though some employers offer pay in lieu of benefits to them 19 + Temporary If NOT on the employer’s payroll: Hired through a temporary employment agency for a published fee i.e. unskilled workers hired and paid through an agency Type of arrangement typically used when shortages in staff are unexpected (illness, two- week vacation when no other staff member can perform job functions) Expensive (paying the employee and agency’s fees) but may be worth it rather than having to train a new employee 20 + Contract  Usually hired to complete a project/do a job that is finite in nature i.e. computer engineers, data entry personnel, graphic designers etc.  Typically not on the employer’s payroll  May be paid a fee for the project or paid an hourly/monthly consultant fee  Fee is higher than if the consultant were on the payroll  Costs are usually offset by the savings of not having to hire, train and provide benefits to an employee  Contractors and consultants must provide their own benefits and pay taxes on the consultant fees 21 + EMPLOYEE COMPENSATION 22 + Salaried & Hourly Compensation Hourly: paid for the number of hours worked vs. salaried: paid a set salary Hourly workers also called nonexempt Salaried workers are called exempt Managers should become familiar with the precise meanings of these terms in their workplaces – these terms do not have universal definitions 23 + Hourly Worker/Nonexempt Paid a set rate for each hour worked Paid at least the minimum wage set by the government Hourly rate for an individual is also known as the base rate Differential rates of pay are calculated based on the base rate  i.e. if a short-hour worker has a base rate of $8.00/hr and is to receive pay in lieu of benefits 10%  actually pay rate for this worker would be: $8.80 ($8.00 x 10% = $ 0.80; $8.00+ $0.80 = $8.80 per hour) 24 + Hourly Worker/Nonexempt Employers must keep track of the time worked by hourly employees (time clock, keeping time sheets, encoded identification badges to enter/exit the workplace) Not guaranteed a minimum salary each pay period May be willing to work beyond the guaranteed number of hours to earn additional hours 25 + Differential Wages Method to reimburse hourly workers for work that is performed either outside of the normal work hours or for extraordinary types of work Managers need to be aware of procedures for calculating wage differentials for workers whom they employ May be mandated by law, union contract, or by institutional policy 26 + Differential Wages  Employees who work more than the guaranteed hours are paid for additional hours worked at the base rate of pay  i.e. If an hourly employee works more than 40 hours per week (i.e. 8 hours/day), the worker will be entitled to “time-and-a-half”) for the hours that exceed 40: base rate x 150%  If the base rate is $8.00 and the employee worked 50 hours in the week:  Calculate base salary for week:  Calculate overtime rate:  Calculate overtime pay:  Calculate gross pay for the week: 27 + Types of Differential Wages Types of Differential Wages Double-Back Additional pay earned if less than a minimum period of time (i.e. 10 hours) elapses between the time an employee completes a shift and begins the next shift Double-Time Pay earned at twice the base rate; used if an employee works excessively long hours (i.e. more than 12 hours in a day) or for many consecutive days (i.e. 8 days); sometimes used for overtime on a holiday Hazard Pay Additional pay given to an employee for hours worked performing a particularly hazardous or distasteful task Holiday Pay Premium pay for time worked on an employee- designated holiday Overtime Additional pay for hours worked in excess of full time; 28 + Types of Differential Wages Types of Differential Wages Pay in Lieu of Benefits Addition to the base pay rate earned by employees who are not eligible for benefits Shift Differential Additional pay for employees who work evenings or night or who come to work very early in the morning; may be paid for all or part of a shift Split Shift Additional pay for working a shift that is non-continuous or “split” into two distinct blocks of time Time-and-a-Half Pay rate of 150% of base rate for overtime (for example more than 40 hours/week or 8 hours/day) Work in Higher Job Classification Employee is paid at the rate for the job performed rather than at that employee’s usual base rate Work in Lower Job Employee earns the usual base rate, even though a lower- 29 + Salaried Employee/Exempt  Employee who has a set salary (usually annual) and who is expected to work until the job is completed  Underlying assumption: a full-time salaried position is roughly equivalent to a 40-hour workweek on average;  May work 50 hours one week and have a lighter workload the next week  Though long hours are common in exempt employment situations, managers should consider the consequences before encouraging this practice:  Employees who work long hours become tired & give up on personal time  May lead to illness, burnout or attrition  Employees who habitually put in longer than necessary hours at work should be discouraged from continuing this behavior 30 + Salaried Employee/Exempt  In order to calculate the hourly pay rate for the salaried employee, it is necessary to know the # of hours to be paid:  For most employees, the number is 2,080 hours per year (40hr/week *52 weeks)  Hourly pay rate = Annual Salary/2,080 hours  Example: Employee makes 30,000 USD/year – His hourly pay rate would be:  $30,000/2,080 hrs = $14.42/hr  If the employee worked 50hrs/week  2,600 hrs/yr  His hourly pay rate would be: 30,000/2,600 hrs = $11.54/hr 2,080 is the number usually used to calculate the conversions 31 + Compensatory Time  Compensatory time is a benefit that is given at the discretion of the employer  Consider an employee who worked 8 additional hours throughout a period of 2 weeks. The employer may suggest to the employee to take one day off on another week of the month  There is potential for abuse when this system is in place  Strict policies should be in place to prevent the accumulation of large number of hours (i.e. employee must use compensatory time within 60 days or else will lose it) 32 + On Call  Some positions require that an employee be available to be called in to work in case of an emergency. It requires that the individual be available during off hours via a beeper, a cellular phone, e-mail etc. (i.e. physicians, pharmacists, dietitians etc.)  Must be stated in the job description as a condition of employment and employees should know how frequently they will be scheduled to be on call  Employers may set up a pay structure to compensate individuals for the time that they are on call or for the hours that they work when they are called in; in other situations, it is paid back in compensatory time off and/or may even be considered part of the job and there is no additional pay 33 + DETERMINING STAFFING NEEDS 34 + Determining Staffing Needs  Employee labor is the single largest expense in foodservice operations  The challenge for managers is to match the number & skill set of employees to the level of services needed  Food service experiences significant changes in meal volume during peak meal time periods  Managers must evaluate the current production and delivery models but also closely monitor the changing industry to find the best mix of equipment and labor for their operation 35 + Why Do we Use FTE ? Important for budgeting purposes, staffing and determining productivity FTEs are obtained by dividing the total number of labor hours worked in a week by all employees by 40; in a year by 2080 36 + Why Do we Use FTE ?  An organization might have 10 FTEs but employs 14 different people because of part-time status i.e.  8 full-time cooks (40 hours per week)  8 FTE  2 cooks employed 20 hours per week  1 FTE  4 food service workers employed 10 hours/week  1 FTE  FTEs= (8 x 40) + (2 x 20) + (4 x 10) = 320 + 40 + 40= 400/40= 10 37 + Full Time Equivalents (FTEs)  A department has:  25 employees x 40 hours/week = 1,000 hours  12 employees x 20 hours = 240 hours  6 employees x 10 hours = 60 hours 1) What is the total number of worked hours/week? 2) How many employees does the department have? 3) How many FTE’s does the department have? 38 + Example 1  A hospital expects to serve 9300 meals for the month of May. The foodservice usually produces 5 meals/labor hour. How many FTEs are required to serve the expected number of meals for the month of May? 39 + Example 1  A hospital expects to serve 9300 meals for the month of May. The foodservice usually produces 5 meals/labor hour. How many FTEs are required to serve the expected number of meals for the month of May?  5 meals  1 hour 9,300 meals  ? hours 9.300/5 = 1,860 labor hours  2080 hours  12 months ? Hours  1 month 2080/12 = 173 hours  1,860/173 = 10.75 ~ 11 FTEs will be needed 40 + Full-Time Equivalents (FTEs) FTEs also used to:  Compare worked hours FTEs versus paid hours FTEs  Worked hours: total number of hours employees are working in the operation  Total paid hours: include both worked hours by the employee and non-worked benefit hours such as vacation, ill leave, holiday pay etc.  Compare budgeted FTEs versus worked/paid FTEs  Worked hours are usually in the manager’s control, whereas total hours paid are difficult to control because of benefit pay (pay in lieu of benefits) 41 + Example 2  A foodservice company has budgeted positions for 8 worked FTE and 8.50 paid FTEs. 1. Calculate the number of worked hours budgeted for a week: 2. Calculate the number of paid hours budgeted for a week: At the end of a week, the company has noted the following:  Total of 328 worked hours; Paid total of 345 worked hours  Calculate worked FTEs for the week  Calculate total paid FTEs for the week  What do you think has happened during this week? 42 + Staffing  Staffing: Determination of the type & number of employees that are needed to carry out the work of an organization  Staffing decisions most typically occur because of attrition, growth or reductions in force (RIFs)/layoffs 1. Determine what work needs to be done, the skills needed to do the jobs and determine which members (and their level) of the workforce are likely to have those skills 2. Describe the jobs: job specifications and job descriptions (sometimes job analysis is important) 3. Determine the budget 43 + Staffing Ratios in Dietetics – Hospital Management  There is no validated staffing ratio model that is universally accepted  Every hospital or facility is different with unique needs & challenges  A variety of tools and models exist to help determine what’s right for a facility 44 + LABOR SCHEDULES 45 + Labor Schedules – Master Schedule  Management tool used to designate the hours and days each employee is to work  Management’s needs are the primary needs to be met through the work schedule  Planning labor schedules with fairness, consistency and consideration for the needs of employees  Employee preferences are to be taken into consideration whenever it is possible; employees must be able to anticipate days off and be able to plan their lives  Using work schedules to punish or show favoritism is dangerous practice. Lack of fairness will undermine the credibility of the manager.  Weekends, holidays, vacations, shifts etc.  Important to consult with the employees before posting the schedule 46 + Labor Schedules: How and Where to Start?  Step 1: Know how many workers are needed each day and what positions need to be covered.  Step 2: Enter days off: regularly scheduled days off, holidays, vacations, and special requests  Step 3: Write in hours for all full-time employees to ensure that they are scheduled for their guaranteed number of hours  Step 4: Schedule the guaranteed hours for part-time and short- hour employees  Step 5: Schedule casual employees to fill in positions as needed  Step 6: Consider cost-effectiveness (cross-trained employees) 47 + Sample of Employee Schedule 48 + Labor Schedules  When possible, days off should be scheduled consecutively  Schedule work hours that are as consistent as possible (either day shifts/evening shifts or afternoon shifts)  In some cases managers can delegate the preparation of schedules to the employees themselves. Employee Schedule Fair & Employee Friendly Not-employee friendly, power abuse by managers Increased job satisfaction and trust in management Fatigue, injury, resentment and loss of productivity