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Employers often hire workers and categorize them as independent contractors to avoid paying overtime, taxes, and complying with other federal and state labor and employment related laws. In overtime cases the courts and the administrative agencies do not automatically accept the idea that a worker is not entitled to overtime rights by simply categorizing the worker as an independent contractor. The workers are more often than not still employees and can file overtime claims.

The test to determine if a worker is an independent contractor is based primarily on the principal’s right to direct and control the manner and means by which the work is performed. It does not mean the employer has to exercise these rights. If the principal has the right to control then the worker will be an employee, even if the employer never actually exercises the control. When the principal does not have the right of direction and control over the worker, then the worker is independent contractor. The question in most cases is what does the right to control mean.

1. Do you instruct or supervise the worker while the worker is working ?
Independent contractors are free to jobs in any way they see fit. It is the end result that matters for independent contractors. If there are company procedures or if the worker is given specific instructions on how to do the work, then chances are that the worker is an employee.

2. Can you fire the worker at any time or can the worker quit at any time without notice ?
If you have the right to fire the worker without notice, it strongly shows that you have the right to control the worker. Independent contractors are hired for specific jobs and cannot be fired until the job is complete. Independent contractors are not free to quit with little or no notice.

3. Is the work performed part of your regular business?
Work which is a necessary part of the regular trade or business is normally done by employees and not something that would be subcontracted. Something that is done occasionally would be considered work done by independent contractor. Regularly answering the phone to take orders would not be done by an independent contractor.

4. Does the worker have a separately established business?
Independent contractors hold themselves out to the general public as available to perform services similar to those performed for the principal, this is evidence that the individuals are operating separately established businesses and would normally be
independent contractor. Independent contractors are also free to hire employees and assign the work to others in any way they choose and fire their employees fire their employees without your knowledge consent. Independent contractors normally advertise their services and seek new customers through the use of business cards.

5. Is the worker free to make business decisions which affect the worker’s ability to profit from the work?
An individual is normally an independent contractor when he or she is free to make business decisions which impact his or her ability to profit or suffer a loss. This involves real economic risk, not just the risk of not getting paid.

6. Does the individual have a substantial investment which would subject him or her to a financial risk of loss?
Independent contractors furnish the tools, equipment, and supplies needed to perform the work. Independent contractors normally have an investment in the items needed to complete their tasks.

7. Do you have employees who do the same type of work?
If the work being done is basically the same as work that is normally done by your employees, it indicates that the worker is an employee.

8. Do you furnish the tools, equipment, or supplies used to perform the work?
Independent business people furnish the tools, equipment, and supplies needed to perform the work.

9. Is the work considered unskilled or semi-skilled labor?
The courts and the California Unemployment Insurance Appeals Board have held unskilled or semi-skilled are the type of workers the law is meant to protect and are generally employees.

10. Do you provide training for the worker?
When training is required to do the task, it is an indication that the worker is an employee.

11. Is the worker paid a fixed salary, an hourly wage, or based on a piece rate basis?
Independent contractors agree to do a job and get paid for the job.

12. Did the worker previously perform the same or similar services for you as an employee?
If the worker previously performed the same or similar services as an employee, then the worker is probably still an employee.

13. Does the worker believe that he or she is an employee?
When both the principal and the worker believe they have and agreement where the worker is an independent contractor, an argument exists to support an independent contractor relationship between the parties.

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An employee recognition ceremony can be a big, elaborate gala or a small company picnic. An employee recognition ceremony can even be a surprise team meeting where the team leader is recognized by the team and his or her supervisor. It’s not really the employee recognition ceremony that counts, it’s the fact that the employee is being recognized that matters the most.

When planning an employee recognition ceremony the first thing you should do is look at your budget. How much do you have to spend on this ceremony and how many people do you need to accommodate? Your budget will have the biggest impact on the venue and theme of your employee recognition ceremony.

When looking at your budget, you will need to know how many employees are being recognized. Are you planning an employee recognition ceremony for the CEO of the company to be recognized by all of his employees, or is the employee recognition ceremony for a group of employees to be recognized by the CEO?

What kind of gifts will you hand out at the employee recognition ceremony? Expensive gifts will reduce your venue budget. Do you think the employees being recognized will appreciate a gala event with smaller gifts or will they get more satisfaction from a company picnic with more expensive gifts? These decisions are probably going to be determined by the size and type of company you have.

Some of the things that can be recognized at an employee recognition ceremony are outstanding performance, excellent evaluation, high safety standards, meeting productivity goals, and much more. Sometimes an employee recognition ceremony will be held just for the purpose of improving the attitude of the employees when they seem to begin to go sour.

A fun attitude improving employee recognition ceremony is an employee roast. Find some funny gifts or recognition certificates that are meant to tease the employees for things like: the messiest desk or most likely to marry a co-worker or the employee who needs the most frequent evaluations. You get the idea. This kind of employee recognition ceremony will lift the spirits of employees in a rut and improve morale. Be sure to roast someone in upper management in order for the employees to have the most fun.

For the most part, an employee recognition ceremony is one of the best ways to hand out recognition awards and gifts to deserving employees. There are times when an employee recognition ceremony is inappropriate, too. You probably won’t want to host an employee recognition ceremony when handing out compensation awards. An employee’s compensation, even bonus amounts, are a very private matter and should not be discussed or displayed among their peers.

Other than that, the benefits of planning and hosting an employee recognition ceremony are improved morale, an invigorated team, higher creativity, better attendance, and better retention of good employees. Heck, even the bad employees will want to stay around longer in hopes of earning recognition at your next employee recognition ceremony. The ceremony might just be enough to turn your bad employees into good ones.

Patricia Stevens owns and operates http://www.employeerecognitionpoint.com Employee Recognition

I prefer to discuss my contingency fee for delivering a great candidate when I’ve located the Decision Maker and am about two-thirds of the way through completing a job order form. My client has done 90% of the talking up until this point and provided the exact information I need before deciding what my fee will be for this search.

While my client has been talking I’ve been listening closely and taking notes.

The beauty of working as a Recruiter lies in our ability to design how we choose to work. I’m happy to explain how I determine my fee but respect the fact there are dozens of ways to set a fee. Find what works best for you by experimenting. Don’t charge a fee you would not pay.

Many recruiters adhere to setting their fee based on the traditional mindset of a percentage of a candidate’s first years’ salary, say 25%. I’ve always felt that ‘one size fits all’ mentality was limiting. Personally, I set my fee after considering a number of factors. Sometimes I’ve been high and sometimes I’ve been low. Oh well. I don’t care because I make placements consistently and my open-mindedness keeps my clients loyal and attracts new clients like bears to honey.

First, I don’t take searches I don’t want to work on or won’t be able to fill. “Guilt be gone”, is my motto. If I don’t respect a companies’ philosophy or the way they treat employees I won’t help find them new employees to abuse.

It’s important to me that my values match the values of my clients. I don’t preach to anyone. I have developed several succicenct ways to convey to an employer that I’d prefer to back away from their search. If that fails I tell them nicely we are not compatible as my search methods typically surface candidates with long-term goals that do not match this employers’ goals. I advise them using me would not be an efficient use of their resources.

I’m not interested in wasting anyone’s time especially my own. Many of the companies I’ve chosen not to do business with are exceptionally successful in terms of profit. Again, I don’t care. It’s not in my best interest to compromise my integrity when I can make buckets of money, and be happy making placements with companies I’d love to see succeed even more.

Here are some of the considerations that enter into my fee decision. What’s their turnover? What’s the atmosphere like…are employees excited to come to work? Is the employer fair minded? Do they promote from within? Do they help their employees succeed with more training? Is their compensation program competitive? Are they open to employee input? And high on my list, will they work in a cooperative and respectful way with me?

Can my client make a hiring decision fast? The longer their decision making process the more likely deals can fall apart. I want to work with decision makers. I dislike bureaucracies and avoid clients steeped in bureaucrats. When I’ve determined I want the search I set my fee.

As an Executive Recruiter I offer value. I’m picky about the searches I take yet I fill them consistently. I delight my clients by presenting exceptional candidates. I’ve never required a client sign an agreement that they will work with me exclusively. I always send a note as to what we agreed the fee will be and when it will be paid. (All fees are paid within 10 days of the candidate’s start date.) I’ve always received payment.

My fees range from $4,500. to $60,000. Experience has taught me the value of my time and energy. Once I’ve decided my fee I stick to it. If a client wants to negotiate my fee to a lower amount I talk about the value of hiring a candidate that contributes above and beyond what they expect. Typically, they wouldn’t be willing to hire a candidate with 20% fewer competencies they require if I agreed to a lower rate. They don’t want an 80% effort on my part. They want a great candidate, fast.

Know the fee ranges in your industry. Know what constitutes different levels of expertise. Know yourself and what motivates you to deliver the candidate your client desperately wants. Set your fee based on your value and the value your client puts on the person that will make a difference in their organization.

My questions, demeanor, and thought process demonstrate my ability. If the client is unsure about wanting to pay my fee I wish them well and move on. I respect managers have budgets that may not include expenditures for my service. When I develop a client who is willing and ready to hire a great candidate and pay my fee I knock myself out getting an interview set up within 72 hours. I deliver value by providing exceptional candidates fast. That’s what makes placements happen.

Kimberly Schenk has over 25 years experience in business. For 17 of those years she has been an Executive Recruiter and Trainer. She shares her success secrets with Recruiters in her eBook,
Top Recruiter Secrets

There are dozens if not hundreds of ways to source for candidates. Often sourcing comes down to your budget and your personality. There are many helpful, industry specific websites. Independent contractor websites, networking websites, and topic specific chat rooms, are starting points. I always consider ROI and that includes my investment of time.

I know companies who spend wisely on traditional media print ads and utilize every scrap of information that’s generated from those ads. I tend to opt for the reliable direct contact with passive candidates approach. Why? Because basically I’m lazy and cheap.

Once you develop the skill of asking questions up front that matter most to the candidate and listening carefully to the answers, your focus becomes laser like as you fill the job orders at hand. If you work for yourself and arrange one smart send-out a day, you’ll be very successful and very wealthy.

Any website or chat room that provides a name and phone number for someone within the industry you’ve targeted for recruiting, is a springboard to success, in my opinion. Pick up the phone and talk directly with industry contacts. Keep calls focused and short, until you identify a candidate. Remember, on average, once you’re comfortable with the process, you’ll find a good candidate for every 13 - 20 (maybe fewer) recruiting calls you make within your targeted industry.

Generally, I don’t recommend leaving messages. If someone is particularly hard to reach leave a message like, “Jason, one of your business associates recommended I contact you. My name is John Smith and I’ll call you back.” No phone number is mentioned. Business people who don’t answer their phones or screen their calls to specifically not talk with anyone new miss out on business and opportunities. Business is a contact sport, as are relationships. Focus on the people who DO answer their phone!

Research some software programs that can capture candidate information, securely. Again, keep it simple. If they can complete a short survey on line, that’s even better. You don’t need every detail of a candidate’s life to contact that person and have a short conversation. You’re on a hunt. Make sure you know what industry they’re in, what position they hold currently, and a little something about their qualifications. Allow candidates to state 3 or 4 of the most important things you should know about them. Don’t demand someone take THEIR precious time to complete YOUR application, especially when there’s a perception that they’ll never hear from you. Ever. Don’t just collect resumes.

Qualify the candidate and set up a time for a thorough interview, get names, or move on. Focus on your searches and don’t get sidetracked with time wasting busy work. One thing you can trust for sure is this: people appreciate sincere, direct contact with a professional who knows what they’re doing and gets to the point. Don’t waste anyone’s time.

As soon as you know someone fails to meet the criteria of any searches you’re working, let them go. “Cindy, You have very solid credentials however they don’t match what my current client is looking for….when I have a search that incorporates your background, I’ll be back in touch. Thanks for your time.” Don’t give people the run-a-round.

Manage your process and respect others as you do so and you’ll find people will go the extra mile for you when you need it, on a regular basis.

Kimberly Schenk has over 25 years experience in business. For 17 of those years she has been an Executive Recruiter and Trainer. She shares her production secrets with Recruiters in her eBook, Top Recruiter Secrets Top Recruiter Secrets

There are many small to mid-size companies that have times of fast growth and turn to human resources, or HR, outsourcing, rather than hiring new HR staff members internally to deal with their growth spurt. HR outsourcing can be a very effective way of meeting the demands of strategic growth and expansion of a business and can cut the overall costs by allowing the current and experienced staff to focus their expertise on the things that they are best and most productive at doing.

In this way, the permanent human resources staff, and other management members who are often drawn into the hiring process when the HR department is understaffed, are able to pursue and accomplish those tasks that will result in the best profitability for the business overall. A business that takes advantage of human resources outsourcing assigns the critical management of all functions related to HR requirements of the company to a third-party provider that is a specialist in the field of human resources management.

The idea of using outsourced services was first introduced, or at least popularized during the 1980’s, when many companies experienced an economic boom as a result of a healthy economy. Outsourcing services gave these companies a good way to meet increased demands on their internal infrastructure when experiencing growth, as these companies experienced the growth and had to change and adapt. HR outsourcing was often one of the main types of services that was easily contracted to an outside company.

Outsourced projects and services present the opportunity for a business to delegate specific tasks or functions that are associated with a particular department within the organization. These functions are assigned to an external entity that has a proven track-record of being able to competently manage those particular functions. When it comes to human resources outsourcing, the primary function relates to the hiring and firing of employees, as well as managing payroll-related issues, benefits management, tracking vacation and sick time accrual and usage, and other common HR functions.

However, there are some companies that take particular pride in their human resources department and prefer to have on-site HR staff that knows and interacts with the employees. In these kinds of corporate environments, HR outsourcing can still be utilized but is generally only used for outsourcing services that do not involve direct employee contact. This still allows the human resources department to be very “connected” to the employees, while also providing additional support when there are periods of increased recruitment.

In many instances, companies that need to hire large numbers of seasonal employees with also turn to human resources outsourcing to help fill the gap and to keep the regular HR staff from becoming overwhelmed. After the seasonal rush is over, the HR outsourced projects for the company can be canceled and business can simply return to normal operating procedures.

Anytime that a business experiences significant growth, especially fast growth, the HR department is on the front lines and can become overwhelmed fairly quickly. Because HR plays such a pivotal role as a company grows, using HR outsourcing for a portion of the human resources requirements of the business makes a lot of sense from a management standpoint.

Want to run your business better? All is revealed about hr outsourcing at Mike Selvon portal. Don’t forget to leave us a comment at our business process outsourcing blog.

A small business is like a child that over time will grow up and mature. It will have its troubles. Its growing pains and growth spurts. But hopefully over time it will grow up and become something that everyone can be proud of!

Most small businesses though will have employees. Whether it will be one, twenty, or a hundred these people will become the caretakers of the business. They’ll be responsible for helping to nourish and guide it. And hopefully they’ll take as much responsibility for it as you do. Some of your employees may actually be your own family members.

Now not all employees are going to feel the same about your business as you do but you might be surprised at how many actually do care. A small business is a chance for a lot of people to stretch their wings in a way. It can provide more opportunities and chances to try new things than most people would normally get in a larger organization. You will be forced at some point or another to give others more responsibility whether you want to or not. Otherwise you’ll have to handle every decision that needs to be made. Over time your employees will feel that they have been empowered and are responsible for the welfare of the business.

The longer your business survives and thrives the longer you and your employees will be together. Some will come and some will go but many could be with you for years to come. You’ll not only get to know your employees well but you may even get to know their families. Employee gatherings might become quite common. BBQ’s may be held, holidays and birthdays will be celebrated. The accomplishments of your employees and those of the business as a whole will be cherished by all. And even the setbacks will be dealt with together.

Every one you employ will have a hand in the rise and maybe even the fall of your business. Some people will be only bit players and others will be costars in the saga of your small business. But all of them should be recognized for the role they play. Because your small business will come to play a large part in their lives and the lives of their families as well. Father’s, son’s, mother’s, daughter’s, and many more people will come to depend on your small business whether they work for you on a daily basis or not.

The sheer number of people that may come to depend on your business whether directly or indirectly is often overlooked. Many business owners fail to realize when they hire employees how many other people may be affected. Or if they do know how many people depend on the business they will soon take it for granted or worse yet they simply may not care.

Often in small business the employees come to see themselves as a family. They share many things just as a family does. You as an owner need to recognize that and appreciate it for what it is. It’s that family that can make your small business a success. And it’s a success that everyone should be allowed to enjoy.

Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience in small business cover a variety of topics. If you are looking for more small business help please check out http://www.smallbusinessdelivered.com