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February 16, 2015

Internal or External Hires – Which is Best?

Filed under: General HR Buzz,Hiring & Jobs,HR Consulting3:14 am




by Megan Mohr, CCP, Compensation Consultant, HR Performance Solutions

In an ideal world, HR would be able to hire the perfect mix of internal and external candidates to keep their company running smoothly and its staff happy. Unfortunately, none of us work in a perfect world! So, that leaves HR with the internal vs. external quandary for most of their hires. While there isn’t a one-size-fits-all solution for when to hire internally or externally, here are some pros and cons of both options:

Internal Hiring 


  • Increased engagement
  • Quicker onboarding
  • Less expensive
  • Better cultural fit


  • Potential for less innovation
  • Internal politics
  • Biased hiring
  • Fewer applicants
External Hiring 


  • Fresh ideas
  • Larger talent pool
  • Increased diversity
  • Avoid internal politics


  • Less cost-effective
  • Longer onboarding
  • May not fit company culture
  • Possible detriment to staff morale

These lists of pros and cons only skim the surface of the components HR considers when making the decision of internal vs. external hiring. If you look at the numbers, the majority of positions are filled with external candidates. The SHRM Human Capital Benchmarking Database shows that in 2013, 66% of positions were filled externally compared to 26% internally.

Decisions, Decisions …

Each company and each position is different and has different needs. HR will usually make its internal/external hiring decision based on whether the position requires collaboration, if the skillset is unique to the company, what the internal supply of talent actually is and any changes within the company or industry. Whichever approach your HR department decides to take, it needs to consider these factors when making a decision:

  • Thoughtful Job Descriptions
    If you find you’re using the same tired, canned job descriptions every time and getting unsatisfactory hires, it might be time to breathe new life into what’s written. Be sure the language you choose is universal and not limited to just what an internal candidate would understand. Take some time to see how the competition is handling job descriptions. Many industries are opting for more fun yet realistic job descriptions versus the old, worn out ones.
  • Beware of Biases
    No one is without bias. But in HR, you can’t let that affect any decision you make. Don’t fall for any pressure to hire from within if that’s not the best decision for the company. Take a hard look at your hiring practices to see if there’s more of an internal or external trend and then determine why it may favor one over the other.
  • Take a Good Look at What Makes You Unique
    Every company and its culture are truly unique. Take a good, objective look at what makes your organization and the positions unique. This will help the HR team better weave its new hires and the company culture into a more tightly-woven and cohesive entity.
  • Think Succession Planning
    Make sure you know the movers and shakers within your company and those that do their best to fly under the radar and take that into consideration when new positions open up. Keep upper management up-to-date on who’s moving up and who is stalled out. This lets you be proactive when it comes to succession planning.
  • Don’t Stop Onboarding

If you think that once the new hires have been shown their desk and gone through orientation that onboarding is done, think again. To the new hires, onboarding can be a long, slow process. Make sure they get to spend quality time with not only the team they’ll be working with but with upper management as well. The more employees feel like they understand and are part of the big picture, the more welcome they’ll feel and the harder they’ll work.

Let HR Performance Solutions and its HR consultants help your organization with its recruiting, hiring or onboarding process. Contact us today for more information.



January 5, 2015

Top 5 New Year’s Resolutions for HR Professionals

Filed under: General HR Buzz,HR Consulting2:26 pm


by Emily Sternberg, HR Consultant

As we look at the calendar and realize that another year has started, we may have made a New Year’s resolution or two, maybe to lose those extra few pounds or to try to get more organized.    Professionally, it’s time to turn over a new leaf as well. Companies are starting to execute new strategic plans and employees are excited to see what the New Year will bring.  With this, let’s review the top 5 New Year’s resolutions for HR professionals:

  1. Create True Succession Plans
    Over the next 5-10 years, businesses nationwide will experience record retirements as the baby boomers begin to retire at greater numbers. Now is the time to prepare your younger staff members to take on these leadership positions. Provide management as well as tactical training and support to these staff members who will be the future leaders of your company. Ask yourself what skills will be required and if your current staff currently possess those skills.
  2. Be Transparent
    This is a buzzword in the HR field, so use 2015 to create more than a buzz around transparency by creating a culture that embraces honest and open communication to staff members. In a world where information is never more than a click away, it will be imperative for business leaders in 2015 to share information in a format that impacts and engages staff members.
  3. Create a Positive Working Environment
    For millennials and the incoming Generation Z, fostering positive relationships at work will be a method for retaining top talent. Studies show less turnover among employees who have a “best friend” at work.
  4. Provide an App for That
    In our technology-driven world, employees strive for convenience in conducting their day-to-day business. We have mobile banking, online tech support, etc.    Employees are looking for convenience in conducting daily transactions such as requests for time off, benefit reviews, changing personal information and receiving pay stubs. Try to make these available via a mobile device.
  5. Be a Storyteller
    In an age of video technology and interactive presentations applications, it’s imperative for HR professionals to consider trading in lengthy PowerPoint presentations and delivering training in a more engaging way to participants. Become a storyteller and create relatable stories that convey a concept to training participants.

If your organization needs help bringing these resolutions to life, HR Performance Solutions can help. Our HR consultants can guide you through a successful New Year. Click here to contact us for more information.



October 31, 2014

6 Easy Ways to Violate the FLSA – Mistakes 4-6

Filed under: Compease,Compensation,FLSA9:44 am

In yesterday’s blog, we discussed the first three mistakes that lead to Fair Labor Standards Act (FLSA) violations.  Today, we will take a look at the last three, featured that is; there are many more!

Mistake #4:  Asking Nonexempt Employees to “Work Off the Clock”

More recently, asking an hourly employee to “work off the clock” is considered wage theft.  The FLSA requires employers to keep accurate time records.  Tight budgets often prompt managers to request that employees “work off the clock” by asking them to come in early or stay late and not compensating them.  Such a practice can create huge liabilities for an organization.

Mistake #5:  Prohibiting Employees from Discussing Compensation Issues

Although many employers prefer that compensation rates and other pay issues remain private and even write policies to that effect, forbidding such discussion by employees may be in violation of the law.  The National Labor Relations Act (NLRA) prohibits employers from banning wage discussions as it is interpreted as interfering with employees’ right to engage in protected concerted activity.  The National Labor Relations Board, the government agency that enforces the NLRA, has been watching these actions closely, especially with the more prevalent use of social media.

Mistake #6:  Failing to Properly Pay Nonexempt Employees for Meetings and Training

This is a puzzling one for many employers – knowing whether or not they are required to pay for meetings and training sessions.  Attendance at meetings and training is not counted as “hours worked” if all four of the following criteria are true:

  • Attendance is outside of the employee’s regular work hours;
  • Attendance is truly voluntary;
  • The course, lecture, or meeting is not directly related to the employee’s job; and
  • The employee does not perform any productive work while attending. 

Attendance is not considered voluntary, however, if the employee believes that his working conditions or employment opportunities would be adversely affected if he did not attend.

Even the most experienced HR professionals have difficulty navigating the FLSA.  However, failure to do so can be costly in terms of dollars, time spent fixing problems, bad publicity, and lower employee morale.  Focusing on a few of the most common FLSA mistakes and steering your organization away from them is definitely time well spent.


October 30, 2014

6 Easy Ways to Violate the FLSA – Mistakes 1-3

Filed under: Compease,Compensation,FLSA4:32 pm

No doubt, most employers have a battle with the Fair Labor Standards Act (FLSA), which establishes the standards for how to pay their employees.  The FLSA governs overtime pay, the minimum wage, and child labor.  Many are simply unaware of the maze of requirements, some try in good faith to act in accordance with the law but fall short, and a few simply ignore the Act, hoping that nothing comes back to bite them.  But ignorance of the law is not bliss…or an excuse.

FLSA enforcement by the Department of Labor’s Wage and Hour Division recovered just shy of $250 million in back wages for 2013, with 269,250 employees receiving back wages. Another interesting fact is that the average days to resolve a complaint is 110.  This means the Wage and Hour people are very interested in the way you pay your employees and even enjoy perusing your records.

Here are six ways (and believe me, there are many more) in which you could find the DOL knocking on your door:

Mistake #1:  Misclassifying Employees

Nearly every employer must decide which positions are considered nonexempt under the law and must be paid overtime (for hours worked beyond 40 in a workweek), and which positions are exempt from overtime. The FLSA establishes overtime pay requirements by outlining a series of tests that qualify employees as exempt from overtime and minimum wage requirements in these categories:  executive, administrative, professional, outside sales, and certain high-level computer positions.

Mistake #2:  Thinking, “If I make everyone ‘Salaried,’ I won’t have to pay overtime!”

Genius, not.  Be careful.  “Salaried” is not equivalent to “exempt.”  An employer must satisfy an FLSA job duties test mentioned in number 1.  Remember too, that job positions should be reviewed regularly to ensure they still meet the requirements of nonexempt or exempt as the position requirements may change.

Mistake #3:  Failing to Pay Nonexempt Employees for Unauthorized Work

If a company “allows” employees to work, they must pay for this time and include it as “hours worked” for overtime purposes. When an employee who begins work early, stays late, takes work home, or works through the lunch break without authorization to do so, must be paid for unauthorized work (even if the company has a policy prohibiting it).  The employee, though, may be subjected to disciplinary action for violating the policy.

Watch for Mistakes 4-6 in tomorrow’s blog!



July 24, 2014

Setting Expectations for Success

Have you ever tried to put a 500-piece puzzle together using only 386 pieces?  That is what it can feel like to an employee who has not be given straightforward expectations to accomplish their goals.  An important part of performance management is to set clear expectations for employees so there is no question as to how their work should get done.

When employees feel their goals and your expectations are undefined or ambiguous, they become frustrated, productivity declines, and you risk losing them.  To keep them committed to you as their manager and to the organization, you cannot leave anything to chance.  By including employees in the goal-setting process and then developing action plans with timelines, your expectations are clear and you are setting them up to succeed; the rest is up to them.

Learn more about HR Performance Solutions Performance Pro and manage your employees performance with ease.  Start your 30 day FREE trial today!



May 30, 2014

Did You Know . . . About Our Compease Bridge?

Filed under: Compease,Compensation8:59 am

Keeping your Compease system up-to-date and aligned with your payroll system doesn’t have to be difficult or time-consuming!  Compease has a built-in Data Bridge Tool that makes systems’ communication a breeze.  HRN Performance Solutions offers a total of four options to help with this data upkeep:

  1. With the no cost option, the User Guide and a spreadsheet are sent to you, enabling you to configure and run the data bridge any time that is convenient for you.  
  1. HRN’s second option provides assistance with the initial setup.  HRN will configure the setup, run the initial import, and provide training to you or your staff for a fee of $150. 
  1. The third option consists of the data bridge configuration, set-up, and the updating of your Compease system.  This is performed either as a one-time service or on an annual basis, thus completing the entire process for a fee of $250. 
  1. Our last option allows you to send your file directly to us on a twice-monthly basis.  We do all the work for you!   This option requires a signed Bridge Service Agreement (BSA) and is processed for a fee of $600 annually, which is added to your regular renewal. 

If you are interested in any of these service options or would like additional information, please contact HRN Performance Solutions at (800) 897-3308.


March 28, 2014

Did You Know . . . Compease is Now in the Cloud?

HRN has released a new, completely updated, CLOUD-BASED version of our popular Compease salary administration application!  Compease, a unique and innovative compensation administration system provides customized, market-driven compensation and salary grade information for every position in an organization based on level of responsibility, job title, geographic location, company size, and industry.

Even more thrilling is, if you currently use Performance Pro and Compease the new sophisticated technology will integrate the two! This integration will reduce duplication, saves time, and makes updating reports easier than ever! Give us a call and speak with one of our experts to understand how Performance Pro and Compease integration can strengthen and support your business. You might be surprised at how seamless it is.

If you don’t currently enjoy Performance Pro and Compease, what are you waiting for?  Contact us now at (800) 897-3308 or



March 26, 2014

Strategic Planning – Vital to Your Success in 2014

A well-written strategic plan can have a synergistic effect on the internal operations of a company.  The synergy that results from everyone’s combined efforts improves the efficiency of operations, the use of resources, the exploitation of opportunities, and creates new paradigms of success.  HRN’s strategic planning experts have over 25 years of experience and have participated in more than 200 strategic planning sessions throughout Michigan and across the country.

Each organization has its own unique needs that must be considered when starting a strategic plan.  Board members and executive management may want to ask questions such as, “What are our top five key issues for 2014?” or “What opportunities should our company evaluate over the next 2 years?” These questions are of great value when planning strategies that affect all aspects of an organization.  Answers given to these questions build strategic focus, and after the answers are tabulated and analyzed, it becomes very clear which strategies should be given “top priority” status and need to be addressed first at the strategic planning session.

To track progress in a strategic plan, many companies will create a ‘Dashboard’ which allows any one team member to quickly look at the current status of each goal at their leisure.  This keeps key strategies, goals, and tactics in the forefront so they don’t get lost in the everyday fires of managing a business.  Ultimately, these companies achieve more financial success, have happier customers and staff, and accomplish more of their goals each year than their counterparts.

Some companies make the mistake of having a strategic plan that is too narrow and only focused in one particular area.  A comprehensive, balanced strategic plan is necessary to take a good company to a great company.  A two- to three-year strategic plan that ties into your business plan and budget is strongly recommended.  It’s important to remember to not bite off too much in your strategic plan.  Set your goals so you have to stretch a little, but don’t overwhelm yourself to the point where you don’t have enough time to take care of the day-to-day tasks of running your company.  While the following is not an exhaustive list, in today’s economy, it’s recommended that companies include these components in their strategic plan:

  • Financial Goals
  • Customer Service Goals
  • Management Training Goals
  • Facility Goals
  • Technology, including Social Media Goals
  • New Products and/or Services
  • Regulatory and Compliance Goals
  • Marketing and Brand Image Goals

Planning to plan is a crucial aspect of successful strategic planning.  Time is precious at the strategic planning session because there is always more to discuss than time allows.  Whether using four hours in a board meeting or a day and a half on a weekend, it’s important to have a set agenda with time frames that keeps everyone on schedule.  While there is no formula for the perfect agenda, planning ahead and realizing that no two organizations are exactly alike, will help all parties involved to see the common goal of planning the organization’s future and how they will get there stronger and better.

For information regarding Strategic Planning, you may contact Mike Moyes by email OR click here.


March 14, 2014

Did You Know . . . HRN Offers CEO Review for Credit Unions?

Did you know with CEO Review you are able to strategically align the CEO’s performance with credit union goals and priorities?

Program benefits of CEO Review include:
• Provides up-to-date CEO salary and bonus market data on an annual basis
• Establishes a fair and defensible approach to determining merit and incentive pay
• Compares peer data on key financial growth measures
• Personalized implementation by credit union experts
• Affordable and easy to execute

HRN Performance Solutions has over 20 years of experience providing credit unions with talent management. HRN consultants work with Board members to develop a CEO performance plan that reflects the goals of the credit union. HRN can also provide “peer-to-peer” market salary information for comparable sized and regionally located financial institutions.

CEO Review consists of a four part process that aligns goals with performance and compensation.

Part I – Performance Objectives
A critical part of the CEO performance review is that performance objectives are developed from the credit union’s mission/vision statements, the strategic business plan, and the plan year budget. These objectives are quantifiable and observable indicators that bridge the philosophy of the credit union’s mission with measurable results.

Part II – Compensation Plan
An integral component of the CEO evaluation process is aligning compensation to outcomes. HRN develops a CEO compensation plan unique to your credit union using current “peer-to-peer” salary data that is tied to comparably sized and regionally located financial institutions.

Part III – Special Projects
The Special Projects section incorporates key, non-measurable aspects of the annual strategic plan and budget. Individual Board members evaluate results for each of the key points and submit their evaluations to the Chairman.

Part IV – Board Assessment
The Board Assessment is designed to provide feedback to the CEO from each Board member about his/her perception of the CEO’s effectiveness as a decision maker, manager, and credit union leader. Each Board member completes an anonymous online assessment form. Data from each Board member is compiled onto one form and shared with the CEO during the review.


Contact HRN for additional information:
Call:  (800) 897-3308 OR Email:




February 26, 2014

Reduce the Cost of Turnover with Effective Performance Appraisals

The cost of turnover can be crippling for most organizations.  In a study by Center for American Progress (CAP), it was found that when replacing a mid-level employee it costs about 20% of their salary.  With the cost of replacing employees being so high it behooves management to take actions to reduce turnover.  One of those ways is to have an effective performance appraisal.

Employees often fear their annual appraisal.  Why is that?  More frequently than not, an employee will only receive feedback during their annual appraisal.  This lack of communication can cause a breakdown between a manager and their employee.  It is important to provide feedback to employees throughout the year.  Maynard Webb, author of Rebooting Work: Transform How You Work in the Age of Entrepreneurship says, “When it comes to retaining talent, one tactic I’ve often found crucial is implementing informal weekly and formal quarterly check-ins.”  He explains that by doing this you are able to avoid disconnects within an organization and between managers and employees. Feedback is critical when attempting to get employees to buy into an organization’s culture.

Performance appraisals can be used as the perfect conduit to facilitate ongoing feedback between a manager and an employee.  When managers continually check-in with employees they will have the opportunity to provide and ask for feedback.  Increased feedback will lead to increased employee “buy in” which leads to increased employee satisfaction and reduced turnover.

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