How to Implement an Effective Discipline Policy in 5 Easy Steps

Be prepared to stop negative employee behavior in its tracks. Establish the right policies and procedures to handle employee discipline before it’s too late.

If you have even one employee then you will have to deal with HR issues. Read on for some key tools, tips and secrets to addressing employee discipline and sleep better at night knowing your business isn’t being held hostage by a few bad apples.

In a recent COSE WebEd Series Webinar, Cheryl Perez, founder and president of BIG-HR, discussed steps to take when an issue needing employee discipline arises in your company.

Have you ever been in a situation where:

  • You are worrying about a few poor performing employees?
  • You are being taken advantage of by employees who are always calling off, running late or performing poorly?
  • You are concerned that an employee might retaliate?
  • You are wondering if a disgruntled employee could negatively impact your business?

Make sure you act fast enough to correct the negative behavior; give yourself the confidence of knowing you’re handling everything right and in the best interest of your business. Follow these five steps.

Step. 1. Set up your workplace rules of conduct. This should be an important feature inside your employee manual. Employees must know they have fair and reasonable notice of expectations. The number one mistake of small to mid-size businesses is they don’t have an effective manual in place or they don’t provide employees with it except on the first day of orientation. And often times it’s not kept up to date. Company rules should be clearly communicated in writing to all employees, must be compliant with state and federal laws, and must be consistently enforced.

Rules of conduct within the manual should include day-to-day matters—such as tardiness, attendance and dress code—and more serious matters—such as violence, theft and harassment.

Perez provided the following tips for your employee manual:

  • Customize it so you communicate exactly what you’re looking for.
  • Communicate your policies clearly and through a formalized training process, preferably on a yearly basis. Review the manual with your entire staff at the beginning of the year. Walk your team through the rules, making sure they have a clear understanding and sign off on it.
  • Meet with your managers separately to communicate the rules so you know they are enforcing your expectations.

And she recommended that it includes information on the following basic policies:

  • Employment-at-will
  • Family medical leave
  • Discrimination
  • Drug-free workplace
  • Social media
  • Political neutrality
  • Disciplinary

Step 2. Establish an investigation procedure. This lets people know you are fair and you are looking into any issues that arise at your company. This is especially good for more serious allegations such as harassment, being under the influence, theft, etc.

If an allegation is brought up against an employee, it should be promptly, fairly and thoroughly investigated. Once the investigation is conducted and you have all information, you then need to make an independent determination of facts and circumstances.

Before you find yourself in a position where you need to conduct an investigation, it is important that you establish protocol. Determine who will conduct the investigation, what process will be used and within what timeframe. Communicate this in advance to everybody on your staff.

Step 3. Understand what an effective progressive action policy looks like. Here is a rundown of the order in which Cheryl recommends taking action.

  • Counseling: “You’ve been late, don’t let it happen again.”
  • Verbal warning: Sit down and give them a formal verbal warning. Let them know what will happen next. Document it, but informally.
  • Written warning #1: Write it up and have another manager or witness sign off on it.
  • Written warning #2: Do everything in the first written warning, but also include a performance improvement plan.
  • Next courses of action

As mentioned in the fourth bullet above, a performance improvement plan can be an important part in taking disciplinary action. Let the employee know that if they don’t follow these expectations then you will move to the next step in the disciplinary process. Spell out the expectations and be sure to give them the opportunity to fix the behavior.

Step 4. Provide employees with the opportunity to appeal. Your policies and procedures regarding employee discipline should include having in place a grievance and appeal process. Doing so makes it clear that your business practices fair discipline and that employees are given the opportunity to appeal decisions. Showing your due diligence and giving them the chance to say why they don’t agree helps to clearly communicates fairness.

Step 5. Determine the next course of action and how to implement it. When you hand out a punishment for a crime, make sure it’s appropriate. Consider the following options:

  • Transfer the employee to a different department or office to get them out of whatever the situation is that is impeding their performance.
  • Demote the employee.
  • Tell them they don’t get pay increases, bonuses, etc.
  • Suspend them with or without pay.
  • Terminate the employee.

The key is to always apply discipline in a fair and consistent manner. Your managers and supervisors must follow the same guidelines. You can’t be fair and consistent as a business owner but then have a supervisor who is showing favoritism. And, be sure that discipline procedures comply with federal and state laws.

Put it in writing

One of the best things you can do during an employee disciplinary process is to document everything. BIG-HR provides its clients with templates and forms for everything they need for proper record keeping.

What happens if you don’t document? You won’t have a leg to stand on. If you do end up with an accusation against an employee you won’t be able to defend yourself. If you’ve done a good job protecting yourself, communicating and documenting, then there is much less of a chance that you and your company will have to settle with the employee no matter what type of situation arises.

To watch a full replay of this webinar, check out the video below. And Be sure to register for the next COSE WebEd Series Webinar on February 20, Using Video to Amplify Your Marketing and Drive Results

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  • Next up: How to Maximize the My Health Plan Experience: Presented by Medical Mutual
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  • How to Maximize the My Health Plan Experience: Presented by Medical Mutual


    If you have a health plan though Medical Mutual, make sure you register for a My Health Plan account. Here are three tips on how to get the most out of your My Health Plan experience:                                                                              

    Take the Health Assessment

    The Health Assessment is a series of questions about total health covering emotional, social, financial and spiritual wellbeing. Your employees will receive a wellbeing score and steps for supporting or improving it. Employees should come prepared to take the assessment with recent medical data including height, weight, blood pressure, total cholesterol, HDL, LDL, triglycerides and blood glucose.

    Utilize the Health Resource Center

    The Health Resource Center offers extensive educational materials and interactive tools to help your employees gain great insight into their health concerns and conditions.

    Save Money with My Care Compare

    My Care Compare is an online tool that allows Medical Mutual members to compare costs before they get care. This information can be especially helpful for planning out-of-pocket costs if your employees are on a high deductible health plan. This also allows members to get medical procedure, service or treatment costs by provider and service location.

    To register or log in to My Health Plan, please visit These helpful tools can also be accessed through the free Medical Mutual mobile app in the Apple app store or Google Play (search for MedMutual).

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  • Next up: HR Audits: When to Do Them and What to Look For
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  • HR Audits: When to Do Them and What to Look For

    There’s a lot for small businesses to stay on top of as it relates to HR. That’s why an annual audit, perhaps coupled with semiannual mini audits, are so important to ensuring a business is in compliance with applicable laws. Here’s when you should be performing these audits and what you should be looking for.

    As a business leader, I’m sure at some point you’ve asked yourself the question of whether you should conduct an HR audit. With HR having so many different components that are integral to the success of a company, there’s good reason to ask yourself whether your HR practices are as good as they could be.

    From compliance, to health and safety, training and development, recruiting and retention, compensation and benefits, there’s a ton to stay on top of!

    HR Audits can help a company understand the impact its HR practices are having on the organization and help quantify results as well as set the stage for necessary changes.

    While there is a lot to look over, particularly for small businesses, the potential of noncompliance with applicable laws is a significant risk. In this article, we’ll explore when HR audits should be conducted, what to audit, and how they can positively affect the organization overall.

    When to audit

    It’s best to do a full-scale audit once a year at most, given the resources required to perform them. That said, mini-audits conducted throughout the year can be valuable. Given every six months, these mini audits can provide for some level of course correction without too much departmental pain. Company leaders might also want to think about performing an audit following any significant event in the company’s history, such as management changes.

    What to audit

    Consider the weaknesses you’re aware of as it relates to your HR as well as what your available resources are. This should help guide your thinking as to what to audit. Keep a running log of issues that pop up throughout the year that might not be covered by your company’s policies and procedures. This will also help you identify areas you will want to address during your annual review process (or immediately, if need be.)

    Some common areas companies focus on during the HR audit review include issues related to hiring, performance management, discipline or termination.

    Other areas to think about include:

    • Misclassification of exempt and nonexempt jobs: The complexity of wage and hour laws and regulations means that almost every company has job positions that have been misclassified at some point in time. This could expose your business to liability for past overtime.
    • Inadequate personnel files: Reviews of personnel files often find things such as informal, vague or inconsistent disciplinary warnings; ambiguous, inaccurate or outdated performance evaluations; personal health information mixed into these files instead of being kept separate; and more.
    • Prohibited attendance policies: Just as it is with the misclassification of exempt and nonexempt jobs, the complexity of family and medical leave laws can also be difficult for companies to remain in compliance. The records generated by your system are your primary means of defense against wage and hour claims, so time-keeping policies and practices must be clearly communicated and consistently administered.
    • Form I-9 errors: Additionally, inadequate documentation is found around hiring practices, such as missing or incomplete Forms I-9. Employers face fines of between $100 to $1,000 for each failure to accurately complete a Form I-9.

    Kellee Perez is an account Executive at Benefit Innovations Group specializing in analyzing and implementing HR services within small and large businesses.

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  • Next up: Important Update from Ohio BWC!
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  • Important Update from Ohio BWC!

    The deadline for your company’s payroll true-up reports was originally Aug. 15. However, because this is a new process, the Ohio BWC has extended a grace period until Sept. 29 to ensure all employers are able to complete this requirement.

    The deadline for your company’s payroll true-up reports was originally Aug. 15. However, because this is a new process, the Ohio BWC has extended a grace period until Sept. 29 to ensure all employers are able to complete this requirement.

    With the transition to prospective billing, Ohio BWC now requires employers to reconcile their actual payroll for the prior policy year and reconcile any differences in premium paid. The payroll true-up allows Ohio BWC to calculate your premium accurately. Even if your payroll for the year matches the estimate, Ohio BWC provided, or you had zero payroll, you must complete a true-up report.

    The quickest and easiest way to true-up is online with a BWC e-account. If you do not have a BWC e-account, you can create one at Online true-up and payment will also save you money. Eligible employers will qualify for a 1-percent premium rebate, up to a $2,000 maximum rebate. While you can complete the true-up through the BWC call center, wait times may be extremely high. Therefore, Ohio BWC suggests you file your payroll true-up with a BWC e-account.

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  • Next up: 10 Tips to Improving Work and Family Balance at Your Small Business
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  • 10 Tips to Improving Work and Family Balance at Your Small Business

    October is National Work and Family Month--how are you recognizing it at your small business? Now more than ever it's important to help your team reach an effective work-life balance.

    I sat down to write this on a day that my nanny had requested off. My husband and I set to work at our regular time, the office door left open, the TV watching over our two kids (5 and 2), and lots of interrupted time to attend to their needs. This is the life of many working parents as COVID has shuttered schools and daycares and remote working is the new normal for the foreseeable future for many of us.

    Work-life balance was a buzz word before the pandemic. Now, after six months (yes, six months!) of work-from-home, this balance may be permanently changed. There have been positive changes for both employers and employees: less time commuting, lower overhead costs, and more time with family.
    It is the ‘more time with family’ aspect that I want to focus on today. October is National Work and Family Month.

    Established in 2003 by the Alliance for Work-Life Progress, the observance is meant to “promote healthier and more flexible work environments” and to highlight the benefits of supporting work-life balance. 

    These benefits include:
    • Increased productivity
    • Higher retention rates
    • Slower rise of health-care costs
    • Easier to recruit new employees (we can attest to this one!!)
    • Better company reputation

    In fact, 1 in 3 workers would take a pay cut if it meant they had more work-life balance!

    If your company is still operating remotely, then you may feel like you can check off this box. Mission accomplished, right? But as we know, working from home while caring for children, is hardly the ‘balance’ most people had in mind. Moreover, with our increasingly connected work, the workday is no longer just 8-5. Emails, texts, phone calls, are encroaching more and more into leisure time.

    If you are interested in creating more ways to support work and family balance for your team, check out these ideas:

    Be Intentional: Announce National Work and Family Month in an email or at an all-hands meeting. Share the goals of the month and openly discuss the challenges that COVID has brought to work-life balance.

    Form a Committee: Ask for volunteers to come together (even if it’s virtually) to find ways to increase flexibility and balance. 

    Encourage Calendar Blocking: If there are family obligations or distance learning that need to be attended to, encourage your employees to block off that time from their calendars. Normalize this behavior and ensure employees that it is OK to take time for family so long as they accomplish their work duties.

    Institute a Moratorium on After Hours Communications: Schedule after work emails to send out the next morning. Set Slack or Teams to ‘Do Not Disturb.’ If you see an employee routinely working after hours, ask him or her how they can be better supported or what tasks can be off loaded to provide better balance.  

    Bring in External Support: Find a coach or expert who can provide a presentation or workshop to help employees with work-life balance challenges.

    Create a ‘Family Focus’ Challenge: Challenge employees to do something just with their family. Maybe this is a list of family activities with a competition to see who can do the most activities. You can also plan a family-friendly excursion for the whole office. A corn maze or apple picking would be perfect October activities that everyone can do together, (and with social distancing). 

    Support Family Togetherness at Home: Create a family game night pack for each employee with an all-ages friendly game and snacks, or a movie night pack. If you know the interests of your employees’ children, you can send special activities that are tailored to them (Hint: An employee favorite’s list will come in handy here!)

    Don’t Forget Team Members Who Don’t Have Kids: Family means something different for everyone. Pets, significant others, nieces and nephews, close friends—these are all families! Ensure that everyone feels included in National Work and Family Month by not limiting activates to just those employees with children. 

    Document and Share: Ask your employees to send in photos of themselves spending time with their family. Get a group photo from your Family Focus Challenge. Add a work-life balance section to your About Us page on your website and share on your social media channels. Make this an ongoing and intentional part of your culture in order to attract and retain employees who value balance.

    Don’t Stop Once October is Over: Routinely check in with your team about their work-life balance to ensure that it is being enjoyed by everyone. 

    Erin Longmoon is the CEO of Zephyr Recruiting, which she founded in response to her clients’ needs for help in with building effective and successful teams. Zephyr Recruiting serves the small business community—the mom and pop places that are the backbones of our communities and our economy.

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  • Next up: Tips for Your Business: Increase Productivity by Reducing Stress
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  • Tips for Your Business: Increase Productivity by Reducing Stress

    Stress in the workforce has become one of the biggest problems in business today. It has been called a global epidemic, with numerous studies encouraging businesses to be more proactive in helping their employees manage stress. “Every day, people deal with stress at work or in their personal lives — or probably both,” says Cindy Ballog, manager of Health Promotion, Wellness and Disease Management for Medical Mutual. “That’s why it’s important for organizations to understand the effect it can have on the health of their employees, and what that means for the future of their business.”

    Stress in the workforce has become one of the biggest problems in business today. It has been called a global epidemic, with numerous studies encouraging businesses to be more proactive in helping their employees manage stress. 

    “Every day, people deal with stress at work or in their personal lives — or probably both,” says Cindy Ballog, manager of Health Promotion, Wellness and Disease Management for Medical Mutual. “That’s why it’s important for organizations to understand the effect it can have on the health of their employees, and what that means for the future of their business.”

    With the high demand and fast pace of today’s work environment, employees at practically every level of an organization are dealing with some level of stress. By providing stress management resources, organizations can help employees be healthier and control healthcare costs. “Healthy employees are often happier and more productive employees,” says Ballog. “In many cases, turnover and absenteeism can also go down.”

    Stress is hard on the body. There are the obvious and immediate effects, such as headaches, upset stomach and loss of sleep. But there are more long-term consequences. Chronic stress can weaken the immune system, which makes it tougher to fight off illness, causing people to get sick more often. It’s also linked to high blood pressure, abnormal heartbeat, heart attacks, anxiety and depression. These conditions and others can worsen as a result of continuous stress. 

    According to Ballog, diet and exercise go a long way. “When your body feels good, your mind often does, too,” she explains. “People often adopt poor eating and lifestyle habits as a form of stress relief, but those habits just make the symptoms worse.” Exercise is another important factor. Just 30 minutes of exercise a day can have a significant impact on stress. Even at work, when feasible, Ballog says employees should be encouraged to do things like go for a walk at lunch or use the stairs instead of the elevator. 

    Of course, each employee is different when it comes to stress, with different sources and different effects on their health. Some employers offer classes on relaxation techniques and managing time more effectively. Employees should also feel comfortable discussing challenges and asking for help, which can help reduce stress for those employees and ensure projects are completed on time. 

    “It can be difficult to eliminate all the stress factors in life, but everyone can find ways to understand their stressors and respond to them a little better,” says Ballog. “Helping your employees along in the process could help your business be healthier—both physically and financially.”

    This article originally appeared in the July 20, 2015, edition of Small Business Matters.

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