PRESENTATION AND TRAINING FOR SPORT CLIPS MANAGERS

1. PRESENTATION AND TRAINING FOR SPORT CLIPS MANAGERS

3. Pinnacle PEO Corporation • An Outsourcing Co. for Employment Functions • Is the Employer of Record • Handles Employment-Related Paperwork • Workers Comp & Unemployment Insurance • Human Resources Support • Offers Employee Benefits

4. Why Human Resources Skills are Important • Respect for you as Manager • Reduce Turnover • Legal Compliance • Meet your Goals!!!

5. Respect for you as their Manager • Stylists and Coordinators Expect you to: • Know the Paperwork • Know the Sport Clips methods • Handle Situations Professionally • Know the Work Rules • Treat them Fairly

6. Turnover Issues • Turnover of Stylists averages 90% per year • If you have 6 stylists now, you may be replacing 5 of them within a year! • What are the Pros and Cons of Turnover?

8. The High Cost of Turnover • Recruiting • Interviewing • Orientation • Training • Team Building • Clientele

9. Ways to Reduce Turnover • Understand WHEN turnover is occurring • Understand WHY turnover is occurring • Improve HR Skills of Manager • Better Interviewing, Hiring • Better Orientation, Paperwork • Better Coaching, Counseling • More Professional Approach

10. Legal Compliance • Improve knowledge of major employment laws • Improve process for hiring and orientation • Better understanding of forms used • Better HR skills in Counseling, Corrective Action, and Termination

11. It is a Sport Clips policy to seek and employ qualified Team Members; to provide equal opportunities for the advancement of Team Members; and to administer all policies and procedures in a manner that will not discriminate against any person because of race, color, ancestry, religious creed, national origin, sex, marital status, physical handicap, medical condition, or age. Equal Employment OpportunityStatement of Policy

12. It is a Sport Clips policy to provide a work place free of unlawful and improper harassment. Harassment is considered an act of misconduct and may result in disciplinary action up to and including dismissal. All Management Team Members are responsible for implementing and monitoring compliance with this policy. Harassment is defined as unwelcome or unsolicited verbal, physical or sexual conduct which is made a term or condition of employment; is used as the basis for employment decision; or created an intimidating, hostile, or offensive working environment. Anti-Harassment Policy

13. The team member handbook is an important tool used by Sport Clips to communicate to its team members the company philosophy, history, goals, work rules and policies, procedures, and benefits. The team member handbook outlines the expectation of management and serves as a reference source for team members. The handbook assists in protecting the organization from claims of discrimination or unfair treatment. It also assists in the areas of unemployment. It can provide proof that the organization had a policy against a particular conduct that was communicated to all employees. Purpose of Team Member Handbooks

14. Team Member Handbook Procedure • Use the Orientation Handbook • Everyone gets one • Team Member Handbook • One copy in a binder in each store • TM Handbook Addendum • Use this to list procedures unique to your store, such as medical insurance, vacation • Handbook Acknowledgment • Every Team Member signs one

15. Interviewing

16. DO’s • From your Personnel Manual, use your Interview Guide (3.18 – 3.22) and the list of job interview questions (3.13 – 3.16) consistently for all applicants for the same position. • Ask open-ended questions which focus on behavioral descriptions rather than a simple “yes or no” • Listen; don’t do all the talking • Stay away from questions that have more to do with personal lifestyles than job experience. If the question is not related to performance on the job, it should not be asked. (3.23) Interviewing and Hiring Legally

17. DO’s: Use the Sport Clips Interviewing Guide! • DON’TS (3.24) • AVOID questions such as - • Marital status • Religious or political affiliations • Age, national origin, sexual preference or sex • If they own home or car • The length of their commute to work • Applicant’s maiden name, if female • Birthplace of parents Interviewing continued

18. DON’TS continued • AVOID – • If they are a U.S. citizen • Number of dependents in household • Childcare arrangements • If they are pregnant • Financial status of spouse • Any physical disabilities or handicaps • Membership in clubs or organizations • If they have ever filed a Workers’ Comp claim Interviewing continued

19. Bringing Onboard

20. Diversity is a business imperative to insure that the company makes every good-faith effort to replicate the community at large in culture, skills, and diverse ways of thinking. • Providing a consistent offer to candidates is essential in order to keep good morale within the company. • Follow your procedures in training all new hires because it introduces the employees to quality initiatives and sets the tone for the company culture and commitment to excellence philosophies as well as quality standards. • Refer to Team Member Orientation Checklist (4.3) • Possible problems if not following a consistent recruiting and hiring process – • Lawsuits from negligent hiring • Turnover (hiring team members with wrong skill set or who don’t “fit”.) Hiring

21. Poor morale on the part of good team members • Time and energy taken away from managers required to handle performance problems, which also distracts the team. Hiring continued

22. Employee Information Form (Pinnacle) Payroll Information Form (Pinnacle) Handbook Acknowledgment form (Pinnacle) Payroll Deduction Authorization – Uniforms/Tools (Pinnacle) W-4 Form (Pinnacle) Employee Eligibility Verification (I-9) (Pinnacle) Drug and Alcohol Policy and acknowledgment form (Sport Clips) Voluntary Substance Testing and Statements of Understanding (Pinnacle) Forms are available at www.pinnaclepeo.com/sportclips-ppeo New Hire Paperwork Needed

23. Discipline and Termination

24. Sport Clips utilizes the progressive discipline approach - coaching, counseling, and discipline including, written, probation or suspension, final termination. An incident record should be completed the first instance of an issue. Each issue is treated separately. If several different issues reoccur, each one is treated separately and should not be “lumped” together for a written warning. A written warning should be completed when you have a repeat of a single and continuing issue. Incident records and written warnings (Counseling Statement) documentation should be completed including the date of the issue, description of issue and company policy violated. This documentation will be used for any resulting unemployment claims. When properly completed, it provides a written picture to the investigator of employee’s performance issues and demonstrates employer’s efforts to turn situation around. Progressive Discipline Process

25. If counseling does not correct the situation, a corrective interview is required. Disciplinary action may be appropriate such as suspension or probation. If this fails, termination is the final step. At-Will Employment. What is at-will? When an employee does not have a written employment contract and the term of employment is of indefinite duration, the employer can terminate the employee for good cause, bad cause, or no cause. The “doctrine” considers that since employees can resign from positions they no longer care to occupy, employers are also permitted to discharge employees at their whim. Cannotdiscriminate or violate federal labor laws. From Discipline to Discharge

27. It is advisable to always terminate a team member in person. The meeting to terminate a team member should be short to discourage any emotional venting. Give the team member the reason for termination. Be concise and provide company policy violated. If necessary stay with the team member until they have cleaned out their locker or area and escort them out of the store. Provide assistance in packing if the team member is malingering. Termination

28. Submit the following paperwork to Pinnacle – • Employee separation form • Copies of all Team Member Counseling Sessions (verbal and written), Disciplinary Records, Company Violation Incident Reports • Very Important – timely completion and submission of the above allows responses to unemployment claims within protest period. Termination Follow-Up

29. First and foremost, only management should be authorized to provide job references. • Always comply with your company’s policy – whether “name, rank and serial number” or expanded. If no policy, consider adopting one based on company’s risk tolerance (i.e. negligence or defamation) • At a minimum, provide ex-team member’s job title and dates of employment. Employee References

30. Never divulge medical information. Drug screenings are considered medical information. • Divulge job performance references “in good faith without malice.” Employee References continued

31. Importance of proper and thorough documentation of separation • Signature of agreement for all handbooks, policies, etc. furnished to team member during orientation and new hire process. • Copies of training records • Performance tracking against standards • In most states, individuals are disqualified for benefits if they were discharged for misconduct connected with their last work. An individual is disqualified from benefits if the individual leaves the job voluntarily without good cause connected to the individual’s work. Unemployment Claims

32. Examples of discharges that did NOT disqualify the claimant – • Any protest filed after the 14 day period provided • Insubordination – did not follow management instructions. Determined to be unable to perform work assigned to employer’s satisfaction and not misconduct. • Client complaints and unreliability. Determined to not be misconduct connected with work. Unemployment Claims cont.

33. What should you keep in personnel files? Here is a general rule of thumb: Only keep information that can legally be the basis for an employment-related decision. Employment decisions include hiring, firing, promotion, layoff, training and other actions taken regarding team members. Record Retention

34. Records Retention Recommendations

37. HR Self-Audit Checklist • See this web link for details • www.pinnaclepeo.com/sportclips-ppeo • Click on “HR Tools” • The checklist will help Team Leaders and Managers review their HR procedures at the store level

38. Safety Presentation

39. Accident Prevention – Safety Hazards • Electrical • Ground plugs vs. double insulated • Cord integrity • Outlet tester/ GFCI • Inspect team members’ personal tools for safety hazards • Trip and fall/Slip and fall • Electric cords on floor • Front area mats (wet/ice conditions) • Non-slip footwear

40. Accident Prevention – Safety Hazards • Fire Safety/First Aid/Life Safety • Portable fire extinguishers • Flammable liquids • First Aid kit • Post emergency contact numbers • Housekeeping – sweeping, mopping (wet signs) • Lifting • Back injury prevention • Team lift bulky or heavy items, use two wheel cart

41. Accident Prevention – Safety Hazards • Cuts • Box openers and scissors • Chemical Safety • Keep a master inventory list of MSDS chemicals • Material Safety Data Sheets (MSDS) • Use sheets from the supplier • Keep all in one binder on premises • Mark containers/ Update quarterly • Solvents used in cleaning of premises

42. Accident Prevention – Safety Hazards • Ladders • Select proper height and inspect • Storage and setup • Bloodborne Pathogens • First Aid/Cuts to Stylist or Client • Accident Investigation • Report to Pinnacle and Team Leader • Investigate how accident occurred • Complete forms provided by Pinnacle

43. Safety Checklist • Purpose of Checklist • Assess your business procedures • Conduct at least twice per year using checklist • Conducted by Team Leader or manager • See handout for example of checklist

44. Q & A Session Pinnacle PEO Corporation 9311 San Pedro, Suite 700 San Antonio, TX 78216 (210) 344-2088 phone (210) 344-2777 fax