Managing Your Boss

I've written frequently over the past few years about the need to Manage Up. In order to succeed and grow as a manager - as well as getting your employees to equally succeed, it's essential to know how to manage your boss.

Susan M. Heathfield, writing for the HR Daily Advisor, shares some tips (you can read the article here) - and I'm taking the liberty of adding my own comments to those tips.

1. Work to develop a positive relationship.
Any successful relationship - whether professional or personal - requires effort. I've worked for people I couldn't find any common ground with. The relationship deterioriated to the point that if he said the sky was blue, I'd disagree, just on principal. Then at a seminar one day, we were asked to name the most ethical person we'd ever worked with. To our mutual surprise, we named the same person. We discussed it and were able to build a positive relationship from there.

2. Work from the boss's viewpoint.
Just as you're in it for you, your boss is in it for him/herself as well. And since they're the boss, what they say ultimately goes. Find out what their goals are and help in attaining those goals.

3. Look for the best in your boss.
You're not going to change your boss (or your partner, for that matter), so stop trying. You need to adapt to their style and behavior, not the other way around.

4. Learn from the boss.
Whether you like or respect your boss, there are things you can learn from them. Some of the most valuable management skills I've learned are from bosses I didn't like or respect. In learning what I didn't like, I was able to avoid those characteristics in my subsequent leadership roles.

5. Ask for feedback.
Don't rely on the possibility that your boss will give you feedback - ask him or her for it frequently. Bosses should like playing the mentor role, and will be able to work better with you once they've communicated their feedback to you.

6. Value your boss's time.
Schedule meetings, don't interrupt.

7. Accept that sometimes you will disagree.
It's business. He or she is the boss. Understand that when you're in a position someday to make decisions, you may do it differently; but for now, get over it.

Picking The Best Health Plan

Whenever I meet with a new client, I prepare a list of questions about their business - both macro and micro. The answers are always diverse and informative - no business has the same issues.

Now matter how many business owners I've met with, however, there is one question they all agree on:

Are you satisfied with your health insurance plan?

The answer given by all, of course, is a resounding "no".

Every October should be the time for businesses to re-evaluate their current benefits program and consider different providers or different options. Health Savings Accounts, for example, have gained some popularity but are not widely known.

And I'm constantly amazed that more businesses don't utilize a Premium Only Plan.

A good start in the struggle to evaluate what's best for your business is this article by Tom Murphy of the Associated Press.

Employee Satisfaction Equals Profitability

In an era (to put it mildly) that is economically uncertain, there is a way to bolster both productivity and profitability:

Employee satisfaction.

Employees who are happy in their work are always more productive. Yet businesses seem to shy away from nurturing their satisfaction or - worse - business owners have no idea if their employees are happy or not.

An employee satisfaction assessment (or 360 degree survey) is an easy tool to determine how satisfied your employees are. And, worked with an expert, you can use that information to take steps to enhance that satisfaction.

The downside of low employee satisfaction is higher turnover, lower productivity and ultimately business failure.

The upside is significantly higher.

Businesses with great workplace environments, such as those mentioned in this Wall Street Journal article, will improve the components so essential to success.

Measuring The Best Hiring Manager

The most critical test for any manager or supervisor is the quality of their hires. Studies show that a bad hire (or any employee turnover, for that matter) costs a company about 50% of that employees annual salary.

In fact, one of my partners now believes that employee turnover costs American businesses over $340 Billion dollars per year.

So hiring the right person is indeed a critical component of a managers success, how do you evaluate that success (or failure)?

Kris Dunn, writing in Fistful of Talent, outlines some essential values when determining how well a manager hires, including a reference to the recent Jack Welch article in Business Week.

Tracking the hiring success of your managers is essential. And if a manager has a poor record of hiring, then the opportunities for training and development are ripe:

• Teaching the fundamentals of interviewing;
• Having that manager observe other interviews;
• Conducting performance appraisals of not just the newly hired employee, but also the hiring manager 90 days after the hire.

Speaking of Fistful of Talent, by the way: Jessica Lee, who is the Employment Manager for APCO Worldwide, has a blog that's must reading for small business owners and managers. And although she's obviously skilled at her job, a book (or two or three) is obviously in her future.

Stopping Gossip In The Workplace

What can an employer do about gossip?

Supervisors need to regularly communicate with their employees about what's going on in the workplace. Make sure everyone knows what's going on in the workplace - future plans, etc. Employees need to feel part of the process of the company - especially in small businesses - and if they don't, they'll make it up in the form of speculation and "gossip." The attention and communication will work wonders in stopping the gossip.

Incorporate into your Employee Handbook a policy that discourages employees from spreading of gossip and rumors. For example:

• Do not participate in spreading gossip and rumors, and do not tolerate it from others. Rumor and gossip sabotages the team's ability to work together effectively. It is disrespectful, nonproductive, and a selfishly motivated act that impedes employees from performing their jobs. If you hear about an issue that pertains directly to you, verify the accuracy of the information by asking the supervisor or the coworker involved, rather than simply passing on the information.

Tell the rumormonger that you're aware of his/her behavior. Describe how his/her behavior results in others not trusting them because no one wants to be the subject of the "gossip." For some, this single statement will be a realization that will result in immediate change. You should also describe the impact the employee's behavior has on the workplace and that his/her continued participation in the spreading of rumors and gossip is a violation of the company policy.

Incorporate the impact the employee's behavior has had on the workplace in his/her performance evaluations.

Your Job Application May Be Cause for Age Discrimination

Among the myriad of problems a business owner faces is compliance with the numerous federal and state laws pertaining to discrimination.

While experts and consultants see these issues as relatively simple and inexpensive to correct - the fact remains that business owners are either to overwhelmed to manage them; too ignorant to know; or - worse - to callous to even care.

Even the simplest thing can cause major problems. Take your Application For Employment form, for example.

I'm stunned at the number of applications which ask the applicant's age. This is illegal in the United States.

(You can ask if the applicant meets a minimum age requirement if the position requires a minimum age; and you can certainly ask if an applicant can provide proof of authorization to work in the United States - but proof should only be provided after a job offer is made. And in neither situation should you ask for proof of age during the application process).

Yet it continues to happen. Over and over again.

Age discrimination is illegal. And one of the easiest ways to fix this problem is to get an up-to-date employment application from a reputable attorney or consultant.

Courtesy Kansascity.com and the Miami Herald.

401(k) Fees - The Employers Choice

A great deal has been said about forcing financial institutions to disclose their hidden fees and expenses for 401(k) Retirement Plans.

But businesses - small businesses especially - tend to select a 401(k) provider for their company based on the monthly fee (only $100 per month!) or because the owner's best friend is a money manager and can do 'it all' inexpensively.

It's not the cost of maintaining the program - it's the hidden costs - especially expense fees - that are rarely if ever disclosed.

Demand from your third party administrator or money manager what those expenses are - they are costing you and your employees a reduced return on their investment.

And that means you are costing your employees and yourself - your retirement.

Courtesy Wall Street Journal.

Onboarding a New Employee

Employee turnover is a major reason why businesses don't succeed. There is an enormous cost to replace a new employee - from recruiting costs to selection and the lost productivity.

A recent SHRM survey showed that 46% of new hires are gone within the first 18 months of employment.

With these statistics, it's surprising that more effort isn't put into onboarding - the process of completely indoctorinating a new employee into the company. That doesn't just mean what they will do - it means understanding and being integrated into the company's culture. And it's not just a one-day or one-week process - it's an on-going, long-term process.

Some very good onboarding tips from Mike Russell and Maureen Moriarity.

On Handbooks And Amateurs

Time and time again, we write about the need to have a professional develop your employee handbook.

And once again, another instance of a poorly developed handbook costing a business.

In this instance, a court allowed an employee to pursue an FMLA claim, even though that employee was ineligible.

The reason? Not all of the FMLA provisions were included in the company's handbook, nor the correspondence the company sent the employee.

How easy (and less expensive) it would have been to simply have a professional or labor attorney update their handbook.

Ironically, when I read that article from Fisher & Phillips LLP, I subsequently read another article of theirs - directed at educators - identifying the top five mistakes made by independent schools.

Mistake #3? Using an outdated faculty or employee handbook!

Thanks to Fisher & Phillips.

Don't Borrow Another Company's Handbook!

Many small businesses will 'borrow' someone else's employee handbook in order to save some money.

The problem is that without expert advice, your company could be providing benefits and promises that are not necessary.

For example, FMLA leave is required for businesses that have 50 or more employees within a 75-mile radius. If you have fewer than 50 employees, you need not comply with the FMLA.

UNLESS - your company handbook says so. A 7th Circuit Court ruling illustrates the issue:

According to the federal appellate court, statements in the employee handbook and two letters received by the employee that promised him 12 weeks of FMLA leave may have been sufficient to create an enforceable contract under Indiana law.

Alternatively, the court held that the worker may be able to prove his claim for promissory estoppel because he relied to his detriment on the company’s promises. Peters v. Gilead Sciences, Inc., No. 06-4290, Seventh Circuit Court of Appeals (July 14, 2008).

Courtesy Ogletree Deakins.

Immigration Raids Continue In The Workplace

After hearing for months how ICE will be stepping up enforcement of undocumented workers, word comes from Mississippi that the largest ever raid has taken place in the workplace - 595 Howard Industries workers were arrested last month.

It remains unknown if company executives will be arrested.

The fines against employers are increasing, the enforcement has dramatically elevated, and now it's time to make sure you're compliant with all I-9 and related requirements.

If it can happen to a large company like Howard Industries, it can happen to you.

Thanks to Barker Olmsted & Barnier.

E-Mails & Company Litigation

No matter how frequently we write about the perils of e-mail, litigation continues to happen in this area.

A 2005 survey conducted by the American Management Association and the E-Policy Institute showed that of employers surveyed

• 25 percent had terminated employees for e-mail misuse,
• 13 percent of those same employers have been involved in litigation triggered by an employee’s use of e-mail, and
• 20 percent of the employers have had e-mail subpoenaed in litigation.

Teresa M. Thompson of Fredrikson & Byron, PA, an employment attorney, says that "every piece of litigation that comes across my desk includes an e-mail discovery issue."

It's not enough just to put policies in place that state e-mail is for business use only - now, training is needed to reinforce the seriousness of this issue.

There is no expectation of privacy in company e-mails - and don't think that the opposing attorney doesn't know that.

Tolerance in the Workplace

The EEOC has issued new guidelines on religious discrimination in the workplace, after receiving the highest number of complaints ever in this area in fiscal year 2007 (it's doubled since 1992).

Accommodating religious diversity in the workplace means more than deciding if a Christmas tree or Menorah should be displayed in the reception area.

There are any number of federal and state laws that may govern this issue, including the Civil Rights Act of 1964.

While employers must assist with all reasonable requests, they are less obligated to leap major hurdles to accommodate a religious request than they would be for a employee with disabilities - but it still requires an acute knowledge of what's acceptable or not.

Make sure to work with your human resources consultant or employment attorney when any matter such as this arises. And read this excellent article from Jennifer Nycz-Conner in the Washington Business Journal.

Illegal Workers & The ICE Crackdown Statistics

It can't happen to you? Wanna bet?

The graphic above shows the staggering increase in arrests made in conjunction with the hiring of illegal workers by the Immigration & Customs Enforcement Department (ICE - a part of the Homeland Security Department).

• In fiscal year 2007, ICE secured more than $30 million in criminal fines, restitutions, and civil judgments in worksite enforcement cases. They arrested 863 people in criminal cases and made more than 4,000 administrative arrests. That is a tenfold increase over just five years before.
• The number of criminal and administrative arrests has steadily increased over the past few years. Those arrested criminally include a variety of persons–corporate officers, employers, managers, contractors and facilitators. In criminal cases, ICE often pursues charges of harboring illegal aliens, money laundering and/or knowingly hiring illegal aliens. Harboring illegal aliens is a felony with a potential 10-year prison sentence. Money laundering is a felony with a potential 20-year prison sentence.
• ICE has found these criminal sanctions to be a far greater deterrent to illegal employment schemes than administrative fines.
• These arrests also include illegal aliens charged with criminal violations. Aliens have been charged with possession or sale of fraudulent documents, identity theft, Social Security fraud or re-entry after deportation.

And it gets more important in the fiscal year 2008 (which ends this October):

• As of August, ICE made more than 1,000 criminal arrests tied to worksite enforcement investigations.
• Of the 1,022 individuals criminally arrested, 116 are owners, managers, supervisors or human resources employees facing charges including harboring or knowingly hiring illegal aliens. The remaining workers criminally arrested are facing charges including aggravated identity theft and Social Security fraud.
• ICE has also made more than 3,900 administrative arrests for immigration violations during worksite enforcement operations.

If that wasn't sobering enough, the ICE website posts their most recent arrests and punishments -all types of businesses are being investigated - from donut shops, agriculture, manufacturing, retaurants and more.

They're not kidding any more. Make sure all your employees are legally authorized to work in the United States; review your I-9's for each employee - and when in doubt, follow the law.

When HR supervisors are getting arrested, you know it's serious.

Preventing Violence in the Workplace

While OSHA reports that nearly 2 million people have been victims of violence in the workplace, nearly 70% of all businesses have no workplace violence prevention policies.

That must change. Prevention is the cornerstone of all human resource policies, and it's simple to implement (at an extremely low cost).

Steven R. Peltin and Gregg O. McCrary, writing on the washingtonceo.com website, present 5 simple tools to establish a workplace violence prevention plan in your workplace.

Too often business owners focus on the 'now' instead of the future. Preventing violence in the workplace is a 'now' issue. It could happen to you.

Courtesy washingtonceo.com

Fantasy Football - The Cost To Employers

It's almost fall, and football enthusiasts are eagerly awaiting for the college and pros to begin their seasons.

Over the past decade, fantasy football leagues have proliferated - especially since the advent of the internet. More and more people checking player and team stats; proposing trades; and tracking their team performace - and that's OK - unless it's being done at work.

According to Challenger, Gray & Christmas, fantasy football leagues cost U.S. employers about $9.2 billion annually in lost productivity.

It's a simple fix: internet use at work is for business use only. Fantasy Football (and anything else personal, for that matter) can be done from home, on one's own time.

Courtesy Newsday.

Non Competition Agreements Really Unenforceable

Lots of our clients request Non-Compete Agreements for their employees. I generally try to talk them out of trying it, and if they insist, I refer them to their employment lawyer.

The reason I discourage Non-Competes is that the courts change the covenants so frequently, there's no real way to have a solid template to develop one.

Now comes the latest California Supreme Court ruling, which has established a 'bright line' rule in the case of Edwards v. Arthur Andersen. The ruled on August 7 that California employers cannot enforce agreements limiting competition by former employees, except within very narrow statutory exceptions.

If you really believe you need a Non-Compete Agreement for your employees, please consult your attorney. And read this excellent article from Cooley Godward & Kronish LLP.

2008's Most Popular Employee Perk?

The cost and hassle of transportation (in addition to the poor economy) is leading employers nationwide to consider 4-day workweeks, car pooling and the like.

Yet the employee who must drive on company business is left out in the cold...unless...

According to a survey by SHRM (The Society for Human Resources Management) says that the most popular perk this year is raising mileage reimbursement to the current IRS limit (which is now 58.5 cents per mile).

A small price to pay for maintaining employee satisfaction.

Courtesy Clarksville, TN Leaf Chronicle.

Consequences of the Brinker Decision

Last month, a California appellate court made a significant (although sure to be appealed) ruling regarding rest and meal breaks.

For years, the California DLSE and courts have interpreted the term "provide" to mean employers must require employees to take their mandatory meal periods or be liable to the employee for one extra hour of pay.

The court determined:

The appellate court’s ruling included the following major points:

1. Rest Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking rest periods, they need only “provide,” not ensure, that rest periods are taken.
2. Flexible Timing of Rest Periods. Employers need only authorize and permit rest periods for every four hours or major fraction thereof worked, and they need not, where impracticable, be in the middle of each work period.
3. Meal Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking meal periods, they need only “provide” them and need not ensure they are taken.
4. Flexible Timing of Meal Periods. Employees are entitled to take meal periods when working more than five hours. But employers are not required to provide a meal period on a rolling five hour basis. That is, as long as an employer provides a meal period at some point during a shift, it doesn’t matter if the employee works more than five consecutive hours without taking that meal period.
5. Liability For Known Off-Clock Work. While employers cannot coerce, require or compel employees to work off the clock, they can only be held liable for employees working off the clock if they knew or should have known they were doing so.
6. Class Action Unavailable. Because whether or not employees were provided a meal and rest period, and whether they worked off the clock, cannot be determined on a class-wide basis, but rather must be determined on an individual case-by-case basis, the lawsuit should not be certified as a class action.

The Department of Labor Standards of Enforcement has issued the following memo that explains their position on this ruling. Read it here.

Employer Liability for Violence in the Workplace

An altercation at an Autozone store in Orange County California has put employer liability for violence in the workplace back in the news.

A customer was at the store to buy motor oil when he whistled at an employee in order to get his attention. The employee, a sales manager, took the whistling as an insult, and after a verbal exchange, hit the customer with a metal pipe.

The customer filed a lawsuit, contending that AutoZone was negligent in hiring, retaining, and training the employee, in light of his allegedly violent background. In particular, the sales manager had a juvenile delinquency record for attempted murder, although AutoZone was unaware of it. And, AutoZone had previously given the manager a written warning for raising his voice to a customer.

The CA appellate court ruled that the customer-victim can take his vicarious liability claim to trial.

Under California law, an employer is vicariously liable for its employees’ wrongdoings that are committed within the scope of the employment, and an employee’s willful, malicious, and even criminal acts may fall within the employment scope.

The appeals court, however, went on to reject the negligence accusations. According to the court, AutoZone had no duty to do a more-thorough background check before hiring the employee—and even had the company done more, it still might not have uncovered the juvenile record. What’s more, the prior incident in which the manager raised his voice with a customer wasn’t a red flag that he might be violent.

Avoid Liability

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

• First, be sure to investigate job applicants’ backgrounds before they’re hired. This is especially true if the worker will have unsupervised conduct with third parties or the public.

• Second, take care to monitor employees’ conduct, particularly, if given the nature of the job, there’s a possibility that violence could erupt. If you don’t, you could be liable for negligently supervising an employee who ends up assaulting a customer or co-worker.

• Third, promptly respond to complaints or warning signs. If you become aware of a possible problem with an employee, you will face bigger legal risks if you don’t investigate and take action.

Flores v. AutoZone West, Inc., Calif. Court of Appeals (Dist. 4, No. G038322 (2008))

Courtesy Business & Legal Reports, Inc.

How Not To Lead In a Bad Economy

The down economy stresses everyone in the workplace - including the boss.

But unless you are implementing an overall reduction in force, the last thing you want to do is threaten employees. It costs a substantial amount of money to replace an existing employee.

Yet that's what's happening in many businesses right now - here are some examples:

• Managers are more reluctant about granting sick leave or holiday pay.
• Employee reviews are more negative than usual, perhaps due to the fact that managers are paving the way for a justified firing (so they don't have to do a layoff).
• Employees are forced to do the work of two people without getting additional compensation.

Not the way to lead!

Find ways of making employees work better - and more efficiently. Consider any of the following:

• Flex scheduling that accommodates school visits, doctor appointments-or just personal time
• Telecommuting, from one day a week to full time
• Compressed workweek (for example four 9-hour days, or three 12-hour days)
• Job sharing (where typically two people share one full-time job, often overlapping for 1 day)
• Part-time seasons for full-time workers (that is, like a school schedule—work full time most of the year, part-time or not at all during the summer)

Courtesy Eve Tahmincioglu in msnbc.com

California's "New" Meal & Rest Period Rules

Last month, a California Appellate Court ruled employers don't need to ensure meal and rest breaks - a substantial change from previous policy.

Now comes a succinct analysis of that ruling from the law firm Barker Olmsted and Barnier. The key points as summarized in their article:

The appellate court’s ruling included the following major points:

1. Rest Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking rest periods, they need only “provide,” not ensure, that rest periods are taken.
2. Flexible Timing of Rest Periods. Employers need only authorize and permit rest periods for every four hours or major fraction thereof worked, and they need not, where impracticable, be in the middle of each work period.
3. Meal Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking meal periods, they need only “provide” them and need not ensure they are taken.
4. Flexible Timing of Meal Periods. Employees are entitled to take meal periods when working more than five hours. But employers are not required to provide a meal period on a rolling five hour basis. That is, as long as an employer provides a meal period at some point during a shift, it doesn’t matter if the employee works more than five consecutive hours without taking that meal period.
5. Liability For Known Off-Clock Work. While employers cannot coerce, require or compel employees to work off the clock, they can only be held liable for employees working off the clock if they knew or should have known they were doing so.
6. Class Action Unavailable. Because whether or not employees were provided a meal and rest period, and whether they worked off the clock, cannot be determined on a class-wide basis, but rather must be determined on an individual case-by-case basis, the lawsuit should not be certified as a class action.

Barker Olmsted & Barnier also agree with our assessment: Because this is an appellate court ruling, don't change your practices just yet; the appeals have just begun.

Paying Wages Into Debit Cards

The California DLSE (Department of Labor Standards Enforcement) has approved the payment of wages into a debit card or money check.

This should be a convenience for employees who previously have not had access to direct deposit of their wages. And in any case, it's definitely easier for employers not to have to cut a check (or sign all of them, either).

If you use a payroll company such as ADP or Paychex, contact your representative to get this started.

If you run payroll in-house, we strongly suggest you contact your HR Consultant or employment attorney before you enact this new system.

As usual, California is ahead of the rest of the nation in issues like this - if you'd like to implement this program - call your payroll provider or employment attorney to make sure your state accepts this form of payment.

Courtesy Barker Olmsted & Barnier.

Independent Investigations Can Reduce Your Liability

An employee has accused her supervisor of sexual harassment, and just informed you about it.

Now what do you do?

First, call your employment attorney, who will likely recommend an independent workplace investigator to interview all the relevant witnesses and work with that attorney to develop recommendations as to what, if any, steps should be taken.

Conducting your own investigation is fraught with peril. First, you don't have the experience or knowledge to do so, and secondly - you can avoid liability by having that investigation conducted by a neutral third party.

Of course, the first order of business is to make sure you have non-harassment and non-retaliation policies in writing immediately.

Men Fighting Back in the Workplace

It used to be that sexual harassment claims were made almost exclusively by women. But times have changed. According to the EEOC, men accounted for a record 16 percent of all sexual harassment complaints in 2007, nearly double the 9 percent figure in the early 1990s.

And men are also filing more FMLA Claims as well.

Attorneys believe this trend is caused by the so-called Father's Rights Movement.

Regardless of the cause, the monetary impact to employers is significant. One man successfully sued his employer for $11.65 million - he charged he was retaliated against for taking time off under the FMLA to care for his aging parents. Schultz v. Advocate Health, No. 01C-0702 (N.D. Ill. June 5, 2002). The case settled for an undisclosed amount in 2003.

Make sure to establish gender-free retaliation and harassment policies in your workplace. It's not just women who are suing anymore.

Courtesy law.com.

Workplace Respect

Here are the most common workplace 'pet peeves', as identified in a Fast Company 2006 survey:

1. Being condescended to, 44 percent
2. Being reprimanded publicly, 37 percent
3. Micromanaging, 34 percent
4. Loud talkers, 32 percent
5. Cell phones ringing, 30 percent

We've talked at length this week about issues that increase employee turnover. Note that the first three items on this list directly relate to poor management.

Employees want to enjoy their work; and if there is disrepect from the boss, there's going to be problems in the workplace.

Bosses: make sure you show your employees respect (remember the golden rule); and if you see disrespect in your workplace, do not allow it to continue.

Courtesy Maureen Moriarty in the Seattle Post-Intelligencer.

Source:

Humor in the Workplace

Times are tough. And when economic uncertainties prevail in the workplace, one of the first casualties is a sense of humor, which I consider a critical component of a successful work team.

That’s bad news for productivity, creativity and the general well-being of workers, say HR and humor experts.“It’s a natural tendency for some folks to tighten up during tough times, but we need to lighten up,” warns Joel Goodman, founder of The Humor Project Inc.

There's a need to toe the line for political correctness, of course; but humor - and having fun at work - increases productivity and morale, thus reducing turnover and gloom.

As an employer, it's critical to always remember that a workplace that's fun is a good workplace. And if you're working for a company and it's not fun: why would you spend at least a third of your life not having fun?

Thanks to Eve Tahmincioglu's article in msnbc.com

Flex Time's New Popularity

The increased cost of gas is one of the reasons for the increased use of 'flex time'. Employers are starting to squeeze the 40 hour/5 day week into a 40 hour/4 day work week - with the approval of both employees and employers.

Bosses say that flex time increases productivity.

The 2008 National Study of Employers shows that there is an increase in the use of flextime (79% of employers now allow it, as opposed to 68% in 1998).

Besides the cost savings of gasoline, employees perceive flex time or a reduced work week as a benefit - and the advantage for employers is reduced turnover.

Courtesy Christian Science Monitor & the Miami Herald.

Nine Steps To Reducing Your Wage & Hour Liability

Yesterday, we wrote about the incredible proliferation of wage & hour claims and lawsuits spreading over the country.

Today, some tips to reduce your chances of being at the wrong end of a filing:

1. Audit all positions classified as exempt from overtime;
2. Re-write your job descriptions, even if they were last done within the last few years;
   
3. Review your policies to determine whether steps can be taken to eliminate or substantially reduce the possibility that an employee can claim to have been working, including reviewing such things as “automatic deductions for lunch,” rounding, and similar practices.
4. Analyze policies and procedures to review deductions from wages and salaries to ensure that they comply with the minimum wage and overtime requirements of state and federal law. These are the first steps toward minimizing liability.
5. Train Managers. Making sure managers understand the rules is paramount. Managers can avoid costly mistakes and spot problems before they become too costly.
6. Think Exempt - Non-Exempt, Not Just Salary - Hourly. Too many employers pay employees a salary and then believe that relieves them from any obligation to pay overtime. Employees need to make sure those employees are properly classified as exempt (someone who is typically not paid overtime) or non-exempt (someone that is generally entitled to overtime).
7. Take Complaints on Wage Issues Seriously. You want to treat wage and hour complaints just as seriously as employment issues including harassment or discrimination. In fact, these wage and hour lawsuits could be more costly to your business.
8. Do Not Retaliate. Never, never, never retaliate against someone that makes a complaint for wage and hour issues.
9. Develop strong policies on pay practices and employee hours. Make sure employees work those hours assigned and do not work off-the-clock. Above all, properly document the number of hours worked because just like in baseball where a tie goes to the runner - if the employer has not documented the hours worked by the employee - the benefit of the doubt will go to the employee.

Courtesy Rush on Business (we wish he was in California!), Elarbee Thompson, Monster.com

Wage & Hour Issues: The Trial Lawyers Dream Come True

More wage claims were filed in federal court in 2006 than in 2003/04 combined. Through April 2008, those claims are on pace to outdo 2007. Entire law firms are being formed to litigate wage and hour claims.

That's because about 70% of all businesses are out of compliance with wage & hour laws.

One Rochester, NY attorney switched from defense to plaintiffs work, saying, "I can hit a company with a hundred sexual harassment lawsuits, and it will not inflict anywhere near the damage that [a wage and hour suit] will."

It’s estimated that corporate America pays out more than $1 Billion a year to settle and resolve wage and hour claims.

We're mostly talking about exempt or non-exempt employees, from not taking meal breaks to tip credits, and overtime. From Starbucks to Oprah Winfrey, no employer is immune.

Tomorrow, we'll talk about ways to prevent these lawsuits and claims from occurring.

Courtesy Rush on Business; Ethics & Legal Compliance Training; Business Week; New York Times (registration required)

Workplace Wellness Programs

Even in this down economy, workplace wellness programs are on the increase. The advantages are numerous - lower health care costs; increased attendance and improved morale.

Employee Assistance Programs (EAPs) are also an inexpensive way to obtain these advantages - and in some cases, spouses and dependents can participate as well.

Wellness programs also increase the attractiveness of an employer. Companies with wellness programs that touch on the physical and emotional needs of staff and their families show the employer's interest in keeping everyone healthy, and keeping them happy.

Courtesy East Indiana Star Press.

When You're Ready For Management

"It's good to be the King," said Mel Brooks in History of the World Part I.

Lots of employees envy the boss; the boss is the one who sets the agenda, enforces the rules, and gets to make the decisions the rest of us must implement.

From the outside looking up, management seems like a great job. Telling others what to do, instead of being told what to do, is really the essence of what many people aspire to.

Yet from the perspective of managers, there's no job more humbling. Making decisions - no matter how benign - that affect people's lives is difficult. The balance between managing and doing is a fine one.

For example, the best salesperson does not necessarily make the best manager. The attributes needed to succeed in sales - supreme self-confidence, self-motivation and determination along with a strong measure of independence - are not those which are desired in a great manager.

Management requires a huge team concept, the ability to admit you've made incorrect decisions and immediately change course.

A very good checklist on "Are You Ready For Management" is available here - written by Jackie Harder in the Miami Herald.

Keep Politics Out of the Workplace

We've written before about the need to keep political discussions out of the workplace. The best practice is to discourage it - emotions can simply get to volatile, and there's no real need to have that discussion in the workplace, anyway.

And don't let anyone throw the first amendment at you, either: political speech at work is generally not protected by the First Amendment.

Where the political issues get troubling is when employees bring political buttons, signs, bumper stickers, etc. into the workplace.

Make sure to review and/or update your employee handbook to make sure these activities are prohibited (usually through a non-solicitation policy).

And, make sure to read this excellent article on the topic from our friends at Jackson Lewis.

Insult Your Boss Day

Happy "Insult Your Boss Day". No, I'm not kidding. It must be official - it even has a website: http://www.insultyourbossday.com/.

It better be tongue-in-cheek. I find very few bosses who appreciate being insulted.

There's a difference, though, between insulting your bosses and legitimate criticism.

Think about a major difference you have with your employer. The best managers invite a contrary opinion; just be careful about how and where you express that opinion.

I never object to an employee who has a difference of opinion. But I would strongly prefer to be criticized in my own office than in front of a number of employees; my initial reaction to the latter situation would be hostile.

Don't insult; do express your opinion - but know where and when to do it the right way.

Courtesy Winston-Salem Journal.

Employers Do Not Need To Ensure Meal Periods

In a decision that California employers have been waiting for, a California Court of Appeals today ruled "...while employers cannot impede, discourage or dissuade employees from taking meal periods, they need only provide them and not ensure they are taken."

In Brinker v. Superior Court, the Court analyzed what California Labor Code § 512 means when it requires an employer to "provide" meal periods to its non-exempt employees. (California Labor Code § 512 requires that an employer "provide" an employee with a meal period if the employee works five (5) hours or more.)

For years, the California DLSE and courts have interpreted the term "provide" to mean employers must require employees to take their mandatory meal periods or be liable to the employee for one extra hour of pay.

It would be a mistake to immediately change any policies you have in place regarding meal breaks; the decision will almost certainly be appealed to higher courts.

The Annoyance of E-Mail

One of my closest friends has an e-mail account, but refuses to give out the address to his friends. "I get enough e-mails at work," he explains, "and the junk I get from my friends is the biggest time waster I can think of."

The overuse of e-mail, and related etiquette violations, are a big annoyance in the workplace.

ABC News has developed a list of "No-No's" when it comes to business e-mails (and they're all great examples of what not to do). They are:

1. Don't 'cc' someone's boss on a criticism unless you really mean it;
2. Hitting the 'reply all' button;
3. USING ALL CAPS

It is suggested that you develop an e-mail etiquette policy for your handbook - but, like all policies, you need to consistently enforce it.

And remember - when you put something in writing - it's there forever.

5 Alternatives to a Pay Raise

The economy is down, and business owners are feeling the pinch. Employees may deserve a pay raise, but you can't afford to provide one.

Here are five alternatives to a pay raise:

1. Increase the number of paid days off.
2. Go to a four day work week twice monthly.
3. Telecommute one day a week (this saves the employee travel time and gas expense).
4. Establish a bonus for high performance during the year; if an employee exceeds billable hours, or productivity standards - your business will improve.
5. Initiate a 401(k) or other savings incentive plan (the incremental costs are very small compared to the perceived benefit)

Remember, it costs far more to replace an employee than keeping one. Reducing your employee turnover is a key component to business success.

Courtesy USA Today.

Same-Sex Marriage & The Affect On Employers

When California's Supreme Court overturned a state law that banned same-sex marriages in May, the impact on employers was not immediately clear. As lawyers and experts have begun to evaluate this decision, their opinions are starting to come out.

Writing in Harrison Ford's Management Update, Jeffrey Ashendorf says that "Employers should review the terms of their benefit plans and employee communications and adopt a clear definition of the term "spouse" to avoid any confusion. Additionally, if benefits are or will be offered to same-sex spouses or non-dependent domestic partners, employers should ensure that their payroll or accounting departments can comply with differing tax treatments under federal law."

Obviously the issue is controversial - and litigious - for employers. Take steps now to ensure you're in compliance.

Retaliation: The New Emerging Issue for Employers

Employment attorneys tell me that the reason retaliation claims are on the rise is that retaliation is much easier to prove than harassment. Some plaintiffs lawyers are even 'giving up' on a harassment complaint and just focus on retaliation as a result.

When I conduct workplace investigations, one of the things I look for is whether retaliation has taken place. It may be that there was no actual harassment - but there was retaliation.

The simplest example is when an employee is terminated shortly after making a harassment or discrimination claim. The burden is on the employer to prove he or she did not terminate because the accusations were made.

And retaliation can be much more subtle - co-workers avoiding the accuser; management moving the accuser to another office or work location.

Make sure you add a non-retaliation policy to your employee handbook. But you need to be vigilant in making sure the policy is truly in practice.

This excellent article from Shaw/Valenza illustrates some recent retaliation decisions made by the courts.

Alternatives to Employee Layoffs

Yesterday, we discussed the downside to laying off employees. It often is a short-term fix at a substantial long-term cost to your business.

But when business turns south (62,000 jobs were lost last month), what alternatives are there?

Michigan-based Pro-Temp Inc. co-owner Cal Van Hemert started snipping away at expenses at the heating, cooling and refrigeration service company.

He replaced the company's formal holiday dinner with a pizza lunch, restructured to get more people into the profitable sales department and is debating whether to trim benefits for his 14 employees.

Cross-training employees in multiple roles can add efficiency with no additional cost.

Employees might agree to sabbaticals, unpaid vacations, lowered salaries, even work furloughs.

415 Productions offered either an overall 5 percent pay cut, or a four-day work week reflecting the appropriate decrease in pay.

Charles Schwab Corp. guaranteed a $7,500 bonus for any affected employee who gets rehired within 18 months. In addition, company founder Charles Schwab and his wife created a $10 million educational fund for these workers. The fund will cover as much as $20,000 worth of tuition over two years at accredited academic institutions.

Your most important investment is in human capital. The cost of turnover is significant.

Thanks to salary.com and themorningcall.com.

The Downside of Employee Layoffs

In a "down" economy, the first thing many businesses decide is to layoff employees.

It's not a great idea, since it is a short-term fix at a long-term cost.

William McKinley, in an article titled Organizational downsizing: constraining, cloning, learning,
wrote that "While downsizing has been viewed primarily as a cost reduction strategy..there is considerable evidence that downsizing does not reduce expenses as much as desired, and that sometimes expenses may actually increase."

Employees should not be viewed as an expense, but as a capital investment.

F. John Reh argues that businesses need to consider the reduced morale and the reduced performance and innovation it will bring, and to consider the reduced quality of the company's overall workforce that will result.

Tomorrow, we'll discuss alternatives to laying off employees.

Courtesy about.com (management).

Getting Coffee For The Boss

So an employee got fired for complaining about having to get her bosses coffee. And then sued for a hostile and discriminatory work environment.

She lost (here's the article in www.philly.com), but certainly created a problem for her former employer.

The best way to deal with this problem - like most problems - is to get in front of it before anything gets out of hand.

For example, the written job description should always include a section that says, "...and all other duties as required by management." And it wouldn't hurt in the job interview to mention that bringing coffee to the boss is considered part of the job.

As for me - I'm fully capable of getting my own coffee every day, and would rather have by associates working that making me a latte.

The fired employee plans to appeal - but one of her quotes was really significant: "...they had no idea that I needed that job as much as I did..."

Managing Your Boss

I've written frequently about the concept of 'managing up'.

Now, Joe Tokash, writing in Business West Online, offers four steps to Managing Your Boss:

1. Choose Good Timing
2. Understand How Your Boss Prefers Information
3. Align Understanding
4. Follow Up and Live Your Word

All excellent steps. Remember - as a boss, it's up to you to encourage and foster communication with your employees. As an employee - it's equally up to you in order to proactively deliver that same communication.

Absenteeism in the Workplace

Many employers - especially smaller ones - get frustrated with frequent absenteeism. It reduces productivity and even minor disruptions can create problems in the workplace.

Sandra Sunken, writing in the Ventura County Star, has several suggestions on improving poor absenteeism - several I don't agree with:

But let's start with the ones I do agree with:

- You can make a difference. As a leader, it's your responsibility to set an example and make sure you set expectations as well.

- Leading by example. I once worked for a boss who believed he should be the first one in the office at least twice a week, and the last to leave at least twice a week.

- Create a bank of personal time days. In the HR world, this is called "Paid Time Off" or "PTO". PTO combines vacation, sick and any personal days an employee is eligible for. When they call in sick, or request a vacation, it is charged to PTO - so it doesn't matter why they're off; they're just off. And when that bank of days is exhausted, they can still be absent - they're just not paid for that time off.

Here's where I disagree with Ms. Sunken:

- Let your employees know you care about them. While this is important for morale, it's not relevent to absenteeism. If you care about your employees AND they care about their job, they'll be there.

- Emphasize the link between attendance and productivity. It seems to me that employees who are frequently absent simply don't care about productivity (or their jobs, for that matter). Explaining the importance of productivity likely will not result in improved attendance.

- Job Enrichment. Why would you go to the trouble of cross-training and developing an employee who doesn't care enough to show up?

- Prize Pool [for punctuality and attendance]. Many companies do this, and I'm frankly opposed to it. Attendance is a minimum expectation of employment. I do not believe in rewarding anyone for something they're expected to do. (However, rewards for exceptional performance are something I highly encourage).

Setting the expectation is critical. This should be emphasized in the job interview, supported in a written job description, and addressed immediately when there is a pattern of absences or tardiness.

Ending Gossip in the Workplace

The bad news first: it's really difficult to put an end to gossiping. Most people have a natural tendency to talk about others (witness the explosion of sites like www.perezhilton.com and www.tmz.com).

Yet gossiping about fellow employers or leaders in a business can truly produce incredible morale issues. My experience shows that if employees are happy, they tend not to negatively gossip in the workplace.

On the other hand, I've seen businesses where gossip is crippling morale and reinforcing already negative attitudes.

So what do you do?

Sam Chapman of Empower Public Relations set forth a 'no-gossip' zone in his office, firing three employees and establishing a strict policy of no-gossiping.

Perhaps a more practical approach is to keep your eyes open for unhappy employees and enforce your open-door policy. Find out what is troubling him or her and make sure your policies, procedures, and decisions are frequently communicated to everyone.

That (naturally) has created some consternation among the experts, as outlined in this article in the Christian Science Monitor.

Love Contracts

Even though businesses frown on workplace romance, let's face it: most of us have three ways of meeting people: through our friends, at a bar, or at work. And since we spend at least one-third of our lives at work, the chances are there that a romance will develop.

In most states, an employer cannot prevent employees from dating. (However, most states permit employers from halting a romance between a supervisor and direct report).

And remember - 50% of all sexual harassment cases start when the relationship was consensual.

So how to mitigate the issue?

One way is through a so-called love contract, in which both parties acknowledge their relationship is voluntary and consensual. Although it's questionable whether these contracts are enforceable, it seems desireable for an employer to get something in writing.

Here's an excellent article about love contracts by Ann Margaret Pointer of Fisher & Phillips LLP.

Hiring Someone Just Like You

Most managers do a poor job of hiring. With the average employee turnover rate around 20-30% annually, that percentage is almost entirely a reflection on poor hiring practices.

Many managers are looking for someone just like themselves in terms of mannerisms, appearance, culture and skill sets.

David G. Javitch, Ph.D, writing in Entrepreneur magazine, calls this hiring practice "mirror-hiring".

In truth, you want to hire to your weaknesses, and not your natural strengths. An honest assessment of your strengths and weaknesses combined with your desire to bring in people who have a different skill set can only help you and your team.



via entrepreneur.com via MSNBC

Wellness Programs Benefits for Small Businesses

You don't need an expensive wellness plan to develop a healthier workforce.

Think about what's in your breakroom: bagels, donuts, chips, and sodas?

How about fresh fruit and other low-fat snacks?

The American Heart Association offers a free walking program for employers.

What are the benefits?

• increased employee morale
• lower absenteeism and
• potentially reduced health-care costs

Find out what your employees would like - if you deliver on their needs, the benefits will ultimately be both yours and theirs.

Via Chicago Tribune.