How They Made the List: Tips from Fortune’s “Best 100 Places to Work”
March 4th, 2010
With a glance through the companies on Fortune Magazine’s list of The 100 Best Companies to Work For, similar themes arise, even though the 100 firms represent a wide range of industries. Businesses of any size can use these themes to make their workplace one of choice for their employees, too. Reducing turnover reduces costs, increases productivity, and makes everybody happier.
Do the right thing:
- The #1 company on the list is SAS, a software firm. Employees get unlimited sick days, free medical care, a free fitness center and summer camp for their kids. The CEO believes in the trust between the company and the employees. Perks are probably a big expense, but SAS is very profitable (it’s the world’s largest privately owned software company) and turnover is a low, low 2%—the lowest in the industry.
- Johnson Financial Group, keeps pay in place if staff must be out of work for a crisis. The CEO says they will always “do what is right.”
- Arkansas Children’s Hospital sponsors a summer camp for sick kids—and awards extra vacation to employees who volunteer there.
We’re all in this together (even in a tough recession year):
- Edward Jones, the investment firm, froze salaries but continued profit sharing and did not lay off a single employee or close a single office.
- Wegmans Food Markets has never had a layoff, and didn’t end that streak. 11% of its employees have been with the grocery chain for over 15 years.
- Shared Technologies, a phone and data systems company, limited layoffs by cutting pay for employees (5%) and management (10%). The CEO of AFLAC, the insurance firm, gave up a $2.8 million bonus—and maintained all employee benefits.
- Nugget Market, a small chain in California, helped employees through the recession with 5% discounts on groceries; management showed appreciation by washing all the associates’ cars one day.
- Men’s Wearhouse demonstrated a team approach with pay cuts at the top: the CEO took a 20% pay cut, the SVPs, 5%, and the board of directors 10%.
Let’s keep having fun:
- The Scooter Store, in Texas, keeps celebrating with quarterly pep rallies and birthday parties every day.
- Mattel, the toy maker, keeps employees happy with potluck breakfasts, volunteer days, picnics and milk-and-cookie parties.
Benefits for all:
- Build-A-Bear Workshop gives part-time employees access to health insurance.
- CISCO offers on-site child care.
- Methodist Hospital System gives out bonuses based on patient satisfaction each quarter.
- PCL Construction focuses on healthy employees with gym memberships, unlimited sick time and paid life insurance.
Maybe these ideas will inspire other employers to think creatively and hang on to your valuable employees longer!
FMLA Overview
February 24th, 2010
The Family and Medical Leave Act became effective in August, 1993 and is enforced by the U.S. Department of Labor Standards Administration, Wage and Hour Division. We hear from employers who are not sure whether or not they are covered by the FMLA. It can be a confusing set of rules to decipher. Here are the basic tenants of the FMLA:
- The FMLA covers most employers—but not most small businesses. Only private employers with 50 or more employees in 20 or more weeks in the previous calendar year must abide by the FMLA. The act also applies to all state and federal government employers, local governments and education employers.
- The FMLA allows for up to twelve weeks of unpaid leave for qualified employees in a 12-month period. In essence, the FMLA protects those workers’ jobs. While employers are not required to pay employees during the twelve weeks of leave, they cannot fire or lay them off because of a family or medical issue that is specified in the Act.
- Qualified employees are defined as those who have worked for a covered employer for a total of 12 months, with at least 1,250 hours worked in the preceding 12 months.
- Employers must restore employees back from FMLA to either their former position or an equivalent, and they must maintain any group health insurance benefits while the employee is out on FMLA.
- The FMLA’s covered family and medical conditions include a serious health problem requiring the employee to take medical leave; the birth and care of a newborn child; the adoption of a son or daughter; caring for an immediate family member with a serious health problem; and needs arising due to a family member’s call to duty through National Guard.
- Employees who are spouses and share in the birth or adoption of a child or the care of a family member together may only take a combined twelve weeks in a 12-month period.
- Employees who wish to use FMLA must provide the employer with a 30-day notice prior if possible. They must also provide the employer sufficient information to determine whether the FMLA applies to the employee’s situation.
Alabama Campus Shooter Possibly not Properly Screened before Hiring
February 17th, 2010
Reports are surfacing that the professor charged with the fatal shooting of three colleagues last week in Alabama had a violent history that perhaps could have been discovered—with more thorough background screening.
Amy Bishop, who also wounded three others, had more than one incident in her criminal past. She was arrested in 2002 for assaulting a woman in a pancake restaurant—over a child’s booster seat. She shot and killed her brother in 1986, in what was officially ruled an accident. And she was questioned about a mail bomb received by her supervisor at Harvard.
The question remains: was this information available, and not acted upon by the University? Or did the University of Alabama use an insufficient level of pre employment screening for Amy Bishop’s position?
Employers typically choose from several levesl of background screening. The lowest level might be enough for a back office employee with no client contact, on-the-job driving, or access to sensitive data. On the other hand, day care providers and nursing homes, who work with vulnerable populations, need all the information they can get on a potential hire.
Why not the University of Alabama? Isn’t it better to know more, rather than less, information on a university professor, who is in a position of power and influence over students?
Now that the damage has been done, and the victims’ families face untold grief and loss, it is easy to look back and wish things had been done differently. Instead of regretting inaction, isn’t it better to take all possible actions—before workplace violence occurs?
Unemployment Down, but Hiring Outlook Still Bleak
February 9th, 2010
Although January’s unemployment figure dropped from 10% to 9.7%, other sources are not so optimistic about future hiring. Temporary staffing and payroll processing firms are among those reporting few positive indicators for hiring boosts in the near future.
ADP, a payroll processing company for US employers, issued a report that 22,000 private sector jobs were lost in January, 2010. Goods-producing sector jobs fell 60,000 while the service sector lost 38,000 jobs to arrive at the total. Within the two main categories, small business employment fell by 12,000, and manufacturing lost 25,000 jobs.
Unemployment has tracked high for the manufacturing and construction sectors for over two years now, with 1.9 million construction jobs lost since December 2007. The ripple effect of 15 million Americans out of work is continued lower consumer spending, which means employers don’t need more workers.
There are a few good-news items in the ADP figures: first, the service sector’s 38,000 jobs gain is the second straight monthly increase. Second, the overall drop of 22,000 month-to-month is the lowest decline since employment started falling in February 2008. Third, medium-sized businesses actually grew employment by 9,000.
Kelly Services, Inc., a temporary staffing firm, reported a loss in revenue and profit for the 4th quarter 2009 over the same period in 2008; however, revenue was up from the third quarter 2009. This could be a positive indicator; temp staffing services often see increases in business prior to full time job boosts.
The construction industry is still being hit hard. According to the United States Labor Department, construction saw 75,000 jobs lost in January. A bright spot in the Federal report is manufacturing, with an 11,000 job loss—much smaller than the drops seen in 2009. Motor vehicles and plastics/rubber were two areas that increased jobs, by nearly 30,000 total.
While unemployment figures for January were better than expected, hiring will likely not occur on a large scale until consumer spending bounces back—and that’s not likely until employers start hiring again in a big way. Stay tuned for updates as they come.
Oregon Considering Ban on Pre-Employment Credit Screening
February 3rd, 2010
Oregon’s Legislature is considering a bill that would prohibit pre-employment credit screening unless it is relevant to the job. Hawaii and Washington have enacted similar limits.
The proposed bill allows banks, credit unions, and public safety agencies to continue screening applicants’ credit histories; for the rest of the state’s employers, credit checks could be a thing of the past. Other pre-employment background checks, like criminal records, education verification, and reference checks would still be allowed.
Those speaking in favor of the bill’s passage cite the floundering US economy, saying it’s unfair to conduct credit screening during a recession. Proponents also claim no connection between bad credit and unethical workers.
While the recession has certainly increased the numbers of applicants with questionable credit histories, the Oregon bill seems to assume that employers do not consider anything but credit checks when deciding whether or not to hire an applicant. The employers we hear from use credit screening for cash-handling positions, to protect sensitive confidential data, and as an indicator of judgment and responsibility.
Smart employers take into consideration every aspect of an applicant’s skill, education, and character. In many cases, the credit check is the last step before hiring. Many employers use it as a guide and communication tool for applicants that have already passed several steps in the hiring process. A few blips on a credit report due to medical expenses and job loss would be excused by many employers—and a bad economy doesn’t mean the information should not be available to employers who need it.
Employers need all the tools available to them to make good hiring decisions. Credit checks help many thousands of employers protect their companies, their existing staff and the customers they serve by ensuring only properly screened employees handle cash and sensitive data. Banning credit checks will not lead to higher employment.
A Targeted Approach to Hiring Employees
January 27th, 2010
Human Resources pros and business owners are facing unprecedented numbers of applicants for limited—or zero—job openings. It’s nearly impossible to review every single resume, and it’s not efficient to even try.
Hiring has become more about recruiting than passive receiving of applications and resumes. Some employers are avoiding the resume onslaught by eliminating job postings altogether, preferring to use outreach strategies instead. Here are some tips to target your employee search and avoid the time-waste of reviewing hundreds of resumes:
- Go online! LinkedIn.com is the go-to professional social networking site. If you’re unfamiliar with LinkedIn, do yourself a favor and join. It’s free (they do have a paid option), and it’s a great place to “meet” other professionals from across the country—or across the ocean. Start building connections, join appropriate groups, and let everyone know when you’re looking for new talent. LinkedIn even has a search-by-industry feature.
- Check out your industry’s continuing education opportunities. Whether you’re looking for an accountant, a finance professional, support staff, or a marketing manager, you’ll find online and face-to-face training courses geared toward them. Find out where and when they are happening, and let the course or workshop leader know you have a hiring opportunity. People who are working on improving their skills could make great employees.
- Ask around. Talk to your vendors: they probably know lots of companies in your industry. They may know a fantastic worker who just left one of them. Talk to your employees. Chances are very good their friends and family members know someone who’s looking for a job.
- Be social. Attend local business events and networking opportunities. Hand out cards, make new contacts, and let folks know what you need. Your next recruit could be right in front of you. If not, you’ll make valuable contacts who might send someone your way in the future.
- Be social online. Twitter is probably the fastest way to send word around to the largest group of people. You can’t set up your account and instantly have thousands of followers (unless you’re Bill Gates or Oprah), but it’s a great way to build connections over time. When you need those connections, they’ll be ready to help you find a good employee.
Next time you’re hiring employees, try a more targeted approach—and spare yourself the time you would have spent reading all those unacceptable resumes, hoping for the right one to jump out of the pile!
When Economy Recovers, Will You Have an Employee Exodus?
January 20th, 2010
Catherine is a business owner we know who recently shared a concern that’s been on her mind; a fear that other employers probably share. Her staff of six has weathered the bad economy with her, through layoffs of a few of their friends, no raises for themselves, and increased job responsibilities. Catherine has expressed her appreciation for their sacrifices, but was also proud that she was able to keep six people employed through such a difficult time.
Catherine’s business looks like it will come through the recession in pretty good shape—and she will be relying on her seasoned staff to bring it back to its former level of profitability. Her main concern? That her staff will abandon her for other job opportunities, just when she needs them most.
Catherine’s story is not unique, and she’s smart to be thinking about this possible problem before it begins. Worrying about it, however, will not accomplish much. But what can Catherine and other employers do to keep good employees around after the economy recovers? How does an employer prevent a mass employee exodus?
First, recognize the reality: a survey last summer reported that nearly half of employees surveyed plan to seek a new job after the recession ends. 30% were already actively seeking new work. Generationally, the Xs are least likely to stay with their current employer, while the older Baby Boomers are most likely to stay.
Assure your staff of their job security. If your business is strong, let your workers know. Eliminating the unknown may be enough to keep your employees from bailing on you. Job security is the number one reason for employees to seek a new job. It’s not the increase in job responsibility or too much work for each staff member—employees do not see those as reasons to leave your company.
Find out what your staffers want. Now is a great time to sit down with your employees, either in a group brainstorming session, or one-on-one, and really understand what they want from their relationship with your company. Then, realign your procedures and retention strategy to match their most important wants and needs.
Employers don’t have to face the economic recovery by losing good employees. If retaining your best workers is important, find out what they need to stick around!
Employee Handbook Tips
January 14th, 2010
No matter what size company you own or lead, an employee handbook is always a good idea. Everyone benefits from fewer misunderstanding and clear expectations. With a handbook, employees know exactly what they can and cannot do, and management has clear guidelines to follow for managing staff. In addition, employee handbooks can help your company avoid lawsuits by clearly stating company procedures.
Here are a few tips for creating an employee handbook for your company:
- Include a Statement of Company Culture. An introduction of the company, its history, mission, and values can create a culture statement to help new employees begin to assimilate into the company
- Keep the language simple and direct. Using legal terms and twenty-five dollar words could be confusing to employees.
- Cover the basics. Include the company’s compliance with discrimination laws, what constitutes full- or part-time employment, how and when employees are paid, and where employees are to park. Include employee background screening policies. Consider including standards of conduct, any dress code requirements, where to address complaints, how disciplinary action is handled, and vacation, family leave, and sick leave policies.
- Beyond the basics: Be sure to cover your company’s cell phone policy. Are staff members allowed to accept personal calls during working hours? What about when driving company vehicles?
- What are the company’s policies on company vehicles? How will you cover military leave? Violence or sexual harassment? Drug and alcohol use? What about staff visitors during work hours? How should employees notify management when late for work or ill?
- Have an attorney review the handbook: An employment-law attorney is equipped to advise on legality of the employee handbook. The only thing worse than no handbook is one that is not enforceable—and the only thing worse than that is a handbook that could spark a lawsuit!
Employee handbooks vary in size, scope, and detail, depending on the size and culture of the company. The important thing to remember is that even a basic handbook is a must-have for every company with employees!
Listen and Coach Your Employees to Success
January 6th, 2010
What type of supervisor are you? Do you rule with a firm hand, expect your employees to live up to your expectations, and discourage feedback? Or are you more like a mentor, molding and shaping your staff members to create the most effective team possible?
Sports analogies are used often in business: we work in teams, set goals, and hit home runs, whether we work at a baseball diamond or in a coffee shop. And today’s managers are more like team coaches than strict bosses who must be obeyed—or else.
Employees are an asset; their knowledge and talents are your company’s resources. It’s up to the coach to decide how to best use those resources, for the benefit of the team. Even in today’s economy, when staffers should be happy to be employed, there is a certain balance that must be maintained between the company’s needs and the employees’ needs. To keep that balance at an optimum level, good leaders find that nurturing talent and encouraging feedback and communication are among their best tools.
Asking open-ended questions is a good way to start. Instead of a “yes” or “no” question, like “Do you have what you need to do your job?” a coach would ask, “What are the specific tools I can provide so you are most successful at your job?” The first question is confusing; a worker is likely to say “yes” to avoid looking unprepared. The second choice is better—your employee has a wide range of possible answers, none of which can be considered incorrect.
Secondary questions, such as, “I never thought about it that way. Can you explain what you mean by that?” will help employees feel valued and confident in their opinions. Encourage staffers to open up in their communication by choosing questions wisely; help them think broadly about issues, and ask for their suggestions to improve procedures and policies.
Practice the art of active listening: make steady eye contact, engage fully with your staffers, and ask clarifying questions. Nothing does more to indicate to your employees that you are listening to them and care about what they think.

