Claims for unemployment benefits are dropping; the economy seems to be on the upswing again. And employers will be adding jobs each month, according to economists. Along with hiring new employees come the standard procedures like orientation, IRS forms and 30-day, 60-day and 90-day performance reviews.

But some experts say the initial and annual employee performance review is dead. Everyone dreads it, managers and employees alike. But human resources managers often think they are must-dos for legal reasons. After all, how can an employee be terminated without a paper trail?

It’s not the paper that’s the problem. Most people just think the reviews are not productive. They’re more about meeting a requirement with a process, and not about getting results. In short, they have little credibility—and everyone knows it. In fact, back in 2005, Psychology Today reported on a national survey by People IQ, which stated that a whopping 87 percent of managers and employees felt performance reviews were not useful or effective.

4 Ways to Improve on Annual Reviews

1. Coach your employees every day. Setting objectives and goals together lets both employee and manager know what is expected. Weekly check-ins can help the employee keep on track toward reaching the goals, or switch things around as company needs change.
2. Offer immediate feedback. Gen Y workers are used to hearing feedback. They were raised with it and don’t always thrive when kept in the dark about their performance.
3. Eliminate the “annual” part. Monthly or quarterly one-on-one meetings with each staff member—without the “fill in the blank” forms—give both sides the opportunity to review performance, make plans for improvement and celebrate accomplishments.
4. Give specifics. Instead of noting that an employee isn’t getting the job done, or seems distracted, offer specific examples of behavior that impacted the company negatively. Allow the employee to offer an explanation, then move on.

Employees are motivated to work hard, keep good jobs and contribute to a cause or company they believe in. Replacing annual reviews with setting goals and coaching employees to meet them, along with more frequent feedback might just be winning strategy for your company!

One woman posted a photo of herself on vacation, holding a glass of wine. Another posted negative remarks about a supervisor. Others discussed their work environment on a private MySpace page.

What do these employees have in common? They were all fired, dismissed or forced to resign over these activities.

Is it okay to terminate an employee for their online actions? What about postings that are harmful to a company, its reputation, a supervisor, or co-worker? Where do employers draw the line when it comes to employees’ online behavior?

The new rules have not yet been sorted out. As some firms scramble to create social media policies, others are hands-off when it comes to how employees spend their free time.

A Social Media Policy Can Help
Cover the Content: We’ve all seen photos of company picnics that look like drunken free-for-alls. Prohibiting the posting of photos from company-sponsored events anywhere but on the official website, after approval by a content manager, is one way to establish control.

Reinforce that employees do not have free reign when it comes to badmouthing their employer or co-workers, on or off the job. Not only is it in bad form, it’s can be grounds for dismissal. Employers can be held responsible for what employees say or post; therefore, they have the right to limit it.

Establish boundaries. How does a view inside a co-worker or boss’s private life affect employee relations? What about knowing a staff member’s religious or political views? When does a “friend request” become creepy and harassing behavior? Decide whether or not it is permissible for a boss to friend a subordinate.

Realize you probably cannot establish broad policies such as prohibiting employees from referring to the company in any way on any social media site.

Some employers are out of practice when it comes to hiring employees. Maybe it’s been a couple of years since you’ve had enough business to justify adding staff–so if you’re a little rusty, check out these quick tips for sorting through the applications, resumes and interviews and getting the best new employee possible.

1. Revisit your needs: What do you really need help with? Where are the gaps in your current production or service offerings and how can you best fill them? Perhaps you need to hire three people, not one, as you planned. Or even better, a thorough needs audit may reveal you only need one new staffer, not two.
   
2. Revisit the position you’re hiring for: Has it changed since you last filled it? For example, the employee who’s currently fulfilling the role may have taken on more duties through the recession. If so, adjust the job description and tighten up your requirements before you place any ads.
   
3. Consider the new ways of recruiting job candidates: You might not have heard that not many job seekers use the newspaper’s classified ads anymore, but it’s true. Online job boards, social media sites, Craigslist and local news sites are probably your best bets for placing ads.
4. But you might not need to advertise at all: word of mouth can be the most effective method to get new employees through the door. When you and your staff spread the word that you’re hiring, you’re more likely to have people you know apply for the job: customers, friends, family members and friends of friends will start coming through the door. These are likely going to be people already familiar with your company and its products or services. They may have a good feeling for the company culture and require less time to get up to speed.
   
5. Hire for attitude, train for skill: Making sure a new employee fits your culture and has a passion for what you’re all doing there is vital to long-term success. Skills are important, but a positive, cooperative employee beats a grumpy, difficult genius any day of the week!

Recently a Jet Blue flight attendant named Steve Slater made a dramatic exit from his job—and made the news world-wide. His “I can’t take it anymore” rant was heroic to some, and simply whiney to others.

Those who see him as a hero say he represents the overworked masses that have made it through the recession, but with nerves frayed and tempers flaring. Many of these workers, it seems, are just waiting for the next incident to push them over the edge.

But what about their bosses? Many have been hesitant to pile more onto employees who are already maxed out. Are managers getting ready to crumble under bigger piles of responsibility, too?

How does a manager avoid putting too much onto employees and risk having one quit in a dramatic fashion, or “slide the chute,” as the Jet Blue flight attendant did? It’s a matter of delegating—which is an art. Doing it right maintains a balance and keeps everyone’s workload manageable—including yours.

Here are some tips on delegating well:

• First of all, recognize that if you don’t delegate, you will cripple your ability to manage.
• Get to know your staff better. What area of the business they want to learn more about? Find tasks that will advance their knowledge and they’ll be more likely to do them well.
• Don’t “hover.” Once you give someone a task, let it go and let them do it—even if they’re doing it differently than you would (also known as doing it “wrong”).
• Give them time. Realizing an employee is capable of handling some things as well as you—even if they’re only at 50% now—comes with time. So delegate a task, teach them how to do it right, and expect that that will. Be patient.
• Empower employees with knowledge of how each project fits into the company’s operations. Let them see how important it is, and they’ll be more likely to take ownership of it.

When the recession hit, employers knew their workers couldn’t just walk out the door and find another job. Now that we’ve been through a couple of years of the downturn, stressed-out staff need to be handled carefully in order to keep them from running toward the exits as soon as things start getting better.

But, just because your staff may have options now or in the near future doesn’t mean you can’t add to their responsibilities. Who knows—maybe delegating some of your job duties will make their jobs much more fulfilling and your employees more likely to stick around!

Why employees are voluntarily leaving their jobs in larger numbers than we’ve seen in nearly two years, and what employers can do about it.

It may seem like a slap in the face to employers who’ve worked hard to keep their employees happy (and employed) through this tough economy, but they’d better get used to this fact: employees are voluntarily leaving their jobs in larger numbers than we’ve seen in nearly two years.

According to the U.S. Bureau of Labor Statistics (BLS), the number of employees quitting their jobs surpassed those being discharged by employers this past February. And as quoted in the Wall Street Journal, a poll conducted by Right Management at the end of 2009 indicated 60% of employees intend to leave their jobs when the market improves.

Some employers are bracing themselves for major turnover. Formerly-nervous employees are starting to feel more confident that the economy will turn and employers will begin hiring again. And, they feel they’ve waited long enough to pursue better opportunities, according to the survey.

Another factor inspiring employees to jump ship could be low morale and job satisfaction. We’ve written about ways to keep employees motivated through the recession, as job responsibilities increased and perks disappeared. But some employers may have taken the “you’re lucky to have a job” approach to employee management too far—even if it was true!

Employees are again going to be faced with choices, as recruiters call and their networks start buzzing again with opportunities. While no one knows exactly when that will happen, history shows that what goes up (unemployment figures, for instance) must come down.

Employers concerned about losing good employees—and the associated costs, like recruitment, lost productivity and training—should think ahead and keep communication flowing. Talk to your employees one-on-one and hear their grievances. Ask for ways you can help improve the work environment. The goal is to catch your valued staff before they head out the door. After all, most employers know it’s much easier to keep a good employee than to find another one.

Small employers often don’t worry about strict regulations and too many rules. With a small group, your employees may be more like family, and if everyone is getting along, it’s a good thing. But what if two or more employees are getting along a little too well, and start seeing each other outside of work? No big deal? But what if one of them is in a supervisory role? Now it gets complicated.

While relationships between coworkers don’t present a threat to employers, those that involve a person in power are a different story. A consensual romance that goes sour could lead to charges that it was, indeed, non-consensual. Favoritism is another potential hot issue, like when a manager promotes her boyfriend. No exactly fair to the other staff, is it? As an employer, you must protect the company from charges of sexual harassment. An inappropriate relationship between a supervisor and subordinate could leave the organization vulnerable to a lawsuit.

That’s why every organization with employees needs a basic, written dating policy. What should it include?

• First, make it clear that while dating is not prohibited, romantic relationships between supervisors and employees are not allowed. Train supervisors to avoid workplace romances with subordinates.
• Some firms avoid issues with nepotism and claims of unfair treatment with a policy that no couples or relatives will be hired.
• Other companies require employees who intend to pursue a romantic relationship to report such to management. Why? For a written record that it is indeed consensual. Make sure to ask for notification when the relationship ends, too.
• Clearly state that sexual harassment will not be tolerated in any form. This includes inappropriate language, behavior, or unwanted attention. Remind employees that “no” means “no.”

How to Deal with the Office Rumor Mill
When one employee spills the beans on another’s extracurricular activities, encourage him or her to pay attention to their own worries, not to mention their job. It’s best not to tolerate employees reporting on each other.

If Jack and Jill’s relationship is creating a negative work environment, deal with it before morale and productivity plummet. Obviously, your employees are being paid to perform their job duties and nothing else, so any damaging behavior should not be tolerated.

As it generally has in the past, the United States Supreme Court has unanimously ruled on the side of employers in a recent case concerning employees’ use of employer-provided technological equipment.

Sexting Police Officers
In the case, two Ontario, CA police officers sued the Police Department after one officer’s department-supplied work pager useage exceeded the allowed limit month after month. A supervisor requested transcripts of text messages sent and received by the employees. The search on Sgt. Jeff Quon’s pager turned up over 400 personal text messages received and sent in one month alone—including sexually explicit messages. The officers claimed the search violated the Fourth Amendment.

Do Employees Have a Reasonable Expectation of Privacy?
The Supreme Court’s decision was based on whether or not the officers had a “reasonable expectation of privacy” concerning their text messages. The department’s formal policy which that employee communications would be monitored—and Quon signed a statement agreeing to the policy. However, Quon’s supervisors informed him that they would not audit texts as long as employees paid any over-limit fees imposed by the wireless service provider.

The 9th U.S. Circuit Court of Appeals ruled that this informal policy was enough to give the officers a reasonable expectation of privacy. But the Supreme Court reversed that ruling, saying that even if Quon had a reasonable expectation of privacy, the ruling itself was indeed reasonable.

How Does the Ruling Affect Employers and Employees?
This ruling indicates the law is on the employer’s side concerning employees’ use of employer-provided equipment. Legitimate company interests trump employees’ privacy interests.

Finding a balance between allowing reasonable personal use of company-issued laptops, cellphones, iPads, and computers and protecting a company’s reputation, business practices and trade secrets is tricky. There is a reason employers provide such equipment—it makes employees more available, and allows work to be done anywhere. Employers are advised to provide employees with detailed policies governing use of such equipment.

There are a lot of talented, unemployed people out there. People with skills, talent, and years of experience. Some have been looking for work for 3, 6, 12 months now—or longer. And if you’re hiring employees, prepare to be inundated with resumes and applications.

Before you start the hiring process, here are a few tips that might make it more pleasant for the folks you’re going to be interviewing. “But wait,” you might be thinking to yourself. “Why should I care about whether it’s pleasant for THEM? What about ME?”

It is about you. You see, when you treat people well, they’ll remember. They’ll probably tell their spouses. They might even tell their siblings, or their friends. But if you treat people badly, they’ll remember a lot longer. And they’ll definitely tell their spouses, along with their parents, their friends, the cable guy, their hair stylist—they will tell more people than you care to know that you are a bad person, they had a rotten experience with your company, and it doesn’t deserve anyone’s business.

So hire politely. Here’s how:
1. Remember the person you’re interviewing is an individual. Call them by name, make eye contact, and smile. Make every attempt to connect with the applicant—even if you find it difficult to warm up to them. They might be really nervous. Be kind.

2. Don’t rush. You don’t have to make the interview last for 3 hours, but don’t make the job applicant feel unworthy of your time by rushing through it. Relax, take a breath, and pace your questions.

3. Listen. Make notes, ask follow-up questions, nod—in other words, give signals that you’re listening. The candidate can tell if you’re not.

4. Be honest. If you have many applicants for a single position, it’s okay to let the applicant know that there is competition. But don’t wield it like a weapon to scare him or her. You might find out how much they want the job and what they’ll do to earn it—and isn’t that the purpose of the interview?

5. After the interview, do what you said you’d do. If you tell the candidate, “We’ll get back to you in a few days,” then do it. If you tell the candidate, “It’s looking good; I’ll call you with next steps,” then do so. Each person who takes the time to come in and talk about your business deserves at least what you say you’ll do—even if you haven’t made any decisions yet. It’s okay to say, “I know I said I’d call you, but unfortunately I don’t have any news yet.”

6. When the hiring decision is made, call the interviewees who did not get the job. If you don’t have time to do it, then have someone else call. Why? It’s the polite thing to do.

7. And when you reject an applicant, don’t give them the reasons why. Don’t give into requests to talk about it. Just tell them you appreciate their time and interest in your company, but you hired another candidate.

Perhaps your company is just starting to hire again after the economic downturn, and you need ideas on how to make your new hires more successful. You don’t want to just hire them, run them through the standard orientation, and let them go.

Here are a few tips that just might help your new employees do their jobs better, sooner—and make you happy that you hired them.

New hires need to know your company’s culture. Simply put, if everyone except the new guy knows that Fridays are Hawaiian shirt day, or that nobody ever works late, you’re not doing them any favors by withholding such information. It can be difficult for business owners to see the company culture because they’re so used to it—but it’s important to help new employees adapt to it.

And start right away—maybe even before the person is hired. Hiring the candidate who’s most qualified but just won’t fit in with your company culture is probably a recipe for failure. Let candidates know during the interview process how things are done, and allow them to decide if your company is a good fit for them. Be honest and paint a realistic picture of your organization.

Introducing a promising candidate to the rest of the team will make them feel more comfortable when and if they are hired. They’ve already met the people they’re going to be working with, so one big barrier is overcome. If you can’t make introductions before hiring the new employee, be sure to make proper introductions on Day 1.

As manager or owner, your job is to recognize who the new hire will work closely with, who their possible conflicts might be with, and who can help them in their position. Tell your new hire who the 5 most important staff members are for her to know. Ask those staffers to take a few minutes to meet with the new hire and identify ways they will work together.

Training is good, but too much training and not enough working can be detrimental to a new employee. Provide resources and support the new employee needs, but let them do their job, too. This allows your new employee to make connections with other staff, and learn how things are really done.

Helping your new employees learn your company culture and who they need to know are two ways to help them transition more successfully!

Are stacks of resumes piling up on your desk? Is your email inbox overflowing with inquiries from potential employees who not only are not qualified, but didn’t follow your application instructions? It’s not easy to find qualified employees, even when the nation’s unemployment rate is 10%. In fact, it’s harder than ever for some business owners to weed through the flood of applicants to hire just one or two employees.

We asked a few HR Managers where they go to save time and their sanity when it’s time to hire. Perhaps you can use some of these great ideas:

Professional Associations: If you’re a member of a group for accountants, attorneys, credit managers, automobile dealers, natural food store owners, or whatever your profession—try checking in with your local or regional affiliate. You might find an out-of-work industry veteran in their ranks—maybe even someone can fill your job opening.

Ask yourself, “Where do the people with the skills I want hang out?” or, “Where do they go for continuing education?” For example, if you need a website programmer, do an online search for a local web developer group, or see if there is a Facebook group in your area. Then, check local community colleges, technical colleges, and universities. Their placement offices could have your perfect candidate waiting for an opportunity.

Check your own online networking groups. LinkedIn is the most popular professional social media site. If you belong, ask your LinkedIn group members if they know people who match your needs. If you don’t belong to LinkedIn, it’s easy to join. Put out the word that you’re hiring on your company’s Facebook page and Twitter account. Use the contacts you’ve already made online to spread the word fast.

Does your company website have a news page or blog? Consider it your company bulletin board—only with a much bigger reach! Post your “now hiring employees” notice there.

Talk to your competition—if they’re not hiring, let them know that you are. Perhaps they can send a candidate or two your way—or give you the contact information of that terrific employee they just had to lay off.

Are you registered with a local Workforce or Employment office in your area? After all, that’s the place you’ll find people who don’t have jobs but want to work.

When you use your networks and online contacts, or just try using a personal touch and reaching out in your community, you may find your search for qualified employees just got a little easier!