After layoffs, benefits cuts and asking staff to do without, employers look for ways to boost employees’ spirits. Some buy lunch, while others encourage fun with Halloween costumes. But some inventive employers seek ideas beyond the norm to improve morale and keep employees productive.

Start an employee garden: One Indiana business owner invested $600 in a 1,500 square foot garden on her business property. Four employees shared the workload and the bounty, estimated at $2,400 worth of vegetables and herbs. Free produce is a sure bet for a crowd-pleasing morale booster, helping employees stay healthier by increasing the fresh vegetables in their diets and saving them money, too.

Take an afternoon off to play: Close the doors, turn on the voice mail, and take your crew to the movies, a comedy show, the ball park, or a pottery class. While it’s true that not all businesses can close the doors during regular hours, with proper planning, many can. Give customers plenty of notice, and do what’s necessary to meet their needs. Most customers can tolerate doing without your services for one afternoon a year—and knowing your business invests in your employees creates goodwill.

Throw a party: Thinking of cutting this year’s holiday bash? Think again—it could kill employee morale. (Unless the annual holiday party is lame, in which case it could boost it.) If funds are tight, ask your employees for ideas. They might come up with a celebration that costs less and is more fun than the one you’ve been doing for years. Try a gathering at your home instead of an expensive banquet room or restaurant. Do put out some nice finger foods or a big pot of chili with all the fixings. Do have a silly gift exchange, play some music, and relax. Don’t ask you staff to bring a dish, pitch in for a gift for the boss, or provide their own drinks. They’re likely already strapped for time and money.

Buy the coffee, tea, or hot chocolate this week: Many employers have cut the “free coffee” perk. Bring it back for a week—or one week a month. Anything helps!

Let the dogs in: Allowing employees to bring their dogs to work is a huge morale booster, when it works. First, all must be in favor of having canine companions around. Allergic staff members must be accommodated. Dogs must be well behaved—both on their own and in a group. If your business cannot handle every Molly, Spot, and Chance at once, set up a rotation schedule. Your employees will love having their furry family members close by, and studies show that dogs in the workplace lower stress.

The US Congress designated October as National Work and Family Month to remind employers to consider employees’ family needs when making business decisions.

When your staff is stressed out about family issues, work performance will likely suffer.

So encouraging a healthy balance of work and life can increase productivity. It also reduces turnover and increases employers’ gain on the investment they make in hiring and training staff.

How can employers accomplish good work/life balance in their businesses?

Tuning in to your employees’ needs is important to maintaining a happier work place for everyone. Look for cues of discontent and listen when your employees are expressing their needs.

Don’t meddle into your workers’ personal lives. Do offer concrete solutions to employees’ family life challenges. If one staff member is experiencing trouble with a day care provider, or another wants to accompany his mother to a doctor’s appointment, help them find ways to get these needs met.

Improve your staff’s physical health and your business will benefit, too. Healthy employees have lower levels of stress, illness and injuries, miss fewer days of work, and are more productive. Encourage wellness with company-wide gym memberships, by installing bicycle racks, and awarding employees for walking or biking to work.

Try flex schedules, such as position sharing and work-from-home options. If you have two employees who want to work fewer hours, perhaps there is a full-time job they can share. Do you have employees who could work from home a day per week or month? Just reducing those employees’ commutes can add valuable hours to their home lives.

Encourage employees to go for a walk on breaks and lunch hours. Fresh air and movement can make a huge difference in a worker’s day. Don’t require employees to stay onsite for lunch. Getting away is healthy, and could help employees keep their lives in order by allowing them to run errands.

It’s up to both sides of the employment equation to keep things healthy: employers should be creative in helping staff members achieve a healthy work/life balance, and employees should communicate their needs and take advantage of their employers’ attempts to help.

Annual performance reviews can make everyone cranky—most employers don’t enjoy writing them, and employees would probably vote them off the island if they could. Still, many businesses use them as their sole means of communicating to their staffs.

One problem with once-a-year reviews is that the time between an employee’s offense and the manager’s opportunity to address it could simply be too long. That’s why police officers don’t wait until October to issue a ticket for speeding in July!

Immediacy has its advantages. Instead of making a note to add an employee’s offense to their annual review, try offering guidance when they make the error. If your company’s annual reviews consist of a laundry list of missteps and mistakes, it’s no wonder that the staff dreads them.

Some employers encourage employees to “rate the rater,” or evaluate their supervisors, during annual performance reviews. This practice is not likely to produce honest, workable results. Employees who receive high marks in their evaluation are not likely to bite the proverbial hand that feeds them. And pent-up frustrations are more likely to fly after a less-than-favorable review.

It is more productive for managers and bosses to check in regularly with their staffs. Encourage honest feedback by asking what they need, how you are doing as a supervisor, and what you can do differently.

After all, your employees are thinking about the answers to these questions, whether or not they are ever asked. And they are likely discussing their feelings with fellow staff members. Wouldn’t you rather hear about their ideas and suggestions directly?

These are a few ways annual reviews can be counter-productive. Consider giving your employees regular opportunities to offer feedback, and don’t wait until that magic yearly review to praise them for doing a job well—or to correct their mistakes.

Consistent communication is one key to productive, happy employees—and it’s more productive than the annual review that so many employees and employers dread!

The US Department of Labor announced last month the hiring of 250 investigators, tasked with looking into wage and hour violations by employers. The influx of investigators is partially based on a recent report compiled out of a 2008 survey of over 4,000 low-wage workers in three major U.S. cities: Chicago, Los Angeles, and New York City. Researchers focused on more vulnerable workers, such as immigrants and cash employees, who often slip through the cracks of data gathering.

The goal of the survey was to produce accurate estimates of workplace violations, like minimum wage abuse and unpaid overtime.

According to the report, 26% of workers were paid less than the legal minimum wage; and 60% of them were underpaid by more than $1 per hour.

Of the 25% of survey respondents who worked more than 40 hours in the previous week, 76% were not paid the legal overtime rate. Employees averaged 11 hours of overtime that were underpaid or not paid at all.

Additional violations revealed were workers performing work off the clock, and not being paid for it (25%/70% respectively); workers who received no meal breaks or were required to work during their meal breaks (69%); and workers who received no documentation, such as a pay stub, of their earnings and deductions (57%).

The report goes on to describe employers who stole their workers’ tips, who forced workers to pay for damages to tools, and who retaliated against employees when they complained about working conditions. These are not the types of employers anyone would want to work for!

The report’s first recommendation for a solution is to “Strengthen Government Enforcement of Existing Employment and Labor Laws.” Thus, the hiring of 250 new DOL investigators.

Employers must be fully aware of labor and wage laws; if there is a question regarding a specific situation, researching the answer is pretty simple: the Internet, the IRS and the DOL have loads of information for employers. You can also check with a labor attorney. There is no excuse for breaking labor and wage laws; and violations will result in stiff fines and penalties.

Employers are liable for most of their employees’ actions, especially when they put others in harm’s way. Most employers know that having staff members driving company-provided vehicles, or their own vehicles if on company business, must protect themselves with proper liability coverage.

Over the past several years, distracted driving by employees has been named the culprit in several liability cases—and employers have had to pay big settlements. In these cases, the cause of distraction was the ubiquitous—and dangerous—cell phone; these employers where found to be liable for permitting employees to use cell phones while driving for business:

• In Florida, a jury awarded $16 million to a woman struck by a salesperson who was talking on the phone while driving. The employer was found liabile.

• A Virginia court allowed a claim against a law firm for $30 million when an attorney struck and killed a 15-year-old girl while talking to a client on the phone. The law firm settled for an undisclosed amount.

• Another case involved International Paper Company, who paid a defendant over $5 million after she was rear-ended by an employee who was talking on a cell phone.

The IPC case is interesting because the company had a policy in place that only allowed employees to use hands-free phones in their company vehicles. Obviously, the policy didn’t protect the company from the lawsuit!

Several states have either banned or are regulating use of cell phones while driving. Employers everywhere are following suit, especially in light of several tragic mass-transit accidents where operators caused injuries and fatalities because of texting.

Last week, President Obama banned federal employees from using cell phones to call or send text messages while driving federally owned vehicles, using cell phones to conduct federal business while driving private vehicles, or using federally-owned cell phones in any manner whether driving public or private vehicles.

Well, that ought to cover it. Employers might consider using the federal ban as a guideline to protect their own companies, their employees, and the public from needless accidents and lawsuits. The important lesson is to institute a cell phone use policy, communicate it, and enforce it!

One might think that the Capitol Police Department would know enough about criminals, persons of risk and habitual liars to avoid placing them on their staff. But last year, halfway through a 12-week training period, fifteen newly-hired recruits were asked to return to DC and resign—or be fired. The problem? They had either lied on their application, failed a criminal background check, or failed a psychological examination—but were hired anyway!

Despite what the Capitol Police describe as a “stringent recruiting process,” including a written exam, application review, interviews, background investigation, polygraph, medical exam and psychological evaluation, each of the fifteen recruits had made it through the hiring process. The result? Not only was the HR Director fired, but also affected were the fifteen families that had been relocated from all over the country. Fortunately, even more damage was prevented by the forced resignations—who knows what could have resulted from hiring these fifteen officers?

In another case, an adult home in Virginia was ordered to pay $750,000 to a disabled resident after he was sexually assaulted by a Certified Nursing Assistant employed there. The CNA had a criminal history before he was hired, and continued to rack up charges, including assault and battery and public intoxication while working for the facility.

Another scary example includes a teacher hired to teach middle school in Nashville, TN, even though he had been suspended from another Tennessee school system after allegations surfaced that he was engaging in misconduct with minors. Even more shocking is the fact that the teacher was hired despite having outstanding warrants for his arrest on sexual battery and rape charges. Not surprisingly, at the new middle school, he was accused of additional crimes involving two 14 and 15 year old students.

Hiring employees is no easy task; there are many risks involved, too.  Employers must take every available precaution when hiring staff, especially when the safety and well-being of at-risk populations, children, and the public are hanging in the balance. The lack of proper background screening in each of the above cases resulted in serious consequences for the employers—and unnecessary suffering for the innocent victims.

Starting as children, human beings take a great deal of pride in doing a job well. And the tougher the job, the sweeter the feeling. To top it all off, hearing praise from someone we respect makes it all even better.

The same is true in the workplace. Giving employees the opportunity to do for themselves, build a program or manage a project on their own results in higher job satisfaction.

Instead of a constant “trickle-down” type of management, progressive employers are putting the reins in the hands of their employees, encouraging them to form teams and take on the planning and implementation phases of programs designed to meet their tough challenges.

Research supports the idea. The so-called “IKEA effect” shows that people report higher satisfaction with the bookshelves, tables, and cabinets from IKEA that they assemble themselves—whether or not they actually did a good job. The pride of making something makes people feel good, so they assign a higher-than-accurate value to the item.

Similarly, employees place a higher value on a project they are in charge of, or their ideas that are implemented—whether or not it is deserved. People tend to prefer their “babies” over those of others—including management. And managers, too, can fall in love with their own ideas, because they are personally vested in them. The problem is that co-workers and customers may not agree on value.

But managers and business owners, be warned: the IKEA effect can self-destruct, just as quickly as that bookcase you put together without all the necessary screws. If a staff-implemented strategy does not meet its objectives, everyone suffers. Management is less likely to allow a repeat; staff members feel badly; and the company must revamp with another strategy.

Managers and business owners must take risks; allowing staff to gain satisfaction by implementing their own ideas and building their own programs is one that can pay off in the long run.

The number of Americans who are unemployed seems to be stabilizing somewhat, but even those employees who have made it through your company’s toughest times may still be wary, worried, and waiting for their job to be taken away.  With stress at home, unemployed partners, and shrinking household incomes, combined with increased workloads and more on-the-job stress, your staff could be more nervous than ever. Fear leads to unusual or out-of-character behavior. Employers should be aware of changes in their employees—and be willing to try new ways of dealing with old issues.

The continued downturn in the economy can seem like uncharted territory—so just as you drive more cautiously when you don’t know where you’re going, employers should proceed with caution when dealing with employee issues like layoffs and evaluations.

For example, your employees might be more sensitive to criticism. When stresses combine with a feeling that their job could be in jeopardy, even the most even-tempered employee could react uncharacteristically. Employers should take extra time to explain any issues related to performance, suggest ways to improve, and if the problem is not job-threatening, be sure to say so! Never assume your employee knows anything that you don’t directly communicate to them.

During times of stress, employees could become more aggressive about negative evaluations. This isn’t to say that evaluations should be soft-pedaled or toned down to avoid upsetting your team members. Just be sure that negative scores or observations can be backed up with solid evidence, such as incident reports, notes, or other appropriate documentation. Still, employers should prepare for formal challenges from staff members who fear that a poor performance evaluation could lead to losing their job.

Employers should also be cautious about layoffs. A downturn in business can be the sole reason for letting employees go—but that does not preclude an older laid off employee from filing a discrimination case, or an employee whose religious practices differ from yours from hiring an employment lawyer.

So be fair, be sensitive to employee stress, and always keep the lines of communication open with all of your employees. If they are aware of your company’s challenges, feel that they are being treated fairly, and know exactly where they stand, your staff will be more accepting of criticism, poor evaluations, and even lay offs.

Whew! That’s a mouthful of acronyms, but it means we have some great information for you. As an employer, you might be facing unprecedented challenges to keep your business running and your employees paid. If you’re furloughing employees, or reducing hours and/or leave, you need to be sure you’re within legal guidelines. The U.S. Department of Labor (DOL) has published a list of Frequently Asked Questions (FAQs) to help employers stay within the guidelines of the Fair Labor Standards Act (FLSA).

Here’s how to handle a few situations you may not have encountered before:

Q: If I’m having trouble meeting payroll, do I still have to pay non-exempt employees on the regular payday?
A: Yes. In general, an employer must pay covered non-exempt employees minimum wage and overtime due on the regularly scheduled payday. Failure to do so is a violation of FLSA.

Q: Is it legal to reduce the wages or number of hours of an hourly employee?
A: The FLSA does not address reduction of hours or wages for non-exempt employees. It does require that they receive at least the Federal minimum wage for all hours worked. It is not a violation of the Act to reduce wages or hours of non-exempt employees.

Q: Am I required to pay an hourly employee for a full day of work if they don’t work a full day, due to lack of work?
A: No. An employer is not required to pay non-exempt employees for hours they do not work.

Q: Can an exempt employee’s salary be reduced during a business slowdown?
A: In general, the reduction of an exempt employee’s salary will cause a loss of exemption; they must then be paid minimum wage and overtime for all hours worked. In some circumstances, reduction in salary may not cause a loss of the exemption. As long as the employer is not attempting to avoid salary basis requirements, the exempt employee’s salary may be reduced. However, deductions to salary may not be made by the employer based on the operating requirements of the business. This is a complicated question, and full details can be found here.

Q: Can an employer reduce an exempt employee’s leave?
A: Yes. Employers can substitute or reduce an exempt employee’s accrued leave for the time an employee is absent from work, even if the absence is directed by the employer because of a lack of work.

Q: Can a salaried, exempt employee volunteer to take unpaid leave due to a lack of work?
A: Yes, if the employer asks for volunteers to take time off due to insufficient work, and an employee volunteers to take a day or days off for personal reasons (other than disability) the employee’s salary may be reduced for one or more full days of missed work. The employee’s decision must be completely voluntary.

Labor laws can be tricky. This list is meant to be an overview, not a legal guide. For full regulations, please see the Wage and Hour Division website . Remember to check your state’s labor laws as well. Always seek professional legal advice whenever you are in doubt about employment law.

As an employer, you take on a lot of “extras” when you hire an employee—some good, some bad. Good is when the employee’s family and friends become evangelists for your product or service. Bad is when the employee’s personal life affects his or her job performance.

So what is an employer to do when an employee has a personal problem? First, stay alert to changes in your staff’s behaviors. Everyone is entitled to a bad day—and being grumpy is not reason enough to be called into the boss’s office.  But if a good employee with a great attitude and performance history has an apparent personality change or if their attitude is affecting fellow staffers negatively, it’s time to take action.

Address the problem directly with the employee. Keep your emphasis on their performance only—not their personality, their perceived happiness (or lack thereof), or their attitude.

Your employee will likely open up—especially if you’ve established a caring communication culture in your company.  How you proceed is dependent on whether the issue is related to work itself, such as stress or a conflict with a fellow staffer; or if it’s completely based in the employee’s personal life.

You may find that what looked like a personal problem is entirely work-related. In this case, you as the leader must take control of the situation—before it gets worse. Ignore it and you could lose a valuable employee, as well as damage your company’s reputation. Whatever method you use to diffuse employee conflict must be employed right away when a good employee’s job performance is negatively affected by another.

Your employee may share that they are having a personal problem. Perhaps it’s trouble with a child’s day care situation. Or, they’re having family difficulties, such as illness or partner problems. While most employers prefer to stay out of their staffers’ personal lives, anything that is affecting their ability to do their job is your concern.  And remember, if productivity is reduced, or interaction with other employees goes south, you have a responsibility to the company and the entire staff to intervene.

But how? Sometimes a caring ear is all that’s required. Your employee’s attitude could change 180 degrees just because they realize their employer cares. Suggestions regarding day care, home health care for an ill family member, or even drug and alcohol counseling referrals could all be welcome advice to your employee. Tread lightly and respect their right to privacy, but let the employee know that poor performance and affecting others cannot be tolerated long-term.