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Posts Tagged ‘Human Resources’

Employment Update

Thursday, May 6th, 2010

For the third month in a row, the private sector added jobs in April, according to a report from ADP. Jobs increased by 32,000 from March. March’s number was revised as well—and the news is even better: rather than a loss of 23,000 jobs, there was an increase of 19,000.

With employment from January 2010 to February 2010 increasing by 3,000, April’s numbers seal three straight months of increases. And this Friday, the U.S. Bureau of Labor Statistics will release its jobs report for April; analysts predict total job growth (pubic and private sectors) will be between 180,000 and 189,000. (March’s increase was reported at 162,000, which will be adjusted on Friday’s report.)

April’s expected increase will include the temporary jobs added by the U.S. Census Bureau. Still, the manufacturing sector is expected to add about 29,000, and service sector about 50,000 in Friday’s report.

Another bit of good news is that the Consumer Confidence Index increased to 57.9, 18 points higher than April 2009, and 5 points higher than just a week prior. The Conference Boar Consumer Research Center, which issues the Index, reports the reading is higher than it’s been since September of 2008 because consumers’ concerns about business and job markets are easing. The Conference Board also reports that online job openings advertised in April jumped to 4.15 million, an increase of 222,700 over March.

So hiring freezes may be starting to thaw. What about the employees who managed to keep their jobs throughout the economic downturn? How are they faring?

There are indications that wage freezes are starting to hit the road, too. The Wall Street Journal reports that large employers like BASF, the chemical company, and Rockwell Collins, an aviation electronics firm, are distributing raises to their employees. Retaining key employees, rather than cutting staff, has become the priority.

BASF was scheduled to pay out raises in April, but decided to do it a month earlier—and employee morale was instantly improved. Even the buzz surrounding the early raise announcement helped loyalty and allowed employees to recommit to the company.

And employers might soon need that commitment from their people. A January survey by Towers Watson showed that 15% of respondents were having difficulty keeping their best talent. Employers are seeing more poaching and defections of key employees. One way to keep them from going is to increase salary—and that’s what is happening. AT&T gave 100,000 managers significant raises in November of 2009—four months ahead of the rest of their employees.

We will report on Friday’s job numbers as soon as they are announced, so check back!

Effective Leaders know that People Come Before Profit

Thursday, April 29th, 2010

When you’re an owner or in charge of a company, there are so many individual issues to worry about—sometimes it’s a wonder you can think at all. Is it true that the most important thing to worry about is profit—for without it, you don’t have a business at all?

Focusing on profits blinds some managers and business owners to the real purpose of business, which is people. After all, no matter what business you are in, it exists to sell a product or service to people; it needs great people to keep it running smoothly, and having happy people as employees and customers makes it all worth doing.

A good team makes a manager’s job easier—but leading them effectively takes time and effort. And good leaders know that putting profits before employees is a recipe for disaster. No matter what size business you’re running, from a team of three to three hundred, you can’t reach goals and become a successful company by yourself. But how does a manger create a tight, efficient and effective team of employees?

Find the people who work best for you and with your other team members. Hire for skills, sure, but skills alone won’t make up for a lousy attitude. Passion and drive can’t be taught, so look for those attributes along with a stellar set of skills. Personality differences help make a stronger, more diverse team. But it’s not a good idea to bring polar opposite strong personalities into the same team. Knowing your team members well and hiring for compatibility will help ensure a winning team.

Don’t be afraid of conflict. Conflict helps employees sort out leadership roles, and move toward a tighter-fitting, focused group dynamic. But conflicts must be worked out or your teams will be completely ineffective.

Watch the rule-makers. Let your team leaders set the rules for the group—to a certain extent. Nobody wants a bully at work, but employees with natural leadership qualities will find ways to make the team work most efficiently. Working together pleasantly is a nice by-product of great leadership. If you start hearing complaints about rules that aren’t working for everyone, address them right away to avoid losing productivity.

When you have passionate, driven individuals, clear and focused leadership, and healthy doses of well-managed conflict, you have the beginnings of a great team of employees—and the potential for great profits, too!

When An Employee Isn’t Pulling His or Her Weight

Thursday, April 22nd, 2010

It’s an interesting saying, “not pulling your own weight.” But think about a team of horses, or oxen, or even sled dogs. Each one must contribute equally to the success of the team—or else the sled gets stuck in the snow, the field doesn’t get plowed, or the stagecoach takes a lot longer to reach its destination.

In an updated scenario, your business is the stagecoach, and success is your destination. If the entire team is pulling equal weight, you’ll get there together, faster. If even one employee is not pulling as hard, or putting in as much effort, it will take longer. And you might not ever reach the success your company is capable of.

So what does an employer do when one employee (we’ll call him “Joe”) is not doing his part?

First, don’t assume that Joe knows. Joe is not a mind reader. Even if his co-worker, Lucy, rolls her eyes each time Joe mentions he’s tired, or brags about how much he’s accomplished today, he could have no idea the rest of the team thinks he’s a slacker. You might think Joe is deliberately unproductive, while Joe thinks he’s a superstar.

Don’t wait. If it’s several months before Joe’s annual performance evaluation, don’t wait for that special day to bring him into your office and talk about his performance. It’s crucial to address a problem when it’s happening (or in this case, not happening), and ask for improvement right away. Especially if Joe’s teammates have complained to you about an unfair situation—you owe it to them to follow up and fix the problem. As boss, that’s your job.

Don’t accept excuses. Joe may have legitimate issues that are affecting his work performance. If so, call on your best leadership skills and help him through this rough spot—and if he’s a great worker, help him keep his job. But, if Joe is just really good at avoiding his workload, it’s only fair to the rest of the team to require improvement.

Choose a good time. If you’re under unusual stress, or the entire team is, due to a big project deadline, don’t escalate a potential problem. Wait until you can handle the conversation with Joe with clarity, keeping objectives in mind.

Acknowledge Joe’s strong points. Give a dose of good with the bad news. Focus on Joe’s strengths, appreciate his effort (such that it is) but let him know that other employees are doing more. Ask for Joe’s input on splitting the workload more fairly.

The best pre-employment screening process includes employee background checks, employee credit checks, and criminal background checks. You’ll know you’re hiring safe when you screen employees before offering a position.

Traits to Look for when Hiring Employees

Thursday, April 15th, 2010

Every business has different needs from its employees. A day-care center and a lawn-care service both have “care” in their names, but if the nanny is better with chrysanthemums than with kids, he or she is not going to fill the day care owner’s needs.

Still, there are plenty of basic traits employers like to see in their job applicants. We surveyed a few employers who are hiring right now about the most important qualities their new employees have. NO matter how smart, how educated, or how articulate a job-seeker is, remember this list when you’re hiring—because these are the qualities that really count!

Christine, a communications company owner, said, “First, I look for talent, then creativity. Everyone has a gift, and my job as an employer is to figure out how each employee’s talent can benefit my company. Creativity is absolutely essential. I can’t be the only one to solve problems. Having creative people around spurs ideas, growth, and helps us overcome challenges.”

Joseph, a construction company manager, looks for honesty and integrity, a positive attitude, and flexibility when he’s hiring new employees. “I know it’s difficult to judge these qualities through a job interview. That’s why we conduct background checks to make sure we’re hiring honest people. Past employers will tell me if a candidate has integrity. And asking the right questions reveals the person’s attitude and flexibility. These are traits that I cannot teach an employee—and I don’t have the time to deal with anyone’s bad attitude or rigidity.”

“I like to hire adults,” says Cynthia, a financial services HR manager. “Follow-through is important. Our supervisors don’t want employees who just don’t do what they say they’lll do. And who has time to follow-up to make sure they do their job? So, self-reliance and drive are two other qualities I definitely look for in a job candidate.”

To Kevin, owner of a small organic farm, three things are all that matter: “Passion. Confidence. And the desire to work. I can teach anyone how to do their job if they have those three attributes going for them.”

Heather owns a tech-services company. She says, “To me, adaptability is key. Things in our business change every day. Employees who are stuck in a rut or work only within the limits of their job description are just not going to succeed here. So, I don’t hire anyone without demonstrated adaptability. If they’re highly responsible and smile a lot, that also helps them when I’m deciding whom to hire.

If you’re an employer getting ready to hire again, keep these traits in mind, and see how they fit within your company’s needs and culture. Some qualities are just good for employees to have!

Preventing Employee Embezzlement

Wednesday, April 7th, 2010

Office Manager Pilfers $645,000 from Car Dealership

Finance Manager’s Theft Causes Interactive Business to Shut Down

Furniture Store Suffers $250,000 Loss through Bookkeeper

These headlines are real. Every single day, real employees steal loads of money from their employers. In the United States alone, the amount of property and cash stolen by employees adds up to nearly $1 trillion each year. Whether it’s done by taking property or cash out the door, or falsifying balance sheets, deposits, and checks, embezzlement is a huge problem for businesses.

Often, employees who are charged with embezzlement have a fiduciary relationship with the employer—they are in a position of trust, with access to bank accounts and financial records.

How do they do it? Some embezzlers set up relatives or themselves as phony vendors in the bookkeeping system, then pay phony invoices with real company checks. Others just write checks to themselves or pay their personal bills with company checks.

Embezzlers often start out with small amounts, gradually building up to larger sums when they don’t get caught. Others tell themselves they’ll take the money “just this once,” but find they are unable or unwilling to stop—even after the credit card is paid off, their child’s medical expenses are paid, or they buy themselves a new car.

The guilt felt by an embezzler is often replaced with justification that they are undervalued or underpaid, and therefore the company owes them the money they are stealing. Others feel no guilt whatsoever, and are simply stealing for their own financial gain. For some employees, opportunity is the only “license to steal” that they need.

So how does an employer remove opportunity from the equation—and prevent employee embezzlement?

Be diligent: Managers and owners must have their hands in the business. Know where records are kept, and review them regularly. Are bills or checks outstanding? Are invoices missing? Be an authorized signer on bank accounts, and review activity and statements online. Keep tabs on petty cash, deposit slips, and profit and loss statements.

Listen: Don’t discount when customers complain about double billing—it could be a sign that checks are being detoured to an employee’s account. And if employees report suspicious behavior among their ranks, deal with it immediately. Let employees know you trust them, and care about their job satisfaction. Nip bad attitudes in the bud.

Pay Attention: Employees who regularly offer to work overtime are either great to have, or a potential problem. But what about when the workload doesn’t require it? Staying late with no supervision—especially for an employee with access to cash and financial records—is something embezzlers do.  Embezzlers also spend money they don’t earn—so watch for signs of spending above salary should allow. Driving a new car, showing off expensive jewelry or bragging about trips and pricey restaurants are potential warnings.

Screen employees: Pre-employment background screening is critical to prevent fraud. But don’t stop there—occasional screening for established employees who have access to fiduciary information is also essential.

Employers don’t need to be paranoid about employee fraud. Reasonable safeguards and common sense supervision of employees is often all that is needed to prevent embezzlement. But even the sharpest managers have been fooled by embezzlers—and it can happen to any business.

How to Let an Employee Go

Thursday, April 1st, 2010

Up in the Air, the multi-Oscar-nominated 2009 film, features George Clooney as corporate “hit man” Ryan Bingham, whose purpose is to travel around the country and fire people.  Employers hire his company to do the dirty work of letting employees go.

At times, watching the film is painful. The director used real, recently-laid off people to portray Bingham’s victims—and their disappointment, sense of loss, anger, and disbelief are as palpable as Bingham’s cool detachment. He doesn’t know the people whose world he just rocked. Their responses to the news, like “I’ve given this company everything,” “What am I supposed to do now?” or “How can I go home and tell my wife I’ve been fired?” appear to have absolutely no affect on him.

Most employers occasionally have to let employees go. And most do it themselves. The full-scale layoffs depicted in Up in the Air are global corporations, shutting down entire divisions—not small businesses firing a single employee. While it might seem attractive to turn this unpleasant job over to a professional hatchet man, it’s just not possible for most employers.

Most supervisors and business owners say that firing people is one of the worst aspects of their job. So, how does an employer fire someone while treating them well and protecting the company from liability?

Here are some ideas you might consider:

  1. Don’t go it alone. A witness is necessary to protect your company from possible discrimination claims.  Have them document what happens.
  2. Allow enough time to gather all the necessary paperwork, such as evaluations, warnings and any company separation forms the employee will need to complete. Don’t make the employee squirm while you shuffle through a folder looking for something you need.
  3. Be completely professional. This means not getting personal. Don’t say “I’m sorry,” since that can confuse the issue. Your feelings and opinions should not come into the conversation. Keep your voice even, especially if the employee becomes agitated or raises his. And no matter what, don’t argue.
  4. Make it quick. Remember the advice about removing a bandage—the quicker, the better? It’s the same when telling an employee she’s laid off or fired. Just give her the bad news, stay calm, and listen to her reaction. Don’t place the blame on “the boss” or “corporate.” It’s easier to assuage your guilt by blaming others, but it’s confusing to the recipient.

Until your company is large enough to hire a professional, be prepared and be kind—but be professional—when laying off or firing your employees. Done correctly, it can have little effect on the organization. Done badly, it can be devastating to both employee and employer!

Is Your Company Preventing Workplace Harassment Claims?

Wednesday, March 24th, 2010

Employers must be ever-vigilant in providing a safe workplace for all employees. That responsibility includes a workplace harassment policy. Harassment is unlawful and can get an employer in trouble if it goes unmonitored or unpunished.

What is Workplace Harassment?

  • It’s an unlawful form of discrimination, based on the Civil Rights Act of 1964.
  • It’s defined as unwelcome verbal or physical conduct based on race, color, religion, sex, national origin, age, disability, sexual orientation or retaliation that results in a hostile work environment or a change in an employee’s status or benefits.
  • It can affect anyone.
  • Is not limited to male on female sexual harassment.

Harassment can range from offensive language or remarks to comments about a fellow employee’s body, skin color, or religion, to inappropriate touching, jokes, gestures, or even emails.

Increase in Sexual Harassment Claims by Men
A growing number of sexual harassment complaints have come from men since the start of the recession, according to the Equal Employment Opportunity Commission (the EEOC). Litigation, including harassment cases, tends to increase during economic downturn, when jobs are harder to find. In the past, men might have responded to sexual harassment by leaving a hostile workplace for another job—but now, when they’re not easily finding other employment, a harassment suit is more likely to be filed.

Harder-hit states for unemployment, like Michigan and California, saw bigger increases in the percentage of sexual harassment claims by men: Michigan’s cases rose 10% from 2007 to 2009, and California’s cases rose 5%.

While the stigma around claiming sexual harassment is huge for both genders, it is even more so for men, say the experts. Men can be seen as weak or unmanly when claiming sexual harassment, so the numbers of reported incidents are most likely lower than what actually occurs.

Employers are often in the dark about harassment; often employees are laid off for economic reasons, and file claims months or years later. Developing and enforcing a strict no-harassment policy is vital. And remember to broaden your definitions to include same-sex harassment. Many employees are more sensitive to what they say around the opposite gender, but might think that sexual jokes and banter among their own gender is okay—but it’s not.

As unemployment continues to hover around 10%, employers could face rising harassment claims—so now is the best time to review your company’s policy and tighten it up as needed. Communicate to and train employees on the policy. Strict workplace harassment policy enforcement is the best way to mitigate risk to your business.

Monitoring Employees in an Age of IM, Email, and Social Networking

Thursday, March 18th, 2010

Supervisors everywhere know the frustration of strolling past an employee’s work station, only to find them texting furiously instead of doing what they’re being paid to do. Increasingly, employers are taking steps to cut down on employees’ extracurricular digital communication—whether its instant messaging (IMing), web surfing, texting or making personal phone calls on company time.

Some consider it an invasion of privacy, but the law is solidly on the employer’s side. Employers are allowed to monitor employee communications, and most communication equipment is the property of the business—so its use is dictated by business needs, not staff’s need to keep up with their friends’ latest activities.

Three forces are at work in employee monitoring: first, employers are ever-vigilant about squeezing every ounce of productivity out of workers. If an employee is not giving 100% to his or her employer, there are probably others who will be happy to take over that position. Second, risk-averse employers know that keeping workplaces completely litigation free is an elusive goal—but one that can come closer to happening with the right monitoring practices. Keeping all staff safe from harassment is easier if you know what types of emails and IMs are flying around the company. Third, it’s more important than ever to keep company information and trade secrets confidential. Too many firms have been taken down by loyalty-lacking employees. It’s way too easy to forward a company-only email to the press or a blogger who will quickly spread the information throughout the industry.

Monitoring software is easily found online or at electronics retailers. Depending on the package features, keystroke monitoring, website tracking, and even webcams capture employees’ activities.

Data from 2007 shows that 2/3 of employers check up on employees’ Internet use. From tracking time spent and websites visited, to keystroke monitoring to capture search terms, employers can get a full picture of which employees are using company equipment for work use and for personal use. And a 2009 survey shows that nearly 90% of employees used office networks to send jokes, rumor, or gossip to outside recipients. 14% have sent confidential company emails to third parties.

So far, the courts have ruled that employees have no expectation for privacy when using employer-provided computer systems, cell phones, and pagers. Even employees who send personal emails through a private account are using company servers—and so have no right to expect those emails will not be monitored.

Employers’ best practices are communicating the need for monitoring, and to put a clear policy in place, so workers know exactly what is and what is not allowed—and the consequences for breaking the rules.

The best pre-employment screening process includes employee background checks, employee credit checks, and criminal background checks. You’ll know you’re hiring safe when you screen employees before offering a position.

What Employers Should Know About Generation Y

Thursday, March 11th, 2010

Call them Generation Y, Generation Next or the Millenials, the age group is loosely defined as those born from the mid-70s to the early 2000s. In general, the 78 million Gen Ys are very familiar and comfortable with communications, mass media and digital everything. They trend toward tattoos, piercings, and other ways to express their individuality.

Here are a few things that employers in older generations (the Baby Boomers and Generation Xers) might find helpful in knowing what makes your younger employees tick:

If you telephone a Gen Y employee, don’t be surprised if you don’t get a call back. Not all Gen Ys ignore the phone, but as a group they prefer IMing (instant messaging) and texting to email and telephone calls. Voice mails are often not listened to at all. This generation is more likely to just note that you called than to listen to your voice mail!

They live online. Gen Yers spend more than 3.5 hours on the internet every day, on average. And they’re not checking email. Social networking is a big part of their lives, and they check in with friends and family on Facebook rather than on email. Gen Yers are used to knowing what’s going on with their friends via Facebook, and expect to communicate through that network. If you’re not on Facebook, you’re not likely to know what a Gen Yer is up to.

Gen Yers have been spoiled a bit by their parents. They may expect a bit of indulgence in the workplace, too. For example, they value their non-work time and seek work/life balance—so they might expect their employers to cooperate with that important goal. Come up with creative compromises to make sure your goals are covered, too.

Gen Yers like change. They want to feel like they’re contributing new ideas. This might look like they want to undo procedures you’ve spent years refining. But this is one tech-smart group that doesn’t see the value in waste—of time, materials, or money. Listen to them and give their ideas more than a cursory look. You might find room for improvement, and you’ll win your employees’ loyalty.

Gen Yers like direction. Sure, many are self-directed; but others expect their employers to provide clear instructions and to state expectations. Help establish workflow, goals, and schedules, and be sure your Gen Yers know what the company’s priorities are.

Gen Y is possibly the most productive generation in history. They just might need a little more managing than others—but it’s a small price to pay!

How They Made the List: Tips from Fortune’s “Best 100 Places to Work”

Thursday, 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!