Even as the economy shows signs of strengthening, many companies haven’t yet seen business rebound. They still need to do more with fewer employees. Perhaps you’re a hiring manager or business owner who is not able to begin hiring—but needs to keep existing employees motivated and more productive.

You might be thinking, “Haven’t I analyzed productivity enough over the last couple of years?” Perhaps you think there is no way to ask for more efficiency from overworked employees. What if you want to give them a break without affecting productivity? And you know you can’t hire more staff just yet. What to do?

Analyze Again

One answer is the one you might not want to hear: start at the top and analyze your business again. Look at your processes and procedures with a fresh eye—not an easy task, id it? So, why not get some help from the people on the front line? Seek input through an employee survey. Solicit their ideas for increased efficiency.

Fewer Steps, More Efficiency

If yours is a production-based business, efficiency can make or break it. Again, start with your front-line employees—like Mike, your shipping clerk. Look at Mike’s flow and setup. How many steps does each task take? Which can be eliminated or streamlined? How can Mike reduce travel time required for his job requirements? The higher the number of steps his feet take, the more time and energy he’s wasting. Encourage Mike to work with you to redesign his work station, eliminate wasted time and materials, or redistribute his tasks to others, if that makes more sense.

Decrease the Layers of Authority

If your business is sales-related, listen to your phone operators. How can they better balance customer service with efficiency? Are they wasting time waiting for approvals for services they are not authorized to give? Can you empower customer service staff to take care of issues on their own level, decreasing the layers required to handle a problem?

Be an Undercover Boss

Not sure if these areas are problems in your company? Your employees do! So ask them. Spend time with them. Get out of the office and shadow a few employees for a day. Take a cue from the new reality show “Undercover Boss,” where CEOs go undercover in their own companies, working alongside the lowest-level employees—and learning how their businesses really work.

Employees often follow procedures they are trained in, whether or not they are the most efficient use of their time. They do what is expected. But when given the chance to change things, many will jump at the opportunity to contribute to an improved workflow.

Give Mike a Promotion

Perhaps your frontline employees, like Mike, are capable of taking on some management duties. If you’ve downsized your management team, it may be that they already are—and if that’s the case, recognize them for it. Sometimes a change in title helps employees shine in ways you didn’t expect—and it can be real morale booster, too. So make Mike the Shipping Manager if he deserves it!

Talk to Your Staff

As with most management challenges, the key to increasing productivity lies in staff communication. Talk to your workers, learn how they do their jobs every day, and solicit their ideas for improvement. If they are willing to take on more responsibility, start on a plan to make that happen. And if they are at the point where another task will send them out the door—you need to know before it happens.

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!

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!

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.

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!

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!

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.

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.

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.

Our previous post covered diversity in the workplace, including being sensitive to employees who display their religious beliefs through clothing or hairstyle. We advised employers to avoid making an issue of any such break of dress code as long as job performance was not affected.

That leads us to today’s topic: are dress codes still being established in businesses? A look around a scattering of companies reveals a variety of policies that are currently in force:

Retail: Most major chains enforce dress codes. Target, Walmart, Macy’s, and Costco all require their employees to either dress in business wear or uniforms. Target’s red top and khaki bottom outfits are familiar to frequent shoppers. Costco’s guidelines forbid facial piercings (even after Costco was sued for the policy on religious grounds). And what would Walmart be without blue vests everywhere?

Smaller, locally-owned establishments are usually a reflection of their clientele and surroundings. Some stores allow employees to wear whatever they want—which can be dangerous! The definition of “too casual” depends largely on your industry and where you’re located. West coasters tend to be more casual, and we’ve seen plenty of t-shirts, jeans, and flip-flops worn by sales clerks. If that’s a normal look in your area, your customers probably won’t think it’s a big deal—especially if they’re dressed the same way. In bigger cities and on the east coast, people tend to dress up more, and retail clerks’ dress reflects it.

Restaurants: Most restaurants have established dress codes, at the very least for health and safety reasons. Customers don’t usually care for a guy in a tank top taking their dinner order (as happened to a friend of ours recently!). Upscale restaurants see dressed-up diners who expect professional appearances for host and wait staff.

Health Workers: Scrubs are the norm in all areas of health care, from walk-in clinics to emergency rooms. Nurses, doctors, and dental assistants are usually decked out in scrubs for their entire work day—even television’s Dr. Oz wears scrubs for every appearance on Oprah’s show.

Professionals: Most law offices and finance-related businesses still require corporate dress for all staff, from CEO to reception. You don’t expect to see a board room full of people dressed in sweat pants and tennis shoes. Nor would most folks feel comfortable if their lawyer represented them in court while wearing a t-shirt and shorts! Suits, dress shirts and ties, skirts, and hose are still considered proper attire in the legal and financial fields.

Dress codes can encourage professional conduct and increase productivity for your employees. But beware: if you do not currently have a dress code in your company, your employees may resist it—so be sure to communicate your reasons clearly, and to enforce it consistently. When deciding what the dress code will entail, ask the following questions to avoid legal trouble:

• Is the policy fair for employees of both genders and all ages?
• Does it infringe on any employee’s religious beliefs?
• Does it infringe on a cultural aspect of a specific race?
• Would a disability prevent an employee from complying?
• Can employees fulfill their job duties when complying?