Notice Periods

Here's a scenario for you to think about:  An employee's notice of resignation comes at 1:47PM via an email, with the employee departing immediately without speaking to his/her supervisor.   As an employer this surprise resignation may shake you a bit.  Stepping past your surprise and astonishment, my question to you is "what notice should an employer expect from employees?"

 

Let's remember that most of the US is "at will" employment, which means both the employer and employee are free to end employment at any time, with or without notice or cause. This implies that either party is entitled to terminate employment without notice for any reason, unless the termination violates federal or state laws or public policy (and/or unless obligated by an existing contract). Generally Texas Law does not require that either the employer, or the employee, provide notice of ending at-will employment.  In this case, the employee chose to exercise the right to exit immediately. 

Two weeks notice is an ethical standard, a courtesy.   From a 10,000 foot level a notice period will allow the company and the employee to attend to transition details. A departing employee generally has some body of specialized knowledge that will be lost to the organization if it is not fully documented before s/he leaves.  This notice period will allow:

• the exiting employee to transition their project, employee knowledge, etc., onto other employees.
• the employee and the company to carefully review work in progress.  
• the company time to find a replacement or to just shuffle resources to cover the vacancy. 

A notice period may be specified by company policy, for example in the Employee Handbook, and this could affect at-will status.  So please be mindful of how your policies are written.    In this particular situation, to avoid affecting at-will employment, the payment of a fringe benefit, i.e., unused vacation leave, was tied to a two week notice period.   In this scenario the employee was somewhat disturbed to find that the brief notice period provided didn't quite meet the two week requirement outlined in the policy.

Yes, it is sometimes desirable to transition the employee out of the organization as quickly as possible.  I am of the opinion that in most circumstances, the moment an employee resigns psychologically s/he is out of the company.  We have all heard of "short timers syndrome."  The employee may hang around to complete their mandatory notice period.  Despite their feelings about the job they are leaving behind, it's human nature to take a detached approach to something you know is coming to an end.

Resignations are an emotional time for everyone.  Let's all please ensure we handle them professionally and legally.

Healthcare Reform

The majority of us are aware that there are a lot of changes pending in response to healthcare reform.  No one was making a move on the issue unless/until Obama was re-elected.  While the Affordable Care Act doesn't go into effective until 2014, with his re-election there is now increased activity and focus on the issue. In July of this year Governor Rick Perry announced that Texas would not establish or participate in a health care exchange.  That allows some of us "off the hook" with respect to a few requirements of ACA.

 

So, here we are.  Even before 2014, there are a few requirements that fall into place in 2013 that we need to be aware of.  These requirements include:

 

1. Summary of Benefits and Coverage (SBC) Statements.  All plans are to supply plan participants with SBCs and a glossary of commonly used terms during this year's open enrollment period.  Moving forward, firms that distribute SBCs to workers in a county where 10% or more of the population speaks the same non-English language need a "prominently displayed statement" in the non-English language about how workers can access the plan's language services.  In reviewing the "2012 Culturally and Linguistically Appropriate Services (CLAS) County Data, if your organization resides in Harris County you're looking at an 18% Spanish population.
2. W-2 Reporting.  Employers issuing 250 or more W-2 forms have to include the value of each individuals health plan benefits on their forms. 
3. Let's talk about the hidden "$64.00 per head" fee that employers may face in 2014.  It appears as though the fee will be based on the level of participation in your health plan.  The information is rather vague at this time as to how that fee is collected or its effective date.   The money from the fee will be pooled in an account managed by the HHS.  The funds will be used to reimburse insurance companies who end up covering a large share of individuals with pre-existing conditions.  The fee is expected to be phased out after 2016 - unless Congress votes to extend it - and will decrease very year.  In 2015 the fee is expected to drop to about $42 per participant per year and further decrease to $26 per participant in 2016. 

Keep your eyes on the healthcare reform issue - more changes could be around the bend!

Employee Turnover

Granted, it's early in December and maybe a bit early to begin calculating my 2012 turnover rate.  I'm concerned that the organization is developing a revolving door when it comes to the employees.   After calculating I find my turnover is at 20.48%.    Should I panic? 

  

Turnover can be a result of many factors and oftentimes it isn't about the money. It's about the environment. The employee can be unhappy, feel under appreciated. They may experience supervisor conflict, or the supervisor may have poor leadership skills.  Employee pay may be unequal or substandard.   If their skills are in demand, they may be lured away by other employers.  Perhaps the employee feels that he/she has no future in the organization.

 

When an organization must replace an employee, the organization will incur direct and indirect expenses.  Expenses such as recruiting, new hire training, loss of productivity, etc.  To replace even an entry level employee can cost up to 25% of his/her salary.  And then there are other hidden costs of high turnover.   Surviving employees have to absorb the work of the departing employees,  may experience increased stress levels, feel demoralized and ultimately move on as well. 

Take a look at your turnover.  Is it beneficial or harmful?  What steps can you take to halt and/or reduce employee turnover?

 

 

Moonlighting Policies

In light of the economy and U.S. unemployment situations, moonlighting has a new appeal for employees.   Employees are working second jobs to make ends meet or just to pay down debt.  And with the holiday season upon us, more people are becoming multiple jobholders.

 

According to the Monthly Labor Review, May 2012,  from 2010 - 2011, the multiple job-holding rates in Texas increased from 3.8 to 3.9%.  In 2011, a Elance survey found that 36% of respondents were starting or operating a business while working full or part time traditional jobs. 

 

To protect business interests, should the employer implement a moonlighting policy?  Well, typically employers won't prohibit employees from moonlighting - unless there is a direct impact to business. One must consider that prohibiting someone from having a second job, where there is no harm to the employer, and taking action against the employee, may have unfortunate legal ramifications. If an employer fires an individual for having an outside job, where there has been no negative impact to the employees duties, performance, etc., a jury might later suspect that the employer was motivated by some form of illegal discrimination.

 

So let's talk about your policy.  At the minimum a Moonlighting Policy should contain:

• Statements addressing conflicts of interest.  Any policy should clearly state that employees are not permitted to accept or engage in any activity / employment that would conflict with the interests of the primary employer.
• Statements addressing interference with the primary job.  Interference may be experienced via impact to the employees performance.  Additionally, the employee may be unable to work overtime due to a commitment to the second job.   Is there an increase in absenteeism or tardiness?
• Your approval for outside employment.  Ultimately the employees true commitment should be to their primary job.

A carefully written policy may protect your organization without intruding too far into employees' personal lives.  And remember, many state laws protect employees' personal lives.  Be cognizant of Lifestyle Discrimination Laws of which some laws address a specific activity and others encompass a wide array of off-duty conduct.  For instance, California, Colorado and New York prohibit discrimination based on any lawful activity by an employee off the premises and during non-working hours.  At this time Texas does not have lifestyle-discrimination laws.

 

Whether or not you decide to institute a Moonlighting policy, clearly communicate your expectations to your employees.

Wage & Hour Division: Right To Know Rule

Previously DOL's Wage and Hour Division announced plans to update recordkeeping requirements that are associated with the Fair Labor Standards Act.  The DOL stated that it “proposes to update the recordkeeping regulations under the Fair Labor Standards Act in order to enhance the transparency and disclosure to workers of their status as the employer's employee or some other status, such as an independent contractor, and if an employee, how their pay is computed.”  

Identified as the "Right to Know" rule, the DOL’s original timeline for the regulation was October 2011.   In the most recent edition of the Unified Regulatory Agenda, published on January 20, 2012, the DOL moved the “Right to Know” rules into a category labeled “Long Term Actions.” The DOL defines “Long Term Actions” as those items “under development but which the agency does not expect to have a regulatory action within the 12 months after publication of this edition of the Unified Agenda.” That initially put off any action on the Right To Know until at least January 2013.

With the re-election of Obama, the "Right to Know" rules are expected to re-emerge as a major issue to workers and we can now expect the department to move forward once again on this proposal.

Under the FLSA, employees are entitled to overtime unless they're executives who manage, hire and fire employees; administrators who make key decisions; or professionals with advanced degrees, among other criteria.  (Also exempt are IT workers and sales representatives.)  Rank and file employees are commonly and wrongly classified as exempt.   These low-level employees, with limited responsibilities, are dressed up to look like managers so that employers don't have to pay for overtime.   U.S. workers are putting in more than 40 hours per week through a variety of practices including:

• Jobs misclassified as exempt;
• Smartphones and other technology allowing business to bleed into personal time; and,
• Employees working off the clock.

Acting Wage and Hour Administrator Nancy Leppink called the Right to Know rule one of the Wage and Hour Division's priorities, stating "We're continuing to work on that regulation," and that "We're learning about what the issues are" from the Department's ongoing misclassification enforcement initiative.

A record-high 7,064 FLSA suits were filed in federal court during the year-long period ending March 31st.  The WHD reported that over $225 million in back wages for FLSA violations were collected during this period.   These numbers provide reinforcement for the belief that FLSA claims will continue to gain momentum into 2013 and beyond.  

Employers know that FLSA collective actions are more prevalent than ever and they are costly to defend or resolve.  With the majority of the lawsuits pertaining to employee misclassification, it's an incentive to the employer to carefully review how employees are classified. 

 

We'll Miss The Twinkies

Talks between Hostess management and the Bakery, Confectionery, Tobacco Workers and Grain Millers Union failed on November 20th.  If a favorable agreement had been reached, over 18,000 jobs would have been saved.  It is unfortunate, but Hostess brand began terminating most of its 18,000 employees last week.  This action came after Hostess won court approval to shut down and start selling assets.

CEO Gregory Rayburn said 15,000 workers would be fired as soon as possible so that they could begin receiving unemployment benefits.  The Court ordered the Company to implement a non-executive employee retention plan to ensure the Company has the necessary personnel to implement the wind down.  Approximately 3,200 employees will stay on temporarily to clean plants and begin to wind down operations.  Employee headcount is expected to decrease by 95% within the first 16 weeks.  The closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, and 570 bakery outlet stores could take up to three months. 

WARN Act
In May, Hostess Brands Inc. mailed out WARN Act notices to its employees.  The WARN Act requires companies to give workers sixty (60) days notice before closing a facility or performing a mass layoff.  Spokeswoman Anita-Marie Laurie stated Hostess wanted to notify employees that a "sale or wind down of the company is possible in the future." 

On November 21st a former employee, Mark Popovich, filed for damages on behalf of himself and all employees laid off by Hostess.  "We believe Hostess violated the federal WARN Act as well as state laws.  These employees deserved better," said Charles A. Ercole, who filed the Complaint for Mr. Popovich.   Failure to give sixty (60) days advance notice violates the federal Worker Adjustment and Retraining Act. 

Hostess has a different viewpoint believing that the multiple notices issued throughout 2012 and the court declaration to layoff workers are sufficient to excuse it from WARN Act liability.

There are a lot of different versions as to who is to blame for the failure of Hostess and the loss of so many jobs.  Whether mismanagement or a union failing to make concessions, there are now 18,000 people facing unemployment.  The largest number of employees impacted are based in Irving, Texas.  I'm sad to say I haven't been able to find any information relating to job fairs for the Irving employees.    Texas, let's get moving on that shall we?  The Utah Department of Workforce Services and Ogden/Weber Technology College is hosting a job fair this Thursday for former Hostess employees. 

Hostess, previously with annual sales of about $2.5 billion, had been making 500 million Twinkies annually prior to the shutdown.  We'll miss the Twinkies. . . .

A Real Thanksgiving Turkey

A parade-goer watching the Macy's Thanksgiving Day Parade on New York's Upper West Side noticed that the confetti that fell on him and some friends contained information including names, addresses, Social Security numbers, bank routing numbers, etc.    Additionally, one confetti strip appeared to provide information from an arrest record and others identified undercover detectives by name.   Upon inspection it appeared that all documents were from the Nassau County Police Department. 

"The Nassau County Police Department is very concerned about this situation," Nassau County Police Inspector Kenneth Lack said in a statement. "We will be conducting an investigation into this matter as well as reviewing our procedures for the disposing of sensitive documents."

Obviously there is more risk than ever that sensitive employee information may become pubic information.  Companies need to take the proper steps to ensure that sensitive employee information doesn't get into the wrong hands. 

And a word of advice to the Nassau County Police Department, skip the holiday drinks and buy a better shredder!

EEOC Update

The EEOC recently released it's Performance and Accountability Report for fiscal year 2012.  The report states that the EEOC recovered more than $365.4 million in monetary benefits through private sector administrative activities including mediation, conciliations, and withdrawals of benefits.  This is the highest amount recovered in any one year by the agency, $700,000 more than recovered in 2011. 

 

During the year the EEOC had 309 cases on its active docket with a total of 254 merits lawsuits resolved resulting in recovering $44.2 million through litigation.   Included were 162 cases under Title VII with the EEOC recovering $34.3 million in Title VII resolutions.   

 

The EEOC is in the early stages of implementing its Strategic Plan for Fiscal Years 2012-2016.  This four year plan will outline the agency's goals and achievement benchmarks for enforcing various anti-discrimination laws under its jurisdiction.  

Is Workplace Stress a Modern Epidemic?

Remember when 5PM meant the end of a workday?    As a result of  factors such as the economy, job insecurity, or even employer demands, employees remain tethered to work 24/7 through their iphones or Blackberrys.   Face it, we're plugged in and the technology makes us accountable for every moment of our day (just a thought, but working 24/7 shouldn't be a badge of honor).   Let's stop pretending that employees, or you, don't have lives outside of the office and consider how these nonstandard work schedules impact the modern employee and family.
 

Stress is a built-in condition and we're hardwired for it.  In the workplace, those stressors can come from multiple areas or just one.  Workload, lack of appreciation, isolation, conflict, mistrust, lack of direction or just pervasive uncertainty.   When those stressors in your life are always present, it impacts both physical and emotional health. 

Research statistics provided by Statistic Brain in April 2012 (source: American Psychological Association, American Institute of Stress) gave employers an insight into the Top Causes of Stress in the U.S.  The #1 cause of job stress in the U.S. is Job Pressure with contributing factors such as co-worker tension, bosses, and work overload.  

• 77% of the respondents indicated that they regularly experience physical symptoms caused by stress.
• 73% regularly experience psychological symptoms caused by stress.
• 48% feel their stress level has increased over the past five years.

 Additional statistics relating to the impact of stress:

• 48% of respondents say stress has a negative impact on their personal and professional life.
• 31% have difficulty managing work and family responsibilities.
• 30% say they are "always" or "often" under stress at work.

Let's talk about stress's nasty side affects.  Physical symptoms reported by respondents as a result of stress:

• 51% experienced fatigue
• 44% headache
• 34% upset stomach
• 30% muscle tension.

with reported Psychological Symptoms:

• 50% irritability or anger,
• 45% feeling nervous
• 45% lack of energy
• 35% feeling as though they could cry.

Annual costs to employers in stress related health care and missed work?  $300 Billion.

If you want to disregard all of the statistics above, the CDC released their own set of statistics regarding Prescription Anti-Anxiety Drug Use in the U.S. for the period 1988 - 2008.  Think the workforce isn't stressed?  The results by CDC reflected a steady increase in the use of prescription anti-anxiety drugs.  Use by adult women increased from 4% to 5.70% between 2002 - 2008.   Adult population use in 1994 was 2.8%, by 2008 there was an increase to 4.50%.

Let's all take a vacation!  Who's with me?

http://www.statisticbrain.com/stress-statistics/

Management and Mr. Likert

Do you ever have to go through your old emails in search of some missing piece of information?  It's akin to a trip down memory lane.  You never know what you will stumble across or where you will end up.    During a recent journey,  I rediscovered this one small email and felt it worthy of discussion.   Yes, the email is cryptic.  But the message screamed volumes to me.

Him:  Are you familiar with Likert’s management theories? 

Me:  Are we speaking of exploitative authority?

Him:  We are.  Like verbatim.

Me.  Yes sir.  (End of conversation)

There are a lot of different definitions of the word “management,” but for the sake of this blog, I’m going with a very fundamental definition. Getting things done through and with people.  

Rensis Likert, an American educator and organizational psychologist, is best known for his research on management styles.  (And let’s not forget The Likert Scale.)   Likert identified a four-fold model of management styles,  each style revolving around decision-making and the degree to which people are involved in the decision making process:

1. Exploitative Authoritative;
2. Benevolent Authoritative;
3. Consultative; and,
4. Participative.    

With that email in mind, let's explore the Exploitative Authoritative management style.  For the EA, responsibility lies in the hands of the people at the upper echelons of the hierarchy.  The supervisor has no trust or confidence in subordinates and motivation is based on threats.  Decisions are imposed on sub-ordinates and teamwork/communication is extremely limited.  Essentially the communication style is almost entirely downwards and the psychologically distant concerns of the employees are ignored. With a style of “do what I tell you,” the overall impact to an organization is extremely negative.

In short, the leader imposes decisions on subordinates and uses fear to achieve employee motivation. 

“E-A leaders are highly production-oriented, display no confidence in their subordinates, provide them no influence in decision making, seldom seek or use subordinates’ ideas, use fear, a threat, punishment and occasional rewards to enforce compliance, and engage mainly in downward communication.”  Organization & Management by R.D. Agarwal.

Let's compare the EA management style against the characteristics of an effective work group.  In an effective work group there is a high degree of confidence and trust in each other.  The values and goals of the group all link in harmony with each other and there is strong motivation by each member to communicate fully and frankly.  An important factor is that employees feel secure in making decisions.  That is 100% at odds with the EA management style.

The “difference between a leader and a manager is that a manager pushes while a leader pulls.  By this, we mean that a manager uses its authoritative powers to push people to reach the set targets and pressurize them to achieve the firm’s goal.  He orders actually.  While a leader pulls, that is, it motivates people and develops zeal in them towards achieving a goal. . . “    The Role and Effectiveness of Leadership in Team-Working: Abstract.

In closing, I ask the following question:  If your employees had the chance, would they "vote" you out of your position?

Creating a Feedback Culture

Feedback is a communication process between two individuals. It emphasizes the flow of dialog and creates clarity and understanding. For an organization to grow and it's employees to learn, employees must have feedback. Without it, they don't know how they are performing, what's working and what's not, and where changes need to be made. 

"Creating a culture where employees share productive feedback can become an integral part of a growing organization's development strategy towards strategic goals." Creating a Feedback Culture. Research Report. February 2008)

 

To determine if you have a Feedback Culture, ask yourself the following:

1. Is your communication minimal?
2. Is it primarily top-down?
3. Or is it open, honest, two-way communication?

A feedback culture is one in which individuals continuously receive, solicit and use formal and informal feedback to improve their job performance.  Take a moment to read the bullets below and carefully consider your answers.

• If I asked you if I could criticize you, what would your response be?
• If I asked if I could provide you with constructive feedback, what would your response be?

Feedback must come from a place of support, not a place of critique.  To be effective it must provide specific context (behaviors), not generalizations.   It's constructive, usable and based on the impact of the subjects actions rather than generalized opinions about that person. 

 

Supportive Feedback will have three specific components.  The feedback components are designed for one person only and are tailored to that specific person's behavior.  Components are NOT interchangeable from Employee A to Employee B. 

Supportive Feedback:

1. When did the behavior occur?
2. What was observed?
3. Why does it matter? 

For Constructive Feedback, there is a fourth component, the Request.  The Request will identify what needs to change. 

 

In closing, a prerequisite for a feedback culture is a respectful stance towards each and every employee, manager, and executive.  "A corporate culture is incredibly strongly linked to a leader's personality," says Peter Bregman, a corporate culture consultant and author of Point B:  A Short Guide to Leading A Big Change.   To create a feedback culture, you must start at the top and walk the talk!

Sorry, I'm Not Going To Tell You What You Want To Hear

I upset an executive the other day when I advised him that a tactic he wanted to take with an employee really wasn't the best approach.  When I explained why a different approach was needed, the response from the executive was anything but supportive. 

 

To quote Dilbert, "Do you want a realistic. .. that will ruin your day, or a lie that will allow your ignorance and your happiness to lock arms and square dance to the next cubicle?"

 

It's human psychology. Most times we hear what we want to hear. We want things to align with our vision of how the world works. However, Mr. Executive, if someone is brave enough to give you honest input, take a moment to recognize it. Don't shoot (or shun) the messenger.   Don't just turn to confidants who will tell you what you want to hear. My recommendation is that you turn to several sources for information and obtain several points of data.

 

For just a moment please understand that HR isn't here to offend you.  We all know that in the business world, unintentional violations do not excuse wrongful behavior.   No, I'm not here to provide you with legal advice. But, I am here to advise you where you may face potential liability.  So,  I'll question tactics, suggestions or orders that may appear to be unlawful.   I will ask questions and seek clarification.  I will then tell you what works best based on my knowledge and experience.  I'm going to follow my instincts.

  
In May, Forbes published the "10 Commandments for Delivering Bad News."  In brief (and the link has been provided) the commandments are:

1. Thou shalt always treat people with respect and dignity.
2. Thou shalt always follow up and follow through
3. Thou shalt always remember your multiple audiences
4. Thou shalt always bring solutions
5. Thou shalt always look for the silver lining
6. Thou shalt always justify
7. Thou shalt always put in writing
8. Thou shalt never hide the facts
9. Thou shalt never delay
10. Thou shalt never surprise

Any successful employee strives to anticipate the boss's needs and then deliver them.  Telling people what they don't want to hear is risky.  I can sit here, nodding, and maintain the status quo.   But that's not what you hired me to do.   I'm not going to hide the facts and I am going to provide you with solutions.

http://www.forbes.com/sites/forbesleadershipforum/2012/05/30/10-commandments-for-delivering-bad-news/

Generation Gaps: How We (Mis)Communicate

The Baby Boomer generation is starting to exit the workforce, leaving the reins of leadership to the GenXers.  Through this transition organizations are struggling to balance the work styles and communication preferences of 3  - 4 different generations.   Baby Boomer or member of Generation X, through formal writing or an IM, we all need to communicate with each other.   This is where our real generation gap exists.

In my blog entry, Rudeness at Work, stats reflected that younger employees, by an increase of 28% over older workers, contributed to incivility in the workplace.  Question:  Does this present a framework for identifying age-related differences in work attitudes and behaviors?   Answer:  Yes.  In September of this year CareerBuilder surveyed 3,892 U.S. workers and 2,298 U.S. hiring managers ages 18 and over. The results of this survey, Generational Differences in Work Styles, Communication and Changing Jobs, highlighted the contrasts of the generational trends on how each generation approaches work.  It appears as though this isn’t intentional incivility, it's the result of the generation you grew up in and the differences in generational communication styles.   

CareerBuilder Survey Question:  How Do You Like To Communicate at Work?
 

Face to Face

• 60% (Ages 55+) 
• 55% (Ages 25 - 34)

Email/Text

• 28% (Ages 55+)
• 35% (Ages 25-34)

Phone

• 12% (Ages 55+)
• 10% (Ages 25 - 34)

Baby Boomers, born between 1946 and 1964, are the largest generation born in America to date. The offspring of the Silent Generation, the Boomers experienced* the Vietnam War, the Civil Rights Movement, and the assassinations.   The "We Generation" who were defined by the Cold War and the Space Race. The Boomers recognize the value of relationship building, preferring personal, face to face communication over communicating through technology. Technology is a means of communication, not an exclusive tool to communicate.   Here's where the generation gap comes into play.  The GenX and GenY prefer to use digital communication almost exclusively.

GenXers, born between 1965 and 1980, are defined by Watergate, an era of political corruption, economic inflation, single-parent homes, MTV, the fall of the Berlin Wall, and the Challenger tragedy.  GenXers often prefer direct and straightforward communication.  And as a result, they may appear abrupt.    While the gap between Gen X and Gen Y is much larger due to the rate of technology growth, GenXers are highly techno-literate and don't worry about being outpaced by younger colleagues.   

GenY, born between 1980 - 1999, are "The Millennials,"  the generation of Facebook and MySpace.  Labeled as digital natives, the high-tech environment has shaped their values.  They are defined by computers, TV talk shows and the Oklahoma City bombing.   (The Department of Labor statistics estimate that GenY will compromise more than 40% of the workforce by 2020. Their sheer numbers will transform every life stage entered.)  GenY is extremely comfortable in a wired world.

GenZ, born after 2000, is the Digital Generation.  They are plugged in to the Internet by handheld devices, remaining connected every moment of their lives.  With so much of the GenZ life centered around the digital domain, a significant percentage prefers socializing online than in real life.  Through IM, text or Mobile phones, their digital connection to the world is essential.  They have access to the World Wide Web 24/7 and information and knowledge at their fingertips.    With a vague memory of such a key event, they are the generation of 9/11 and homeland security.

As technology evolves, so do our communication options and preferences.  Communicating faster, each generation will have vast differences in their communication methods and preferences.  These preferences may create a dividing line between one generation to the next.  Every organization will need to have increased awareness of the potential miscommunication due to generational differences. It will be critical to know the generation and to connect with their preferred style.

*Generations . . .  are deeply influenced and bound together by events of their formative years.  . . . the events that occur at various critical points in the group's lifetime .. . define their core values."

Generation "dates" are approximate and vary by demographer. 

I'm Just Not In To You (As An Organization)

Remember when companies and employees exhibited mutual loyalty? Over the last two decades there has been a not–so-subtle shift away from loyalty as evidenced by the ever-weakening bonds between employees and employers.  An employee pointed out to me that if loyalty is not yet dead, it’s at least on life-support.

In a 2011 CareerBuilder.com report, 76% of full-time workers, while not actively looking for a new job, would leave their current workplace if the right opportunity came along.  Employees just aren’t that in to you.  No, the employees don’t say that out loud, but they sure are thinking it. 

And in 2012, they're acting on it.

Fast forward to the CareerBuilder October 2012 survey of 1,078 full-time workers (U.S. and Canada).  Sixty-nine percent of full-time workers reported that searching for new job opportunities is part of their regular routine.  Fifty-three percent of the workers said they feel like they just have a job, not a career. 

The new trend?  Employee loyalty has shifted to their careers. 

A company's ultimate responsibility and loyalty is to the bottom line.  When sales slip a company's first response can be headcount reduction, reduction in benefits, and/or pay freezes.  Managers may act in a way that communicates “we don’t care about you” or "we don’t respect you.”    The employee may now perceive that the organization has placed zero value on their talent.  But, employees have a choice and will shop around for a better deal.

 

 

Cronyism or Extreme Social Connections?

Normally the hiring process is a relatively random process based on the selection of applicants.  And in the recruiting process, referral hiring is a common practice.   But there are times when the selection process is not so random or neutral.   What happens when the hiring manager is not totally indifferent to members of the candidate pool and the referral value of a candidate increases based on their social connection with the hiring manager?   Is this where an organization, or manager, potentially crosses the line into favoritism? 

 

In my last blog (Nepotism - It's All Relative) I discussed nepotism and the challenges it may bring to an office environment.  Skipping down that little favoritism trail,  hand in hand with nepotism, is cronyism.   Cronyism is a specific form of favoritism referring to partiality towards friends and associates.   

 

Have you ever worked in an environment where there's a bunch of "good ole boys?"   A group of individuals that are given an undue advantage but who don't necessarily merit this treatment?   Individuals that may be in positions where they are not even qualified to do their job?  In an environment where it's not WHAT you know but WHO you know, you are experiencing cronyism.  That favoritism can be exhibited in compensation, discipline, or even positions.  

 

Does cronyism undermine business effectiveness?  Unfortunately cronyism can create an air of entitlement for those employees who were hired based on their social connection.  They may feel as though company rules do not apply to them.  Additional negative consequences are that sometimes these individuals are under-qualified to perform their jobs (potentially promoted to a level of incompetence) and even pay scales may become distorted.

 

Referencing my earlier question regarding the practice of nepotism and whether or not it's ethical, here's something for consideration:

• One of the most basic themes in ethics is fairness. Logically, cronyism (or nepotism) interferes with fairness through the undue advantage of one person who may not merit such treatment.

Both can greatly undermine the effectiveness of an organization.  So, draw your own conclusion.

 

Always keep an eye on your hiring practices.   We all know that businesses are often thick with social connections.  But don't allow your organization to become too relationship-driven that you unknowingly violate Title VII of the Civil Rights Act by discounting highly qualified applicants.

Nepotism - It's All Relative

"Nepotism is favoritism granted to relatives regardless of merit."   

 

You have to wonder in what world a business owner / executive would think that an organization is best-served in hiring relatives "regardless of merit."   

 

For an employer, there may be a perceived benefit to hiring family members.   You're helping the family member out, becoming a bit of a hero in the process, while potentially saving the costs of recruiting, training, background investigations, etc.  for a new employee.    However, there may be disasters looming right around the next corner.

 

While family members may create a readily available workforce oftentimes they are under qualified for the positions they fill.   And those employees who are bypassed in favor of family members may develop hostile feelings, feelings of resentment.  Nepotism in a business environment may create a perceived lack of fairness in the organization, a disastrous negative impact in which employees may see no career growth. 

 

What about employees who are responsible for supervising family members?  Disciplining or firing employees is difficult enough but will they be restricted in what corrective actions they may take?  Will there be repercussions in taking corrective actions?  Will it cost the employee their career?  How does an employee handle the situation when it's the bosses relative?  Whether or not the owner wishes to admit it, nepotism can be a disruption to the work environment. 

 

Can engaging in nepotism be illegal?  Ordinarily, no.  However,  if the employer hires family (or friends) to the point where there is no consideration for other sexes, age groups, etc, the employer may be unknowingly violating Title VII of the Civil Rights Act of 1964. 

Business owners - here are a couple of questions for you to ponder:

1. Is nepotism unethical?
2. Should nepotism be in the Code of Conduct?

Rudeness At Work

In my previous blog I addressed language policy's as a tool to assist employers in maintaining a civil and respectful workplace.  Civility, the fundamentals of courtesy, politeness and consideration, are critical to business.  The lack of civility leads to high turnover, lower moral and even a potential loss of business.

In 2011 a survey was published in the Journal of Organizational Behavior.  The survey, titled "Civility in American 2011" addressed civility in politics, education, the workplace, the Internet and the marketplace.   The real interest to me is the section "Incivility Goes To Work."  The study reflected that two-thirds of employees reported that their performance had declined as a result of incivility encountered in the workplace.  43% of Americans (four in 10) have experienced incivility at work with 38% reporting the belief that the workplace was "becoming more uncivil and disrespectful than a few years ago." 

Employers, take note.  As a result of experiencing rudeness, or just awareness, 67% of the respondents reported the need for civility training!  It is up to the employer to determine what is and isn't tolerated in the workplace.  But employees are asking for the education to understand how to communicate with each other and avoid creating conflict.

Statistics provided in the section Who/What is to Blame For Workplace Incivility reflected that the largest offenders were organizational leaders at 65%.   The stats for younger vs. older employees peaked my interest.   Does this present a framework for identifying age-related differences in work attitudes and behaviors?

• 65%  Leadership of the Workplace
• 59%  Employees themselves
• 34%  Younger employees
• 24%  Lack of employee rights
• 6%  Older employees

It is to be expected that a certain level of civility is fundamental to the operation of any business.   The survey reported that approximately 69% of Americans "have either stopped buying from a company or have re-evaluated their opinions of a company  because someone from that company was uncivil in their interaction."  There it is.  A direct impact to your bottom line!

Are there remedies for restoring civility?  Here are some basic steps that any individual can take:

• Active Listening (Listening to a co-workers perspective without interrupting; ask clarifying questions, reflect back understanding of views)
• Communicating critical feedback with consideration
• Assuming that everyone has the best motives
• Remember the small but important gestures - saying "please" and "thank you."
• Be aware of your tone and volume
• Be respectful, even in disagreement
• Maintain objectivity during conflict

In closing, remember the Golden Rule that your mother taught you?  When in doubt, refer back to those words of wisdom (or your mother).

Civility is NOT a sign of weakness.  Civility is about boundaries. 

Language Policies

Let's be clear up front. I'm not talking about WHAT language should be used in the workplace. I'm addressing HOW we talk to each other. Do you have a civil, respectful workplace? Do you want one?  While Federal laws do not prohibit rude or disrespectful behavior at work, employees do have protection in the areas of discrimination and harassment.

With respect to proper language, rudeness, etc., perception is the key word. How does the receiver perceive the expletives used by a fellow worker? A woman who is subjected to vulgar profanity may perceive it as sexual harassment. How does a member of a faith community perceive the improper use of a Deity's name? Is it religious discrimination?

Every company, large and small, should require that employees maintain a respectful attitude and prohibit the use of profane language on its properties or while conducting company business. The content of a Language Policy should, among other things:

• prohibit the use of profane words, obscene expressions, gender-based insults, personal insults, racial as well as religious slurs or any type of verbiage (including written documents, email, voice mail, text messages, etc) that may be construed as offensive by others.

With no guidelines in place, an organization is at risk of being an offensive and creating a hostile work environment.

Employee Actions Off The Clock

In case you missed it, Joseph Andolino, a senior vice president of Halliburton's tax department was arrested in a Harris County prostitution sting along with six other men (reported in the Houston Business Journal).  While there are no reports that he committed the crime on the job, several questions relating to his on-going employment with Halliburton come up.   

 

While I don't think that employers want to overly intrude into the private lives of employees, as an employer do you  have a policy or an employment contract that says an employee may be terminated if s/he engages in criminal conduct?  Do any of your company policies address employees conviction of a crime that indicates unfitness for the job or raises a threat to the safety or well being of fellow employees? 

Texas is an at-will state.  That allows Texas employers a lot of latitude in the hiring and firing decisions.  Essentially an employer can terminate an employee for any reason that is not specifically prohibited by law.  However, state legislation, employment contracts, union contracts or your internal policies may dictate your decision.   An employment clause may provide you with an avenue for dismissal.  But does it mandate the dismissal?

• Do you have to prove that the conduct has a direct impact on the job? 
• Does it compromise the employee's ability to do the job? 
• It is an embarrassment to the organization? 

We all agree that an employer shouldn't keep an employee whose after-work activities affect their job performance.  The general rule is the more off-duty behavior negatively affects the work environment, the more termination and/or discipline becomes a legal and valid option.  But, is failure to take remedial action regarding the off-duty conduct inferring that similar actions are condoned on the job?

 

Companies may face difficulty when dealing with terminating employees for off-duty conduct. Potential results when employee's are fired for off-duty behavior can be negative publicity, low morale and related turnover.   You must consider the nature of the crime and how it affects the workplace.  What effect, if any, does the behavior have to the workplace or the company's image?   Does the behavior justify adverse employment action?

 

If you are considering regulating the off-duty conduct of your employees, there are some things to be considered:

• Is the conduct legal or illegal?
• Is there an applicable law that protects the off-duty conduct of the employee?
• Am I willing to apply this policy consistently?

Jason Bosch, None Of Your Business (Interest):  The Argument for Protecting All Employee Behavior With NO Business Impact: " . . . employees should not have to relinquish autonomy over very aspect of their lives just to get or keep a job.   Employers have a vested interest in controlling those aspects of employee's lives that reasonably affect the employees' performance on the job, but that does not justify giving employers carte blanche to control every aspect of their employees' lives."

EEOC and BellSouth Telecommunications

BellSouth Telecommunications, LLC (Atlanta) will be shelling out $120,00 to two former employees to settle a sexual harassment and retaliation lawsuit.

Two BellSouth female employees were sexually harassed by a male manager of the Kennesaw, GA., call center where they were employed.   According to the EEOC website, immediately upon the managers arrival at the call center, he began making inappropriate sexual comments in the sales meetings.  It didn't end there.  In addition to the comments, he pantomimed engaging in sexual intercourse on the floor of the conference room.  "He routinely and continually talked about sex and asking out women as analogies when giving speeches in sales meetings, and would make sexual comments about the women's attire.  The manager would also hug the women unwantedly when greeting them and move his hand down their backs towards their posteriors when he did so."

Most employers understand that harassment is forbidden in the workplace! Sexual harassment under Texas and Federal law is generally defined as unwanted sexual contact of two main types: (a) quid pro quo harassment or (b) unwelcome sexual conduct that is severe or pervasive enough to create an abusive environment for the employee.

When these two employees complained, BellSouth retaliated.  The employees were denied promotions and demoted. 

While the suit has been settled, BellSouth has denied any liability or wrongdoing.  In addition to the monetary relief, there are provisions for equal employment opportunity training and reporting and posting of anti-discrimination notices.

Just in case you've been hiding under a rock, these alleged conducts violate Title VII of the Civil Rights Act of 1964.   How can you deny liability or wrongdoing?  Honestly?

Employee Satisfaction Surveys

In 2004 Congress mandated that all federal agencies conduct surveys of their employees.  The purpose was to assess the employees perceptions about their work environment and work experiences.  The results of these surveys are used to measure employee satisfaction in areas such as benefits, training, leadership, diversity, recruiting and the work environment. 

Employee viewpoint surveys are extremely important as they provide an overview of how well the organization is doing.  Where properly conducted, the survey can identify an organizations strengths and areas of improvement. The survey is a tool for opening a dialog among the employees and the results can act as a tool for driving positive change. 

Remember, a survey doesn't end once the results are received.  If the survey is not responded to, employees are less likely to participate in future surveys.  The employees expect that management will use the information to make improvements to the organization.  These surveys create expectations.  Conversations around survey results can potentially lead to increased engagement, productivity and profits while reducing turnover and costs. 

Once you have the survey results you should act quickly.    Create a team to review the results.  Select the key items to address and develop a corporate action plan to resolve them over the next 6 - 12 months.  Re-evaluate and adjust your action plan as necessary.  A recommendation is to select three areas to focus your efforts on.  This will allow you to concentrate your efforts and make substantial progress.

• In what areas is positive change most important to your organization?
• In what areas is the positive change most needed?
• What areas are the top priorities?

Follow up regularly on the plan and the progress toward meeting the goals.  Communicate across the organization OFTEN and make the improvements visible.  Employees expect that their concerns are addressed and resolution to occur. 

When You Lose A Good Employee

I lost a good employee today.  And while I understand the reasons behind her resignation and departure, it doesn't make the loss any less significant.  After months of looking for the right employee, reviewing hundreds of resumes, phone screens, and face:face interviews, we found the right employee for the position.  Someone that had the level of skills and abilities to take the position and re-define it - -  to grow it.   

 

As an organization we failed.  While we identified where processes could be improved, workloads leveled, bottlenecks eliminated, and savings experienced, we lacked the ability to implement the very changes that would allow us to be successful.    We were unable to engage the employee in this new role because of our inability to let go of an existing process.

 

(We were able to identify a new start. We were able to provide the vision of what it would be like when the change took place. But we were not able to overcome the resistence by the existing employees that would experience this change and the sense of loss the new process would bring. Employees need to understand how the organization will benefit from changing. They need to understand how the change will benefit them individually, as well as the consequences for them if there is no change.) 

 

My advice to every employer out there - to retain employees, the employer must deliver on the expectations set up during the recruitment process. Put forth every effort to keep your employees engaged.

 

 

 

 

 

 

Exempt / Non Exempt

If your organization is struggling with the exempt / non exempt issue, the below article by Business Management Daily provides some good advice.

'Explosive' growth in wage lawsuits; cases hit all-time high

U.S. employees filed a record 7,064 federal wage-and-hour lawsuits in the fiscal year ending June 30, "a continuation of the explosive growth in these suits that has marked the past decade,” according to attorney analysts at the Seyfarth Shaw law firm.

The three most common triggers: misclassification of employees, unpaid off-the-clock work and miscalculation of overtime pay. In its recent report, the firm said that class actions under the FLSA are dominating the legal scene. Another notable trend is the increase in back-wage suits on behalf of higher-income employees, such as those in financial services.

In both types of suits, the key is the time an employee puts in outside regular work hours. Companies should be particularly careful about hourly employees working extra time while off the clock. Even five or 10 minutes worked voluntarily off the clock can add up to a large verdict when multiplied out over a period of years.

Advice: Make it clear to all hourly employees that you prohibit any work over breaks, or before and after shifts.

In one recent lawsuit, a company allowed administrative staff to track their own hours on time sheets. It also allowed them to take comp time. It could only rely on handwritten time records when disputes arose over how much time employees had worked, how much the em­­ployer owed them and whether some of the comp time should have been overtime. In such cases, the employer loses because it's the employer's responsibility to keep proper records.

Record-keeping requirements for exempt employees differ from those for nonexempt workers.

Exempt records to keep

Because you don't pay exempt em­­ployees by the hour, you shouldn't track the exact number of hours they work on a daily basis. Doing so might appear to a wage-hour auditor as if you are indeed basing pay on the number of hours worked, which might raise the question of whether the employee is truly exempt.

However, just because a worker is exempt doesn't mean your company is freed from keeping records on him. With exempt workers, you should keep records that describe the workweek and the wages paid for that period. Specifically, you should keep the following records concerning exempt staff:

• Personal information, including name, home address, occupation, gender, birth date for workers under age 19 and the person's workplace identification number
• Time of day and day of the week when the workweek begins
• Total wages paid each pay period
• Date of payment and the pay period covered by each payment.

Your records for exempt employees also can track the days employees use for sick, vacation and personal leave.

 

Exempt records to keep

Because you don't pay exempt em­­ployees by the hour, you shouldn't track the exact number of hours they work on a daily basis. Doing so might appear to a wage-hour auditor as if you are indeed basing pay on the number of hours worked, which might raise the question of whether the employee is truly exempt.

However, just because a worker is exempt doesn't mean your company is freed from keeping records on him. With exempt workers, you should keep records that describe the workweek and the wages paid for that period. Specifically, you should keep the following records concerning exempt staff:

• Personal information, including name, home address, occupation, gender, birth date for workers under age 19 and the person's workplace identification number
• Time of day and day of the week when the workweek begins
• Total wages paid each pay period
• Date of payment and the pay period covered by each payment.

Your records for exempt employees also can track the days employees use for sick, vacation and personal leave.

Nonexempt records to keep

With nonexempt, hourly employees, you need to collect more details:

• Personal information, including name, home address, occupation, gender, birth date for workers under age 19 and the person's workplace identification number
• Time of day and day of the week when the workweek begins
• Regular hourly pay rate for any week when overtime is due (include an explanation of the way wages are paid—such as per hour, per day, per week, per commission—plus the amount and nature of each payment that's excluded from the regular rate)
• Hours worked each day and week
• Total daily or weekly straight-time earnings (not counting overtime)
• Total weekly overtime earnings
• Total additions to or deductions from the employee's wages each pay period, plus an explanation of the nature and dates of those additions or deductions
• Total wages paid each pay period
• Date of payment and the pay period.

If employees are working under a special certificate that allows you to pay below minimum wage—such as a "training” wage for students—your records must note that fact, too.

And for how long

The FLSA requires you to keep the following records for at least two years:

• Basic employment and earnings records
• Work-time schedules (timecards)
• Wage rate tables
• Order, shipping and billing records
• Records of additions to or deductions from wages paid.

In addition, keep these records for at least three years:

• Payroll records
• Employee agreements, such as collective bargaining agreements and individual contracts
• Sales and purchase records.

Yes, Congress has tinkered with the FLSA over the years.

Yes, the Labor Department has issued pages of regulations, interpretations and examples.

Yes, these changes are often confusing for employers and workers alike.

Is that an excuse for misunderstanding the law? No.

The FLSA is complicated and full of traps for unwary employers. And attorneys who represent unhappy workers are ready to take advantage of any misstep you take. Your best protection is awareness. Make sure you understand the fine points of the law, and work to ensure that your business is in compliance.

Employee Satisfaction

Earlier this year an on-line survey by Accenture reflected that 57% (women) and 59% (men) were dissatisfied with their jobs.  While dissatisfied with their jobs, more than two-thirds (69%) said they would stay with their current employer.    I guess that’s a good news / bad news scenario.    The workforce is stable, but it's dissatisfied. 

I’m a firm believer that employees are the key to either the success or failure of an organization.  What happens when those employees decide it's just too much anymore and they seek other opportunities?   Are you willing to loose this intellectual resource?  What will the impact to the organization be?

As an employer, proactive steps should be taken to determine where employee dissatisfaction stems from.  

1. Survey your employees to find out their needs.  Are there little hassles they they are experiencing day to day?   What would make them more satisfied in their work?  Smart employers will listen to new ideas, be open to change.  Provide employees with the opportunities to present ideas for new processes, new efficiencies, to management.
2. Provide training and advancement opportunities.  Is there a career path for employees?  Do they have an opportunity to grow and/or expand their skills?  Achievement can be more important to one employee than another. 
3. Address any compensation concerns.  Is there a perception of “fair pay?” 

 

Employee Humor

The highlight of my business days are oftentimes the antics of a handful of employees.  They are overwhelmed and stressed, and yet they choose tears of laughter over bitterness.  For a moment their laughter will change the environment, bringing laughter and a bit of a brighter day to their co-workers. 

 

It's a shame that positive morale such as this can't be recognized on a performance evaluation. 

How would you, as an employer, recognize such ambassadors of goodwill?

Workplace Bullying Increasing

New survey results.  And no, the results aren’t good.  CareerBuilder released the results of a survey addressing workplace bullying.  The survey, conducted by Harris Interactive (May 14 – June 4, 2012), collected the responses of more than 3,800 workers nationwide.  The survey found that 35% of the respondents admitted they felt bullied on the job.  Unfortunately, that’s an 8% increase from last year.    

Bullies are found at all levels of the organization. The largest offender?  The boss at 48% followed by co-workers at 45%.  In a 2005 survey, when participants were asked to identify factors "which impair their organization's ability to deal effectively with bullying, the most commonly cited factors were management's unwillingness to acknowledge that a problem exists, and the prevailing management style."   Where are we 7 years later?  We acknowledge that a problem exists, but we're not making much headway in solving the problem. 

Bullying takes many forms:

• applying different standards to different people;
• constant criticism;
• ignoring an employee;
• false accusations of mistakes.

No matter what shape or form bullying takes, it can cause more harm that just hurt feelings.   Seventeen percent of the respondents to the survey indicated that they quit their jobs to escape the situation.  Sixteen percent said they suffered health-related problems as a result of being the target.

CareerBuilder released the results of their survey for Canadian employees on August 29^th.  How did our neighbors to the North do?  Of the 552 full-time employed Canadians, 45% of respondents said they were bullied.  The source:  24% coworkers, 23% immediate boss, 17% higher manager.  Twenty six percent of the bullied workers stopped their bullying by quitting their jobs.  A larger survey by the Workplace Bullying Institute indicated that 28% of the targets voluntarily quit, but another 25% quit after being forced out (constructive discharge).

The Workplace Bullying Institute defines bullying as "repeated, health-harming, mistreatment of one or more persons (the targets) by one or more perpetrators. .. . ".   Workplace bullying may violate an organizations ethics standards, company policies or even the law.   Review your policies.  Has anyone in your workplace been subjected to bullying?  What steps have you taken to eradicate bullying from your workplace?