Unemployment and Older Workers

The unemployment rate for workers aged 55 and over was 5 percent in July, according to the most recent data available from the Bureau of Labor Statistics.  That's still higher than historical averages but it's much lower than the overall unemployment rate of 7.4 percent, and below the unemployment rate for any younger group of workers.

Workers aged 55 and over also are the only ones to have seen their ranks grow substantially since 2007, the year the nation went into recession.  There were 31.6 million employed people aged 55 and over in July, according to the BLS, up from 25.9 million in July of 2007.  That's partly demographics:  As baby boomers age, more are becoming part of the 55-plus group.

The unemployment rate for Americans 55 and older is lower than for any other age group the government tracks, and far below the national average.  But if an older workers loses a job, the length of time that person will stay unemployed is typically much longer than for any other age group.

The government is scheduled to release August unemployment numbers on Friday, and forecasters are expecting the economy to have added around 200,000 jobs.

Employee Accountability

I ran across a definition for accountability that I feel truly identifies its precise meaning; ". . . the responsibility of the employee to accomplish with integrity the defined and assigned tasks required by his/her job within a reasonable time in order to assist the organization to fulfill its goals." 

Is employee accountability important?  Yes!  Employee accountability is important to a business's success as a whole.  It is the cornerstone of business success.  A Gallup poll estimates that the lost productivity that stems from disengaged and unaccountable employees costs American businesses between $287 and $370 billion annually.  This is through customer loss due to poor service, high employee turnover and quality control issues, just to name a few impacted areas.

How can you engender a culture of accountability in your workplace?  Through the effective communication of goals, expectations, success and failures.   These are the fundamental tenants of accountability. 

Establish the beliefs and values required for accountability in your organization.  Behavior will follow belief.

• Communicate accountability
• Coach accountability
• Practice accountability

Working Families Flexibility Act (H.R.1406)

(Not to be confused with the Flexibility For Working Families Act)

Over heavy opposition by the Democrats, a hotly debated bill was passed May 8th by House Republicans that will potentially loosen federal overtime laws.  The bill would amend long-standing labor laws (the 75 year old FLSA) by allowing private-sector employers to offer compensatory time off in lieu of time-and-a-half pay for overtime.  (The protections under FLSA were put in place to prevent employers from abusing the system and avoiding paying overtime to workers who put in more than 40 hours per week.)

The supporters of the bill have pitched it as an update to federal law, with the obligatory fluff that "it's about helping working moms and dads, providing the ability to commit time at home," per Rep. Martha Roby (R-Ala). 

Under the bill, employees may use their comp time only at the employer's convenience.     If a business is necessarily inflexible when it comes to scheduling time off as the business may relay on a small number of employees for an entire function, then comp time may not be a viable alternative.  For the small employer, the concern may be the potential lost productivity and the additional paperwork for tracking comp time accrued and used.

Yes, the bill has put in provisions to protect against abuse, and only offers the workers a chance to opt for the extra time off if that's what they want.  But I side with the Democrats that such an option is ripe for abuse by unscrupulous employers.  The bill is a potential way for extra work to be imposed on workers with no additional cost to the employer. 

Vicki Shabo is the Director of Work and Family Programs of the non-partisan National Partnership for Women and Families.  Her organization is staunchly opposed to H.R. 1406 and sees it as a wolf dressed in sheep's clothing.  "This is a dangerous proposal that pretends to be something that will help working families.  It will take money out of worker's pockets for overtime pay that they otherwise would have received in wages and instead replace it with possibly an empty promise or a mirage of time that's out in front of them that they may never be able to take."

"For the record, there are many ways for Congress to improve both worker pay and work life balance, including raising the minimum wage, instituting paid sick leave, ending discriminatory pay practices, easing the formation of unions and promoting advance notice for worker scheduling,  The House bill ignores what is helpful and embraces what is harmful."  The New York Times, May 10, 2013.

I highly doubt that this bill will go much further. The White House stated in early May that the president would be advised to veto such legislation on the grounds that it would weaken protections in the Fair Labor Standards Act.

Mother-Friendly Employers

While driving home I heard a radio commercial advertising Mother-Friendly Employers here in Texas.  We've come a long way.  Who would have thought that companies would advertise their support of breastfeeding in the workplace?  Or that a work-site might obtain "Mother-Friendly" designation?

The Texas House of Representatives passed HB 741 in early May.  HB 741 requires public employers, school districts, cities, counties and state agencies, to accommodate employees who need to express breast milk at the work place.  Under current law, working mothers who are hourly employees have federal protections in place for when they need to express milk in the workplace.  (The Federal Health Care Reform Bill, signed in March 2010, contained an amendment to the FLSA requiring employers to give breaks for nursing.)  However, salaried employees have no protections in state or federal law.  House Bill 741 seeks to close this loophole.

Insubordination

We have all heard the term "insubordination," an employee's willful disregard for a supervisor's direct orders.  But what does insubordination really mean?  How do you determine whether insubordination has occurred and what should you do about it?  Simply complaining about an assignment does not constitute insubordination. 

Insubordination can be active or passive.  Active insubordination may be the refusal to do something, challenging the directive, confrontational behavior, the use of abusive language or even physical violence.  Passive insubordination may be exhibited by the employee's willing failure to complete a task. 

To prove insubordination you must establish three important elements:

1. It has to be recognized as a direct order. 
2. The employee received and understood the order.
3. The employee refused to obey the order through an explicit statement of refusal or through nonperformance.  

A few words of caution.  Before any claims of insubordination are raised, take a moment to:

1. Assess how the order was issued.  It can't be a suggestion.  Whether verbal or written, did it clearly communicate the who, where, what and when? 
2. To establish insubordination, the order must relate to work being performed.  Always validate that the order was reasonable.
3. Could other factors influence the employee's actions?  Perhaps the employee did not willfully intend to disobey.  Does the employee have a pattern of unacceptable behavior?
4. An employee has the right to refuse an order if they are being asked to do something illegal or dangerous, or in violation of a published safety rule. 
5. The employee must be told that failure to perform the task/assignment is grounds for disciplinary action on the basis of insubordination.
6. Allow employee adequate time to comply with order before discipline is imposed.  You can't ask an employee to complete a 2 hour task in 30 minutes.

Abusive language by employees towards supervisors can also be considered insubordination.  However, you must always consider the context in which the incident occurred.  To confirm that an employee was engaged in insubordination, the abusive language:

1. Was not provoked by the manager.
2. Occurred in the presence of other employees or customers.
3. Was not an example of "shop talk" in the workplace.

While our first reaction to insubordination may be to fire the employee immediately, allow a cooling off period.  Take the time to review your disciplinary policy. Review the employee's past history. Carefully consider all the facts, all the actions, prior to punishing the employee.   On occasion employee insubordination can be attributed to a breakdown in communication.   While termination may still be the correct course of action, you'll have all your facts in place.   
 

Managing with Questions

How do you show your employees that their opinions matter?  Ask questions.  It's as simple as that.  Questions such as:

• What made you mad today?
• What took too long?
• What caused complaints today?
• What was misunderstood today?
• What cost too much?
• What was wasted?
  What was too complicated?
• What was just plain silly?
• What job involved too many people?
• What job involved too many actions?

Communicating with your employees will improve organization communication.  I know that you're tired of me saying that any organizations greatest resource is its people.  But there, I said it again!  Remember, employees feel appreciated and valued when they are listened to!

Exit Interviews

Exit interviews get a bad rap.  Some people think they have value to the organization, others don't.   I read an article once by a headhunter who stated that "exit interviews fascinate me like cockroaches do."  His explanation was that no one knows why they exist, can justify or eliminate them and are likely to continue to survive.

Cockroaches aside, exit interviews are intended to help the company understand the full scope of reasons behind a voluntary separation.    With this information, an organization can determine and implement strategies to increase retention and reduce turnover.   If effectively structured, an exit interview will provide information that will:

1. gauge the effectiveness of current employment and business practices;
2. identify problems that contribute to turnover;  
3. manage employee expectations; and,
4. allow for the proper incorporation of new employees into the organization.

 In structuring an exit interview program the employer must decide:

1. Who:  Voluntary resignations?  Involuntary Resignations?  Or all departing employees?  (Not all turnover is undesirable.  As an employer you should be strongly interested as to why a valued employee quit.)
2. When:  Before or after the employees scheduled departure date?
3. How:  Face to face?  Questionnaire?  Third party platform?
4. Participation:  Mandatory or Voluntary?

One final recommendation, if you have an exit interview program develop a list of standard and open ended questions for all employees.  Ensure that no privacy rights (health related issues) are violated.  And most important, listen rather than talk. 

Tortious Interference?

Employee John Doe has been working for XYZ  for two years, being recognized as nothing more than one of the many cogs in the wheel.    As a result of John's role within the company, he frequently comes into contact with a large number of company clients.  Then one day, something extraordinary happens. One client, Acme, realizes that John is a rising star!  After ensuring that no non-solicitation is being violated with XYZ, Acme extends an offer of employment to John.  John is excited about this new opportunity. It's the next logical step in his career and a nice increase in his compensation.  After all of the necessary pre-employment requirements are completed and the hire date is set, John submits his resignation to XYZ.    But this story doesn't stop here and there's no Cinderella ending.

The President of XYZ is astounded.  Why would you quit?  You're one of our rising stars.  Those last six words astound John, he's never heard them.   The President offers him more money to stay.  The office he'd like to have.   But in John's eyes, this recognition comes a bit too late.  After a lengthy discussion, John is more dedicated than ever to begin his new career with Acme.

Behind the scenes, the following happens.  While no non-solicitation exists in their contract, the President of XYZ calls Acme and schedules a meeting with them.  After a heated meeting and threats of pulling business, Acme is forced to rescind the offer of employment to John Doe.  John, somewhat reluctantly, remains in the employ of XYZ. 

Two months later, still at XYZ, John Doe hasn't received that proposed increase and the office has gone to another employee. 

Would you view this as Tortious Interference by XYZ?   Tortious Interference:  n.  Encouraging a breach, infringing on another's agreement, interfering with contract or contractual commitments, wrongful interference with business relationships.  For there to be liability under this tort you must show some improper or illegal actions as an intermeddler. You must evaluate whether actions, or contemplated actions, can be construed to have an appearance of impropriety.

For the laymen, tortious interference occurs when a person damages another person's contractual relationships or other business relationship on purpose.  Liability ensues where proof of economic injury exists.  The wrongful interference with some right or economic opportunity belonging to a person which causes that person some monetary loss.  Interference with prospective economic advantage.

 

What is your call on this?  Tortious Interference or No?

 

Fair competition is always legal.  An employee may leave employment and avail himself of whatever expertise he has acquired from his former employer.  As long as there is no use of former employer's trade secrets.

For "John Doe."

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.

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!

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.

 

 

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?

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.