Monday, December 20, 2010

December 2010

A Holiday Poem from HR Solutions

Last year at this time I wrote about Bob
A colleague of mine who had just lost his job
I was inspired by Bob's positive state
And his belief that it's you who controls your own fate

So I contacted Bob to wish him good cheer
And see how he fared in this difficult year
To no one's surprise Bob was very upbeat
"Thanks for calling" he said. "This is really a treat"

I asked how he was and if his family was fine
"He replied we're all great as we were in "09"
"What a great year I had in 2010"
"I found a new job and I'm charged up again"

"I'm making less money than I had once before"
"But I feel more valued and that matters much more"
"The company is smaller than my previous one"
"But I know everybody and we really have fun"

"My happiness wasn't based on money or fame"
"Or the title on the door sitting next to my name
"It was knowing I'm surrounded by goodness and love"
"And my wife and my kids who I'm really proud of"

"I don't know what's in store for the next several years"
"But my family and friends take away any fears"
I wished Bob the best and as I hung up the phone
I was never more thankful for the life of my own

I have all that I need at this stage in my life
Great kids, good friends and a wonderful wife
So I give all of you what Bob gave to me
Inspiration to see just how great life can be

From my family to yours, our sincere wish to all of you for a joyous holiday season and healthy and prosperous New Year.


Phil


2011 will be a year of significant change in healthcare, labor law and employment law. Make sure your organization starts the year off right. Call us today to arrange for a free HR audit of your employee policies and employment practices. We'll review your handbooks, hiring documents and other related materials to make sure next year will be a great one for you and your employees. Call us today at 610-287-1162 or email me directly at phil@hrsolutionsonline.com to take advantage of this service.

We look forward to hearing from you soon!
November 2010

The Good of the Many Outweighs the Good of the One

I can finally watch television again without getting annoyed. Thank goodness the elections are over and the airwaves are free of the constant candidate bashing and propaganda that has become so inherent in today's political campaigns. One advertisement I felt was particularly venomous had the announcer relating the story of a shooter's stray bullet that hit a young child in a passing car. The intent of the commercial was to convince the viewer that because of the candidate's position on gun control he was responsible for young children getting shot.

This commercial reminded me of past experiences on how the issue of employee morale can be distorted by a few carefully placed comments. Most business owners want their employees to be happy with their jobs for the obvious benefits of higher productivity, retention and loyalty. The owners thrive on receiving regular reinforcement from a variety of sources that employee morale is high. However, these same leaders often receive someone's personal assessment of this issue and accept that assessment as valid when, in fact, just the opposite is true.

I experienced a recent situation where this was the case. The owner called me to his location and was somewhat despondent over a report from one of his long term managers that employee morale across the company was at an all time low. Having worked with this client for the past few years I questioned the validity of this report, particularly since their employee survey results compiled less than 6 months ago indicated that 80% of the respondents rated their overall job satisfaction as favorable. Over 90% responded they would recommend this company to their family and friends as a great place to work. Despite this data the owner was concerned and asked me to explore further to determine the basis of this manager's report.

What I found was that the manager and a select few of his direct reports were, in fact, unhappy that sales and profit were below expectations and that if business did not dramatically improve, they would not qualify for their yearend bonus. The potential loss of incentive compensation became the topic of a lunchtime gripe session which subsequently translated into the manager's report to the owner. While the specifics of this situation may be unique, the practice is not. There are managers and employees in every organization that truly believe their opinions and assessments represent the feelings and attitudes of the overall employee population. Because of their position, they are given the opportunity on a regular basis to play the role of trusted messenger to the President, owner or key executive. Those managers who exploit this opportunity by tainting the message for their own purpose deserve to be counseled and advised of the impact of their actions. Similarly, the business leader needs to take the time to validate the message through a more factual approach. Employee surveys and regular meetings with the entire management team can be a valuable tool in helping the business leader sift through the internal rumor mill and eliminate the distortion that comes with an insecure manager. If we can help uncover the difference between fact and fiction in your organization, please give us a call at 610-287-1162. We'd be glad to help.

Have a wonderful Thanksgiving.

Phil


Take the "Will" Out of Your Employee Policy Manual
Attorneys and HR professionals don't always agree on what should be included in a company's employee policy manual. Some feel that policies and procedures should be outlined in the fullest detail while others like to provide some "wiggle room" in their policy statements. However, due to some recent court decisions both parties seem to be in agreement that words like "we will" or "always" should be modified to avoid a challenge to the validity of the handbook. Oftentimes these statements are attached to policies on conducting performance reviews or assessing discipline. All it takes is one demonstrated instance where you didn't conduct an employee's annual review or a lesser amount of discipline was assessed than that stated in the handbook and it could be determined that you didn't follow your own policies. Therefore, your policy manual could be deemed in valid in your defense of an employment related matter.

Changing those affirmative statements to "generally we will" or "we strive to" will minimize the incidents of non-compliance and still allow you to develop the fundamental policies and procedures necessary to maintain a fair and consistent employment environment. Keep in mind that such softening of the language should not apply to your zero tolerance position on issues such as harassment, violent behavior and substance abuse. Maintaining a definitive and unwavering position on these issues is the best practice.

If we can help with a free no obligation review of your policies and procedures give us a call at 610-287-1162 or email me directly at phil@hrsolutionsonline.com.
Fall 2010

I had lunch the other day with a successful entrepreneur who I consider to be part of my advisory board. He probably doesn't even know I consider him as such, nor did we ever discuss the issue. He is nonetheless, someone who has achieved a great deal of success and for whom I have tremendous respect. When I started my business he willingly and selflessly shared his experiences in an effort to help me succeed. He wanted nothing in return but the satisfaction of helping another business professional. The other members of my unofficial advisory board have similar profiles each of them having created and developed sustainable business models over several years. Mine is not a big company mired in protocol and process, but I have found it extremely valuable to have a group of colleagues and professionals that I can rely on to be frank and honest and who openly offer their advice and guidance in an effort to help me succeed.

During a recent presentation to a group of aspiring entrepreneurs, I was asked my opinion on the most difficult aspect of being an independent consultant. Was it marketing, business development, work schedule, maintaining client relationships or managing cash flow? For me, none of these issues are as difficult to manage as the loss of regular social interaction one develops with colleagues at work. Many of my projects are short to medium term in nature and personal interaction at the client's site can be limited to just a few people. Other services are provided virtually by phone or email which further isolates me from the general employee population. During these periods my advisors serve as a key connection point to the outside business world.

Without a doubt, the relationships forged during my years in the corporate world helped to shape my values and perspectives. Many of those individuals are still my closest friends and colleagues; but I found that when you stop working together it becomes difficult for those folks to offer you objective opinions about your business matters, particularly if they have not chosen to go the entrepreneurial route. Similarly, I have found that family members often find it difficult to offer advice and guidance on business matters unless they are fully engaged in the work itself and, even then, being able to look at things objectively becomes difficult. Fortunately, I was able to meet a select group of professionals who not only had experience and knowledge in building a successful practice but were willing to openly share their experience with a fledgling business owner like me. I am deeply grateful for their help, and even when their comments sting a bit I always recognize that they are doing this because they want me to succeed.

So thank you to my trusted advisors for sharing your wisdom and knowledge. I would strongly recommend anyone reading this article to consider establishing your own advisory board to help you through the difficult times we share both in business and in life. If I can help along the way, please don't hesitate to call. Have great fall season!

Phil


Healthcare Reform and the Small Business Owner
If you haven't yet renewed your healthcare plan for next year get ready for some bad news. Virtually all of the major insurance providers in this area have made continuing the conventional HMO's offered by many employers unaffordable. Some of my clients have experienced as much as a 49% increase in premium primarily due to the provisions of the Healthcare Reform Act officially known as the Patient Protection and Affordable Care Act (PPACA) scheduled to take full effect in 2014. Under the new law, children can remain on their parents plan to age 26 and certain preventative services must be provided free of charge. The insurance companies recognize the additional expense associated with these changes and have proactively raised premiums to offset their pending losses.

This turn of events has forced many small business owners to reassess their benefit plan design, as well as their contribution and cost sharing rates. The most popular option appears to be a high deductible plan that places a higher cost burden on those employees who require more medical care. These plans typically have no co-pays but the first $500-$1500 dollars of out of pocket expense are paid by the employee. After the deductible amount is met, many services are covered at 100% for in-network care. However, educating employees on these new plans is challenging. Many of us old enough to remember the healthcare plan offerings prior to HMO's recall our insurance having a "major medical" provision which is similar to how the high deductible plans work. But over the last 25 years most employees have become comfortable with the practice of a primary care doctor and co-pays and find the new plans confusing and frustrating.

The news isn't all bad. The new law does provide small businesses with less than 25 employees a premium tax credit of 35% of premiums until 2014. In order to be eligible the employer must contribute at least 50% of the total premium cost and the average salary must be $50,000 (owner income exempted). These are just a few of the provisions that took effect this year. Many portions of the law are still undefined and require further clarification but one thing is certain: the benefit strategy of the small business owner will have to change. If we can help along the way please give us a call at 610-287-1162

Monday, August 16, 2010

August 2010 Newsletter

Get a Job
I was recently conducting a mid level search for a client and after screening and interviewing several candidates we were prepared to extend a job offer. I conveyed the good news to the applicant that he was the successful candidate and advised him that we were able to meet and even slightly exceed his salary requirements. The candidate responded by saying "Thank you for the offer but I'll need to weigh the loss of my unemployment benefits against your job offer and will let you know. It may be more financially prudent for me to remain unemployed."

I suppose I didn't hide my reaction to his response very effectively because he immediately started to backpedal with comments like "It really is a great offer" and "I really like all of the people I met" but in the end he declined the offer. This isn't the first time I have heard this response from a candidate but it's the first time I heard it from someone at this level. I know of countless folks still looking for work after almost two years and others who have just given up. Yet here was an experienced professional with an offer in hand choosing to stay unemployed. It reaffirmed to me that something is broken.

Let me preface my rant by saying that I believe the spirit behind our state unemployment insurance program is sound. Employers and employees pay into a fund that ultimately provides benefits to unemployed workers. Seems simple, right? Well, the recent economic woes have made it not so simple and in my opinion, the system requires attention. Federal funding has allowed benefits for the unemployed to be extended for almost two years. In addition, the claims administration process is so overwhelmed that it can take as long as six months to receive a determination. A case in point is a recent claim involving an employee who essentially abandoned his job.

After failing to report for work on numerous occasions over a 3 month period the employee elects to stop showing up for duty on three consecutive days. The employer notifies the employee that he no longer has a job and the employee files for unemployment benefits. More than a month goes by and my client never receives a determination on the claim. Several days later we place a call to the state unemployment office only to be told that due to "administrative backlog" it is likely that a determination will not be made until December. Here's the kicker. We were advised that while we're waiting for the backlog to subside, our former employee will receive benefits! In the event he is denied (which in this case was quite likely) the state will require him to return the money. During the conversation I asked the agency worker "If he isn't working and living on unemployment benefits how do you expect to get the money back?" Surprisingly she didn't like my question and abruptly ended the call. However, justice prevailed in the end when my client made a call to the local state representative and the claim was immediately handled and ultimately denied.

I have a real problem with a system that rewards those who choose to have no self -motivation. We hear some economists predict that unemployment is expected to remain at present levels for the next year and the recovery will last through 2011. What incentive is there for the unmotivated to look for work when you can collect three to four hundred dollars a week for two years? How will our economy ever recover if the system allows those collecting unemployment to decline job offers without penalty?

The two events I outlined above make it is clear to me that those in the position of developing and implementing public policy need to view our economic programs with some common sense. Otherwise, only the few highly motivated will be looking for work. So, for those of you who are out there every day networking, interviewing and doing all you can to find a position and make a difference, I applaud you. For those of you content to feed off a system that encourages apathy and lack of initiative, get a job!

While we are waiting for saner heads to prevail in government let us help you navigate through the obstacles in the today's unemployment maze. Please give us a call at 610-287-1162 for a free consultation. We'd be happy to assist.

Thanks for listening and enjoy the rest of the summer.


Phil

Why Married Men Are Less Satisfied (With Their Jobs

According to a 2010 SHRM survey, married men are less satisfied with their jobs than married women primarily as a result of the difficult economic conditions. 45% of married women were more likely to be very satisfied with their current job vs. 39% of married men. The five top aspects of job satisfaction for each group are as follows:

Men

1) Opportunity to use skills and abilities

2) Job security

3) Benefits

4) Compensation

5) Communication between employees

and management

Women

1) Job security

2) The work itself

3) Feeling safe

4) Benefits

5) Relationship with their boss

The good news is the level of satisfaction for both groups is higher than last year indicating a growing confidence among survey participants that things are improving. On a related note, after exhaustive research conducted over many years, my personal survey results indicate that most married men, (including this one) find life to be much more enjoyable when their wife is happy. For those of you who claim to have data that disagrees with that fact, I'd rather not know!

June 2010 Newsletter

Emotional Anchors

My wife and I said goodbye to an old family friend a few weeks ago who passed away after a brief bout with cancer. His last days were not the quality of life he once enjoyed but his condition clearly sapped his strength and he became more and more lethargic in what was to be his final days. Fortunately he lingered long enough for my daughters and close friends to say their final farewells. I know he appreciated that.

The night he passed away we toasted his memory and celebrated his life. We pulled out the photo album and through moments of laughter and tears reminisced about his presence at holiday and family events. Even thought he wasn’t a blood relative he was as much a member of our family as anyone. He served a role much like an emotional anchor for us, never really offering opinion or advice, but always there to provide comfort and support when needed.

It made me think about the emotional anchors I have had in my career and how each one of them shaped and influenced me in their own unique way. I could never have predicted that these individuals would impact me in such a positive manner and in truth, there were some who I didn’t really care for at first. But as time passed and I moved on from their tutelage, I appreciated and respected their knowledge even more. We often take these key contributors for granted in looking at our management and leadership teams for many times, they are the folks that fly under the radar. They rarely complain, are advocates and cheerleaders for the organization and its mission and are often the “go to” people in the company. They enjoy mentoring the new employee and teaching someone new skills while continuing to contribute to the company’s success at a high level. These folks are truly the high value employees and they deserve to be recognized and acknowledged. I hope this article helps you realize who they might be in your organization so you can say thanks.

Unlike the people who are the emotional anchors in your company, ours was not a human being but rather our faithful dog Tucker. His loyalty, companionship, affection and love over the last 14 years were unconditional and we will likely never find another like him. So here’s to you Tuck! You will surely be missed.

Have a safe and happy summer.

Phil

Why We Hate Performance Reviews

Many of my clients use the first quarter of the calendar year to conduct performance reviews. The levels of sophistication in the performance management process differ dramatically from company to company. Some use the employee’s self appraisal as an informal discussion document with minimal emphasis on reviewing the previous year’s objectives while others have a robust program with measured objectives, monthly or quarterly updates and a multi faceted review form that covers employee competencies, performance objectives and career pathing. One thing however, is certain, few if any managers and employees actually LIKE the performance review process. The “hate factor” is based on the following facts;

 Second only to firing an employee, survey data reveals that managers cite performance appraisal as the task they dislike most
 The review process has the attributes of an old fashioned, autocratic mode of management.
 Many managers are uncomfortable in the role of “judge” knowing that he/she may have to justify comments and ratings with specific examples
 With salary increases frequently tied to the performance ratings, managers know that they are limiting someone’s increase if they rate their employee anything other than outstanding

So why do we put ourselves through the pain? In the words of George Bernard Shaw “The single biggest problem in communication is the illusion that it has taken place”
Despite our dislike for the process, employee engagement surveys unanimously reveal that employees want to know how they are doing in their job. Without a formal “push” many managers would not provide their employees with performance feedback on a regular and consistent basis. As a result, we grit our teeth and maliciously comply with a performance review program because our boss says we have to.

If your performance management program could use a “makeover” please call us for a free consultation. We won’t guarantee that your managers will love it when we’re done but they will find it valuable!

Tuesday, April 27, 2010

April Newsletter

Generational Unhappiness

I recently conducted a workshop on Managing Generational Differences in the Workplace for a group of executives in career transition. Consistent with most demographics this group was predominantly comprised of Baby Boomer men and women over age 45 although there were a handful of Generation X'ers (those born between 1965 and 1980) in the audience as well.

I find the subject of generational differences a fascinating topic and have been conducting workshops on the subject for several years. For the first time in history we have four different generations working together in the same workplace.

• The Matures aka WWII Generation
• The Baby Boomers
• Generation X
• Generation Y aka the Millenials

Each group has distinctly different views on authority, company loyalty and their relationship with their boss. Therefore each group must be managed and motivated differently for companies to truly benefit from the skills and abilities of this multi-generational workforce.

During the session one of the attendees asked me for my view on a recent study that showed both young and old are increasingly dissatisfied with their employer for the first time in over 20 years

There are no surprises here. After all, many retirement plans have been delayed, colleagues have been downsized and company missions rewritten in response to the changing economy. It's no wonder that the remaining employees are disheartened with their employers. "So what's an employer to do?" someone asked. "Aren't we as managers and employers responsible for their happiness?"

My dad used to tell me "Phil, there are folks out there just looking to blame their whole miserable life on somebody else" and I believe that statement to be very relevant to this current state of dissatisfaction. In my view, the job is what you make it and it's not the employer's responsibility to insure your happiness. Sure, there are best practices when it comes to creating a pleasant work environment and I believe most companies strive to achieve a balance between what employees want and what the company can afford. One of my clients has a banner in the lunchroom that says "Choose Your Attitude." To me that says it all.

So after proudly sharing my views, the Baby Boomers applauded and nodded approval. Meanwhile the Gen X folks were stoically busy with their blackberries. It's not that they were unhappy, just disinterested in what the old guy in the front of the room had to say!


Have a safe and happy spring season.

Phil

Top 5 Reasons For an HR Audit
An HR audit is an objective review of your HR policies, procedures and resources to help you evaluate whether specific practices are adequate, legal and effective. Here are the top 5 reasons for conducting an audit

Reason #1- Cost Savings
Employee pay and benefits are the greatest expense in most companies. An HR audit can identify methods to improve pay practices, benefit plans and administrative practices that can save you money.

Reason #2-Protection from Employment Actions
Laws are constantly changing and most business owners rarely have the time and resources to keep track of these changes. Federal, state and local law changes can impact your employment practices and perhaps more importantly, failure to comply with these laws can result in financial penalties and even criminal prosecution.

Reason #3- Consistency and efficiency

As your business changes your policies and practices may need to change as well. The HR audit will identify outdated, inefficient and inconsistent practices and enable you to update those practices that best serve the organization.

Reason #4- Benchmarking
How do your employee policies and benefits match up to similar businesses in your area and/or industry? As part of the audit you will receive insight on current best practices and trends.

Reason #5- IT"S FREE
For a limited time HR Solutions, LLC is offering a free HR audit for our newsletter subscribers. Call our office in the next 30 days at 610-287-1162 to schedule your appointment.


Recent Press Release

Philip S. Brunone, President of Harleysville based HR Solutions, LLC, was recently named as a nominee for the 2010 Delaware Valley HR Consultant of the Year award. The award recognizes the achievements of top human resource professionals who serve as independent consultants or who operate a consulting practice. Winners will be announced at a recognition dinner on May 13, 2010.
HR Solutions, LLC provides human resource consulting and outsourcing solutions for small and medium size companies in the tri-state area.

February Newsletter

OUR VIEW OF THE 2010 EMPLOYMENT LANDSCAPE

At the time of this writing we are experiencing our second major winter storm this season. Like most of you I spent the last few hours shoveling what the snow plow contractors call "white gold". Don't get me wrong, I'm happy that those folks have this opportunity to make some extra money but I have another name for this frozen mess that is not quite as endearing. Needless to say, I've had it with winter already and I find myself escaping "snowmageddon" and drifting into the beautiful landscaped gardens in the photo above. So in keeping with the theme, here is our view of the current employment landscape that will impact business owners this year.
Employee Turnover and Retention
Most experts agree that as the economy continues to recover and employment opportunities increase, top talent will seek to leave their current employer for what they perceive to be greener pastures. While thankful to have survived layoffs and restructuring many of these folks are emotionally drained from the carnage that took place in their organizations and need to mentally separate from the past. It's a difficult task for employers to counteract these memories but for the all-star players on your team it's worth trying. Let them know how important they are in helping rebuild the organization and thank them for coping with all of the changes. Your vote of appreciation and recognition may give you the winning edge.
Employment Discrimination Cases
2009 statistics reveal some interesting trends. For the first time retaliation claims are tied with race discrimination as the most common type of charge filed with the EEOC. Race discrimination claims held the top spot for many years but with the increased pressure on companies to operate with high integrity and morality, more and more employees are coming forward to blow the whistle on what they feel to be impropriety at the top. The accused business owner or executive often retaliates against this perceived act of disloyalty and creates the basis for the charge.
Another surprising statistic is the dramatic increase in male sexual harassment charges. Over the past several years the number of male workers claiming they were the victim of sexual harassment has doubled. Many believe this is attributable to the increase in women executives in the workplace and in some cases the desire to humiliate someone during tough economic times in an effort to secure one's own place in the organization. Protecting your company against either of these issues is as simple as having an "open door" policy in place that encourages employees to come forward without hesitation to discuss their perceptions with an executive or member of management. Training managers to properly handle these discussions is also a critical element in the process.
Wage and Hour
If there is one area where I believe we will see increased activity it's in wage and hour claims. In a previous newsletter I wrote that the Wage and Hour Division of the Department of Labor was publicly embarrassed when one of their investigators was recorded trying to deter a caller from filing a claim. In response, an additional 250 field inspectors were hired to increase visits to employers, conduct audits and correct violations. This increased inspection workforce will not bode well for the companies that don't pay much attention to timekeeping records, meals, breaks, employment of minors and mandatory workplace postings. Fines for violations are steep and can be assessed for actions that occurred up to 3 years before. My advice on this one.... Get some help from your HR professional and accountant to make sure you are in compliance.
Labor Management and Union Avoidance
The Employee Free Choice Act still has legs and most agree that we will likely see some form of this legislation approved in 2010. The current administration received substantial campaign contributions from organized labor and has already indicated their public support of the "card check" process. Fortunately, saner heads have prevailed and it appears that the secret ballot election process will be maintained in some format, albeit with a diminished campaign period. Again, training your managers to identify warning signs of union related activity is a key component in maintaining a union free workplace.
If we can help you with any of these employment "land mines" please contact us. Oftentimes a free consultation will uncover issues that can save you big money and let you get back to focusing on what's really important...growing your business!

P.S.
Thanks for all the comments on the holiday poem from last issue. Your kind words are greatly appreciated.

Phil