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