What's Your Value Proposition?
Our family made its annual pilgrimage to New York City Mother's Day weekend to see a show and spend an inordinate amount of money on things that cost significantly less around here. It's typically a holiday event for us, but this past year's December snowstorm resulted in our rescheduling the trip. It's always fun having my grown daughters come home and the whole family being together again for a short time. Before the show we stopped for lunch at one of the many tourist destinations, and as I ordered my $17.95 cheeseburger I couldn't help but think of the concept of "value proposition." One random thought led to another, and as I sat awaiting the start of Mary Poppins I questioned my own value proposition both as business owner and a husband and father. Was I really bringing value to my family and clients? If so, what were the things that did and didn't?
According to Wikipedia, the value proposition is derived using a formula of
Value equals Benefits minus Cost.
Even though I was hungry, the cost of the cheeseburger far outweighed its benefit and therefore, one would say that the value proposition associated with lunch was minimal. But listening to my kids giggle, tell stories and cut each other up provided fond memories of past times and an appreciation that we were able to do this one more year before job requirements and other obligations made it impossible. Therefore, even when they brought the check for $93.00 I thought the value proposition of that lunch event was pretty darn good.
So where I ended up after this internal philosophical debate was that determining the value proposition is much broader than just a numerical calculation. The true value that any of us bring to our clients, employees and family has to include those intrinsic things like trust, loyalty, caring and empathy. As a consultant I'm expected to be responsive, provide sound advice, solve problems and keep my clients in compliance with the law but I believe my value proposition to them and my family has to include an investment in their emotional well being as well. I want them to feel that the $17.95 cheeseburger I provide them is worth it!
My best wishes for a great summer.
Phil
Union Organizing Increases as the Economy Improves
According to a recent study released by the Labor Relations Institute, our slowly improving economy is having a direct impact on union organizing activity. Unions have begun a campaign of both targeting industries that typically have not been unionized and actively recruiting new representatives at colleges and universities. Many of the college recruits are being hired as potential "salters" where union members hire on at non-union businesses to internally assess workplace satisfaction and interest in organizing a union. Once it is determined that worker interest in organizing is sufficient, workers are contacted at home and a meeting will be scheduled to form an Organizing Committee. So what can employer do to prevent "salting?"
While the practice of "salting" is legal under federal labor laws, employers maintain the right to hire the candidate most qualified for the position and to conduct thorough background and reference checks before hiring. Employers should periodically review their hiring practices to insure that pre-employment screening and new hire processing practices are in place and consistently administered.
Let us assist in giving your employment practices a check up. Give us a call at 610-287-1162 or email me at phil@hrsolutionsonline.com for a free consultation.
Tuesday, June 21, 2011
Spring 2011
When Leaders "Cocoon"
I was cleaning out the garage a few days ago and came across an empty cocoon that some insect had vacated as the weather got warmer. It reminded me of several executives I have worked with throughout my career that had a tendency to hide from others during difficult business periods. Many of these leaders are outgoing and gregarious by nature but choose to limit their circle of contact when times get tough. Reflecting back on my interaction with these leaders, I was never really sure of what drove this behavior. In the public companies, perhaps it was the pressure from investors and shareholders that resulted from reports of substandard operating results or it may have come after a period of downsizing. For others who were simply conflict avoidant by nature, it was a defense mechanism to delay dealing with bad news and unhappy employees. Ironically, those same leaders are the ones encouraging their direct reports to improve open communication and "transparency" across the organization. So how do you help that leader overcome the tendency to cocoon? Ask 5 people and you'll get 5 different answers but what I can share with you are three guiding principles that have helped me get a struggling leader to emerge from the cocoon.
1) Admit the mistake and acknowledge the problem-This is a tough one for many leaders to embrace but the value to publicly acknowledging the problem to the employee population is huge. It's the first step in "walking the talk" and demonstrating the commitment to improve communication and visibility.
2) Arm the leader with facts about the "people condition' of the company. While sales, revenue and operating results or may have contributed to the hiding, showing the leader the problems caused by a lack of his or her visibility can be compelling. Surveys, focus groups and small department meetings are just some of the ways to gather credible information.
3) Rally the executive team- Leaders typically don't want to go it alone. If the top executive is cocooning its likely members of the functional areas of the company are as well so it's important to show solidarity in the effort to be more open across the entire company.
As the spring season begins and nature emerges from its cocoon, encourage the leaders in your organization to be mindful of the importance of being visible and open. It's easy to avoid bad news but the true leader will realize the positive impact of standing tall in the face of challenging business conditions. Such actions are the difference between strong leadership and simply being in charge. If we can help in the process, please call us at 610-287-1162 or email me at phil@hrsolutionsonline.com.
Best wishes for a healthy spring season!
Phil
The Cost of Discrimination
The EEOC has released it statistics for the 2010 fiscal year and to no one's surprise the number of job bias charges increased by 7% over last year. The Commission received a total of 99,922 charges in 2010 with the increase largely attributed to economic conditions. On a related note the average award for a discrimination charge was over $200,000 with disability discrimination charges reflecting the highest average award amount of $257,000 closely followed by age discrimination charges at $256,000.
These statistics and their corresponding potential cost to employers should compel company leaders to evaluate their employment policies and practices and provide training to management on issues such as gender bias, workplace harassment and employee relations. Don't make the mistake of presuming that these complaints only happen in large companies. Employers with 15 or more employees are governed by most all of the applicable laws and can be just as culpable as large organizations. In fact, studies have shown that smaller companies are even more at risk due to the lack of formalized human resource policies and practices.
The financial implications of a quarter of a million dollar settlement to a small or mid size business can be devastating. Take advantage of our free consultation and HR audit to see if your company is at risk.
Call us today at 610-287-1162 or email me at phil@hrsolutionsonline.com.
I was cleaning out the garage a few days ago and came across an empty cocoon that some insect had vacated as the weather got warmer. It reminded me of several executives I have worked with throughout my career that had a tendency to hide from others during difficult business periods. Many of these leaders are outgoing and gregarious by nature but choose to limit their circle of contact when times get tough. Reflecting back on my interaction with these leaders, I was never really sure of what drove this behavior. In the public companies, perhaps it was the pressure from investors and shareholders that resulted from reports of substandard operating results or it may have come after a period of downsizing. For others who were simply conflict avoidant by nature, it was a defense mechanism to delay dealing with bad news and unhappy employees. Ironically, those same leaders are the ones encouraging their direct reports to improve open communication and "transparency" across the organization. So how do you help that leader overcome the tendency to cocoon? Ask 5 people and you'll get 5 different answers but what I can share with you are three guiding principles that have helped me get a struggling leader to emerge from the cocoon.
1) Admit the mistake and acknowledge the problem-This is a tough one for many leaders to embrace but the value to publicly acknowledging the problem to the employee population is huge. It's the first step in "walking the talk" and demonstrating the commitment to improve communication and visibility.
2) Arm the leader with facts about the "people condition' of the company. While sales, revenue and operating results or may have contributed to the hiding, showing the leader the problems caused by a lack of his or her visibility can be compelling. Surveys, focus groups and small department meetings are just some of the ways to gather credible information.
3) Rally the executive team- Leaders typically don't want to go it alone. If the top executive is cocooning its likely members of the functional areas of the company are as well so it's important to show solidarity in the effort to be more open across the entire company.
As the spring season begins and nature emerges from its cocoon, encourage the leaders in your organization to be mindful of the importance of being visible and open. It's easy to avoid bad news but the true leader will realize the positive impact of standing tall in the face of challenging business conditions. Such actions are the difference between strong leadership and simply being in charge. If we can help in the process, please call us at 610-287-1162 or email me at phil@hrsolutionsonline.com.
Best wishes for a healthy spring season!
Phil
The Cost of Discrimination
The EEOC has released it statistics for the 2010 fiscal year and to no one's surprise the number of job bias charges increased by 7% over last year. The Commission received a total of 99,922 charges in 2010 with the increase largely attributed to economic conditions. On a related note the average award for a discrimination charge was over $200,000 with disability discrimination charges reflecting the highest average award amount of $257,000 closely followed by age discrimination charges at $256,000.
These statistics and their corresponding potential cost to employers should compel company leaders to evaluate their employment policies and practices and provide training to management on issues such as gender bias, workplace harassment and employee relations. Don't make the mistake of presuming that these complaints only happen in large companies. Employers with 15 or more employees are governed by most all of the applicable laws and can be just as culpable as large organizations. In fact, studies have shown that smaller companies are even more at risk due to the lack of formalized human resource policies and practices.
The financial implications of a quarter of a million dollar settlement to a small or mid size business can be devastating. Take advantage of our free consultation and HR audit to see if your company is at risk.
Call us today at 610-287-1162 or email me at phil@hrsolutionsonline.com.
February 2011
When to Stop Coddling the High Potential Employee
One of my clients has a VP that by any standards, would be considered a high potential employee. This individual is extremely intelligent and innovative and demonstrates an undying commitment to the service of his customers. For the past several years he has almost single handedly helped a division of the company introduce new products and revenue streams. He has been handsomely rewarded for his efforts and publicly recognized within the company for his achievements. Over the same period of time he has repeatedly asked the owner to allow him to change his areas of leadership responsibility from directing sales to leading implementation and support to developing a product management strategy for the future. Each of these change requests is typically accompanied by a period of intense engagement into the new assignment followed by an emotional melt down and a subtle threat to leave the company if his new request is not granted. His most recent request is to be appointed Executive Vice President in charge of the entire division. The owner, recognizing his value and past contribution has reluctantly acquiesced to these requests but has recently realized that the time has come for the coddling to stop. But what do you do? It's extremely difficult for any business owner to disregard a key contributor who your customers adore and who has made a substantial positive impact on your bottom line for many years. What happens if he leaves? Well, quite frankly, the bigger question in my mind is what happens if he stays and is allowed to "hopscotch" through the organization.
Please don't misinterpret my position on recognizing and rewarding top talent. Key components of successful succession planning are identifying high potential employees, developing action plans to help achieve career objectives while continuing to find ways to have these employees bring value to the company. However, succession planning and career development is not one sided or only the company's responsibility. While some may call this VP a "high potential" we found through our assessment that many in the organization see him as "high maintenance." I advised the owner that despite his contributions, this executive has repeatedly demonstrated a lack of emotional intelligence and therefore cannot be a viable candidate to lead the division at this time. In a constructive way he must be told that this continued pattern of engagement followed by emotional disconnect is a disservice to the company and his career. Clearly he is someone the organization does not want to lose but he must be made aware of his development opportunities and take action to improve.
No doubt this will be a difficult conversation but allowing him to continue this pattern of erratic behavior will have a longer term effect on the people he manages and the organization as a whole. It's clear that the coddling has to stop and it's everyone's hope that he will re-engage and realize his full potential.
If we can help you identify and manage your company's high potential employees give us a call at 610-287-1162 for a free no obligation consultation. Most importantly, don't let this winter weather get you down!
See you in the spring.
Phil
Conducting an Internal I-9 Audit
The beginning of the calendar year is a good time to consider conducting an internal audit of your employment records specifically the I-9 forms. If you are a business that hires on a seasonal basis and/ or has a diverse, multi-national employee population it's easy to fall out of compliance with the Immigration and Naturalization Service (INS) regulations. As with many of the other government agencies, the INS has increased its field workforce and promises to increase their audit activity. Believe me that last thing you want is one of these agents at your door asking to see your documentation. Fines can range from $250-$5500 per worker and mistakes on the form itself can result in fines of $100-$1000. In addition, employers can be barred from competing for government contracts for a year for continuing to employ unauthorized workers.
The audit is a relatively simple process and depending on the number of employee records (current and terminated in the past 3 years) the audit can usually be completed in less than a day. Follow up is usually required to correct information or complete new forms. Call us at 610-287-1162 for more information on this subject or to arrange a free no obligation consultation. We'll help you get back in compliance so you can get on to growing your business.
One of my clients has a VP that by any standards, would be considered a high potential employee. This individual is extremely intelligent and innovative and demonstrates an undying commitment to the service of his customers. For the past several years he has almost single handedly helped a division of the company introduce new products and revenue streams. He has been handsomely rewarded for his efforts and publicly recognized within the company for his achievements. Over the same period of time he has repeatedly asked the owner to allow him to change his areas of leadership responsibility from directing sales to leading implementation and support to developing a product management strategy for the future. Each of these change requests is typically accompanied by a period of intense engagement into the new assignment followed by an emotional melt down and a subtle threat to leave the company if his new request is not granted. His most recent request is to be appointed Executive Vice President in charge of the entire division. The owner, recognizing his value and past contribution has reluctantly acquiesced to these requests but has recently realized that the time has come for the coddling to stop. But what do you do? It's extremely difficult for any business owner to disregard a key contributor who your customers adore and who has made a substantial positive impact on your bottom line for many years. What happens if he leaves? Well, quite frankly, the bigger question in my mind is what happens if he stays and is allowed to "hopscotch" through the organization.
Please don't misinterpret my position on recognizing and rewarding top talent. Key components of successful succession planning are identifying high potential employees, developing action plans to help achieve career objectives while continuing to find ways to have these employees bring value to the company. However, succession planning and career development is not one sided or only the company's responsibility. While some may call this VP a "high potential" we found through our assessment that many in the organization see him as "high maintenance." I advised the owner that despite his contributions, this executive has repeatedly demonstrated a lack of emotional intelligence and therefore cannot be a viable candidate to lead the division at this time. In a constructive way he must be told that this continued pattern of engagement followed by emotional disconnect is a disservice to the company and his career. Clearly he is someone the organization does not want to lose but he must be made aware of his development opportunities and take action to improve.
No doubt this will be a difficult conversation but allowing him to continue this pattern of erratic behavior will have a longer term effect on the people he manages and the organization as a whole. It's clear that the coddling has to stop and it's everyone's hope that he will re-engage and realize his full potential.
If we can help you identify and manage your company's high potential employees give us a call at 610-287-1162 for a free no obligation consultation. Most importantly, don't let this winter weather get you down!
See you in the spring.
Phil
Conducting an Internal I-9 Audit
The beginning of the calendar year is a good time to consider conducting an internal audit of your employment records specifically the I-9 forms. If you are a business that hires on a seasonal basis and/ or has a diverse, multi-national employee population it's easy to fall out of compliance with the Immigration and Naturalization Service (INS) regulations. As with many of the other government agencies, the INS has increased its field workforce and promises to increase their audit activity. Believe me that last thing you want is one of these agents at your door asking to see your documentation. Fines can range from $250-$5500 per worker and mistakes on the form itself can result in fines of $100-$1000. In addition, employers can be barred from competing for government contracts for a year for continuing to employ unauthorized workers.
The audit is a relatively simple process and depending on the number of employee records (current and terminated in the past 3 years) the audit can usually be completed in less than a day. Follow up is usually required to correct information or complete new forms. Call us at 610-287-1162 for more information on this subject or to arrange a free no obligation consultation. We'll help you get back in compliance so you can get on to growing your business.
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!
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.
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
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!
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!
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