Recently in Human Resources Category

Here is my takeaway:

"Thus, the barriers and transition costs employees incur when switching employers have been reduced.

Greater options and lower costs to move mean that employees can be more selective and focus on picking jobs that best fit their personal needs and desires."

Employers are having a harder time recruiting new workers. AP Photo/Marta Lavandier
Ian O. Williamson, University of California, Irvine

Finding good employees has always been a challenge - but these days it's harder than ever. And it is unlikely to improve anytime soon.

The so-called quit rate - the share of workers who voluntarily leave their jobs - hit a new record of 3% in September 2021, according to the latest data available from the Bureau of Labor and Statistics. The rate was highest in the leisure and hospitality sector, where 6.4% of workers quit their jobs in September. In all, 20.2 million workers left their employers from May through September.

Companies are feeling the effects. In August 2021, a survey found that 73% of 380 employers in North America were having difficulty attracting employees - three times the share that said so the previous year. And 70% expect this difficulty to persist into 2022.

Observers have blamed a wide variety of factors for all the turnover, from fear of contracting COVID-19 by mixing with co-workers on the job to paltry wages and benefits being offered.

As a professor of human resource management, I examine how employment and the work environment have changed over time and the impact this has on organizations and communities. While the current resignation behavior may seem like a new trend, data shows employee turnover has been rising steadily for the past decade and may simply be the new normal employers are going to have to get used to.

The economy's seismic shifts

The U.S. - alongside other advanced economies - has been moving away from a focus on productive sectors like manufacturing to a service-based economy for decades.

In recent years, the service sector accounted for about 86% of all employment in the U.S. and 79% of all economic growth.

That change has been seismic for employers. A majority of the jobs in service-based industries require only generalizable occupational skills such as competencies in computing and communications that are often easily transportable across companies. This is true across a wide range of professions, from accountants and engineers to truck drivers and customer services representatives. As a result, in service-based economies, it is relatively easy for employees to move between companies and maintain their productivity.

And thanks to information technology and social media, it has never been easier for employees to find out about new job opportunities anywhere in the world. The growing prevalence of remote working also means that in some cases employees will no longer need to physically relocate to start a new job.

Thus, the barriers and transition costs employees incur when switching employers have been reduced.

Greater options and lower costs to move mean that employees can be more selective and focus on picking jobs that best fit their personal needs and desires. What people want from work is inherently shaped by their cultural values and life situation. The U.S. labor market is expected to become far more diverse going forward in terms of gender, ethnicity and age. Thus, employers that cannot provide greater flexibility and variety in their working environment will struggle to attract and retain workers.

Employers now have a greater obligation than in the past to convince existing and would-be employees why they should stay or join their organizations. And there is no evidence to suggest this trend will change going forward.

What companies can do to adapt

It has been estimated that the cost to the employer of replacing a departing employee is on average 122% of that employee's annual salary in terms of finding and training a replacement.

Thus, there is a large incentive for businesses to adapt to the new labor market conditions and develop innovative approaches to keeping workers happy and in their jobs.

A May 2021 survey found that 54% of employees surveyed from around the world would consider leaving their job if they were not afforded some form of flexibility in where and when they work.

Given the heightened priority employees place on finding a job that fits their preferences, companies need to adopt a more holistic approach to the types of rewards they provide. It's also important that they tailor the types of financial, social and developmental incentives and opportunities they provide to individual employees' preferences. It's not just about paying workers more. There are even examples of companies providing employees the choice of simply being paid in a cryptocurrency like bitcoin as an inducement.

While customizing the package of rewards each employees receives may potentially increase an organization's administrative costs, this investment can help retain a highly engaged workforce.

Managing the new normal

Companies should also plan on high employee mobility to be endemic and reframe how they approach managing their workers.

One way to do this is by investing deeply in external relationships that help ensure consistent access to high-quality talent. This can include enhancing the relationships they have with educational institutions and former employees.

For example, many organizations have adopted alumni programs that specifically recruit former employees to rejoin.

These former employees are often less expensive to recruit, bring access to needed human capital and possess both an understanding of an organization's processes and an appreciation of the organization's culture.

The quit rate is likely to stay elevated for some time to come. The sooner employers accept that and adapt, the better they'll be at managing the new normal.

[You're smart and curious about the world. So are The Conversation's authors and editors. You can read us daily by subscribing to our newsletter.]The Conversation

Ian O. Williamson, Dean of the Paul Merage School of Business, University of California, Irvine

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Stuff happens! Often, human resources professionals encounter the unexpected. When employees bring surprises, priorities get rearranged, if not completely usurped. Still, having a plan helps everything stay on target and go much more smoothly. The new year is the perfect time to anticipate and plan, making all the difference in what gets accomplished. Here are a few ideas on getting started:

Know your organization. Understand the overall business goals and objectives. Identify how the human resources department can contribute and obtain top management support. Create a human resources strategic plan that supports the organization, its goals and mission.

Stay on top of deadlines. Whether month-by-month or week-by-week, develop a calendar or other means to track tasks for legal compliance and other deadlines that predictably occur. Overlay this framework with the additional HR projects you need to accomplish.

Update your employee handbook. Take into account changes in state and federal law as well as the National Labor Relations Board stance that social media policies not constrict employees' right to discuss the terms and conditions of their employment. Check for clear, concise wording and readability. Make sure policies are consistent with one another.

Revise job descriptions. Job duties change and job descriptions need regular updating. Make sure they are clear and accurate and convey the essential functions of the job. Well-written job descriptions provide a road map to employees, serve as a foundation for performance evaluations, and justify exempt vs. non-exempt status under the Fair Labor Standards Act. Use wording that complies with the Americans with Disabilities Act (HR Made Simple subscribers may access HRSentry's Job Description Tool to quickly create ADA-compliant job descriptions.)

Train managers and supervisors. Your need to depend on these folks on the front lines to properly implement your policies and procedures and state and federal employment and non-discrimination laws. Help them understand their role in claim prevention, especially in areas such as sexual harassment and retaliation. Teach the importance of proper documentation and let them know that HR serves as an internal consultant to help prevent and solve HR-related problems.

Target problem areas. Do you have high, unplanned turnover? Is FMLA abuse or absenteeism a problem? Are independent contractors vs. employees classified properly? Are you paying overtime lawfully? Are work-related injuries too numerous? Every organization has areas to improve. Identify the two or three most pressing issues and make this the year to solve them!

Need more in-depth help? Expect the unexpected and plan for what you can! HR Made Simple subscribers have all the resources and tools they need at their fingertips 24/7.

Enjoy a stellar 2016!

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Donna is a 30-year old single parent working at a quick service restaurant. She's been working here for months, but it won't be for much longer. At home on her kitchen counter sits a pile of unopened bills and collection letters. She's been struggling to receive consistent child support, and now she's behind on her rent. Daycare services are expensive and her credit cards are maxed out. She has trouble concentrating at work.

She makes careless mistakes with orders, has a surly attitude with customers, and even considered "borrowing" some of the contents of the cash register. She calls in sick when she needs to deal with occasional financial flare-ups. Last month she borrowed from her parents and sister just to prevent her car from being repossessed. Donna wonders how long she can hold on. She spends time during her lunch break looking at job sites on her phone.

Once Donna leaves or is terminated, her employer will need to interview, hire, and train a new candidate. Her money woes are about to be her boss's problem.

What will it cost to replace Donna? According to studies, the cost of a lost employee vary according to their level of expertise and credentials. For positions earning less than $30,000 annually, every time a business has to replace an employee, it costs an average of 16% of that person's annual salary.1 That's $4800 for someone earning $30,000. But high employee turnover perpetuates itself. When staff members witness a revolving door, they tend to disengage, and become less productive, increasing the odds of their own departure.

Customer service becomes a casualty when staff is stretched, due to the exodus of employees. For management, continually interviewing, selecting, and training the newest hires, becomes exhausting. The monotony leads to cutting corners in the selection process, resulting in bad hires and further spikes in turnover.

How many Donnas work at your franchise? Surveys reveal that 33% of US workers across all industries, report feeling severe financial stress. According to PwC, 37% of these workers report that they spend over 3 hours per week at work thinking about or dealing with personal financial issues.

About 30% of the Gen Y labor force, find it difficult to make their minimum payments on credit cards, while only 19% of baby boomers do. The figures for the relatively unskilled labor force found in quick service franchises are bound to be sadder still, as many teeter on a ledge of despair.

What's more, 29% of money-troubled employees blame their employer for their predicament.2 "Study after study has shown that employees who are financially stressed, experience health problems more often, and are less productive," says personal finance author Gerri Detweiler.

According to Reeta Wolfsohn of the Center for Financial Social Work, financial stress is the number one stressor in people's lives. The absence of a consistent and reliable work schedule for workers in businesses such as quick service restaurants, with a specific amount of income on a regular basis, increases that stress many times over.

These workers need greater stability in all areas of their lives, particularly in their jobs. When that is missing, the challenge of arranging for childcare and transportation can become unmanageable and result in absenteeism, lateness, and job loss.

What can a franchise employer do? The first step is to acknowledge the severity of the problem, and commit to addressing it.

Resources to Help

EAP's - Corporations with extensive benefit packages offer employee assistance programs, where staff can call for help in times of crisis. But franchises are smaller business units, where these services are not as widely offered.

The Employee Assistance Professionals Association (EAPA) can help employers select and hire a group to provide assistance. Be sure to compare EAPs according to services provided and fees per employee.

Workplace Posters - Among free resources available, CareConnect USA has published a free workplace poster, for franchise management to print and display for employees. Posters list national helplines for employees to find assistance. The helplines cover critical categories such as Child Support, Housing Assistance, Credit Counseling, Free Bankruptcy Advice and more.

Calls are routed to government, non-profit, and private help centers according to region. Calls are free, and posters are available in large quantities for multi-unit owners.

careconnectusa_org_wp-content_uploads_WebPoster8_5x11_reduced_pdf.png

Mobile App - A free mobile app called "Trusted Helplines" instantly connects employees with financial and crisis resources in a vast array of categories, including mental health, depression, abuse, and addiction. This format is well suited to young workers who primarily use mobile devices to access information. Franchise managers can print the app flyer and post it in the workplace. Employees can then discreetly download the app and explore many free resources on their own time. Posting such a flyer also sends a signal that management cares about the well being of employees outside of work.

Financial Education on Site - For employers willing to play a more active role, the Personal Finance Employee Education Foundation (PFEEF) can help them establish effective financial wellness programs and help employees adopt sound financial habits. Using the Personal Financial Wellness Scale™, PFEEF is able to assess the financial wellness of individuals before, during, or after the implementation of a financial wellness program to quantify the benefits of a given program. PFEEF then provides resources and services to help deliver effective instruction and training to employees.

It's no secret that franchise owners face a challenge to deliver quality products and services in a competitive marketplace. But within that challenge lays the tricky task of mobilizing a distracted workforce, walking a tight rope over financial ruin with no safety net. A walk that eventually leads straight out the door.

1 The Harris Poll

2 Center for American Progress

(A financial counselor since 1993, David has worked with housing, debt relief centers nationwide. In 2005, he created a reference tool to help social workers find resources for their trouble clients. Always searching for innovative ways to help employees and families connect with appropriate assistance. For comment or questions he can be reached at [email protected].)

5 Gifts to Your Employees

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American traditions abound next month and Thanksgiving: traveling to visit family, overflowing dinner tables, football games on television, Black Friday sales and, for many workers, a long weekend. But there can also be cultural pressures to meet an elusive holiday ideal and, for many, it's stressful when family relations go awry or dinner falls short of Martha Stewart perfection.

Add multiple doses of commercial tactics to ramp up holiday spending and another frenzied set of expectations emerges. Layer this atop an economic climate of insecurity and you've got the perfect recipe for stressed out employees. No wonder we sometimes neglect both the thanks and the giving in Thanksgiving!

But employers can help put both back into the holiday season while assisting their employees in the process. Consider these five ideas:

1. Model Gratitude. Thank your employees for what they do for your department and the organization. Catch them doing things well and let them know you notice and appreciate it. Give positive feedback whenever possible to help them feel motivated, encouraged and engaged in their work.

2. Appreciate the Whole Person. Employees don't bring compartmentalized pieces of themselves to work. For better or worse, they bring their whole being, their enthusiasm, talents, concerns and problems alike. Get to know your employees as unique individuals; learn about what's important to them and let them know that you care.

3. Create a Culture of Wellness. Everyone is better off when staff members are healthy, physically and mentally. Absenteeism and turnover go down; teamwork and productivity go up. Employees feel cared about when you pay attention to their well-being. Create wellness events, such as yoga, mindfulness training and nutrition classes, and provide an Employee Assistance Program to help staff manage personal issues and hardships.

4. Support Volunteering. The opportunity to serve others is gratifying. It can even be therapeutic when experiencing difficulties in one's own life. Consider a policy that allows employees to spend some work time volunteering for a worthy cause. Your generosity in allowing employees to themselves be generous will be appreciated and will encourage loyalty and greater commitment among your staff.

5. Nurture a Sense of Community. Trying to get more done with less these days, stressed out employees can narrow their focus, hunker down, view other departments as thwarting and lose sight of the greater picture. To counter these tendencies, create opportunities for staff, across departments and functions, to get to know one another better. Interdepartmental projects, committees and social events can foster cooperation, collaboration and even friendship. The U.S. Congress of twenty years ago engaged in socializing and friendship across party lines that resulted in compromise and cooperation which, today, is almost non-existent. It's all too easy to demonize others when you don't know them.

It can take mindful effort to pause and be thankful. But the more you do it, the easier and more habitual it becomes. So take some time out this week and in the coming weeks to encourage your employees to likewise pause, breathe, pay attention to others, engage in helping those less fortunate and appreciate one another.

Model, cultivate and provide opportunities for healthy, cooperative and generous behaviors and your organization will enjoy a culture of more committed, collaborative and appreciative staff.

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Kyle, age 21, handles the scheduling, appointments, estimates, and all payment transactions for the auto service center near my office.

On a weekday morning at 8:16, I call to inquire about getting my vehicle in for shocks and an alignment. Kyle politely tells me that if I can bring it in within the next 30 minutes, he'll have it out by 11:45, in time for me to make my lunch appointment.

I agree and head out immediately.

I arrive at 8:37 and notice that there are already three customers in the waiting area in front of me. Kyle is working fast and furious to make certain each gets their questions answered, receives an accurate estimate, and signs the required paperwork to begin the job. With so much to do, Kyle is multitasking like a one-armed paperhanger in a stiff breeze, and he's trying to make everyone feel like they are important and will attend to them shortly.

Kyle's friendly, knowledgeable, and he seems to be very competent at keeping so many plates spinning at once.

However, as I observe him more carefully, I can detect a subtle level of frustration brewing under the surface.

He's working solo throughout this rush and it's got to be incredibly stressful to take such good care of the four customers in the showroom while, at the same time, being constantly interrupted with questions from his service techs, while, at the same time, handling an endless stream of phone calls from prospective customers.

Eventually, it's my turn and Kyle begins by apologizing to me for the delay while looking over my shoulder to acknowledge the two additional customers that just walked in.

"I don't know too many people that are working harder than you are today, Kyle." I said to him.

Something about my statement must have made me appear like a therapist, as Kyle took a deep breath, shook his head, and began to offload his stress.

"I've been here for over a year and it's like this every day. Every day, man! They tell me to give friendly personal service to every customer and to suggest other things we can do for their car, but when they don't staff anyone else to help you, and they don't provide a voice mail system to help handle the barrage of calls that come in from the ads they place, you wind up playing the incompetent fool. Ultimately, no one gets the service they expect or deserve...I say I'm sorry a thousand times a day...and I can't wait for my shift to end."

I'm no therapist, but it doesn't take Dr. Phil to realize that Kyle is not going to be working here in six months. (Heck, I'd be surprised if he made it six more days.) And when he finally quits, this national big box retailer will attempt to find another Kyle to plug into that position.

It's a crying shame, too. Because if Kyle had just a little support from upper management, he'd be a safe bet for long-term employment. Imagine how much better he'd be with five more years' experience!

If management in this operation would observe what I did, they'd be the ones listening to Kyle, and they'd most certainly provide him with the resources (another counter person, etc.) and the tools (voice mail, etc.) he needs to succeed.

By supporting Kyle, their customers would get a much improved service experience; the kind they'd tell their friends about. And those referrals from delighted customers would have a substantial impact on revenues, decreasing their reliance on expensive couponing and marketing gimmicks to get new customers into the store. Not to mention the repeat business from their existing customers.

Unfortunately, this story isn't going to end like that.

With a death grip on wages and operational costs, my prediction is that this national retailing giant is going to keep churning and burning the Kyles right out of their organization. Their employee turnover and marketing costs will continue to escalate. Customer satisfaction, repeat business, and referrals will continue to erode. Stock prices will continue to fall.

Are you paying more attention to your daily deposits than you are to your Kyles?

POST NOTE: Kyle apologized again when he called at 2:18pm to tell me that service to my car was finally completed. He said one of his techs went home sick and that he had to install the shocks himself.

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The Real Importance of Job Descriptions as Risk Management

Job descriptions aren't legally required and, as writing them sometimes feels daunting, you may be tempted to avoid having them or to not update the ones you do have.

But I know from experience that real job descriptions are helpful for myriad reasons and provide important legal protection for your organization.

Why have job descriptions? They serve as a communication tool between the employer and employees so there's mutual understanding about the expectations and responsibilities of the position. They provide a useful reference for performance management and as grounds for termination if an employee cannot or will not meet the written duties and expectations of the job.

Job descriptions justify Exempt or Nonexempt categorizations as required by the FLSA, and they can protect an organization from employment claims brought under the ADA or Title VII. The key is to do them well.

Be thoughtful about making sure all the "essential duties" of the position are documented. The EEOC describes these as the tasks which are fundamental to the position and, if removed, would fundamentally change the job. You can also think of essential duties as the reason the job exists. If you are creating a description of a position that isn't new but already exists, get input from the person doing the job as that person knows the job well and will appreciate being consulted.

When culling the essential duties in a job description, focus on what needs doing, not on how it's done. Here's an example: don't say, "lift up to 50 lbs. equipment" if what is actually required is that the equipment be moved. The function to be accomplished is transporting the equipment so that's what you should say to make sure you don't exclude individuals who might need a reasonable accommodation such as using a dolly.


You should also pay attention to bona-fide occupational qualifications (BFOQ) to make sure the job description does not violate Title VII or other laws related to protected to class protection, such as those based on race, gender, age, national origin or pregnancy status. So, for instance, don't specify that the job occupant needs to male or female unless you can prove that it's really required to this this job. For instance, a counselor of a support group for teenage girls discussing sexual issues needs to be a woman if the girls are to feel comfortable opening up. So being female in this case is a BFOQ.

As mentioned job descriptions are not legally required but, if you have them, they are treated as legal documents and they must be kept for at least two years. So be thoughtful and careful about creating them and consider using Job Descriptions Made Simple to ensure they work well for you!

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Workplace investigations are tough enough without the office grapevine gossiping about who did what to whom.

As such, it's standard practice to ask anyone who participates in an investigation to keep their mouths closed about what is discussed behind the closed doors.

A new ruling from the National Labor Relations (NLRB), however, suggests that a blanket "keep your mouth shut" mandate may be improper.

The Case behind the Concern

Like many investigators, the HR director for Banner Heath Systems asked workers involved in an in-house investigation to not talk about the investigation with their co-workers. However, James, one of the employees involved objected that this request violated the rights of employees to discuss the terms and conditions of their employment with their coworkers. The National Labor Relations Board sided with James, saying that blanket requests for confidentiality during an investigation are overly broad and might have a chilling effect on appropriate - and legally protected - communications.

So what's an Investigator to do?

This is a new ruling (July 30, 2012) and time will tell what this means from a practical standpoint. However, the NLRB's ruling does offer some guidance. First of all, investigators can still ask witnesses to keep quiet as long as they have a legitimate business interest in making the request.

This business interest must extend beyond the usual "we're trying to protect the integrity of the investigation" reasoning.

So what business interest is legitimate?

It is one that arises from that particular investigation.

Perhaps, for example, the facts you've uncovered so far suggest that the accused might try to intimidate witnesses if s/he learns they will be talking to an investigator.

Perhaps you haven't had a chance to retrieve some valuable evidence and are concerned that, if the investigation leaks out, it might be destroyed before you have a chance to do so.

Or perhaps you have reason to believe (again, based on what you've uncovered) that a group of witnesses might get together and "get their stories straight" before you have a chance to interview them individually.

In addition, when you do feel requests for privacy are warranted, limit the scope as much as possible. For instance, ask that the witnesses not discuss the investigation as long as it's active or during work hours or on company property.

The Bottom Line

In every investigation, investigators walk a tightrope, trying to balance a number of competing interests. This recent ruling extends those competing interests to include the need to maintain confidentiality and employees' rights to discuss the conditions of their employment.

For now, the best solution during an investigation is to avoid blanket requests for privacy, articulate valid reasons for privacy requests when they occur, and make sure your requests are as limited as possible.

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Your franchisees are the eyes and ears of your business. They know what is working and what is broken. They are the first to hear your customer's complaints. They overhear important industry gossip from your vendors.They are most likely to identify inefficiency and waste.

Obviously, you need to know what your franchisees know as soon as they know it. That is why it is important to create a company-wide tradition that encourages open communication and collaboration. It is the prerequisite to creating a highly flexible and nimble organization that can respond quickly to fast changing customer and competitive circumstances.

Setting up a 21st century suggestion box is a simple way that many organizations capture franchisees ideas. However, it does not go far enough. Instead, you should leverage your franchisees' suggestions to create your company's Continuous Improvement cycle.

What is Continuous Improvement?

Continuous improvement is the goal of the most popular quality management approaches. For example, CMMI, (the Capability Maturity Model created by Carnegie Mellon University for the U.S. Department of Defense) offers a five step business improvement pyramid.

Notice that Continuous improvement is at the top of the CMMI pyramid.

Business improvement models, like CMMI, are helpful to explain the importance of adopting management theory. However, most organizations struggle with practical implementation.

To help, the Breakthrough Book suggests a simple three step approach to create an franchisee-powered continuous improvement cycle:

Step One: Capture your franchisee's idea, suggestion, issue or other information using a "Communication Switchboard."

Step Two: Assign a "Switchboard Operator" to forward the issue to the appropriate Process Team and to monitor resolution.

Step Three: The Process Team resolves the issue.

Communication Switchboard Template

The Breakthrough Book provides a Communication Switchboard template to help you create an ongoing tradition of communication between franchisees and the franchisor's teams.

To use the Switchboard, ask franchisee to report their ideas, suggestions, customer complaints and other issues directly to the Communication Log Switchboard Operator.

he switchboard operator then forwards the issue to the appropriate process team for resolution. The operator maintains a communication log that managers use to hold process teams accountable for resolving the reported issues. Also, the log is used to credit (and reward) employees with the ideas they contribute. The Breakthrough Book also suggests using coaching and team meetings to encourage employees to report their ideas, and ask process teams to report their progress in resolving critical issues.

In a very small company, the "switchboard" can be a spiral notebook hanging next to your water cooler. In a larger company the "switchboard" can be maintained by a receptionist, executive assistant or quality manager.

The switchboard logbook should have the following column headings:

  • Date: The date the issue was first reported.

  • Date: The date the issue was resolved.

  • By: The franchisee who reported the issue.

  • Process Team: The process manager responsible for resolving the issue.

  • Idea Description: A sound-bite description of the issue .

  • A sound-bite explanation of the issues resolution.

  • Impact: An estimate of the financial benefit of the resolved issue.

How Continuous Improvement Can Work

To illustrate the benefits of initiating your company's continuous improvement cycle consider the following scenario:

A franchisee is frustrated because her employees are wasting valuable time looking up warehouse location codes that could be easily added to pick lists generated by the company's sales order software. Correcting this issue would improve productivity, speed order processing and reduce cost. The franchisee reported her suggestion to multiple field representatives over the years.

Promises were made, but no action was taken.

Now consider the quick resolution that is possible if the company facilitates communication between its franchisees and field representatives who are empowered to optimize and improve their procedures:

  • franchisee reports her suggestion directly to the Switchboard.

  • Switchboard forwards the issue to the Order Taking field representatives team.

  • field representatives team discusses the issue. Several resources from the IT department are included in the collaboration. The decision is made to add the warehouse location code to the product database and add it to the pick lists generated during order taking.

  • field representatives team creates a project to manage the steps necessary to implement the change.

  • Order Taking process team updated related procedures and training materials.

  • procedure change was communicated to all affected franchisees and their employees.

  • issue was resolved quickly because franchisees and franchisor employees from multiple departments were empowered to communicate, collaborate and resolve problems that related to their areas of responsibility.

The above scenario illustrates how culture, effective process management and open communication work together to optimize your company. It is simple, organic and stealthy. It institutionalizes a culture of excellence. It leverages your franchisee's insights and creativity. It helps make your business flexible and resilient.

You will likely need to dedicate 5-10% of your franchisees' time to improving your company. Consider it the cost of your freedom. It is also a cost that should result in a significant return on investment.

Your company will finally have a way to capture your franchisee's ideas for saving money, making money, minimizing waste, and increasing quality, consistency and customer satisfaction.

Keeping a business running requires a lot of moving pieces. Good management, employee satisfaction, effective marketing, high sales, and client satisfaction are just a few of those pieces.

Juggling it all takes a lot of work, and that is why the quality and happiness of your employees can sometimes be seen as the most important factor behind a successful enterprise. Making sure your employees are doing their best work goes far beyond hiring the right talent. You need to make sure that talent is being put to use in the right places.

One essential tool for talent management is the performance review, but it needs to be used correctly in order to reach its full potential.

Here are nine ways to conduct more effective performance reviews:

1. Use a form to gather feedback - When collecting feedback from the employee's superiors and subordinates, use a form that asks specific questions and provides some multiple choice answers and some room for free form reviews. This will make it easier for the people filling them out as well as easier for you to provide the feedback to the employee.

2. Always start and end with positive feedback - Sometimes when providing evaluations to employees, managers focus on the negative areas that need improvement. But it is important to start and end with some positive feedback so that your employee feels valued, even if he is imperfect.

3. Provide specific examples - Always use specific examples in your feedback of both the positive and negative work the employee has done. This will make the critique more effective and give the employee assurance that it is based on the employee's work and not someone's bias or personal feelings.

4. Go up the ladder and down - It is very important to give subordinates the chance to review their superiors, as well as vice versa. How a manager runs his team and how that team feels about the manager is just as important as how the manager feels about his team.

5. Encourage questions - If the performance review doesn't include time for questions, it can feel like a lecture instead of a discussion. Your employee will probably have questions during the review, as well as afterwards. Encourage him to ask both so that he can move forward and improve his work.

6. Focus on behavior over attitude - It might seem like attitude is important - and it is - but because it is so subjective, it is not good to talk about it in a performance review. Don't say "You don't seem to care about showing up late." Say, "We have noticed you often show up late."

7. Be prepared and professional - Don't squeeze in a performance review when you don't have the time. Schedule the appointment in advance, meet in a private office, and don't accept non-urgent interruptions. Allow for more time than you expect and have written reviews from co-workers and superiors in front of you. Do not go off the cuff.

8. Do not argue with the employee - Arguments sometimes crop up in reviews because the employee feels as though she is put on the defensive. If the employee tries to argue with you about something you say, try to shift the argument into a conversation.

9. Look towards the future, not the past - Although the conversation will be largely based on past events, you should focus on ways to improve for the future. You are not seeking retribution for missed deadlines, you are seeking to ensure there are no more of them. Make this clear to the employee as well by talking about the future more than the past.

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In Part 1 we looked at why it's vital for organizations to document employment situations diligently.

But what constitutes good documentation that reduces employer risk? Of course every situation is fact specific but, practically speaking, here's some guidance on some types of documentation and what to include:

1. Summaries work well when behavior is being tracked over a period of time. When documenting a disciplinary situation, be sure to cite specific examples and information that aptly illustrate the problem.

In a summary, it's important to answer the classic questions who? what? when? where? and why? by including:

  • Description of the offense , why it is an offense, when and where it occurred, names of witnesses and any other critical details;
  • Copies of any supporting documents such as time sheets or production records.
  • Description of any disciplinary action that has been or will be taken;
  • Recap (including dates) of any prior oral conversations or disciplinary actions that have a bearing on the incident;
  • Description of the behavior expected from the employee;
  • Employee's version of the events;
  • If the employee has any appeal rights, the procedure to exercise those;
  • Future action to occur if the offensive behavior does not cease;
  • Dates and signatures-sign and date the form and give the employee an opportunity to sign. If the employee refuses to sign, note that.

2. Forms work well for individual incidents and help employers standardize the documentation process. Forms may save time by prompting supervisors and managers for information and can help ensure consistency across the organization. They can also encourage the proper analysis of situations and consistent disciplinary actions. Forms may provide details and information that may later be incorporated into summary documentation, depending upon the circumstances. HRSentry subscribers may access a sample documentation form in the Discipline and Corrective Action Kit.

3. Other types of documentation further the human resources goal of risk mitigation. Here are a few examples usually handled by the HR department itself:

  • Employee Acknowledgements-These are signed and dated forms to prove that employees have received and understand important information. Acknowledgements are useful when providing such items as: employee handbooks, job descriptions, and important policies such as anti-sexual harassment, anti-retaliation and confidentiality.
  • Proof of Training-When you train employees and supervisors on important topics such as sexual harassment awareness and , document attendance with a sign-in sheet or use training software that tests for comprehension.
  • Employee Communications-Documentation of important communication with employees can be copies of letters, emails or notes based on a phone conversation. Examples include forms designating FMLA leave, hire letters, and contracts.
  • Recruitment Files-Maintain applications for at least one year or longer. Keep copies of all communications and candidate information in case there is an allegation of discrimination.
  • Documentation of an Investigation of a Complaint-This a huge topic by itself. For further information, see our HRSentry blog on investigating allegations of sexual harassment.

Electronic files, backed up and with password protection, can help employers save space when documenting. Be sure to hold supervisors and managers accountable for their role in supporting this critical risk management function.

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When it comes to I-9 forms (you know, the federally required employment eligibility verification forms required whenever you hire someone) a few lucky employers will deal with common circumstances 99% of the time and won't be overly fazed by compliance issues if they are meticulous and well-educated on the law.

But there are a surprising number of nuances that even experienced employers may not be aware of.

For superb guidance, the Department of Homeland Security's U.S. Citizenship and Immigration Services (USCIS) provides an easy to read, 69-page brochure.

Don't be put off by the number of pages. This color brochure, replete with photos, is an excellent reference guide, addressing just about anything you might encounter, including re-hires and the hiring of minors, individuals with disabilities, lawful permanent residents and refugees. The format is well laid out, uses clear language, and provides samples and Q&As.

All employers, but especially those new to human resources, small businesses just starting out, and employers with more unusual hiring and documentation situations, are encouraged to review it thoroughly. Because of its friendly format, it's well worth the read.

We don't want to replicate such comprehensive USCIS guidance here; but the following are a few basic tips to help you avoid compliance trouble:

  • I-9 forms must be completed for all new employees, hired after November 6, 1986, even if just for one day of work. The form is never to be completed by applicants, only new hires or those who've received an offer of employment. Also, don't use the form with bona fide independent contractors.
  • As soon as a candidate accepts your offer of employment, let him or her know the I-9 form is a requirement of employment. Send the form with the list of acceptable documents in advance if there's time. The law says the form needs to be completed within three days of hire but get it done on the new employee's first day. The employee may fill out Section 1 at any time after they receive an offer of employment until their first day of work.
  • Remind new hires, through email or by phone, a day or two before their start date to bring their ID-one from List A will suffice OR they may bring one from List B and one from List C.
  • Acceptable documents must be original, not copies. If the employee has lost a document, such as an original Social Security card, you may accept as documentation a receipt of their application for a one. The receipt is good for just 90 days; after that the person has to show you the newly issued document.
  • Providing a Social Security number on Form I-9 is voluntary for all employees unless you are an employer participating in the USCIS E-Verify program, which requires an employee's Social Security number for employment eligibility verification.
  • According to the law, you don't have to photocopy the documents the person provides but it's a good idea and may demonstrate your good faith effort to comply. What you do for one employee, however, you must do for all. Always apply your policies and practices across the board to avoid any appearance of discrimination. Also, if you retain photocopies, keep them in the employee's file or with their I-9 form.
  • Keep I-9s separate from the employee's personnel file. I-9s can be retained either on paper, microform, microfiche or electronically. See pages 23-25 of the USCIS brochure for the specifics of these various retention formats.
  • If you rehire someone within three years of the date the employee's original verification, the original I-9 may be used by completing Section 3. Otherwise be sure to use a new form.
  • You must retain an employee's completed I-9 for as long as the individual works for you. Once s(he) terminates, the form is to be kept for either three years after the date of hire, or for one year after the date employment is terminated, whichever is later. It's a good idea to weed out I-9s you are no longer required to retain. As long as you remain methodical and meticulous about destroying only those no longer needed, your risk exposure will be reduced in the event of an audit. Fewer forms, fewer mistakes.

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How to Beat the NLRB

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As social media usage continues to soar, you should establish a social media policy, if you haven't yet. Such a policy communicates to employees your expectations on the use of social media sites, such as Facebook, Twitter, YouTube, etc., as they relate to your business. If you already have a policy, good for you!

Now take a little time to review it to make sure it's legally compliant, especially in light of guidance from the National Labor Relations Board (NLRB.) Even if you are not a union shop you need to take NLRB guidance and rulings seriously. Why? Read on.

The Acting General Counsel of the NLRB has just issued a report on employers' social media policies for the third time in less than a year. The report serves as guidance for employers as they craft and revise their social media policies.

In a nutshell, the NLRB has frequently determined that such polices are unlawful due to being overly broad, i.e. too restrictive in terms of an employee's right to engage in protected concerted activity in accordance with Section 7 of the National Labor Relations Act (NLRA.)

Such protection covers an employee's right, without fear of retaliation, to discuss their pay, benefits and other working conditions.

Section 7 says: "Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid and protection, and shall also have the right to refrain from any and all such activities."

It's important to realize that Section 7 protection applies to union and non-union members alike; so even if your organization is not unionized, employees' rights to engage in concerted activity are protected. Your social media policy should not restrict that right. Further, you should understand that the use of social media, such as Facebook postings, for engaging fellow employees in conversation is considered by the NLRB to constitute protected concerted activity if the discussion involves pay, benefits or other aspects of working conditions. The protected discussion may well be mixed in with language that you or others at your organization find objectionable, such as disparaging remarks about supervisors or profanity. Although possibly offensive, it is nonetheless still protected.

Among the many policy excerpts addressed in the report, here are three to help give you an idea of where the NLRB is coming from. The excerpts are in quotation marks and italics with the NLRB's explanation immediately following in bold:

1. "Don't comment on any legal matters, including pending litigation or dispute."

NLRB: We found that the prohibition on employees' commenting on any legal matters is unlawful because it specifically restricts employees from discussing the protected subject of potential claims against the Employer.

2. "Think carefully about 'friending' co-workers . . . on external social media sites. Communications with coworkers on such sites that would be inappropriate in the workplace are also inappropriate online, and what you say in your personal social media channels could become a concern in the workplace."

NLRB: The provision of the Employer's social media policy instructing employees to "[t]hink carefully about 'friending' co-workers" is unlawfully overbroad because it would discourage communications among co-workers, and thus it necessarily interferes with Section 7 activity. Moreover, there is no limiting language clarifying for employees that it does not restrict Section 7 activity.

3. "If you enjoy blogging or using online social networking sites such as Facebook and YouTube, (otherwise known as Consumer Generated Media, or CGM) please note that there are guidelines to follow if you plan to mention [Employer] or your employment with [Employer] in these online vehicles. . .

Don't release confidential guest, team member or company information. . . ."

NLRB: We found this section of the handbook to be unlawful. Its instruction that employees not "release confidential guest, team member or company information" would reasonably be interpreted as prohibiting employees from discussing and disclosing information regarding their own conditions of employment, as well as the conditions of employment of employees other than themselves-activities that are clearly protected by Section 7. The Board has long recognized that employees have a right to discuss wages and conditions of employment with third parties as well as each other and that rules prohibiting the communication of confidential information without exempting Section 7 activity inhibit this right because employees would reasonably interpret such prohibitions to include information concerning terms and conditions of employment.

Companies can get themselves into big trouble when they fire someone based solely on a social media posting that violates their social media policy. Of course, termination may be warranted when postings portend violence or constitute bullying, harassment, racial slurs or defamation. But when the employee addresses working conditions, you need to tread lightly. Getting qualified legal advice is usually a good idea when considering an adverse action; when related to the possibility of protected activity, it's a must!

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As Winter arrives, it's time to prepare for winter weather. Storms are an expected part of northern winters but even southern states have experienced snow and icy conditions more frequently in recent years.

It's important, then, to make sure your employees know what to do when severe weather strikes. A good policy provides a helpful road map.

When you create or review your inclement weather policy, think about:

1. Employee Communication.

Who will make the decision to close early, delay opening or close operations for the day? You may wish to designate a backup decision maker.

Consider how the decision will be communicated. Good ways are to provide a phone number and web site employees can check for information in the early morning. Other methods are an internal Facebook page, intranet, or phone tree.

2. Smooth Operations.

How will operations be shut down properly? Who is needed to do what? Identify which employees or departments, if any, must continue working. Who else needs to know?

Consider the best methods to let clients know of changes relevant to their needs (e.g. voice mail, web site, email.)

3. Safety First.

Even if you remain open, you may wish to allow employees to make their own weather-related decisions about whether to risk travel conditions based on their circumstances.

Allow employees who are set up for it to work from home or to use sick or vacation time, if available.

4. Obligations with Federal Wage and Hour Laws.

Know your pay obligations under the Fair Labor Standards Act (FLSA.)

a) The FLSA does not require that you provide sick or vacation time off benefits nor that you pay non-exempt staff for time not worked.

b) It does, however, require that exempt staff, in order to retain exempt status, be paid their regular weekly wages except in rare instances. If the employer chooses to close for a day or two, exempt staff must be paid their full weekly salary although you may deduct the time from their accrued leave bank.

c) If exempt staff run out of accrued leave or go negative, you must still pay their full weekly wages.

d) If, on the other hand, the exempt employee, rather than the employer, chooses to take a full personal day off for any reason, you do not have to pay for that day, unless your personnel policies say otherwise.

e) Be careful, however, that it must be a full personal day off in order to reduce wages; working a partial day negates that option.

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You decided to become a newly minted franchisor.

And when that day finally arrived how exciting was that?

You were going to conquer the world with your franchise brand.

Here's what you did right.

Started with a tested business model with a verifiable proof of concept.

Hired a competent and experienced franchise attorney to develop your franchise agreement and franchise disclosure document - FDD.

Your franchise attorney strongly suggested (or insisted) since you have a strong proof of concept for your franchise model that you include an Item 19 Financial Performance Representation - FPR and you did it.

Developed an operations manual, training system and support system that is scalable as you grow your franchise system.

You had a reasonable budget to market for franchise recruitment.

But, after a while, you will hate being a franchisor. Here are your 7 biggest beefs.

  1. Early franchisees you selected seemed very passionate about being franchise owner/operators but they are not living up to what they promised and you're more than disappointed.
  2. Multi-unit franchisees are not current with their development objectives and they expect you to not hold them to what everyone agreed to. They want some or all of the following extensions, refunds or credits against franchise fees and in return you get nothing. Not even what you originally bargained for.
  3. You have a great training program and franchisees are shortcutting what your program offers and requires.
  4. Franchisee local market success depends on local store marketing, your franchisees don't make the investment in it. And they complain to you that sales are too low and your brand is not well known enough in their area.
  5. Franchise owners expect you to fix their unit level problems with employees, landlords, suppliers, insurance, local municipality, their business & operating partners. You had no idea that you'd be expected to do so much hand holding and babysitting when you set out selling & opening franchises.
  6. Franchise recruitment for a new franchisor is tough. However you couldn't have imagined how difficult generating and managing leads would be. And the cost per new franchise recruited is far more than you anticipated.
  7. You discovered that your management team had a much greater learning curve for transitioning your business to a franchise development and operations company. And now you're faced with some tough staffing decisions as you move forward.

This is not an exhaustive list of awful franchise things and readers can feel free to add to the list.

Good news is that you had a good underlying business at the outset. And all these franchising challenges can be remedied.

If this sounds llike your franchising story & you want some help solving your problems call me at 443.502.2636 [email protected]. Lease the talents of 20+ year proven franchise executive, who has seen and solved these problems before.

Everyone's busy, stressed out and short of time.  

Are we forgetting some people?  

We usually remember to thank our customers.

And we probably don't have any trouble thanking family.

However, there is a group of folks that are often left out of the "thank you" pile. 

And that would be our co-workers. 

Known as our INTERNAL customers.

The folks we spend most of the day with side-by-side. The folks that are thought of as our 'home away from home' family.  

Sure, we argue and disagree with co-workers just like our family. And that's OK, because most of us have a family environment in our office. We understand that.

It's our office family. 

Our word of the day is: WACTEO.  

No need to look it up . . . we made it up. Here are the ground rules for WACTEO: We Are Customers To Each Other: 

 

1.    Understand Your Role - Each employee should know the mission of their organization and the role they play. Those of us who are in a small department of a large company can often times miss the big picture. If you don't know the mission of your company, ask for it. Keep it at your desk. It will help you with the big picture. You may start to understand the 'why' of the things you're asked to do sometimes and 'why' internal customer service is everyone's responsibility from president to maintenance. If management isn't doing their part, often times the entire customer service program will go out the window. We don't want double standards. Remember it starts at the top!  

2.    Respect Employee Differences - Cub fan? Cardinal fan? Republican? Democrat? Rock music, classical, whatever. Just because we don't agree with someone doesn't make us right. Differences are crucial for an organization. Differences are key to understanding people. If everyone thought the same way, most of us wouldn't be needed. It's not healthy to argue just because a co-worker isn't doing it the way you would or thinking the way you do. Learn to respect the differences. That's why we have chocolate and vanilla ice cream.  

3.    Recognize the Personal Space of Others - Simply put, this boils down to the golden rule. Those who can work with a radio playing music may disturb others around them who aren't able to concentrate. Loud voices around someone who's on the phone with an external customer can be annoying also. If you're working in a cubical or sharing an office or area, we need to recognize there are others around you. Be sensitive to their wishes, as you would hope they would be to yours. 

4.    Work to Resolve Conflicts - Who hasn't had unkind words with another employee? Or perhaps you and a co-worker strongly disagree on a project or idea. Not trying to make it work can only lead to more stress and frustration. Learn to work it out (notice I didn't say 'try' and work it out), even if you need to call in a professional in the area. Normally someone from HR or another trusted employee can usually be of help on conflict resolutions.  

5.    Show Appreciation - We saved this for last because being appreciated, showing you care with a genuine 'thank you,' is critical to WACTEO. It can be a note, a phone call or just stopping by an office and letting someone know they did a great job. This makes a huge difference in our internal relationships. There are surveys upon surveys that show how much a genuine pat on the back of appreciation is thought of as a way of special compensation.

 

A recent IFA Annual Conference speaker, Nancy speaks at franchise meetings across the country.

Her passion for the small business is second only to her techniques on sales and customer service.

Her reviews at IFA were off the chart. Contact Nancy personally about your meetings.

Document, document, document! It's the mantra of the human resources profession.

Create timely and thorough documentation for all employment decisions.

On the other hand, supervisors and managers often view documenting as a chore they simply don't have time for.

But do they have time for the following all-too-common scenarios?

  • Rebecca, has performed her data entry job poorly for several months. She is consistently late and her work is often inaccurate. The manager has spoken with her and given deadlines for improvement but the deadlines have come and gone. The company decides to fire her but wants to wait a few days until the manager returns from a business trip. Before he returns, Rebecca suddenly goes out on leave under the Family and Medical Leave Act (FMLA) for a problem with her back. Upon her return, the company fires her for poor performance. She claims the company retaliated against her for taking FMLA leave. Without documentation of her performance problems, the coaching efforts or the timing of their termination decision, the company has no defense against her claim of retaliation.
  • Joe, performs some aspects of his graphic design job well but is often slow to get back to customers. Co-workers pick up his slack. Resentful, two of the best employees quit so the supervisor knows she needs to fix the situation quickly. She approaches Human Resources about firing Joe. The HR administrator check's Joe's personnel file and finds several years' worth of good performance evaluations. So she says, "You can't. At least not yet." The supervisor and HR work together on a coaching and performance improvement plan that will take a couple of weeks to implement. The turnover adds pressure until replacement staff can be hired and brought up to speed. Staff members grumble louder than ever.
  • A supervisor in a retail store, Marcus, asks employee, Kaitlyn, out on dates every day. She tells him, "No, thank you" but he keeps asking and makes comments about her body that make her feel uncomfortable. It is Kaitlyn's first job and she doesn't know how to handle the situation so she quits. She was given a copy of the company's sexual harassment policy on the first day, along with a stack of other papers. No one told her what was in the policy, she never read it, nor did she sign an acknowledgment that she received it. Her mother helps her contact the EEOC. They decide to pursue two claims: one for sexual harassment and one for constructive discharge. (Constructive discharge is when an employment situation is made so intolerable that a reasonable person would quit.)

All of these scenarios are preventable surprises.

Supervisors and managers and those responsible for handling human resources need to understand that creating timely documentation is a critical part of their role.

Here's 5 reason why:

1. Documentation is vital in an employer's defense against discrimination and other employment claims;

2. Memory alone will serve poorly in court. The lack of documentation will be a glaring omission and could paint the employer in a potentially suspicious light, particularly in a jury case as juries are notoriously pro-employee;

3. Documentation can explain how a situation was handled when an individual involved is no longer available to testify;

4. Documentation can verify that employees have read (or heard) and understand information they were given;

5. Documentation helps supervisors provide accurate and constructive performance feedback to employees.

When you need help implementing your HR audits, connect with me on LinkedIn and let's talk about how we can help you. 

Fred; I have been pitched over the past 25 years in franchising all manner of snake oil for "profiling" and many have said that they can measure top performers and we could use the model to recruit high caliber and similar franchisees and employees. 

What do you say to a franchisor who wants a reliable predictive performance tool, other than buy yours? 

How should they approach it practical manner?  What should they expect from using such a tool?

fred berni1.jpgJoe - Let's start with the 5 basics of all good design.

1. Predict Performance:

Make sure that whatever system you're considering was actually designed to predict performance for the job, in this case, owning a franchise.

2. Designed for Selection or Recruitment

Make sure the system under consideration was designed for selection. Several of the most common personality profiles specifically state on their websites that they were not designed for selection.

One even goes so far as to say it's unethical to use it for selection. Even so, people are out selling these profiles for selection purposes.

3. Don't Discriminate in an unreasonable manner.

Third, make sure that the system you're considering does not discriminate. Even unintentionally. See Griggs v. Duke Power Co. A good summary is at http://www.answers.com/topic/griggs-v-duke-power-co#ixzz32NTJOd4J

4.  Verify Performance Carefully, using an Independent 3rd Party.

Unfortunately, there's no simple way to run an analysis between performance and "profile scores". No matter what you're told.

There's a fair amount of complexity involved in comparing scores and actual performance.

And by performance, I don't mean simply a gut feeling of they're good or bad.

That's subjective criteria because the ratings can change depending on who's doing the rating and their relationship to the franchisee. That's not to say you can't use subjective data, just that if it's available, use objective data with subjective thrown in.

Objective data is something to which you can relate to hard numbers.

Things like actual $ sales per location, % increase one year over the next etc. I've even had clients in auto repair use $ sales per bay.

It all works as long as you can put a hard number on it. Then you have to use rigorous scientific methods to analyse the relationships between "profile" scores and performance. Hopefully this analysis is done by a 3rd party with no stake in how the results turn out.

5.  Include Everyone and Increase Sample Size.

You'll need to include good, bad and average performers.

Here's an example of what I mean: Let's assume you've just made a movie and want to project what your ticket sales will likely be.

If you only include good reviews you could say that 100% of the people that saw the movie like it.

True, but not accurate. Only by adding the bad and average do you get an accurate idea.

In the same scenario, how many people would you need to ask before you are comfortable with a projection? Five? Ten? Twenty-five? One hundred?

Generally accepted sample sizes are a minimum of 100 before you can accurately predict performance. Anything less than that and the best you could do would be to assume you've identified a possible trend.

As far a reliability is concerned, my definition is to be able to say with 95+% confidence that the there's a definite causal relationship between performance and profile scores.

With larger sample sizes, our confidence level could be 99.5% or even higher.

Having said that, it really boils down to what you're willing to accept as being reliable. Being able to predict accurately 50% of the time? 75%? 95%? What's your comfort level?

The bottom line is that it's simply not appropriate, accurate or legally defensible to just pick your  1. or 20 franchisees and base your decisions on that small a sample. Even if you include poor performers in the mix.

Having said that, if the system you're considering was developed to predict performance of franchisees in similar type of franchises, and can provide you with documentation of such, in all likelihood you'd be safe just going with the "template" already designed by the developer of the system.

Hope that answers your question Joe. Did I miss anything?

Hello, my name is Andrew and I am a principal of Synergy Sales & Marketing (an outsourced, more results based executive sales and marketing leadership team) and I have a confession to make...

I am a failure.

In fact, I am the CFO - the Chief FAILURE Officer for many corporations around the world!  

Seriously, I am.

Rewarded more for the results rather than the services my firm provides and time it takes to render them, we have an extraordinary high tolerance for failure.  A tolerance that over the years has enabled us to look at the very concept of failure in a different way.  A way that has taught us a whole new truth.  A truth that at first seemed implausible.

For those who are not in the sales and marketing profession, you should know that our profession is riddled with failure.  In fact, it is more about failure than success.  This is an indisputable fact. For example, well done direct mail campaigns yield a 3% conversion, social media advertising, less than 1/2 of 1%, sales, dozens maybe even hundreds of no's before you get your first yes.  

Also, very often (an no matter how talented your marketing team is) website messaging is notoriously never right the first time or the second or the third... not resonating with its hyper-specific audience and buyers.

So, if this is the case, then why is every consultant, every book, every coach, every sales and marketing pro focused solely on how to do things the right way?  Why are they all instructing us how failure is averted even though that "right way" still statistically yields a terrible result?

Well, something amazing happened.  Or, should I say, I allowed it to happen.  By allowing myself to have this intimate relationship with failure for over 10 years now, through the good times and the bad, I came to realize something.  Something of paramount importance.  Something that will cause you to at least pivot and very likely make a completely shift.

In the never ending process of always trying to "figure it out" I realized that predominance of our best solutions, our largest paydays came from those lessons in failure.  I learned that:

  • the faster and more frequently we failed,
  • the better we emotionally detached from those failures,
  • the better able to objectively observe the process of what failure could provide (give back), and,
  • the faster and more frequently the solutions came to us.
  • the fast solutions came, the faster the incremental, measurable results.

Ultimately what I observed is that failing, failing fast and failing often helped us find a way to significantly improve upon the present statistical paradigms.  Most importantly, I realized that failure is not only a good thing, but if you can actually change how you (and everyone around you) feels about failure and control that process, the reward is almost limitless.

At Synergy, we change not only how our clients look at failure but how they FEEL about it.  Leading by example we not only interrupt the corporate culture, we change how they all collectively feel about failure.  And, what that new feeling engenders (spread person by person, task by task) is a collective willingness to fail.  

A change in cultural behavior that renders the collective:

  • Smarter than most,
  • Faster than most, and
  • Better than most.

Through massive yet compressed (expeditious) failure, our clients know better than anyone in their space how NOT to do it.  They also know however, better than anyone else, how TO do it.  How to figure it out faster; find that sweet spot faster.  Succeed faster!

Success today, or scaled conversion as I like to call it (aka getting customers to buy in mass) has really become less about the practice of "here's how" and more about the science of "here's how NOT to".  The science of allowing measured, controlled failure to reveal key learnings that ultimately allow for rapid and advanced solutions, adaptation and evolution.  And by fundamentally changing how we all feel about failure... now that's where the real magic happens!

So yes, I am now a failure scientist.  I like to call it that because I really am a former (environmental) scientist... a university adjunct professor in fact.  I am, and always will be... a recovering geek!  A recovering geek who realized that his talent was never actually doing the science but communicating it.  Taking difficult subject matter and making it more easily digestible for people to understand and BUY!

I realized this because I started landing huge clients for the firm for which I was last employed many years ago.  Then I landed MANY huge clients.  It was at that time when I knew my calling was of all things, not science, but sales!

Now, I am a business man.  An entrepreneur.  A chief sales officer.  And yes, the geek in me will tell you, a failure scientist.  Sales and marketing departments are now my laboratory.  Companies, leaders, hire me, hire us to figure it out.  To actually figure out how to get people to buy... and buy in mass.  They hire us not just build it and orchestrate it, they hire us make what we build and orchestrate WORK.

Leading my client's sales and marketing efforts, I have an awesome responsibility.  A responsibility to pass on my wisdom.  To lead them down a road less traveled than mine.  And that responsibility has taught me more about courage, specifically the courage to not only say I fail but, I am actually good at it... and you should be too.

If you and your company truly embrace failure what you will find is that you will create an entirely different culture.  A culture that embraces rapid change, adapts to it and reaps the rewards by creating incredibly inventive and rapid solutions.  Something we a Synergy call The Culture Of Conversion.

Hello my name is Andrew and I am a failure and... A Chief Failure Officer.

---------------

For more about me, Synergy and Creating The Culture Of Conversion for your business go to my Linkedin profile at www.linkedin.com/in/resultsnow/

Beginning January 1, 2013, Employers were required to update the forms they use for securing employee background checks.

As we have discussed in this blawg on several occasions, performing an employee background check is not as simple as turning an employee's name, birth day¸ and social security number over to a credit reporting agency and waiting for the results.

Employers are bound to follow a prescribed set of steps when securing and using employee background checks. If you fail to follow the proper steps the consequences can be dire.

The prescribed steps are listed below:

1. Secure proper authorization for employee and applicants background checks.

2. Notify affected employees or applicants of intent to take any adverse employment actions based wholly or partly on a background check prior to taking any adverse action.

3. Notify affected employees or applicants of adverse decision.

The new form requirement is imposed in step 2.

Post January 1, 2013, employers are required to provide employees and applicants with a standardized form entitled A Summary of Your Rights Under the Fair Credit Reporting Act.

The form must be given prior to taking any adverse action against an employee or applicant (i.e. not hiring an applicant, denying an employee promotion, firing an employee). A copy of the prescribed form can be obtained by clicking here.

Ignoring the employer mandates regarding employee background checks is not a good idea. Employers can be subject to fines up to $1,000 or the actual damage for each violation plus attorney fees.

Most of you and your associates probably received the first paycheck already in 2013. It is less than it was last time, right? How much less? Have you multiplied the "loss" by the number of payrolls in 2013?

Well, I just got off the phone with someone making $150,000 a year, gross. The first paycheck in 2013 is about $344 less than the last one in 2012 was. There are 26 payrolls in 2013, so it means losing thousands of dollars this year.

Why?  Because the temporary Social Security tax cut (also referred to as payroll tax cut) will not be extended for 2013. Therefore, everyone will see the Social Security withholding increase from 4.2% back to 6.2%.

In a nutshell, what does it really mean to you, a solo or small business owner?

- If you are a solo or small business owner who also made "capital infusions" or "loans" to your company, you will have less to lend.

- You have to spend wiser.

- Since other people are getting less money on their paychecks as well, they will spend less - or at least look closer before they buy goods or services. It means you have to focus on what you do best and spend more time with current and future clients.

What may be some reasonable steps to consider in 2013 bringing change to the way you do business but in a good way! Take a close look at your time management. What percentage of your time generates revenue? What are those tasks you do that would not generate revenue? Can you take them away from your list by having someone else doing them?

Would you be able to generate revenue (do you have enough clients or customers) to do revenue-generating activities if you get some or most of that time back?

If your answer to the last question was "yes", than you are looking at "delegating" work.

What type of activities are those you could take off the list? Let me guess: mostly administrative ones.

How would it be the most beneficial to delegate such work? You certainly do not want to spend more on office space or computers. You can't increase your overhead costs further by hiring a part-time full-charge office manager with full benefits to take the tasks over. But you need these tasks to be done, in a professional matter, not to mention ad-hoc tasks.

What is the easiest and most beneficial way to go from here? I recommend a consulting firm offering full-scale back-office services virtually. So you do not need to hire anyone and do not need more space to be rented. You would have your own accountant taking care of the books, who can also do the taxes and process payroll, invoice clients and customers. If you have any additional ad-hoc tasks, HR related (job advertising, background checks, ect.,), web service assistance, just to mention a few, you just pick up the phone and it is taken care of.

What does it mean to you? You are gaining more time that you can charge to clients so more revenue is generated. You have spent significantly less than what additional earnings you made to make it happen - so it was worth doing it. You are less frustrated with business administration because you do not have to worry about it.

You just promoted yourself benefiting YOU and your Clients.

My name is Sylvia Pacher, and I am always here to assist you along the way to grow your business bigger, stronger, more competitive and profitable.

Michigan, last week, became the 24th state to pass right-to-work legislation. A bit of a misnomer, the term “right-to-work” does not guarantee anyone’s right to work per se. What it does guarantee is that when employees choose not to join a union, they cannot be compelled to pay any union dues or fees as a condition of their employment.

In contrast, a “closed shop” would require that all workers join the union, and hence pay dues, as a condition of being hired.

While such completely closed shops were outlawed decades ago, the modified form that exists today permits a mandated fee payment to the union by those who choose not to join.

An argument against right-to-work is that all employees enjoy higher wages and better benefits as a result of the union and thus should contribute. The counter argument, and basis for right-to-work laws, is that choosing to join a union and pay dues to it, or not, is each individual employee’s basic right.

The passage of the right-to-work law in Michigan, and one earlier this year in Indiana, is significant because the mid-West has historically been a stronghold for union activity.

Right-to-work laws tend to have a weakening effect on unions. Many companies have relocated jobs to states that have right-to-work laws; it has been argued that the laws, therefore, have a positive effect on the economies and unemployment rates in those states.

For further information on right-to-work laws, subscribers to HRSentry may simply type right to work in the Search Box from their dashboard.

With year end almost upon us, human resources and payroll professionals are busier than ever! Reduce your administrative headaches by preventing problems. Check the list below to make sure you’re on top of important requirements and changes in the new year.

1. Report health insurance costs on W-2s. The 2012 W-2s that you issue in January, 2013 must reflect the cost of employer-sponsored health insurance in Box 12 with a code of DD. Note that small employers, i.e. those who issued less than 250 W-2s for 2011, have been given a one-year reprieve but are expected to report the cost in their 2013 W-2s to be distributed in January, 2014.

2. New Health FSA limit. The employee contribution limit for health flexible spending accounts is reduced to $2500 per year for plan years beginning in 2013 and beyond. Be sure to update your plan document and let employees know of the change. (Note that dependent care accounts are not changed.)

3. Social Security Tax Rate. Unless extended by Congress, the 2% temporary reduction in the social security tax rate is about to expire. Most likely, therefore, effective January 1, 2013 the rate will revert to 6.2% of wages up to $112,300 (an increase from $110,000.)

4. Additional Medicare Tax. If you have employees who earn more than $200,000 per year, you are required in 2013 to withhold an additional 0.9 percent Medicare payroll tax (an increase from 1.45 percent to 2.35 percent) to the amount of their pay that exceeds $200,000.

5. Loss of Adoption and Education Assistance Tax-free Status. The income tax exclusion of up to $12,650 in qualified adoption assistance and up to $5,250 in employer-provided tuition assistance are set to expire on December 31, 2012 unless extended by Congress. If applicable to your organization, let employees know about these likely changes. Consider ways to assist employees with educational reimbursements that qualify as a business expense.

6. Minimum Wage Increases. Where the state minimum wage exceeds the federal rate, you must use the higher wage. States with minimum wage hourly rate increases in 2013 are:  Arizona $7.80; Colorado $7.78; Florida $7.79; Missouri $7.35; Montana $7.80; Ohio $7.85; Oregon $8.95; Rhode Island $7.75; Vermont $8.60; and Washington $9.19. The federal rate will remain at $7.25 per hour.

7. IRS standard mileage rate increases are as follows:
56.5 cents per mile for business miles
24 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations

8. Defined contribution retirement plan limits. Increased amounts for 2013 are:
Maximum elective deferral by employee  $17,000
Catch-up provision limit for ages 50+       $ 5,500
Total maximium (employer + employer)  $51,000

9. Health Savings Account/High Deductible Health Plan increases. Note the following HSA limits and related HDHP dollar amounts for 2013:
HSA contribution limit (employer + employee)  $3,250 individual   $6,450 family
HSA Catch up contribution limit (age 55+)          $1,000
HDHP minimum deductible amounts                   $1,250 individual    $2,500 family
HDHP maximum out-of-pocket amounts             $6,250 individual   $12,500

For a full year-end checklist, HR Made Simple subscribers may view the Year End Payroll & Benefits Checklist (under HR Topic Modules on the Knowledge Menu.)

 

Open enrollment for health and other benefit plans is one of the most hectic periods for HR departments. You can’t completely avoid stress, but you can take actions that will help the process go much more smoothly. For calendar year renewals, if you haven’t already, start now! Here are some important steps to reduce your headaches:

1. Engage brokers and providers. Work with your providers. They should help you evaluate alternatives as well as provide informational materials for your employees. Enlist their expertise to help educate employees and, if need be, upper management.

2. Get approvals. Obtain upper management approvals as soon as possible regarding the plans that will be offered and the amount of employer vs. employee contributions. Until you have those approvals it’s difficult to plan properly so make this happen as soon as possible.  Be prepared to make recommendations and provide alternative scenarios and cost comparisons.

3. Forge a plan. Lay out actions to be taken for each benefit plan. Incorporate deadlines and new requirements into your planning and education efforts. This year there are Affordable Care Act (ACA) requirements to provide a Summary of Benefits and Coverage (SBC) to eligible employees at least 30 days prior to the plan renewal date following September 23, 2012 and to reduce the contribution limit to health flexible spending accounts (FSA) to $2,500 in 2013.

4. Communicate, communicate, communicate. Consider various methods to best reach all eligible employees. Email might be fine for office staff but it doesn’t work for employees who don’t use computers. Use a variety of methods to grab attention: email, intranet, posters, payroll stuffers, newsletters, home mailings. Communications should be clear and concise and highlight key information such as meeting dates, forms to use, and deadlines. Try, too, to drive home the point that this information is important to their well-being.

5. Educate, educate, educate. Benefits plans have become ever more complex in recent years and it’s important that employees truly understand the ins-and-outs of how plans work. If you have a high deductible health plan (HDHP) with commensurate health savings accounts (HSA) or health reimbursement arrangements (HRA,) it’s crucial that employees understand the complexities of how to use them legally and properly. Educational meetings should be held at different times to accommodate varying schedules.

Also, do consider hosting evening meetings for spouses as sometimes they are the ones making the benefits decisions. Make sure employees and their families understand such important facets of their health insurance plans as: deductibles, co-pays, coinsurance, preventative care coverage, required pre-approvals and referrals, cost differentials between in-network and out-of-network providers, and different tiers of prescription drug coverage. Their understanding will save you headaches later on! After all, when the insurance company does not cover a cost in the way the employee expected, to whom does (s)he complain?

6. Coordinate with Payroll. Make sure you know when enrollment and other benefits information needs to be provided to your payroll department and that your deadlines and planning reflect that timing. Ensure that 2013 IRS contribution limits are incorporated into the payroll system so the amounts are not exceeded. (To view these limits, click retirement plan limits and health plan limits.) Employees are disappointed when money they thought was deducted pre-tax needs to be taxed. That’s one headache you can prevent!

While the meatiest provisions of the Affordable Care Act take effect in 2014, there are some requirements to tend to right now. Make sure you are ready to comply with the following:

1. W-2s. Most employers need to make sure their 2012 W-2s (i.e. those issued in January, 2013) include the premium cost of their health care plan. Small employers, meaning those that issued fewer than 250 W-2s last year don’t have to comply until 2013, meaning the W-2s they will issue in January, 2014. The premium should be shown in Box 12 with the code DD and should include both the employer and employee share combined.

2.  Medicare Payroll Tax–Beginning in 2013, high wage earners on your payroll, defined as those earning more than $200,000, will be subject to an increased Medicare payroll tax on the amount above that threshhold. The employer contribution will not change. Here’s an example: If Jane earns $300,000, her first $200,000 is taxed at the regular rate of 1.45%. The remaining $100,000, however, must be taxed at a rate that is .9% higher, 2.35%. Be sure to set up your payroll systems accordingly.

3. Summary of Benefits Comparison (SBC)–This form is due to employees on the first day of your first health coverage open enrollment following September 23, 2012. The SBC was designed to help employees better understand and compare their health insurance plan choices. So for plan years beginning January 1st, you will need to get these to employees by December 1st. Most likely your health providers will be able to create them for you to distribute to employees. Note that electronic copies are permissible but you must provide a hard copy upon request.

For the SBC template and everything you need to know about the Affordable Care Act, subscribers may refer to HRSentry’s Healthcare Reform Kit, under the HR-Related Modules under the Knowledge Menu.

October is National Disability Employment Awareness Month. Consisting of a national campaign to raise awareness about disability employment issues, this year’s theme is “A Strong Workforce is an Inclusive Workforce: What Can YOU Do?”

There’s no better time to remember how vital it is that employers engage in an interactive dialog with employees who have a disability. The interactive process, required by federal law, is basically a dialog between the employer and employee which helps them come up with a reasonable accommodation (that does not create an undue hardship for the employer) to help the employee perform his or her job. Again, the interactive process is required under the Americans with Disabilities Act.

Just last week the EEOC filed suit against Regions Bank in Tennessee for age and disability discrimination. The bank fired a branch manager after she requested accommodation for a disability. The suit alleges that the bank refused her request for reasonable accommodation and failed to engage in the  interactive process to accommodate and, further, that it treated younger managers more favorably.

The Americans with Disabilities Act Amendments Act (ADAAA) of 2009 greatly expanded the definition of who is considered to be disabled. The question, therefore, has shifted from being about whether someone is disabled to how the person can be reasonably accommodated.  Employers should understand that, while they do not necessarily have to agree to a specific accommodation requested by an employee and they do not have to accommodate someone who is not qualified to do the job (with or without accommodation), they absolutely do need to engage in the interactive process.

HRSentry subscribers may find further information about complying with the Americans with Disabilities Act (and the Amendments Act of 2009 which greatly expanded the definition of who is considered to be disabled) by logging in to the HRSentry dashboard. Under the Knowledge Menu, click on HR Topic Modules to find the ADA Kit

 

Last week a man shot a former co-worker in the head five times, killing him, before being killed himself by police. A number of bystanders were wounded during the exchange of gunfire that took place in front of the Empire State Building in New York City during the morning rush hour.

Apparently, the victim had previously filed a complaint against his assailant which had said he believed the man would try to kill him. The shooter, a clothing designer, had been fired from his job about a year ago and is said to have been upset that the man he shot had not sold enough of his designs.

On the heels of a shooting spree during a Batman movie showing in Colorado late last month and in a Sikh temple in Wisconsin earlier this month, we continue to be reminded of the possibility of extreme violence erupting during such every day activities as seeing a movie, attending religious services and going to work.

Not every tragedy can be prevented. However, risks can be reduced and sometimes the extent of a tragedy can be minimized.

Here are some basic steps employers can take to reduce the risk of violence in their workplace:

  • Take proper care when hiring and always check references;
  • Perform background checks of new hires if lawful and appropriate for the position;
  • Create an emergency plan that includes evacuation and communication strategies;
  • Institute a workplace violence policy.

Your workplace violence policy should let employees know of your commitment to providing a safe and intimidation-free workplace and that violent or harassing behaviors will not be tolerated.

It should prohibit weapons in the workplace and give examples of prohibited behaviors (such as shoving, pushing, threats of violence, harassing phone calls or emails, arson, etc.)

The policy should require employees who experience or witness violence or threats of violence to report them immediately. Always provide more than one reporting avenue in case one person is not available or in case the employee is uncomfortable reporting the problem to that individual.

It should be noted that a number of states have recently instituted laws whereby employers may not prohibit firearms and ammunition from being on their property, i.e. if they are locked in an employee’s vehicle in the parking lot, so check your state law. That said, you do have the right to prohibit guns or other weapons from entering the actual work space.

Subscribers to HRSentry may access workplace violence policy samples and many other samples and best practice recommendations among its thousands of helpful HR resources. Although not every tragedy can be averted, employers should do all they can to minimize their risks.

 

 

With the advent of warmer weather, company dress codes often relax. Many employees acknowledge the change of seasons with more comfortable, cooler, and cheerier summer fashions. Ideally, employee morale and the work environment become a bit more upbeat. But some staff members take the flexibility too far and push the envelope. Whether it's too much bare skin or the snapping sound of flip flops, inappropriate dress can quickly produce problems in the workplace. What can you do?

Start with a clear policy. Explain the business reasons for your dress code, e.g.: projecting a professional business image, ensuring employee safety, meeting customer expectations, providing employees with a positive work environment that limits distractions. Give specific examples about what is and what isn't acceptable. If you use the term business casual, define it and give examples of acceptable wear such as collared polo shirts and khakis. If casual dress is acceptable only on certain days of the week, such as "casual Friday," state that clearly. Provide examples of what you don't want employees to wear, e.g. cut off shorts, flip flops or spaghetti strap tops if that's the case.

Be prepared to enforce your policy consistently. Spotty enforcement can hurt morale and lead to an accusation of discrimination. That said, it's legitimate to have different standards for different groups of employees if they are based on sound business reasons. For instance, staff who have contact with customers might be required to dress more professionally than those who do not.

Know your rights and consider the legalities. Dress codes based on sound business reasons and societal norms are usually fine. Where it can get dicey is if your policy infringes upon a protected category such as a religion or when it has a disparate impact on a minority group. For example, a policy forbidding all head coverings could present a problem for a Muslim woman or a Jewish man. A policy that allows men to wear jeans in the workplace but not similarly situated women, is discriminatory. So think through the business purposes of your dress code.

Keep the lines of communication open. Listen to your employees' request. If someone has a problem, meet with that person directly to discuss their needs so the situation gets resolved quickly without escalating. If someone has a true need based on religion or some other personal necessity, be prepared to make a reasonable accommodation as long as it does not create an undue hardship or safety concern for your business.

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