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2012 HR Strategy #3: The Importance of an “Engaged” Workforce

Wednesday, February 1st, 2012

In 2011 Gallup Consulting conducted an unprecedented study of over 47,000 employees in 120 countries throughout the world. The study, The State of the Global Workplace: A worldwide study of employee engagement and wellbeing, analyzes the impact that job satisfaction and engagement has on overall productivity and life satisfaction.

The results of the study are nothing less than shocking: while 3 in 4 (73%) employees state they are satisfied with work, only 1 in 9 (11%) state they are engaged in their job. “Engaged” is identified as “emotionally connected to their workplaces and feel they have the resources and support they need to succeed.” The vast majority of workers, almost 2 in 3 (62%) state they are not engaged — that is, emotionally detached and likely to do little more than the bare minimum to keep their jobs. But perhaps the most frightening discovery is that more than 1 in 4 employees (27%) are actively disengaged – meaning they view their workplaces negatively and are liable to spread that negativity to others.

The study continues to show that, as would be expected, organizations with higher ratios of disengaged employees have lower productivity and a higher ratio of employees with health conditions or are otherwise unhappy in their personal lives. And the organizations with the highest percentage of engaged employees report greater profits and motivated staff.

Two Engagement Strategies

One can speculate that the prolonged recession and economic uncertainty have led to these dramatic findings. Indeed, the National Federation of Small Business’s “Optimism Index,” while slightly higher in recent months, is still significantly lower than pre-recession levels indicating the employment climate is still severely suppressed. As such, the Gallup study concludes, businesses must actively pursue programs that seek to engage their employees in an effort to boost morale and productivity. Here are two brief ideas to get you started. We will explore more in future posts.

  1. Recognition and Feedback. Recognizing employees’ accomplishments and providing regular feedback are ranked as two of the most important factors in creating an “engaged” workforce. Managers who find ways to measure and celebrate their staff will quickly find a drop in absenteeism, increased morale and productivity gains in the long term.
  2. Training and Development. An educated workforce will not only be more productive, but will naturally be committed to the organization. Providing employees an opportunity for growth and expanding their professional skills are invaluable in promoting positive feelings towards the company. On the one hand, the employee recognizes their employer is investing in them and is looking towards the future. On the other hand, the employee themselves will be more confident in their role, thus leading to greater productivity and commitment.

These are just two quick ideas to get you thinking. Ultimately, as the Gallup study states, “High-quality jobs keep the world moving forward… Jobs that give individuals a sense of pride and dignity as they build a more secure future for themselves and their families.” Whatever you choose to implement, provide your staff the pride and dignity they deserve, and you will all come out the winner.

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3 Employment Strategies for an Uncertain 2012 – Part 1

Monday, January 23rd, 2012

From the Republican primary race, to the future of Health Care Reform, to employer tax cuts, it seems that 2012 can be dubbed, “The Year of Uncertainty.” However, despite the unknown, employers can take control of their future by focusing on three important employment strategies for the coming year. Those three priorities are: 1) containing employment costs; 2) Reducing employment risks; 3) improving employee performance.

In part one of this two-part series, we will discuss these three strategies and what they mean to employers. In part two we will analyze how employers can effectively implement these strategies into their organization.

Stabilizing operating expenses. Following years of flat sales, employers should investigate ways to manage a lower operating budget and to minimize unnecessary expenditures. While there are potentially hundreds of areas that can be considered, employment costs usually account for one of the largest percentage of expenses in any business. These expenses include hard costs, such as payroll and tax overhead, health insurance premiums, workers’ compensation insurance, legal and recruiting fees, and payroll processing costs. They also contain soft costs such as employment administration, employee training, responding to employee questions or complaints, employee reviews and general labor law compliance. Reducing these labor costs can have a significant impact an employer’s bottom line.

Reducing employment risks. With years of experience and research to support the claim, it has been well documented that there is a direct correlation between difficult economic periods and an increase in employment related lawsuits. Stephen C. Dillard, head of Fulbright’s global litigation practice, states “Generally, litigation rises in an economic downturn as regulators tend to step up enforcement, laid-off workers head to court, and companies need to file more suits in order to collect money owed.” To head off the potential of an employment-related lawsuit, employers should be diligent in training managers on appropriate termination policies, updating various employment forms and policies, and reviewing internal accounting and HR process to ensure they are in compliance with payroll-related labor laws and regulations. As the economy strengthens, employers may find themselves looking to rebuild their workforce. In preparation for growth, they should update employee handbooks and new-hire procedures, train management on proper interviewing techniques, and review all forms, new-hire packets and offer letters for compliance.

Enhancing employee performance. Even as companies begin to hire again, it will probably take some time before staff reach pre-recession levels. This translates to managers still trying to maximize productivity with their smaller workforce. With all the downsizing, reduced bonuses, and increased workload of the past years, it is obvious that employees continue to face a stressful work environment. Furthermore, both employees and management struggle to find a healthy balance between productivity and the decreased manpower. In order to maintain employee morale and commitment to work, employers are challenged to find new ways of motivating and incentivizing their staff to maintain a positive attitude while managing the increased workloads.

In our next post, we will discuss how Human Resources Outsourcing should be considered as a viable business solution to actualize these three employment priorities.

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2012 Human Resources Updates: What Employers Need to Know.

Wednesday, January 11th, 2012

We are proud to announce the release of our annual report, highlighting various 2012 labor law updates. The report, titled “2012 Human Resources Updates,” covers a wide range of topics that directly affect employers in the coming year.

Over the past several months, dozens of new employment laws and legislative bills were signed into law that went into effect on January 1, 2012. These changes will directly impact the way employers conduct business, including areas such as payroll tax limits, new employment guidelines, and changing insurance markets.

Ari Rosenstein, CPEhr’s Director of Marketing, explains:

“Not only are employers throughout the country burdened by the weak economy, but they are confused and troubled by the seemingly unending flow of employment regulations. Many small employers recognize it is virtually impossible to stay up to date on a regular basis, especially at the turn of a new year when many new laws go into effect. It is for this reason we publish our annual HR Updates report.”

The report draws from CPEhr’s human resources experience on a wide range of employment, payroll, tax and insurance areas. Topics covered in the report include:

• New employment laws effective in 2012
• The IRS Voluntary Worker Reclassification Program
• Understanding the importance of correct employee/1099 classifications
• New 2012 Tax and 401(k) limits
• The value of employee training and development
• Rising Workers’ Compensation costs and how to mitigate them
• Creative approaches to reduce increasing health care premiums

“Our hope is that employers will read the report and, at the least, become aware of the important changes coming in 2012. At best, we hope they will take the time to investigate the new laws and adjust their business activities accordingly,” said Rosenstein.

 

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Posted in Employee Benefits, Employment Laws, Management, Outsourcing, Payroll and Tax, Training and Development, Workers' Compensation | 1 Comment »

How to Effectively Manage Violence in the Workplace

Wednesday, December 7th, 2011

In November, 2009, U.S. Major Nidal Hasan killed 13 people and injured dozens more on a US military base in Fort  Hood, Texas. More than two years later, the Defense Department classified the shooting as “workplace violence”. While this has caused a stir in the political world (with Republicans decrying the classification as putting political correctness over national security), workplace violence is a reality that should be taken seriously by all employers. In this post we will briefly review some of the causes of workplace violence, and what employers can do to mitigate it.

What Causes Violence in the Workplace?

Several reasons are given for violence in the workplace. These include:

  • Economic pressures and personal stress – financial, psychological or social challenges that can build over time;
  • Violence may be viewed as a way to deal with personal frustrations or resolve conflicts;
  • The glorification and tolerance of violence due to the abundance of graphic depictions on video, TV and in games;
  • An opportunity to express extreme or fanatical political opinions or religious beliefs.

Ultimately, there are unlimited reasons why workplace violence exists. However, as an employer you are expected to create an environment that is safe for all employees, to the best of your ability.  There is no way to predict if or when violence will occur in your workplace, but certain proactive, interventive steps can be taken that can reduce the chance of violence erupting.

Proactive Steps:

  • If you notice an employee exhibiting aggressive or threatening behavior, address the situation immediately.
  • Review your workplace safety policy with problem employees so they are aware of the consequences of their actions.
  • Educate employees in the workplace to be alert and to report any aggressive, disruptive or violent acts.
  • Immediately refer employees who have exhibited violent behavior to counseling (EAP or private)

Following these initial steps, be sure to remain proactive and follow-up with ongoing monitoring of the employee’s behavior, use progressive discipline as needed, and assess the violent potential of terminated employees.

While intervention is an important approach to address workplace violence, the number one prevention is to define and require professional conduct across all-levels of the organization. In a professional work environment, disruptive or violent employees will be identified much faster than they would in a chaotic environment with little or no professional standards. Every business should strive to this goal which will not only minimize the chances of workplace violence, but will enhance the overall success of the organization.

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Employee Documentation, Part II: What to Do and What to Avoid

Monday, November 14th, 2011

Continuing with our examination of the importance of employee documentation in the workplace, we will now detail the particular events and communication that should be documented, as well as highlight common documentation errors worth avoiding.

What to Document

Managers should document any formal or informal discussions with employees regarding company policy or job performance. This includes observation of company procedure or policy violation and conversely, observing an employee performing “beyond the call of duty.” Don’t underestimate the importance of making note of informal reminders of company policies to an employee. A manager will find it difficult, if not impossible, to remember the informal comments and reminders that lead up to disciplinary action without jotting down a quick note at the time.

Rumors overheard or brought to one’s attention should be noted, especially in the case of Unlawful/Sexual Harassment, for which employers are obligated to investigate all complaints and rumors, regardless of how small.

Record all product and service specific conversations or discussions carried out with potential or existing customers, vendors, dealers or shipping agents.

In short, be sure to document any conversations or actions that may lead to tangible employment action, a need for evidence or changes in business agreements or policies. Issues with products or services and promises or agreements made also require documentation.

Common Errors

Harried managers and supervisors are often pressed for time and may rush through documentation. Admittedly, documentation can be time-consuming, but rushing can lead to mistakes, eventually damaging employers in the event of an investigation. Below are six common mistakes that should be avoided:

  1. Sign and date all statements that you write. If appropriate, ensure that the individual also signs. Penmanship does count; an illegible document will just frustrate the situation.
  2. Documentation that was recorded days or weeks later than the event holds much less credibility and doesn’t shed a complimentary light on the company or you.
  3. Remember to avoid biased or unsupported opinions and ensure that all documentation is strictly based on solid facts. Verify that all information is completely accurate.
  4. Don’t be vague: “Mary White has been arriving late for work at least three times per week for a period of 2 months” is much more effective than “she needs to get better.” To ensure that specific details will be available when needed, begin documentation at the first sign of a problem.
  5. Be very careful to avoid inconsistent or biased application of company policies. Any hint of favoritism will not be looked upon favorably at all. Ensure that similar infractions are dealt with consistently across the board.
  6. Do not write personal notes on ANY documents, including applications, warnings, resumes, performance appraisals and others. A judge may eventually see the documents and altering documents in any manner, including erasing side notes, is against the law.

Summary

Documentation is meant to demonstrate evidence of actions. Not limited to disciplinary action, documentation should cover an extensive assortment of events. Documentation is effective when it is factual, specific, unbiased, legible and when appropriate, signed. Remember to always inform Human Resources of all documentation.

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The Importance of Employee Documentation: Part I

Wednesday, November 9th, 2011

A wide range of state and federal laws require employers to maintain employee records for specified periods of time. The gamut of federal laws extends from the Fair Labor Standards Act to Title VII of the Civil Rights Act. In addition to official records pertaining to matters such as wage and hour information, I-9 forms and employee payrolls, documentation concerning employee performance and communication with customers or suppliers are also essential, providing legal evidence in case of necessity.

Events that are not recorded will be regarded as non-events, as if they never occurred. Many employers do not realize that documentation is a necessity. Those that do grasp its importance do not always devote sufficient time towards maintaining documentation that will be adequate to defend themselves, should the need arise. Employers may find themselves in court, ardently stating that they spoke with their employee on several occasions, without any evidence to support their assertion. Time and effort devoted to proper documentation is a wise investment for any employer.

The Value of Documentation

Documentation provides protection to both companies and employees by presenting concrete evidence of data, facts and actions in the case of investigation, arbitration or litigation. Documentation provides proof that decisions concerning an employee’s status were entirely based on job performance and other related issues. Conversely, documentation protects employees from false claims maintained by managers or supervisors not performing their job properly.

What is documentation?

Documentation is the formal reporting of facts, incidents, evaluations and observations of any specific situation or communication. The most common form of documentation is the written word, but it may include videotapes, audio recordings and the like. Barring a specific request for an employee’s signature such as upon receipt of a handbook, training or possibly a disciplinary warning, documentation does not generally require an employee’s signature.

When to Document

Managers should ensure that they document as soon as feasibly possible following actual events. Studies indicate that as quickly as 15 minutes after an event occurs, a person’s memory begins to fade or change. Prompt documentation will be considered more credible and reliable.

Elements of Documentation

Documentation should include the full names and titles of the involved parties, the date the event occurred as well as the document writing date. Record the type of event observed or the violation witnessed, including specific details and photocopies of any evidence.

Objective and Specific

Be specific when recording your documentation, but remain completely objective, making sure to stick to the facts. Avoid stating “opinions” and steer clear of exaggerations. “Joe appeared to be deceiving me” would be considered an opinion lacking supportive evidence, whereas, “Joe avoided all eye contact during the meeting” is an objective behavioral observation.

In our next post, Employee Documentation: What to Do and What to Avoid, we will specify the circumstances which require documentation and identify common documentation errors worth avoiding.

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