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.

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.

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.

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.

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.

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.

Every manager encounters difficult employees. One element of a manager’s role is to meet and communicate with disruptive employees in an attempt to facilitate behavior and performance improvement. Effective communication is the key to ensuring successful outcomes to such encounters. Learning a few communication techniques should foster a productive, positive attitude on part of the employee.

The Script

Before meeting with an employee, the manager should prepare a “script.” Design the opening of the dialogue such that the employee will be receptive to conversing with you. Request their assistance. Identify the issue and the possible causes, clarify their role as part of the team and define company policies concerning the matter. Engage the employee to assist with solution seeking. Remember to recap the conversation and confirm agreed upon solutions. Ensure that communication is honest, courteous and direct. Be clear about expectations and intentions and be open to feedback. Communication includes listening as well as speaking.

Assertive or Aggressive?

A manager should attempt to speak in a manner that is assertive without being aggressive. Assertive communication clearly defines your needs while maintaining a courteous and respectful attitude toward the audience. Aggressive communication adopts a posture that will usually put the “audience” on the defensive. Use phrases such as “I know how you feel”; “I have felt that way too”; “Here’s what I did…”; “It seems like…”; “If I hear you correctly, you would like…”.

Feedback

One of a manager’s responsibilities is the continuous, informal and formal evaluation of his employees’ performance. Managers would do well to provide positive feedback, motivating their employees to improve performance.

“You know Jack, you’re a natural leader, and the quality of your work is really great—when you are here, that is. If it weren’t for your attendance, I might think about giving you more responsibility.”

Negative feedback will cause people to become defensive and resentful.

“Jack, you’ve been out three days this month and this morning you’re late for the fifth time. Are you planning to set a new record? Frankly, your attendance stinks. If thing don’t change, you’re in big trouble!”

Communicate Expectations

Managers hoping for improved behavior on part of their employee must clearly define their expectations. People aren’t mind readers and may have a completely different understanding of what is expected of them from what you perceive. In defining expectations (for yourself as well as the employee) you must be specific, even detailed if necessary. Use behavioral terms. For example, “I want you to treat me with respect.” This is a subjective statement. How would a person BEHAVE if they were to treat you with respect? This is what should be defined.

“I want you to be more of a team player.” How would a team player behave? Instead, one might say “I would like you to attend all departmental meetings and provide assistance to coworkers who request help.”

Conclusion

Communication with employees, even difficult ones, can be a productive, positive experience, provided that one prepares in advance and uses effective communication techniques. Clarify matters for yourself beforehand, focus on strengths, provide positive feedback, refrain from attacking and yet be determined and clear. The resulting performance improvements will strengthen your belief that a positive, constructive and productive work environment is possible.

Hesitation

Often the fear of confrontation and escalation of behavior prevent managers from tackling problems with employees. Inaction will lead to more substantial problems, so you must gather your courage and meet challenges head-on.

Creating a plan can provide you with greater confidence and direction. Explain the plan to the employee as it relates to expectations concerning the employee’s behavior and performance.

Resolutions and Solutions

A manager should always remain calm. Objectively define the issue, viewing it as solely work-related and not as a personal concern.  Clearly determine what the issue is and remember to use only facts. 

Begin the solution process by defining your goals. Determine what end results you are seeking. Ensure that goals are reasonable, attainable and aligned with the goals of the individual, the department and the company.

Clarify the actions required to ensure proper completion of the goals. Ascertain whether you possess all the necessary tools and support to accomplish your objectives.

Define what you believe would be an ideal solution (one that benefits the company, the department and the employee). Always check with HR to verify that your actions are legal and consistent with past procedure. Keep an open mind, and frequently self-asses to ensure that you are remaining objective.

Determine if any obstacles exist and if so, how they could be overcome.

Determining Obstacles

Obstacles on part of the employee may fall into one of three categories.

• Don’t Know- The employee does not know what you want, so they are not completing the job.  The solution is to communicate clearly and gather feedback. 
• Can’t Do- The employee lacks the ability to do the job.  Insufficient training or ineffective resources and tools are possible causes.  Analyze the situation and provide the necessary training, improve the resources and tools, restructure the job or even transfer or terminate as a last result.  Termination is the preferred choice only if the employee genuinely does not have the capabilities to do the job and training is not a reasonable option. 
• Won’t do – An employee may refrain from performing their job properly if they suspect that they will lose more than they will gain. They may believe that they will be punished if they do a good job (more work, harder assignments), they will be rewarded for a bad job (less work and duties), they perceive that their work doesn’t matter or they just don’t care anymore.

In our next post, we will tackle the solutions that can make real changes to your company.

How to recognize a difficult employee.

A manager must be able to recognize the behavior of a difficult employee. Difficult employees have a damaging effect on the workplace when they put a negative spin on decisions, undermine authority, create hostile work relationships, damage group moral and so much more.  A difficult employee will also spread rumors, refuse to cooperate, break the rules, avoid work, be frequently late, complain constantly and display anger.

A manager must first determine if the difficult employee has a performance problem caused by issues outside of work such as abuse, physical abuse, substance abuse, financial, family or personal health, and/or emotional.  In these cases, a manager may want to encourage the employee to consider outside help.

The Five Types of Difficult Employees

It must be decided if the difficult employee has a personality or behavior problem in order to decide on a course of action.  There are five personality types: The Bully, The Procrastinator, The Passive Aggressive and The Gossip and The Constant Critic.

1. The Bully. Personality traits for the Bully may include physical and verbal intimidation, shouting, profanity, throwing objects, blaming others and threats.  This behavior is often caused by low self-esteem and from seeking control. In order to deal with a bully, a manager should be firm; use open-ended questions; not compete, take notes, and require their cooperation to sit down and talk. If there are frequent outbursts,  it is critical to address the issues immediately to ensure a safe workplace.
2. The Procrastinator has trouble starting/completing tasks and lacks motivation. This is caused by a fear of humiliation, rejection, and failure.  It helps to set procrastinators up on a specific timetable, with required “mini” updates. Also, a manager must be prepared to re-assign the project to someone else.
3. The Passive Aggressive is friendly to your face and negative behind your back.  Not a team player, they agree with everything but end up doing what they want.  The passive aggressive is angry but dislikes confrontation.  The manager should be specific; concrete in expectations; clear about consequences; and try not to over supervise this type.
4. The Gossip talks to everyone about anything due to an extreme need to be liked and accepted. The manager should never participate in gossip and immediately identify it while using disciplinary action if necessary.
5. The Constant Critic falsely accuses and undermines others behind closed doors, including the boss and company decisions.  This type also humiliates others in public settings in order to control the emotional climate at work. 

How to determine if the behavior of a difficult employee can change.

Meeting with the employee will determine if their behavior can be changed. First, a manager must be calm, consistent in communication, and courteous.  Before the meeting, objectively define the issue, decide the ideal outcome and write a script.  The script should be designed to keep the employee open to conversation and ask for their assistance.  Start with a goal, which should be aligned with the goals of the individual, the department and the company.  One should be specific in defining expectations.  Be clear on both the manager’s role and the employee’s role. Identify the issue and possible causes; clarify workplace policies, and ultimately seek a solution from the employee.   Create a time frame for how long the solution should take.   At the end of the meeting, recap the conversation and confirm agreed upon solutions.  Be sure to document the conversation and use progressive discipline if appropriate.

Should the Employee be terminated?

First, determine if the workplace is creating “difficult employees.”  For example, the following workplace issues can create difficult employees:

• when a manager prefers to avoid conflict;
• has discomfort being a disciplinarian;
• employee’s strength mask the weaknesses or “snows” the manager and coworkers;
• personal friendship between the manager and the employee.

If the workplace is not to blame and the behavior of an individual becomes excessive such as going beyond the company’s policies and procedures and interfering with productivity and/or safety of themselves or others, it may be time to terminate.  This must be carefully considered since terminations affect credibility and morale, turnover costs are high, and unlawful termination claims should be avoided at all costs.

California employment law

While many employers do not feel the need to educate their staff on proper anti-harassment policy, the impact of non-compliance can be enormous.

The Risks of Not Training

Violating AB1825 itself carries no penalties. However, the Department of Fair Employment and Housing (DFEH) is a California agency that performs duties on a state level that the EEOC performs at a federal level.  It investigates claims of discrimination and harassment and administers FEHA, the Fair Employment and Housing Act of California.

Not training is like driving without a license.  If you don’t get caught, all is well.  When you do get caught, the ripple effect becomes very expensive. In 1985, the California Legislature made it a violation of FEHA if “an employer . . . fail[ed] to take all reasonable steps necessary to prevent discrimination and harassment from occurring.”

In 2003, the California Supreme Court ruled that an employer is strictly liable for all acts of sexual harassment by its supervisors.  Since employers can be held liable for the acts of their supervisors, it goes without saying they would want to train those individuals.

An exact penalty has yet to be determined, if a supervisor is accused of harassment and it is revealed that the legally required sexual harassment training did not take place. However, it is likely that damages imposed upon the company will be significantly greater than if the company had complied with the law and conducted the appropriate training.  Additionally, penalties and fines for each individual who should have but did not receive the appropriate training may be imposed, though no specific dollar amount was designated. Legal counsel has recommended penalties ranging from $100 to $1000 per person. Past Supreme Court decisions clearly outline that the presence of proactive training can greatly reduce and even eliminate punitive damages.

If a claim is filed against your company, the DFEH will immediately require documentation of all trainings including:

• The number of supervisory employees in the last year;
• Dates of sexual harassment training in the last year;
• A copy of the sign-in sheet;
• signed acknowledgments of participants;
• Name and qualifications of the trainer;
• Copies of all training materials.

So what should you do?

Make sure you are compliant with the law!

1. Keep electronic and hard copies of your documentation of trainings for at least two years
2. Handout the policy annually to all staff as a “refresher” reminding them of the rights and responsibilities;
3. Routinely make sure training material is current and up-to-date;
4. Always, always check with employment counsel if you have any questions.

If you are in California and California employment laws such as AB1825 apply to you, train all your supervisors, managers and lead people.  If you have less than 50 employees, train everybody anyway – the DFEH expects it, and it’s the smart thing to do!