Workplace of Choice

As the days of summer quickly get us to Labor Day…fall means 2011 planning!  Are you ready to review your employee benefits programs and costs?   Here are a few tips to keep in mind that will help trim your costs:

Benefits Statements:

Do your employees really know the “value” of their benefits?  If not, $how them!!!  A benefits statement is a customized, individualized statement which shows the costs of their benefits and is used to increase employees' awareness of the value of their benefits package.

Employees who understand and appreciate their benefits evaluate other job positions on an “apples-to-apples” basis (factoring in the value of all benefits, not just take-home pay). An informed workforce is the most effective defense against employee turnover.

The Benefits Statement can also be used as a communication tool for 2011 Open Enrollment.   

Reconcile the Data:

Are you carrying benefits for terminated or inactive employees or dependents that no longer meet coverage criteria?  Conduct a quarterly audit focusing on the following:

• Make sure only active employees on your insurance plans
• Remove terminated employees
• Full-time students who no longer meet the age coverage criteria
• Spouses/dependents of employees

By doing an audit and requiring documentation that spouses and dependents who are on your plan are actually related to the employee in question, you can drop your total number of covered individuals by as much as 10 percent. Of course, in doing this, you’re presenting employees with a tough message on trust, and the ones who are not being forthright will be the ones with the worst reaction. 

Promote Wellness:

Want to get your employee’s attention…how about some cold-hard-cash for healthy habits!  Keep your costs down by promoting healthy habits.  A quarterly blood pressure and cholesterol screening that is within the “healthy range” keeps employees healthy (and healthcare claims costs down!)  Consider offering employees a small stipend for every quarter their blood pressure stays in the “healthy range”.

Some other cost-savings / free programs to consider:

• Company Walking Club: Walking teams can compete against each other…nothing like a little friendly competition!
• Many health-plans have “Living Healthy” programs whereby employees can get partial reimbursement for gym memberships and weight loss programs.  Contact your plan’s member benefits for more info.

What have you implemented in the past to help contain your employee benefits costs?  

So, finally we all seem to be getting back to "normal" following the worst economic downturn in recent history. You may be noticing, however, that while "normal" seems better than recent months - it may feel very different than say, 2-3 years ago. As we all get our legs back under us - this is an ideal time for companies, big and small, to start testing, validating, and redefining "normal" within their organizations.  If nothing else, we should all learn from the economic issues that plagued us. Instead of restarting business as usual - think about recalibrating and looking more closely at your organization and your human capital.

Think about:

• Who were the most valuable members of the organization during the height of the crisis? This might have been surprising - were there silent superstars in the ranks that simply needed this opportunity to prove their value and ability?  What made them superstars and the ones able to weather the storm?
• If you had to lay people off, what was the profile of those that were able to step in to pick up extra work? Were they your managers?  Or were other employees able to roll up their sleeves and pitch in?
• Were there roles that had to be eliminated ones you intended to refill when you could?  Do you really need to refill it now or do you find that you no longer really need that specific job because you've gotten along just fine without it?
• Were your Managers able to lead?  Or was it obvious that the Manager Training you've been meaning to get to would have come in really handy when they were helping to communicate change, manage RIFs, or mediate conflict in a very confused workplace?

Before you go out and repeat to your old practices - take a step back and determine what worked well in the troubled times and see if it might make sense to duplicate some of those practices instead.

For example:

• Instead of filling silo-ed roles that are all very specific - think about hiring people that are forward thinkers and doers that might be able to share the load and multi-task.
• Invest in some Leadership Training and Management 101 so that your people are able to grow and be better poised to help in times of change
• Be very thorough in hiring - many times companies 'skip steps' either in desperation to fill a job or the candidate is doing so well with the interviews, they don't feel like they need to check references.

And remember those employees that stuck by you in tough times - instead of thinking "well, at least they had a job" remember that without them you might not have been able to come through as well as you did!!

This is the time of the "new normal."  The perfect time to fix what could have worked better and harness and duplicate the energy and abilities of the superstars and further enforce what worked well!

 

In a recent blog post Employee Investment - Is It Important?, we discussed why it is important to invest in all your employees, not just higher level employees.  Through investment in your employees you gain employee retention and employee productivity both of which directly contribute to the success of your business.  Nancy Mobley, CEO of Insight Performance, always says, “I have my A Team and my A Team is going to provide quality service to our clients and help us reach the goals we’ve set for the business.  Keeping our team happy will directly impact our business.”

Investing in and keeping your A Team happy is imperative to the business.  Productive employees are happy and happy employees are productive – either way a win-win for the business.  No matter what your efforts are to keep employees happy, there will be employees who come and go, maybe because the culture was not the right fit or because they received a better offer somewhere else. There are a million reasons that people leave jobs but it is the role of the employer to create a culture and work environment that makes them want to stay.  As discussed in previous blog posts, some ways to keep employees happy is through benefits, employee programs and a commitment to your people.

Bottom line - happy people is good business. In essence happy equates to productivity, retention, quality and success!

Is your workforce engaged?  Employee engagement is the new HR buzzword connecting the workforce to the company’s productivity and employee productivity.  According to a recent HR Magazine article $350B is the estimated annual cost of disengaged workers for U.S. businesses.  Clearly, employers cannot afford to have unengaged employees who have “checked out” only putting in time but not passion or energy into their work.  Employee engagement is a key link to customer satisfaction, company reputation and overall stakeholder value. 

So how do you tap into your employee’s engagement level?  Consider how you currently empower, develop, recognize and reward your employees.  Are there opportunities for your employees to be a partner in executing your mission and business strategy?  Do you reward those who take personal responsibility in getting results to increase the profitability and growth of your business?  Now, more than ever, is the time to focus on your employees as they are the key to your future success.   Without employee engagement, your company mission and values and business strategy are just an idea.  The employees make it real and are the driver of business success in today’s competitive marketplace. 

In order to measure your employee’s commitment, motivation, sense of purpose and passion for their work and the company, consider confidentially administering an employment engagement survey.  Employees will appreciate the fact that you value their opinions and you may uncover some real gems to fully engage your team!

Do you consider employee communication a high priority? Studies show that companies with highly effective internal communication programs are more likely to provide a significant return to shareholders and are also more likely to have higher levels of employee engagement and lower employee turnover rates.

But, how do you begin?  Start at the top by assessing your senior management team - they set the tone for establishing organizational culture and cascading daily consistent messages to employees. Ask your employees what they think - do they feel communication is aligned with the mission, vision & culture of the organization?  Is it consistent?  Timely?  Facilitate focus groups to hone in on the common threads.  Once you have determined what the issues are - take a look at your budget to determine what sort of communication vehicles you can afford to implement. Depending on the timing, location and sensitivity of the message there a number of vehicles from which to choose.  The Employee Handbook, Monthly Newsletters, Town Meetings and Social Media are all commonly used.  Choose your communication channels carefully.  Think about your audience and how to best communicate with them.  We tend to turn to e-mail first, but keep in mind that this is often the least effective way to get your message across.  When possible, face to face communication tends to be the most effective because we receive an immediate reaction, are able to clarify any confusion and people tend to listen more closely.

The key to a strong employee communication strategy is planning, followed by implementation and follow-up. Taking the time to communicate with your employees will help increase employee productivity, boost employee morale and ultimately improve the bottom line.

Why spend the time, effort, and resources to comply with employment laws?  "We're small and our resources are very limited. Compliance tasks are just another distraction from making a profit. Besides, our company is so little it's unlikely we're even on the regulators' radar screen. We'll do the absolute minimum and take our chances."

First, consider the fact that most employment legal actions arise from current or former worker complaints, not random or even scheduled regulator audits. This makes it all the more hazardous since employees have personal, insider knowledge of the employers' Human Resources practices and HR policies - they've been on the receiving end!

Second, enforcement activity at both the Federal and state levels is up and will probably stay high for the foreseeable future. Flagrant and widespread employer violations in recent years, the economic recession's pressure on businesses, and a worker-friendly White House all combine to focus far greater attention on workers' rights than was the case during previous administrations.

Third, violations can be very costly, but can be avoided by implementing compliance programs. A cursory look at Wal-Mart's experiences reveals why it's worth doing compliance right. Few American companies have as checkered a history of labor law violations and numerous, multi-million dollar settlements, as Wal-Mart.  Yet even the big retailer has learned a lesson in the value of changing its ways. A recent decision by the U. S. Court of Appeals for the 11^th Circuit came down squarely in favor of Wal-Mart due to the fact that one of the Company's operations had developed, implemented, and closely adhered to a sexual harassment policy, even to the point of progressively disciplining and eventually firing an offender. When the harassed, female employee sought damages from the Company, the Court denied her claim, citing Wal-Mart's close observance of the law against sexual harassment.    

Finally, HR compliance is the law. An employer that takes good-faith steps to comply sends a strong message to its employees, customers, and the community at large that it is a reputable organization worth considering as an employer, a vendor, and a corporate citizen. Most workers and businesses would not choose to work for or do business with a company whose clear strategy is to skirt the law whenever possible. Employers seek to differentiate themselves by transparent, sustained observance of employment laws.

So, the choice is yours. Choose wisely.

Do employers have a pulse on what their employees are thinking or doing in the midst of this changing and unpredictable economy? Are employees staying put and excited to be rewarded for their allegiance? Maybe they've been holding on, just glad to have a job, and as the economy turns around will run to the next new opportunity.

Now is a excellent time to do an Employee Survey - conducting an Employee Survey is a great tool to get a pulse on your employees, understand employee morale and employee motivation,  but there are a few tips for making sure it's useful.

• Be prepared to do SOMETHING with the results - asking employees to go through the exercise and then doing NOTHING is guaranteed to reduce participation next time and disgruntle employees!
• Be honest about why the survey is being conducted and equally honest that, although the data will be carefully assessed, it's an unfortunate fact that not every issue will be addressed. Confirm that the company is committed to hearing employee concerns and acknowledging them even if they all can't be addressed.
• Make sure employees know that all the data is confidential - if employees think that their answers are going ‘into their files' - their responses are likely to be less than honest.
• Conduct the survey onsite or online with access at work. If a survey (or even a focus group) is held off-site, it conveys a message that ‘it's not safe to be honest or critical at work'. That message would clearly undermine any value from the results.
• Employees should either all be included or randomly selected - it's unwise to allow employees to self-select for participation. When you allow self-selection, you'll generally find that less satisfied or very satisfied employees sign up for the group. Or, your more communicative employees are more comfortable expressing their opinions in a group. Your less communicative staff is guaranteed to be unrepresented.

What is your company's value proposition?  What separates your company from the rest? The answers to these questions will help you determine your "employer brand" which, in turn, helps to define corporate culture, company values and can convey the organization's strategic mission. There are many reasons for employment branding, but one of the most critical is to attract and retain high value employees that best fit your culture.

Assessing the company's strategic mission, vision and goals is the first step in developing employer branding. Solicit feedback from your employees; ask current and former personnel to describe their view of the company's actual values, mission and goals.  It is important to know the employee's perception and employee satisfaction, so that if the company needs to work on modifying its identity, it can. Question applicants-those who got the job and those who did not-to find out their impressions of the company. Question senior management to determine what they want or expect their image to be as an employer.

Once your questions are answered, conduct a gap analysis. Compare the actual company-based on the results of your questioning with your ideal. Clearly define what steps need to balance the actual perception with the desired.  Align your HR strategy to help you achieve your brand.

Compare the company brand with the recruiting brand. Make sure they are in sync. If one is different from the other, why and how can you align them?

When you are content with the recruiting brand, communicate it to your employees through training, coaching and performance management activities to reinforce behaviors and align your work force.  Reward behaviors that line up with the brand and mange those that are inconsistent.  Keep the employer brand in the employee's "line of site" at all times.

Lastly, implement a strategy to enforce this brand and follow up often. Measure the effectiveness of the strategy and stay mindful of the pulse of the employees that ultimately create and perpetuate your brand.

Setting and cascading goals throughout the organization is vital to achieving company objectives.  When defining goals, you'll want to make sure they meet the SMART criteria:

Specific: A specific goal has a much greater chance of being accomplished than a general goal.

Measurable: Establish concrete criteria for measuring progress toward the attainment of each goal you set.

Attainable:  It should be a stretch to reach the goal, but not so much so that it's out of reach. 

Realistic: What it takes to do to achieve the goal should be within the availability of resources, knowledge and time.

Timely: The goals should have a clearly defined time-frame including a target completion date.

Using the SMART criteria above, you should determine 3-5 goals that are tied to success measures of the company.  Oftentimes they are financial, business development, process development or customer satisfaction measures. 

Once the Company Goals are determined, they should be communicated throughout the Company and translated to departmental goals.  Those departmental goals then become the framework that shape each employee's individual goals.  Hence the goals are cascaded as Company Goals down to Departmental Goals down to Individual Goals.   These individual goals can play an important role in performance management, career development and employee rewards.

On a day to day basis, does everything seem to run relatively smoothly at your organization or do you feel like you're constantly putting out employee related fires?  Your answer to that question may vary based on your organization's Human Resources Strategy.  In short, your HR Strategy is your approach to how you treat your employees and will affect your strategic thinking for the business as a whole. There isn't a one-size-fits-all and your HR strategy may change as the business evolves. 

Although one organization's strategy may be vastly different from another's, in determining your HR Strategy, consider the following:

• Compensation - Where do your employee's salaries fall with respect to the marketplace?  Do you pay at the 50^th percentile, higher or lower and why? What is your philosophy on salary increases?  Does incentive pay play a significant role in compensation?  You should be able to effectively articulate to your employees your compensation philosophy, the salary guidelines and practice it on a regular basis.
• Employee Benefits - Do you offer premier benefits to your employees or just enough to stay competitive with other companies in your space?  Employee benefits may include time off, medical, dental, life insurance, disability, tuition reimbursement and other fringe benefits such as commuting reimbursement or concierge services.
• Communication - Developing a plan for employee communication is vital to employee morale and will also affect your corporate culture.  How do you want to disseminate information?  What is going to be most effective based on the company size, locations, and hours of operation?
• Training & Development - What is the value you place on training and development and at what expense?  Training can come in the form of tuition reimbursement, on-site training, on-the-job training, succession planning and many other formats.  How much money and time are you willing to spend?
• Recruiting - Developing a recruitment philosophy that supports your HR Strategy will help ensure that new employees are on the same page with your goals and objectives. The on-boarding process is another consideration you'll want to think about.
• Work Environment - What sort of workplace have you created? Highly-structured with limited flexibility?  More casual with greater freedom for employees to work as they like as long as the job gets done?  Planned time for fun to relieve stress and to show appreciation for a commitment to the business?

In short, does your HR Strategy enable your organization to hire and to keep the talent it needs to achieve the goals of the business?

Ultimately the value you place on your human resources (i.e. your employees) may dictate the success of your business, so understanding and living your strategy is essential.