Stay up-to-date on hiring protocol to avoid legal woes

By John F. MacLennan

As a small business leader, you wear numerous hats—you serve as president, HR directorand marketing manager, and also take on a myriad of other day-to-day tasks. While you may be confident in your leadership and management roles, the recruitment process often can be confusing.

Without a dedicated recruiting staff, small businesses can unwittingly enter into legal liability because of unsound recruitment practices. Business leaders preparing to hire new staff members should follow these rules throughout all phases of recruitment.

Understand the basics

Company leaders managing the hiring process should become familiar with current employment laws and regulations, which are enforced by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC’s website (www.eeoc.gov) outlines the federal laws prohibiting employment discrimination and provides regulatory updates. Prohibited questions should be frequently communicated to all individuals involved in the interview process, especially prior to initiating a new recruitment effort.

Under federal laws, it is illegal for an employer to discriminate against a job applicant because of race, color, religion, gender, national origin, age or genetic information. Florida law further extends discrimination to include marital status, meaning all questions regarding current or prior marriages, divorces or engagements are not allowed during the recruitment process.

Ask only what is needed to select the best candidate

To protect an organization from potential liability, questions on an application form or asked during an interview should be limited to those needed to determine if an applicant is qualified for a position.

While most employers know not to ask personal questions during an interview, these types of questions often appear on job applications. Companies should use the simple rule of “need to know”— if an employer doesn’t need to know a response in order to make a hiring decision, then the question shouldn’t be asked. Otherwise, applicants denied employment may later argue that irrelevant questions played a role in the company’s decision.

Look beyond the obvious

•Age. Discrimination based on age, or ageism, does not only include recruitment materials overtly asking an applicant’s age or date of birth. Employers also should not request information regarding an applicant’s year of graduation from high school or secondary education institutions. Graduation dates may allow interviewers to infer an applicant’s age.

•Pregnancy. Some employers may mistakenly believe pregnancy discrimination violations are limited to asking female applicants about their current pregnancy status. In fact, the Pregnancy Discrimination Act of 1978 also prohibits questions regarding an applicant’s medical history of pregnancy, future childbearing plans, children, provisions for child care, abortions, birth control and ability to reproduce.

•National origin and citizenship. A casually posed, “Where are you from?” may seem like a natural conversation starter, but during an interview it can have legal ramifications. Recruiters should never ask about where an applicant was born—prior to extending a formal job offer—as this can discriminate against legal immigrants and individuals with work visas.

Employers can and should ask applicants about their ability to work in the United States; after offering the person the job, employers must obtain proper documentation to work in U.S. (including a social security card or work visa).

Concentrate on abilities vs. disabilities

The Americans with Disabilities Act (ADA) prohibits employment questions regarding physical disabilities. If there are challenging physical tasks associated with a position, it is appropriate to ask applicants how they would accomplish specific responsibilities. In addition, prior to a job offer, all questions regarding medical conditions are strictly prohibited under ADA regulations.

Examples of prohibited questions include: Have you been injured on the job? Have you ever filed a workers’ compensation complaint? What medical treatments or prescription drugs are you receiving or have you received in the past? How many sick leave days did you take at your last place of employment?

Watch out for disparate impact

Most employers understand factors affecting disparate treatment claims, which refer to violations in which the EEOC’s protected categories directly influence how an applicant or employee is treated.

Many are less familiar, however, with issues surrounding disparate impact violations, which occur when seemingly neutral hiring policies or practices have a disproportionate, adverse impact on a particular group. These types of hiring requirements become illegal if an organization cannot justify the need.

•Height and weight. Organizations should not ask applicants to list their height and weight. Such questions pose a risk for disparate impact on women, particularly those of Asian descent, and do not accurately reflect a person’s capacity for a particular position.

In addition, organizations that require applicants to note whether they are able to lift a significant amount of weight may open themselves to gender discrimination claims if that task is not necessary for the job.

•Financial status. Questions regarding an applicant’s financial status—including bankruptcies, debt or poor credit—should be avoided unless there is a clear connection to the position.

These are justifiable questions for hiring personnel who would be directly handling company funds, such as accounts payable staff or a bank teller. Otherwise, they can have a disparate impact on low-income applicants or those who have been laid off (whose credit scores often suffer as a result).

•Criminal record. Questions regarding arrest records also are an example of a potential disparate impact violation against low-income applicants. Limit questions regarding criminal records to felony or violent crime convictions.

Recruitment materials should note that a person’s criminal record would not make them ineligible for a position. As well, an application should allow space for explanation of criminal records.

•Military service. An applicant’s military service often is a source of pride, and it is appropriate to inquire about current or prior positions within the military. It is not appropriate, however, to ask about the type of discharge received.

Military records were made private in 2004, and this information is available only by written request. Questions regarding discharge make employers vulnerable to disparate impact claims. The EEOC has deemed such questions impermissible, as minority members of the military historically receive less desirable discharges and there is no clear connection between type of discharge and an applicant’s capabilities.

Cautiously use social media as a recruitment tool

Social media outlets offer a bevy of information about users—often much more than a candidate would (or should) share with interviewers. Tempting though it may be to review social platforms, such as Facebook, for additional information about candidates, employers should be cautious in their use of social media to make hiring decisions.

Facebook profiles often reveal personal details (such as age, religious views and even photographs), and referencing them can expose employers to information that is protected by the EEOC.

Limiting social media use for recruitment to professional networks, such as LinkedIn, is one way to avoid protected information. Some employers have begun accepting applicants’ LinkedIn profiles as a supplement to the standard résumé. The important factor is making the application process universal, and only reviewing social media profiles that applicants voluntarily share on application materials.

For your protection

Like any business endeavor, recruitment protocol should be reviewed and revamped as needed. By staying up-to-date on hiring protocol, a small business leader can protect his or her organization from legal woes.

For more information on best practices or to address specific concerns regarding the legality of interview or application questions, employers should consult an attorney specializing in employment law.

John F. MacLennan is a shareholder with Jacksonville business law firm Smith Hulsey & Busey, where he specializes in employment law. He can be reached at 904-359-7812, jmaclennan@smithhulsey.com or through www.smithhulsey.com.

You are finally taking a vacation! Who will manage the staff and take care of the customers?

By Bob Douce

As a small business owner, you regularly pour your life and soul into your company working 60, 70, or 80 hours a week. A year or twodown the road, once things start running a little more smoothly, the idea of a few days off starts to creep into your consciousness (or is subliminally being beaten there by your spouse on a daily basis). Can you really separate yourself from the day-to-day operations?

Or maybe you are in a different situation. You really need to attend a conference, or maybe you’re presenting at your industry’s annual convention. This is a great honor, but you will be away from the office for four days. Who will you put in charge to be sure your customer needs are met, your employees have direction and guidance, and the building doesn’t burn down?

The issue

Too many owners are so vested in their company and working with too many hats to make a profit that they often do not have the time to work on their company process. The last thing thought about is who will run the operations when I am not around.

If you are still answering day-to-day operational questions or fielding most of the client calls yourself, you are probably in this situation. Taking a short vacation or attending an extended conference may seem impossible at this point in the life of the business. However, it is doable— and sometimes very necessary.

The solution

Planning ahead is the key to success in many things, including deciding who will take the reins, even if only for a few days. It starts with hiring the right people at the right time for your business.

Your interview process should look at not only the skill sets you need for the present day, but also what you will need six months to a year down the road. If you have already hired all the people you need, re-evaluate their skills and identify who may be the best prospect to cross train some of your responsibilities. Regular performance reviews are a great place to start when looking to identify your future leaders.

Once you have someone picked out, create a development or training plan for that person. Even if he or she came to your company with all the right skills, he or she doesn’t necessarily know your processes and procedures or understand your way of looking at the business—as an owner.

Evaluating and training your top managers for enhanced leadership responsibilities will increase their confidence and accountability. This leadership development will help set in motion your ability to rely upon their skills and management abilities while you are still in the office every day.

It’s also important to help these identified leaders understand the role they play in the company. If they know they may be being groomed for a temporary or permanent upper management role, they are much more likely to be fully engaged in the day-to-day operations.

They will also see the benefit of cross training on a variety of responsibilities. While they will not become masters of all the functional areas they learn, they will have a greater understanding of how each department or process is interconnected. With this knowledge, they will have the big picture view of what it takes to run the business.

The implementation

Everything is on track. You have identified your leader. You have begun work on the leadership develop plan and helped him or her gain more experiences in the company. But how do you actually let go and give it a try?

Start by turning over a project you would normally handle and give him or her full responsibility and authority to handle it. You have already trained him or her to do it, now let him or her go. You are still around and can step in if needed, but remember, you had to stub your toe a few times as you learned to walk, and he or she needs to do the same thing. The biggest difference is he or she has your experiences from which to learn.

Once he or she can handle projects on a regular basis, give him or her the keys to the shop for the day. If it makes you feel more comfortable, stick around, but work on your presentation for the conference or plan the excursions for your vacation.

Don’t get involved unless absolutely necessary. Don’t answer your phone, respond to your emails, or meet with employees. It may just be easier to head home for the day. Remember— your leader-in-training still has you to turn to if he or she feels like they are headed off the cliff.

Each step in the process gets a little easier, but it is important to evaluate his or her performance as you move along. Look at the good and the bad. Assessing the results will help improve his or her performance because you will reinforce the positive and correct the negative.

What was successful and went well? Don’t be afraid to tell him or her they may have handled it better than you. Praise the successes, no matter how insignificant they may seem. Even if it was a partial success, but a failure overall, identify what was right. Accenting the positives will normally result in repeat performances.

Next—what went wrong? If he or she had proper training, it shouldn’t have been a train wreck; however, everyone has been there a time or two. The good news is that you are still here and not sailing in the Caribbean. A wheel may have come off the track, but you prevented a full derailment. Talk about what happened and why and let him or her come up with the way to prevent it from happening again. If he or she is a true leader, he or she will be able to point out their own short comings and learn from their mistakes.

True succession planning

You have put in the effort to identify your future leaders, provided them guidance and training, and even let them take the wheel a few times. What you accomplished is what some large companies still have problems conducting on a regular basis—succession planning.

It’s important to be personally involved in the day-to-day operations of a startup company, but is equally important to train those you trust to do what you do. Not only have you developed a leader to run the operations while you spend a week on vacation or a few days at the conference, but you have freed yourself up to grow your business.

Everything doesn’t have to run through you anymore (read this as you have removed a potential bottleneck in your operations). You are now free to focus on business development and know that your company is in good hands.

Bob Douce is the vice president of sales and co-founder of Talent Development Inc. He can be reached at 904-262-4299, info@tdies.com, or through www.tdiemployeesolutions.com.

Connecting employee performance to the bottom line

By Chad V. Sorenson, SPHR

Performance management. Strategic plans. Employee retention. Terms oftenassociated with large companies. Do they really matter to the small business owner?

Absolutely! When a company wants to improve its bottom line, it often spends its time focused on the number of hours an employee works rather than looking at the effectiveness of the employee as a way to save money. In the long run— that might not be the best plan.

While controlling wages and hours worked is important, identifying what employees are doing and how effective they are can be just as crucial. But, where do you begin?

Hire the right employee

Before you look at hiring your next employee, you need to clearly identify the expectations of the position and the qualities that will make a person successful in that role. These expectations or responsibilities are usually found in a job description. If you don’t have one, start by making a list of the duties this position will need to accomplish.

Don’t forget to include what you expect in terms of customer service, quality of work, and quantity of work. Customer service isn’t just for your sales force. Whether you are a plumber, computer technician, or accountant, great customer service is key in obtaining and retaining clients. Lack of focus on this aspect can cost your company a great client— negatively impacting your bottom line.

Interview your candidates with a purpose. What are you looking for exactly? Yes, they need to be proficient in the basic skills of the job, but a more important attribute is often their attitude. Do they like to learn? What do they say about their last job? Do they have a willingness to work with your other employees? Are they focused on serving customers, both external and internal.

Hire their attitude and train their skills. Even the most technically proficient employee can have a bad attitude. Who do you want around your clients and other employees?

Set the expectation

What does the first day on the job look like at your company? Do they spend half their day filling out paperwork? Are they shuffled from one warm body to another? Or, do they get to sit with the new boss and spend their day getting to know the company and their new co-workers?

Spending a couple hours with the boss will help the new employee learn what is expected of them. Reviewing a job description can lay out the responsibilities of the new role, but actually sitting down and talking will help the new employee understand what will make them a success in the company.

Most companies have an accountant bookkeeper, however, each company may expect different reports to be done or tasks to be completed in a different way. Unless you have that initial conversation and set the expectation, not only can the employee feel out of touch in the new role, but the manager may grow frustrated with their performance and begin to second guess the decision to hire that new employee.

Setting the initial expectations in a clear and concise manner will also give you something to measure the performance of the new employee. Employees want to know how they are doing. Their goal is to please the new boss, and without constructive feedback, many employees are left second guessing their work. Too often they will be more focused on how they are doing rather than looking for ways to please the client.

Engage them in the process

Employees who are engaged in their day-to-day activities are more likely to become your top performers. If they are playing an active role in their own performance development, they will be continually looking for ways to improve their skills. On the other side, workers who are disengaged often don’t care about learning new skills or pleasing your clients.

When managers actively involve employees in the decision-making process, the employees are more likely to buy-into the process because they have some skin in the game. Frequently, they will look for ways not only to achieve the goals, but identify ways to go above and beyond.

Don’t overdo it

A recent survey by MetLife indicated that while companies of all sizes have seen productivity gains in the past year, it may have come at the expense of employee loyalty. According to the survey, only 47% of employees felt a strong sense of loyalty to their company, which is down 12% from three years ago. In addition, more than one-third of workers are looking to change jobs within the next year.

Stress and doing more with less are key contributors to employee dissatisfaction. While companies can improve the bottom line in the short-term by increasing employee productivity, employee satisfaction and morale can begin to suffer if pushed too far. Managers need to stay connected with their employees to identify downward trends in morale before it reaches a tipping point.

As the economy grows stronger and opportunities increase for your company, so will the opportunities for your top performers. Companies run the risk of losing their strongest players if they don’t monitor and balance their workloads, productivity, and employee satisfaction.

A matter of prevention

So what can a company do to prevent their employees from leaving? Include them in the process. Help employees grow their skill set and create a plan to increase their value to your company. Nearly all employees want to develop their career and learn new things. Most will do so. Your decision is whether you will help them do that in your company, or watch as they take their next step up the career ladder by joining your competitor.

Employees who are engaged in their own performance development can increase a company’s bottom line by always looking for ways to improve their own performance and the company’s results. The opposite is also true. Workers who don’t care are probably doing just enough to get by and couldn’t care less about their impact on your customers. The decision is yours.

Chad V. Sorenson, SPHR, is the president of Adaptive HR Solutions and vice president of Talent Development Inc. His primary focus is helping small and mid-sized employers navigate employment law and get the most out of their employees. He can be reached at 904-716-4846, csorenson@adaptivehrs.com, or through www.adaptivehrs.com.

How the top 10 human resources trends of 2010 will continue to reshape the way successful businesses operate in 2011

This tumultuous year in business has transformed human resources (HR) strategies in organizations of all sizes.

Jeff Fenster, founder of CanopyHR Solutions (www.canopyhr.com), says, “Challenging times inspire creative solutions, and the volatile economy has forged many changes in the human resources sector. Businesses are trimming excesses in order to succeed, and that means human resources has become a more integral part of business planning than ever before.”

So what are the top 10 human resource trends? They include:

1. Stretching the compensation dollar

Although 2010 showed some signs of recovery, HR managed workforces that were considerably smaller than just a few years ago. HR’s role in managing productivity through ancillary projects while maintaining employee morale and well-being was challenged by the parallel expectation that workers be twice as productive.

Innovative HR professionals instituted creative programs such as gift card giveaways and lottery prizes to boost employee enthusiasm in lieu of raises and bonuses.

2. Embracing social media

Social networking’s undeniable impact hit the big screen in 2010, and it hit workplaces in a number of ways as well. Managers learned to be on the lookout for lost productivity as employees grew increasingly concerned with checking in with their favorite social networking sites.

On the upside, savvy HR pros saw a shift in the landscape as hiring and firing trends played out online. Posts cost some careless employees their jobs as HR monitored Facebook, Twitter, and LinkedIn accounts. Smart employees landed new gigs by harnessing the power of social networking to market themselves and share information about job openings.

Policies were developed to communicate clear boundaries and expectations and to attract top talent with the latest tools-with some even canceling subscriptions to online job sites and shifting to social media recruiting.

3. Keeping the communication lines open—especially amid healthcare reform anxiety

Maintaining employees’ trust in the company and its business decisions through the ups and downs of healthcare reform was a must. Smart senior management kept communication lines open to demonstrate accessibility and willingness to answer questions and address concerns as they arose.

That applied not only to top-down communication, but to lateral lines as well. Human resources professionals were charged with bringing functional departments together; communications, legal, payroll, and IT departments—everyone had to communicate a unified message to maintain employee trust.

4. Retaining top talent

When soaring unemployment numbers left many top performers handling increasing workloads for the same old salary, human resources departments had to focus on retaining company stars.

Some of these high performers got antsy as compensation froze and expectations rose. Many continued to struggle with the lingering losses they’ve felt after company layoffs. This delicate situation required that HR pros soothe sore nerves and keep these folks from looking for greener pastures with creative incentives and sincere appreciation.

5. Managing three generations of work styles

As young Millennials entered the workforce, companies had their hands full integrating three distinct generations: Millennials, Gen Xers, and baby boomers. The aging boomers believe strongly in security and loyalty. They don’t always see eye to eye with hard-working Gen Xers who have more of an independent streak. The Millennials shook things up with the attitude that if they don’t like what’s happening at work, they’ll go home to mom and dDad.

This generational juggling was best handled with management training that stressed the characteristics of these disparate groups and how to motivate and inspire the most productivity from them. Succession planning also came into play as firms prepared for the replacement of retiring boomers with less motivation to stick around now that they’re feeling overworked and underpaid. 

6. Sharing an ounce of prevention

Healthcare reform drew the spotlight to employee wellness issues in 2010, shifting more emphasis to preventive programs such as smoking cessation and obesity reduction.

Ben Franklin’s proverbial “ounce of prevention” may finally see its day in the sun in 2011 workplaces, as employers continue the 2010 trend of encouraging employee participation in wellness programs in order to increase productivity, reduce absenteeism, and boost the health of their staffs.

For some, it’s also a long-term strategy to avoid higher health coverage costs for increasingly overweight and unhealthy American employees.

7. Clearing up confusion

Another obvious consequence of healthcare reform’s starring role in 2010 was employee confusion and uncertainty about health benefits. It became an imperative for human resources staffers to communicate benefit changes in advance, whenever possible, and explain changes in terms of how they would affect individual employees and their families.

A crucial piece of that puzzle was often dispelling the misperceptions that dominated the public conversation—from dire cuts to death panels. Few changes have occurred yet, so this trend will persist in 2011 and beyond, compelling HR teams to closely monitor things like free flu shots, effective dates, and the details of grandfathered health plans—and of course, clearly communicating these details to employees in a timely manner.

The smartest pros will keep arming themselves with concise answers to difficult questions that will continue to arise as changes are implemented and look for new ways to reach employees with relevant information.

8. Managing the virtual workplace

Tech advances continued to lure employees into new territory, especially when it came to virtual work and telecommuting. The trend came with pluses and minuses. Some companies slid into this trend with ease, as exempt Gen Xers with no defined hours blended work and personal responsibilities into an organic off-site workday.

Other companies struggled with nonexempt workers. Meticulous time tracking was required to ensure proper payment of overtime and the like. Most of the latter companies discovered the concept was detrimental to business.

It’s a lifestyle management issue that will continue to show up on HR radar screens in 2011 and could be further impacted by additional tech developments.

 9. Working together

Leaner, more streamlined companies must share information laterally to get the most from scarce resources. HR teams took a leadership role in reaching out to other departments and “sharing the sandbox.”

More than ever, employees in every department have a sense of facing adversity together. Strategic-minded businesses used the momentum to support strong teamwork and innovative solutions that crossed department lines for everyone’s benefit.

10. Riding out the recession

As much as circumstances have improved, the recession that was battled against throughout 2010 continues to impact companies and individuals—a trend that will likely continue beyond 2011.

HR departments and executives need to tune into their resources and prioritize more than ever before. True innovation is the best way to establish solid initiatives without a solid budget. Successful firms will continue to prioritize wisely, focusing on the most-effective tools to enhance business strategy and achievements and develop new business.

 “Uncertainty breeds fear in everyone from employees to executives,” says Fenster. “Perhaps the most important take-away from the major shifts we saw in 2010 is that the best HR professionals are those who are best at managing uncertainty and allaying fears.

“That means always reaching out for new information and reliable answers and communicating that information clearly. It also means creating new ways of helping managers and employees move forward, even when the future remains uncertain. Great change requires great innovation, so I think we’re going to see some exciting programs and strategies come out of this adversity.”

9 ways to attract and retain employees with benefits that don’t break the bank 

By Robyn A. Friedman    

Amy Ogden loves to volunteer. Over the years, she’s managed registration at a charity golf tournament, provided office assistance to the Cystic Fibrosis Foundation, and presented a health and nutrition workshop to Girls Incorporated—and she’s done it all on company time.

Ogden, director of public relations at Clockwork Marketing Services Inc. in Ponte Vedra Beach, participates each year in “Volunteer Day,” sponsored by her employer. “This is always a special day for me,” she says. “Having my company’s support as I give back to the community is very meaningful.”

Paid time off is just one employee benefit offered by small businesses intent on keeping employees happy while containing costs. As the economy continues to struggle, businesses are looking for ways to reduce their overhead. Many cannot afford to give out raises or bonuses this year; others are cutting back on benefits.

But even with these cost-saving efforts, it’s essential for small businesses to continue to show employees that they care and appreciate their services. That’s one way to reduce costs associated with turnover, absenteeism, and sick time.

“Not giving out raises can have a real negative impact on employee morale and motivation,” says Dr. K. Habib Khan, acting dean of the School of Business at Stratford University in Falls Church, Va. “But if you take the time to show that you appreciate them during this rough economic time, they will be more likely to hang in there and remain dedicated and loyal employees.”

According to the Society for Human Resource Management (SHRM), in 2010, organizations spent an average 19% of an employee’s annual salary on mandatory benefits, 18% on voluntary benefits, and 11% on pay for time-not-worked benefits. With these costs, it’s easy to see why employers would want to cut back on benefits as many struggle to survive.

Still, after a decline in the number of organizations offering employee benefits from 2008 to 2009, SHRM reports that employee benefits have remained relatively steady over the past 12 months, which is a promising sign.

Ways to reward

Many companies are trying to find ways to reward their employees without racking up additional bills. Here are nine ways to show your employees that you value them without breaking the bank:

•Paid time off. Even if it’s just one or two days per year, employees will appreciate it. “It’s important for each one of our employees to have a work/life balance,” says Jackie Artybridge, vice president of Clockwork Marketing Services. “It’s really stressful here, but we want everyone to be happy, and you need that balance.”

•Flexible scheduling. Some employees might prefer to work four 10-hour days per week and have three-day weekends. Others may enjoy working at home one day a week.

“We never, in the history of human resources, have had the opportunity we do now because of technology to have flexible scheduling,” says Robin Bullock, president of the Jacksonville chapter of SHRM. “There are a lot more of those types of benefits now because people can get very creative about what they offer.”

•Casual dress codes. Even if it’s just one day per week, such as “Casual Friday,” employees appreciate this benefit.

•Catered lunches. Nova Pressroom Products, a manufacturer of pressroom chemicals based in Jacksonville that has 15 employees, offers catered lunches once or twice a month.

“We’re a fairly new company, and we’re still in a growth mode, so we’re sort of skinny on benefits to begin with,” says Ron Rose, the company’s president. “We have medical insurance, but we do like to do things that help morale that aren’t terribly costly.”

•Discount medical and lifestyle benefits. Jacksonville Beach-based Practical Health Benefits sells a discount medical package that offers 15% to 50% discounts on dental care, 20% to 50%  off eyeglasses, pharmacy discounts, and a “Consult-a-Doctor” benefit—all for $15 per employee per month. He sells to both individuals and small and mid-sized businesses.

“We’ve seen an increase in our business,” says Steve McCann, the firm’s president. “This is a great complement for companies that have gone to higher deductible [health insurance] plans. For as little as $15 per month, you can expand your coverage and still save money.”

McCann also offers a $29.95 per month package that has 14 employee benefits, including roadside assistance, chiropractic care, and more.

•Wellness programs.  These can include gym memberships, massages, or educational programming designed to help employees make healthy choices. Wellness programs can also help reduce sick time and might lower health insurance premiums.

•Local discounts. Consider setting up trade relationships with other local businesses. For example, negotiate a deal with a local restaurant to offer a 20% discount on meals to your employees. That not only benefits your employees, but also helps the restaurant fill tables. You can work out similar deals with hotels, spas, or retail shops.

•Offer spot bonuses. Keep stashes of items on hand to occasionally give away to those going above and beyond the call of duty. These could be gift cards, concert or movie tickets, or free meal coupons.

•Celebrate milestones, both large and small. Instead of waiting for an employee’s 20th anniversary to celebrate, consider recognizing that individual at five years—and personalize the reward. If the employee likes skiing, for example, purchase lift tickets for them at their favorite ski resort—or concert tickets to a popular band.

One piece of advice to an employer seeking to come up with creative ways to compensate employees: You don’t have to spend a lot.

“Don’t overlook small benefits,” says SHRM’s Bullock. “There are benefits to a $10 gift certificate to the movies for an employee who loves movies.”

Watsie Petree, a dealer services manager for Nova Pressroom, enjoys the twice-monthly lunches catered by her employer. Her particular favorite is the barbecued pork, chicken, and ribs from a restaurant near the office.

“It makes you know that they care about you—and then you want to give back to them,” she says. “It’s good for moral when we all sit around the table and eat together and laugh. You could be eating peanut butter and jelly sandwiches.”

 Indeed, morale—as well as employee attraction and retention—are what it’s all about from the employer perspective.

“For a lot of small business owners, it’s really challenging to be able to pay for all the healthcare needs for your employees,” says Clockwork’s Artybridge. “But when employees know they’re valued, that makes a difference and causes an employee to want to serve and really do their best.”

Robyn A. Friedman is a contributing editor to Advantage. She can be reached at RAFWriter@att.net.

Employee benefits in a post-recession economy

According to the Society for Human Resource Management, even though employee benefits have remained relatively stable since 2009, benefits offerings have experienced a downward trend when compared with statistics from five years ago. Even noncash perks are being cut.

Here is the percentage of companies offering some creative or unusual benefits to their employees:

 Benefit                                                2006                                        2010

Dry cleaning services                          13%                                         7%

Pet health insurance                              5%                                         4%

Holiday parties                                    87%                                        79%

Milestone rewards                               76%                                        68%

Company picnic                                  66%                                         56%

Take Your Child to Work Day           38%                                        25%

Pets at work                                           4%                                           6%

(Source: Society for Human Resource Management, 2010 Employee Benefits Survey)

By Chad V. Sorenson, SPHR    

Fired. Terminated. Dismissed. Let go. Made available to the industry. There are many ways to say it, but they all have the same result—you’re down one employee and there are probably some hard feelings and bruised egos left behind.

Hiring and firing, when done right, can be very effective and lead to better results. When misapplied or misunderstood by managers, however, hiring and firing can cause headaches and increase an employer’s potential liability.

There is an old saying that states one should “hire slow and fire fast,” but many employers often get it wrong. Just like investors who know they are supposed to buy low and sell high, too many do just the opposite.

Last month, Richard Hadden talked about behavioral interviewing and getting it right the first time when hiring an employee. Now, what do you do when you need to terminate that employee?

Just do it

The natural tendency of most people is to avoid conflict and confrontation, but as a manager, you are doing a disservice to yourself, the company, the less-than-adequate employee, and your top performers by avoiding performance or behavior related issues at work.

Each stakeholder is affected differently by your inaction when dealing with performance or behavior issues.

•The manager: You probably spend more time dealing with these issues than serving your customer or working with your top performers.

•The company: Productivity can be impacted by a low-performing employee. Customers often see the issues directly or indirectly, which, over time, can impact their image of your company.

•The nonperforming employee: If you, as the manager, are not addressing the issue, you are, in effect, telling the employee their behavior or performance is acceptable. You may also be letting the other employees know that substandard performance is tolerated.

•The top performing employee: Your inaction can lead to your top performers becoming disengaged in their job and eventually lead them to move to another company. Your attention has been diverted to the nonperforming employee and your star employee has been picking up the slack.

Step by step

Once you have determined that an employee needs to be terminated, there are a series of steps you need to take to protect your company and minimize the disruption in the business that may follow.

1. What is the issue? What is the specific policy or rule that has been violated; or what is the performance issue that needs to be addressed? Once this is known, talk to the employee in a nonthreatening way. Don’t beat around the bush, but be tactful in your conversation.

Explain the issue and talk about how to resolve it. It is always better if they can come up with a solution that is acceptable to you rather than simply telling them what to do. In the end, be sure to clearly communicate the consequences of not correcting the problem or not improving the performance.

2. Is the consequence fair? Not every result or consequence has to be the same; however, the actions of an employer must be fair. In other words, are the actions consistent with your company policy? Have other employees in similar circumstances been treated in this manner? Does the punishment match the action?

3. Is the decision based on a business reason? The best way to avoid a charge of discriminations is to ensure all decisions to terminate someone’s employment is based on a business reason or need. In addition, informing the employee of the business reason for the termination will reduce the chances of them believing you are singling them out.

Your company needs to have employment policies in place to ensure a safe and productive work environment. If an employee violates these policies, he or she needs to be told about it. In some cases, the employee needs to be given the opportunity to correct the behavior. However, if the behavior continues, the next step in the disciplinary process must occur.

The same holds true with performance-related issues. There should be performance standards for every employee in order to deliver the best product or service for your customers. If an employee is not performing to these standards, tell them about it, develop a plan to improve the performance, and reward success—do not accept subpar work.

In addition, you need to verify that there are no other legal reasons why this termination cannot occur. There are numerous employment laws that preclude the termination of employee at certain times during their employment. It is always best to seek the guidance of a human resources consultant or employment attorney to get answers to all the proper questions before stepping over a line.

4. Have you documented every step in the process? One of the best protections against an employee’s charge of discrimination is proper documentation. Document every step in the process as you go. Don’t wait for a termination to occur or a charge to be filed to document what happened and why.

Memories fail and people leave. If you can show the business reasons why someone was terminated and the steps that led up to this outcome, you should be able to reduce your liability.

5. Terminate with dignity. No employee should be surprised by their termination. If you, as the employer, did everything right, the employee should know the consequences of their behavior or lack of performance.

In the event of an immediate termination for a flagrant violation of a company policy, the employee should still not be surprised because they would have been made aware of the policy when they were first hired.

During the termination meeting, be direct, polite, and courteous. Explain the reason for the discharge, tell them the next steps in regard to their benefits and final paycheck, inform them of the effective date of the termination, and the manner in which they must leave the premises.

Do not hold out hope for the employee that the situation can be reversed. Do not blame others for the termination. Do not discuss the termination with other employees.

By terminating the employee with empathy (not sympathy) and dignity, you may be able to minimize the amount of resentment the terminated employee may have toward the company. In addition, you are showing the other employees who remain that you apply the company policies in a fair and just manner.

It’s never easy

Terminations are never easy. Sometimes managers avoid them because they are afraid of lawsuits or simply dealing with the confrontation. This doesn’t have to be the case.

If you address situations as they arise and be clear about your expectations of the employees, they will respect your decision as an employer. Most importantly, you will retain a high-quality workforce that produces results you desire—and your employees will thank you.

Chad V. Sorenson, SPHR, is the president of Adaptive HR Solutions and vice president of Talent Development Inc. His primary focus is helping small and mid-sized employers navigate employment law and get the most out of their employees. He can be reached at csorenson@adaptivehrs.com.

By Richard Hadden, CSP  

Hiring is one of the most important and far-reaching functions any manager performs. Deciding who does and does not get to play on the team has implications the tentacles of which extend throughout the organization, and for years to come.

Make the right hiring decision and your job as a manager gets immeasurably easier; get it wrong, and your headaches will compound daily.

One tool that helps managers get this all-important decision right more often is behavioral interviewing—a method of conducting job interviews that focuses on specific behaviors in order to discover and identify candidates’ qualities, characteristics, and skills.

Here’s the premise: The most accurate predictor of future performance, in many situations, is past performance in a similar situation.

Although behavioral interviewing has probably been in use, in one form or another, since the ancient Egyptians were quizzing potential pyramid builders, its use has become more widespread and popular since the 1970s—when the research of industrial psychologists gave it more credibility and structure.

The good news is you don’t have to be a psychologist to use it well, but you do need to do it right. A qualified human resources professional, either in your organization or from an outside service provider, can be a huge help.

Setting parameters

Besides linking past and potential situational performance, behavioral interviewing also recognizes that certain qualities or characteristics—let’s call them “dimensions”—are particularly valuable for certain jobs, environments, and organizational cultures.

Behavioral interviewing works best when the interviewer has established a limited set of dimensions that predict success with a particular job in the organization.

For example: Suppose you’re interviewing for a sales professional in the industrial chemicals field. Of course, you’ll have certain educational and perhaps experience requirements for successful candidates.

But beyond that, you’ve determined, after analyzing the job in your organizational culture (which is important because it may be different for the same job in a different organization), that those who have been successful in this role had the following dimensions in common:

• Good oral communication skills,

• Presence (they make a good appearance and a positive impression),

• Resilience (they are able to bounce back when people say “no”),

• Initiative, and a

• Strong ability to influence.

You would then ask questions that help you understand whether or not the candidate you’re interviewing is strong in these dimensions. You ask how they have, in the past, behaved in certain situations or what they might do given a certain hypothetical scenario.

To determine to what degree the candidate possesses good oral communication skills, for instance, you might ask for an example of what he or she did to effectively communicate with someone they didn’t especially like.

You might ask what steps he or she does to ensure a good first impression to look at the dimension of “presence,” and have him or her provide two examples of working under pressure to examine resilience.

Now suppose you’re a manager in a medium-sized, family-owned company. The culture in the company emphasizes individual sacrifice for group benefit. In other words, prima donnas are not suffered lightly and team orientation is paramount.

You’re interviewing for a multipurpose administrative position that also involves marketing support and some creative writing. In this case, you might be looking for people with these dimensions:

• Consideration,

• Team orientation,

• Tolerance for repetitive tasks,

• Creativity, and

• Self-organization.

Can you interview for qualities like “consideration?” Sure. Provide a scenario of your phone constantly ringing during the interview and you taking every call, and then ask, “What would you do?”

If team orientation is important, ask, “Tell me about a time you gave up something you really wanted for the good of your workgroup.” And rather than asking, “What is your tolerance for repetitive tasks?” instead ask, “If you were working on an assembly line, doing the same task all day, what would you do to stay alert and make the job more engaging and interesting?”

Telltale answers

Of course, it’s not just the questions that matter—it’s also the answers. As an interviewer, be mentally prepared for a general range of what kind of answers you’re seeking, but don’t be overly rigid in your expectations.

Behaviorally anchored questions tend not to have a right or wrong answer, but rather good answers, and, well, not-so-good ones. As an interviewer, you must develop skill in determining to what degree a particular answer predicts success for the candidate in that job.

Don’t use behavioral interviewing to the complete exclusion of other kinds of questions. Good interviews cover a wide range of topics. As the interviewer, you’re trying to get to know this person, at least just a little bit, in a very short period of time. You want to know not only can this person do the job, but also:

• Will they be happy, productive, and successful doing it here? and

• What will it be like to work with this person?

Hotelier Bill Marriott said, “It’s more important to hire people with the right qualities than with specific experience.” While experience is important, and some cases absolutely crucial, your hiring success would probably improve by following Marriott’s advice.

Behavioral interviewing is a great way to match people with the opportunity to do great things for your business.

Richard Hadden, CSP, is an author and professional speaker who helps organizations understand the business case for creating a great workplace. He’s co-author of the “Contented Cows” leadership book series, and the brand-new book, “Rebooting Leadership.” He can be reached through www.ContentedCows.com.

Behavioral questions

Behavioral interviewing helps you determine future performance of a candidate by asking questions about past performance in a similar situation. Some examples of behavioral interview questions include:

• “Give me an example of a time when you had to communicate effectively with a person you didn’t especially like. What did you do to communicate effectively with that person?”

• “What steps do you usually take to ensure people get a good first impression of you?”

• “Please provide two specific examples in which you have worked well under pressure?”

• “How would you cope with the repetitive rejection of selling a product where 90% of the time the buyer says, ‘no’? What would you do to stay motivated to continue?”

• “Tell me about a time when you inadvertently offended someone. How did you handle it once you became aware of it?”

• “If your cell phone rang in the middle of an important conversation, what would you do?”

• “What would motivate others to be on a team with you?”

By Pat Petersen    

Which group of employees would be better for your company: a group of talented and motivated individuals, all diligently working on their own to further the goals of the organization or a group of employees who shared a common vision and common goals—a group that works together and who supports each other in furthering the goals of the company?

According to researchers Katzenback and Smith in The Wisdom of Teams, 1993), “Teams outperform individuals acting alone … when performance requires multiple skills, judgments, and experiences.” What this means is that whole is much greater than the sum of its parts. Many other researchers confirm these findings.

Virtually every organization, regardless of size, mission, product, and/or service can and will benefit by establishing teams. Don’t think that excludes you if you are a sole proprietor, an independent consultant, or a “mom and pop” business. These types of businesses also need teams in order to survive and thrive.

Needless to say, many of us are in a “survival mode” in this economy, and it will take a lot of flexibility and adaptability to thrive. Teaming can be a huge help.

Too often, however, business owners look for a “silver bullet” to solve all of their challenges, especially when it comes to helping people work better together to produce the best possible outcome for their organizations. In doing so you may be overlooking a concept that’s been around for a long time and for good reason. People produce better results when working as a team.

Do you need teambuilding?

How can you determine if teambuilding will benefit your business? If you have ever said or thought any of the following, teambuilding may be appropriate for your organization:

• I thought I explained everything well, but I didn’t get the results I needed.

• I don’t understand how people can sit next to each other and not offer help without being asked.

• Everyone gets his own piece of the pie to complete, but in the end, nothing fits together; we don’t have a whole pie, only separate slices on the same plate.

• Each one of us seems to have a different solution to issues and challenges. If they all achieve results does it matter? Should I set down a single way of doing things or would it be better to let majority rule?

• There seems to be a lot arguing among staff about which is the “right” way to do things.

• I seem to spend a lot of my time redoing everything other people have done.

If any of these situations sounds vaguely familiar, you may want to consider doing some team building, which can be done in a variety of ways, with most of them are relatively “painless.”

Before starting however, first determine what outcomes you want to achieve from these events or programs, such as improved communication, less bickering, more cooperation, on-time completion of projects, or fewer “do-overs.”

The teambuilding process

Here are some of the basic steps in a teambuilding process.

• Determine your starting point. This involves doing a baseline assessment of where the team is currently, prior to any intervention, so you can determine which process would be the most suitable. Then, be certain to conduct a post assessment to see if the results you wanted were achieved.
• Create an unbiased environment. Include the team leader working side-by-side with their team members.
• Assess preferred work styles. Determine work preferences and how those preferences affect teamwork in your environment.
• Do team profiles. Some very simple ones are available, for free, online. Some more sophisticated assessments, such as OPQ, Life Style Inventories, Myers-Briggs, can also be used. Understanding work and communication behaviors of individual team members will provide insights to you and them.
• Decide on the teambuilding exercise. Teambuilding exercises (also called interventions) can range from simple interactive games to group problem solving exercises to facilitator-led events. (See sidebar for examples.)

Many cost-effective teambuilding opportunities are available for any size team. With a little research, you should be able to find a facilitator or program that will fit your organization.

Patricia Petersen

Patricia E. Petersen, MS, MBA, is an organization and human resource consultant with Leadership Development Associates. She can be contacted at 904-631-8219 or

corpleader09@gmail.com.

Sidebar 1

Examples of teambuilding exercises

• Interactive games. These create an environment that may be competitive, but when team-appropriate behaviors are employed, the outcomes change. These can be board games, survival games. ball toss, puzzle solving, or project building, to name a few. The cost for games ranges from free to several hundred dollars.

Remember, though, that the objective of the game is not just to have fun—but to understand and improve teamwork. Consequently, it is important to discuss the game playing in terms of teamwork: What roles did each person take on? How did you decide on your goals? How did you communicate? What frustrations did you feel? How can these experiences be applied to work?

• Participative events. These facilitator-led exercises can range from $200 to several thousand dollars, based on complexity and facilitators needed. Examples include: low and high ropes courses; outdoor expeditions such as, scavenger hunts (orienteering) and sailing; or indoor events such as cooking schools, computer games, or mystery theatre.

Again, remember that discussion about the event (as described above) is critical to its success, otherwise the expense is just a recreational activity.

• Group problem solving. One of the most effective teambuilding events does not cost anything but yields tremendous results. It is employee involvement in solving organizational problems. The key here is to do group problem solving as part of your organizational culture, focus it on real problems as they arise, and act on the team’s solutions.

Sidebar 2

When does a group become a team?

What are the indicators that a work group has turned into a team?

The goal of most teambuilding sessions is to take a group of people who work together and transform them into what Katzenbach and Smith define as a real team: A small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

The key phrase here is “… they hold themselves mutually accountable.” In most instances, a team is focused on a specific mission/objective/purpose, which is clearly evident in their actions and behaviors. They use a collaborative, solution-oriented process to come to a consensus about their plan of action, methodology for implementation, and continuous improvement. They have criteria that define success.

When a team is functioning well together, you will see them:

• Interacting with each other often, throughout the day;

• Clarifying and confirming action plans;

• Adapting the plan of action, as new information is shared;

• Helping each other, without being asked;

• Remaining focused on their mission; and

• Celebrating their successes.

From your perspective, the most important result will be that your business will gain focus and improve productivity with fewer headaches for you and much happier, engaged employees.

By Michael R. Clark

The need for managers and supervisors to be able to coach employees effectively is greater today than ever before—for several reasons. Consider, for example:

• Employees in today’s workplaces are being asked “to do more with less.” This means companies are demanding the successful completion of more and different tasks than required in the recent past. Employees need to be taught how to do them.

• Many job applicants lack the literacy and/or math skills necessary for the jobs for which they apply. As a result many teaching-learning moments will occur between the supervisor and employee for acceptable performance to occur.

• A number of research findings show that approximately seven out of ten employees in the 18 to 35 age group believe there are no absolute ethical standards. In their view, honesty or honest actions depend on convenience. This either requires closer supervision or coaching employees to higher ethical standards.

Fortunately there are “tried and true” coaching strategies that managers and supervisors can use to improve the performance of their employees, both quantitatively and qualitatively. If you apply the following coaching principles, you will motivate and modify your employees’ performance towards much higher levels.

1. Expect employees to be successful. There exists a body of research that suggests that employees in general will perform according to expectations. As a supervisor, if you think certain employees will be successful, then they probably will be. But, if you think employees will not succeed, then they probably won’t. The reasons for this generally exist within the relationship between the employee and supervisor.

2. Assess current performance first. You must know the specific levels at which employees are performing, before you can coach effectively. You can usually determine the level through a combination of observation, performance feedback conversations, and normal monitoring of work. A written performance improvement plan is recommended for all employees.

3. Know how to address nonperformance issues. As a supervisor, you have three basic approaches to handle employee nonperformance issues: Avoid the issue altogether, which usually doesn’t solve anything; threaten the employee with a negative sanction, which may stop or fix the performance issue in the short run but only creates other problems between the supervisor and the employee; or collaborate with the employee to fix the issue. Collaboration is the preferred method.

4. Clarify expectations. Employees need to know what success means, as well as what it means to perform at the highest level, the lowest level, and everywhere in between. Show your employees what the expectations are for each level, and then let employees choose to perform at a given level for their own reasons. (Of course, each level of performance comes with its own rewards or consequences.)

5. Check for understanding. Do not assume that employees understand verbal communications, even when they say, “I don’t have any questions.” People differ in many ways and have different life experiences, which affect understanding. Because of these differences, we make mistakes when we communicate with each another. The only way to account for differences is to make sure the receiver (the employee) of a message understands the message, so the sender (the supervisor) must check the receiver’s understanding by asking a few questions about the message.

6. Use the 2+2 strategy. This amounts to talking to employees about their individual performance for at least a couple of minutes every couple of weeks. Supervisors talk to employees about work all the time. They don’t, however, usually talk much about the employee’s individual performance except when an issue arises, or during the annual performance evaluation process. Make it a point to  talk with employees about their performance at a minimum a couple of minutes every couple of weeks.

7. Reward good behavior. Use positive consequences (rewards) for desirable behavior (performance). Identify ways to reward both employee performance and effort. At a minimum, use verbal praise when it makes sense. One way to determine how to reward employees is to actually ask them what would be rewarding to them.

8. Sanction nonperformance. Nonperformance is undesirable behavior. Use negative consequences to change undesirable behavior. A technique called “corrective feedback” can be used to deal with any type of performance issue.

9. Give specific, timely feedback to employees. Give performance feedback to employees, on a consistent basis. Also, it is acceptable to give general feedback, such as, “That was an excellent effort;” however, the feedback is more powerful when it is specific. For example, say, “That was an excellent effort. I especially liked the way you showed empathy to the customer, and then asked how you could help and didn’t pass the person to someone else.”

10. Use the “pull style” coaching as much as possible. Telling employees what to do (“push style”), is easier than pulling the solution out of them through questioning and guidance (“pull style”). But, as a result of using the “pull style,” employees are more likely to be accountable and will also grow much more because they are learning to think on their feet and solve their own problems.

This list of 10 coaching principles is not exhaustive, but if you use them consistently, you will find employee satisfaction and accompanying performance levels will rise to higher levels—which is the point of coaching.

Michael Clark

Michael Clark is a senior consultant/trainer for the Division of Continuing Education, University of North Florida, where he specializes in developing and conducting management/supervision training programs.  He is also owner of MRC Consulting, which specializes in the creation and implementation of both organizational and management/supervision development strategies. He can be contacted by e-mail (mrcconsulting@earthlink.net) or by phone, either 904-620-4200, or 850-545-1451.

SIDEBAR

Want more information on coaching?

The tips in this article came from these reference materials, where you can find more ideas on coaching your employees:

• Why Employees Don’t Do What They Are Supposed to Do, Ferdinand Fournies, McGraw-Hill, 1999.

• Coaching for Improved Work Performance, Ferdinand Fournies, McGraw-Hill, 2000.

Want more information on getting more from your employees? Go to http://advantagebizmag.com/archives/1556.

By Linda Nottingham

Many employers avoid the process of conducting formal employee performance reviews because they are uncomfortable with confrontation. Don’t make that mistake! Handled properly, a performance review can be a fulfilling and satisfying experience for both you and your employee, and it will improve employee loyalty and morale.

As a boss, one of your primary responsibilities is to help your employees achieve success in their jobs and grow more proficient. The compelling reason for taking this responsibility seriously is the reality that every employee is either contributing to the mission of your business, or is not—and you don’t need people on your payroll who are not helping you succeed! Every employee needs to contribute 100% toward this effort. Employees represent your business to vendors, clients, and others; you want them “on-message” and maximally productive.

Start at the beginning: The job description

Giving a performance review that results in good feedback and improved productivity begins with a written job description that details the employee’s responsibilities. You should give a copy of the job description to each employee at the time of hire, and review it with them at that time. As you initially go over the job description, schedule the date and time when the first performance review will take place—such as in three or six months.

Then, stick to the plan. Barring extreme circumstances, don’t change the evaluation date. Moving the date devalues the job and the employee. It sends a message that you don’t think the evaluation is very important. (Employees almost always think performance reviews are important.)

Put ticklers into your own calendar and when the time for the first review is approaching, send the employee a current copy of the job description and ask him or her to come prepared to talk about performance. Give employees a week or two to think about a “self-assessment” based on the job description.

It may be a surprise to you, but almost all employees know what they do and don’t do well, and they are usually harder on themselves than you would be. In all likelihood you will never have to originate a negative point; they will beat you to it.

On the day of the evaluation, set aside adequate time and don’t allow any interruptions. Put your Blackberry or phone on silent and hold all calls. For higher level employees, consider doing the review off-site over a long lunch. This is your chance to reiterate the mission of the organization and share your vision.

Begin the review by identifying something you believe the employee does really well and speak about the value of that to you and the company. Give specific examples. Then move to the self-evaluation and go over the job description, allowing the employee to identify and explain strengths and weaknesses—again in terms of specific examples.

When an employee identifies a weakness or deficiency, ask what you can do to assist in resolving the problem. For example, does he need more access to you or better clarification? Does she need in-house training? Are there external training programs which would help? Make note of these deficiencies; they become the basis of employee performance goals.

As you discuss the job, you may find that the job description needs to be revised because of changes in actual practice—additional or fewer duties or different responsibilities. This is also a great chance to explore cross-training opportunities, as well as the employee’s long-term and short-term goals.

As you complete the performance discussion, review with the employee the items you both agree need to be improved and decide how and when they can be achieved. Write out the review immediately after the meeting. Give a copy to your employee and put an original that each of you has signed into their file. And set the date for the next review in writing.

Then follow-up. The employee’s success is your success.

Linda S. Nottingham is president of JAX Realty Advisors, Inc., and is a member of the Jacksonville chapter of SCORE. She facilitates several of the Business Advisory Councils for the Jacksonville Women’s Business Center. She can be reached at lnottingham@bellsouth.net or 904-534-1283.

SIDEBAR 1

Write SMART performance goals

As you and your employee go through a performance evaluation, you should be noting things he or she did (and continues to do) well, as well as things he or she could and should improve upon in order to optimize their contribution to the organization. These improvement areas are the basis for employee performance goals.

For example: Assume the employee has a problem getting projects properly organized so that they are completed on time. A solution you both agree would rectify the problem is for the employee to learn how to use Microsoft Project Management software.

A SMART employee performance goal (that is, one that is Specific, Measurable, Achievable, Realistic, and Time-based) might read: John will complete a four-day computer-based training on Microsoft Project 2010 Essentials by October 1, 2010.

SIDEBAR 2

Performance and compensation

In some organizations, performance reviews are divorced from compensation discussions. In others, employees expect that at the end of the performance discussion, adjustments to wages or salary will be discussed.

If you do not want to discuss compensation in the review, make that clear as you prepare the employee for the review. If, however, you link performance evaluation with compensation, come prepared to discuss any adjustments.

You may want to take advantage of this discussion to review other perks your company offers, such as healthcare insurance plans, life insurance, or 401(k ) plans. Most employees—even those who pay a portion of their health insurance premiums—are not aware of the value (cost) of their benefits. Paint a complete picture of what the employee is receiving.

Even if you cannot offer an increase in wages because of economic circumstances, don’t put off the performance review. The review becomes even more important because it gives you the opportunity to discuss the company’s plans to turn things around. Employees may not have a guaranteed right to a raise, but you’ll be a smart boss to communicate honestly with them.

Furthermore, people work for more than just money. Your employees need to know that they are contributing to the success or growth of the business and that you value their contributions. In advance, consider whether you may be able to offer non-monetary incentives to your employee, such as a change in title or flexible work hours.

If it is not financially possible to give a raise at the time of the performance review, be prepared to indicate when the compensation for that individual will be reconsidered. For example, if you think new contracts will bring in additional revenue in six months, tell your employee you will revisit the compensation issue then. Set a date, and then do it, even if you have to defer the raise again.

The key is trust and communication. Your employee needs to believe that you have the ability and the desire to balance what is good for the company, along with what will benefit or promote them.