By Giselle Carson, Esq.

As a result of our tight labor market and the entrepreneurial spirit of many foreign nationals, we are seeing an increase in the usage of E visas granted to skilled and talented foreign entrepreneurs to come and work in the U.S.

This article will focus on the E‐2 Visa which is most commonly used.

The advantages of the E‐2 Visa

The E‐2 Visa is particularly advantageous for foreign business owners, managers and essential skilled employees to remain in the U.S. for extended periods of time in furtherance of their investment. E‐2 Visa renewals are, potentially, indefinite as long as the business continues to generate enough income to support more than the investor and his/her family.

It is also one of the best alternatives for a foreign national who has exhausted the allowed time in an H and/or L status. It can be used by non‐degree workers and for self‐petitioning. Additionally, the spouse of the E investor can apply to obtain work authorization

Who can obtain an E‐2 Visa?

A national of a foreign country in which the U.S. maintains an appropriate treaty of commerce and navigation, and who is coming to the U.S. to develop and direct the operations of an enterprise in which the national or the petitioning company has invested, or is actively in the process of investing a substantial amount of capital.

The investor may start, or buy an existing business. Oftentimes, it is best for the applicant to buy an existing business. This status is not designed for retirees or employees of nonprofit organizations.

What are the challenges of the E‐2 Visa application?

The increased scrutiny and inconsistencies of adjudications by the consular posts around the world coupled with the irrevocable expenses incurred by the client can cause much stress to the applicant and his/her family. A thorough and organized filing can make visa processing less stressful and oftentimes expedite an approval.

The first step in E‐2 Visa planning

The U.S. must have the requisite treaty with the applicant’s country of citizenship. Without the existence of the applicable treaty, no E‐2 visa application is possible. A list of the treaty countries which support E visa applications can be found in the Foreign Affairs Manual (FAM)¹ and at the Department of State website².

The individual investor or employee and the E business must have the nationality of the same treaty country. A person’s nationality is determined by the authorities of the country in which the person claims nationality.

The business’ nationality is determined by the nationality of the majority owners of the business. When the treaty business is at least fifty percent owned by nationals of the same treaty country, the nationality requirement is satisfied.

What additional requirements are needed to obtain a Treaty Investor (E‐2) Visa?

An E‐2 Visa applicant must also show that:

•He/She has invested or is actively in the process of investing funds which are at risk, or subject to loss, if the business fails.

•The enterprise is real and operational. Speculative or idle investments do not qualify.

•The investment is substantial and proportional to the cost of the enterprise.

•The investment generates sufficient income to provide a living for more than the investor and his/her family.

•The investor is coming to the U.S. to develop and direct the enterprise.

•If the applicant is not the principal investor, he/she must be employed in a supervisory, executive or highly specialized skills capacity.

•The applicant intends to depart the U.S. when the E status terminates.

How can the applicant show that he has invested irrevocably committed funds?

One of the most taxing requirements for the E visa applicant is that the investment capital must be subject to partial or total loss, if the investment is not successful. To show funds commitment, the investor should present statements verifying the purchase of items committed to the business and also that a portion of the required funds are being held in escrow pending visa approval.

What is a substantial investment?

There is no bright‐line minimum investment that qualifies as substantial. The applicant must show an investment sufficient to indicate the investor’s financial commitment to the enterprise and to support the successful development of the business.

For example, the guidelines provide that an investment of 100% or a higher of the cost of the business would typically qualify for a business that costs $100,000 or less. Conversely, an investment of $10 million in a business that costs $100 million would likely qualify as a substantial investment.

What is required to show that the investment is not marginal?

Meeting the marginality requirement is highly dependant on showing that the business can create and support jobs for U.S. workers. A marginal enterprise is one that does not have the present or future capacity to generate more than enough income to provide for minimal living for the investor and his/her family.

An investor cannot show independent sources of income to support his/her family to show that the business is not marginal. Although not as persuasive as creating direct jobs for U.S. workers, the applicant should indicate that the business will also create and support indirect job expansion, as it will provide commerce for other local businesses such as printers, couriers, banks, utility companies, etc.

What is the length of stay of an E visa holder and how long does the process take?

An E visa is typically issued for five years; however the I‐94, providing the length of stay allowed in the U.S., is given for two years at a time. Be prepared for an E‐2 Visa Application to take a several months. The length and the complexity of the adjudication vary from consulate to consulate.

What status can the spouse and children of the investor obtain?

The spouse and unmarried children under the age of 21 of the visa applicant, regardless of their nationality, can apply to obtain E status. A significant benefit of the E visa is that the spouse of the principal E visa holder is able to seek employment authorization from the DHS.

Where to apply for an E Visa?

This is a strategic decision that should be made with the guidance of an immigration attorney with experience in E visas. The application can be made in the U.S. or at the consular post after a full analysis of the facts of the case and the requirements of the applicable consular post.

Consular processing tips

When preparing the consulate application, it is critical to check the consulate’s website on a regular basis. Each consulate has specific requirements and filing procedures and formats that must be followed which change on a regular basis without notice. There are more than 75 U.S. embassies and consulates around the world, each with its own particular requirements.

What are the main reasons for a denial or requests for additional evidence?

•Presenting a disorganized and incomplete case. Officers tell us that the majority of these cases are submitted by applicants without an immigration attorney, to save money, but at the end it costs more and it may lead to a case denial.

•Failure of the applicant to be prepared for the interview;

•Failure to overcome the marginality threshold;

•Failure to complete the DS‐160 application accurately; and

•Failure to submit supporting documents for dependants.

What if the application is denied?

The best defense to avoid a denial is preparing the best possible application. In the case of a consular application for an E visa, in addition to a strong application, the client must be well prepared for the interview.

If the application is strong and maybe the denial is the result of an adjudication error or misunderstanding, the attorney should prepare a strong rebuttal legal brief with supporting evidence to submit to the interviewing officer for reconsideration as soon as possible.

How can an E‐2 Visa holder obtain legal permanent resident status?

The E‐2 visa is a nonimmigrant visa whereby the investor must have intent to return to his/her home country once the business obligations have concluded. Not surprisingly, after living and working in the U.S. and spending significant time, money and effort in running successful businesses many foreign nationals want to stay in the U.S. However, there is no clear path from E status to apply for legal permanent residency.

Potential immigrant options include:

•Employment‐based sponsorship: U.S. businesses may sponsor the foreign national or his/her spouse for a legal permanent residency.

•Family‐based sponsorship: the E visa holder marries a U.S. citizen or lawful permanent resident or has other immediate relatives (parent, sibling, or child) who can provide sponsorship.

•EB‐5 Immigrant Investors Visa

The E visa involves detailed planning and preparation. But, despite its challenges, with the right guidance, it can be a very effective option for foreign nationals to live and work in the U.S. and at the same time create jobs and strengthen our economy.

Giselle Carson, Esq., is an immigration and business attorney and shareholder at Marks Gray, P.A. She can be reached through www.marksgray.com.

References

¹ 9 FAM 41.51, Exhibit 1.

² http://travel.state.gov/visa

By John Featherstone

Have you ever hired the wrong person? Most managers will have to answer “yes.” Hiring the right person the first time can save you tens of thousands of dollars in time and resources. And it’s not as difficult as you might think.

People are a company’s most valuable asset, so the company will only be as successful as the quality of the people it hires, trains and leads. Identifying what you need for the most success in a position, and then knowing how to find it in a candidate, is critical.

Improve your process

Step 1. Clearly identify the “musts” needed for a position, and then weight each criterion. These are things that candidates must have in order to be called for a phone interview. Beyond basic skills, managers need to give serious thought to special skills the employee will need to solve current problems and achieve performance improvements.

Step 2. Look for and rate those “musts” during the initial resume review and all interviews (phone and in-person). Ignore your “gut feeling”—whether positive or negative—until all candidates are interviewed and evaluated against the same criteria.

Step 3. People succeed from their strengths, so keep your focus there during the interview. Just be sure there are no weaknesses that would almost surely lead to failure on the job.

Step 4. The in-depth interview is a fact-gathering session that allows you to make a good hiring decision. Spend your time gathering facts directly related to job performance. Don’t do all the talking. Candidates should be able to share tangible results that are directly relatable to the position for which they are applying.

Step 5. Commit to taking time for a successful recruiting project. Take no shortcuts. Doing the job properly the first time will save you time, money, energy, frustration (yours and the employee’s co-workers) and the need to do this all over again too soon.

Too many managers hire based on their “gut feelings” or on interviews in which the hiring manager has talked more than the candidate for hire. Seldom does one learn anything while talking. The purpose of the interview is to gather job-related facts. This requires that the candidate talk about 80% of the time.

Areas of assessment

There are areas of assessment in which intensive questioning is needed to clearly identify the best people to hire. Here is just a sampling of those areas and related questions:

1. The practice of management
a. Define “management” for me.
b. How would your previous superiors describe your management skills?
c. What is your style of management, and can you share an example of how well it has worked for you?

2. Leadership
a. Tell me about a policy you put in place that generated employee resistance.
b. Describe and give examples of your self-confidence.
c. How do you convince people to want to do what needs to be done?

3. Risk-taking
a. How do you assess risk?
b. Describe the circumstances where you had to make a decision before you had sufficient facts.

4. Results-oriented
a. How did you bring about your greatest achievement?
b. How are your previous employers better off as a result of your employment?

5. Delegation
a. Is delegation worth the risk? Explain with examples.
b. How do you manage a task delegated to a subordinate?

6. Judgment
a. What was the worst decision you made in the last year, and what was the outcome?

7. Ability/desire to learn
a. What periodicals do you currently read?
b. What did you learn from your previous superior?

8. Planning ability
a. Tell me about the best plan you prepared, how you implemented it and the results.
b. How do you decide what elements of a plan to delegate?

9. Ability to organize
a. Help me to understand how job descriptions help employees work better.
b. What data do you collect to measure progress in your area, and how do you use it?

The other areas can be identified by contacting the author:

John Featherstone, author of “Start Hiring Winners,” is a consultant to small business and a former five-year volunteer with SCORE, mentoring and training small-business owners and employees. As a division vice president/general manager for a privately held confectionery company, Featherstone managed a spectacular annual growth rate of 50% for seven consecutive years.

By Greg Crabtree

Your newest hire has worked for their first 30 days and while looking back at their great resume and 15 years of experience, all you can think is, “Does he really have 15 years of experience or just one year of experience 15 times?”

Sometimes hiring someone with experience means they are competent in only one area instead of many. Since they also had “years” of experience, they demanded a premium pay that bore a poor relationship to profitability. This type of experience is why you to have to make “you have to love training” one of your core values.

Instead of just passing on the cost to your clients by paying too much for labor, solve the problem a different way. By growing your own talent, you would be able to keep access to your services more affordable and fulfill your company’s mission.

Taking the steps

The first step is to identify which core areas you need your employees to be competent in. For instance, a CPA firm may need it to be personal tax, business tax, accounting system implementation, financial statement preparation and forecast modeling.

The next step is to identify the personality characteristics you need and screen your candidates for those characteristics. If you need an outgoing personality for your customer service, be sure to hire someone with a friendly disposition. If you need someone who is extremely organized, ask questions that would provide you some insight as to how they organize.

Some companies offer a test (for a fee) you can use such as Caliper (www.calipercorp.com). After your candidate takes the test, you get an email with basic results within 24 hours, a call from their consultant to discuss the results and a written report with even greater detail findings within three days.

Once you hire your employee, schedule the work for them to stretch but not break them. One way to achieve this is to employ a 70/20/10 training philosophy, which is 10% classroom, 20% one-on-one mentoring and 70% “throw you off the deep end of the pool to see what you can do.”

Until you throw them off the deep end of the pool, you won’t know what they really can do! You are not going to let them “drown,” but this technique lets you know what they are capable of and what limits you can expect, and then you can train them for how you want things done.

Making improvements

When you add an expensive person with narrow experience, you may get some growth but not much in the way of profit since he or she cannot be used for more than one service offering and may be resistant to expanding his or her skill set. When that employee leaves, either by your choice or theirs, the crazy cycle starts all over again.

When you hire an employee based on personality characteristics, however, you get an employee that will be with you for a while and more than likely become one of your top performers. Going from turning over two staff members a year to turning over two staff members in, say, seven years is a much better statistic. There will always be plenty of new business opportunities; your only bottleneck will be how quickly you can add the right people.

Hire for attitude, train for skills—it really works!

Greg Crabtree has worked in the financial industry for more than 30 years. He founded Crabtree, Rowe & Berger, PC, a CPA firm dedicated to helping entrepreneurs build the economic engine of their business. Crabtree leads the business consulting team, helping clients align their financial goals with their profit model and their core business values. He is the author of “Simple Numbers, Straight Talk, Big Profits!” He can be reached through www.seeingbeyondnumbers.com.

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.

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.

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.

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.”

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)

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.

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?”