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Dear Workforce How Do I Become an Influential Leader

Dear Confounded:

Your first step should be to demonstrate that there is a quality problem. Gather your data, do your analysis and prepare a report on the scope of the problem. The report might include items such as: frequency of errors, the impact on delivery/completion, the costs to identify and correct the errors, and any post-product/sales-support costs that result directly from the lack of quality.

(Caution: These are examples; you would be wise to come up with metrics more meaningful for your product. Keep in mind that cost is always a good one to include.)

It is not enough just to identify a problem. You’ll gain a lot more traction in your organization if you prepare a plan of action to address the problem, with some metrics showing reductions in costs and/or time spent fixing bugs, among other things.

SOURCE: Carl Norcross holds a master’s degree in human resources and has more than 20 years’ experience leading HR departments. He has worked for several midsize and Fortune 500 firms, including GRID Systems, Colorado Memory Systems and Nortel Networks.

LEARN MORE: Companies across all sectors are wrestling with the issue of manager training.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce How Do We Decide Whether to Outsource Payroll or Bring It In-House

Dear Overwhelmed:

Payroll is one of the most complex processes found in the financial operations of companies these days. Not only do payroll administrators need to keep track of federal income tax and benefits regulations, they also must be aware of state wage and hour regulations in every state in which you operate. Most small to midsize firms find it much more economical to outsource this complicated and demanding function. It is only when you reach 1,000 or more employees that you find companies being able to afford the expense associated with maintaining payroll in-house. Even then, these firms usually have access to a variety of outside services that support their legal and regulatory needs related to payroll. If your company is growing rapidly, you may want to study this possibility further. Here are some of the relevant factors to consider in any analysis:

  • How quickly is your company growing? Are you looking to make a significant number of acquisitions or expand internationally over the next several years?

  • How complex are your payroll needs? Look at things like how many hourly employees you have, the different work/shift schedules, and which types of deduction codes and earnings types your company uses. Another indicator of complexity would be a lot of different bonus or other cash compensation programs.

  • How many distinct payrolls does your company run each month? How many physical checks or deposit stubs do you generate each month?

  • Are state regulations (in the 39 states) complex and demanding? Illinois, New York and California have some of the most complicated wage and hour regulations on the planet.

  • Do you have access to payroll expertise (including outside expert resources) to assist with preparing a formal cost/benefit/return on investment analysis?

  • What is the level of IT support at your company? Is your IT department capable of managing another system?

  • Do senior executives understand the complexity, and are they willing to support the conversion with needed resources?

These are some of the more critical questions you will need to consider in the decision to source payroll or bring it in-house. If your company decides to move to another vendor rather than insource, here are some of the significant considerations:

  • Is the vendor financially stable? How long has it been in business? What is its track record in meeting commitments? Check references in detail.

  • How strong are the vendor’s project management capabilities? Does the firm have expertise in all aspects of project management, including project planning, tracking, control, and management?

  • What capacity does the vendor have for bringing your company on board with them? Will you have a dedicated service team?

  • Does the vendor operate nationally? With 39 states, you might as well not even consider firms that have not had experience in all 50 states.

  • Does the vendor serve similarly sized organizations that are growing rapidly? Does it serve organizations that operate internationally (presuming this is a factor)?

  • Does the vendor have experience with companies in your industry? If so, quantify that experience?

  • Can you trust the confidentiality of the vendor? Does the vendor also serve your competitors?

  • Finally, can the vendor manage the variety of your company’s payrolls?

Many of these questions will form the basis for a formal request for proposal that you will send to a select list of vendors. Using these lists as a starting point, you also may want to check with your business colleagues/professional associations to find people who have gone through this type of change and are willing to share their experiences. This type of change should not be done in a “quick and dirty” manner. Invest the time and resources into making the right decision for your organization.

SOURCE: Bob Fulton, the Pathfinder’s Group Inc., Naperville, Illinois, September 7, 2007.

LEARN MORE: Please read how companies large and small have begun to contract our more HR administrative tasks.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce How Do We Judge Return on Investment From Our Education-Assistance Benefit

Dear Education Isn’t Cheap:

Education assistance or tuition reimbursement programs are typically one of the most poorly managed benefits that companies offer. While nearly every company offers a variant of the benefit, few even attempt to evaluate the return on investment (or lack thereof). Such programs rarely have goals, and primarily exist just because everyone else has one. You are right to question what must be done to increase the program ROI, but I assure you that service return contracts are not the answer. Consider asking yourself:

  1. Historically what is the percentage of participants in the program who have voluntarily separated following completion or near completion of their education?

  2. How has completing the education affected the capability or capacity of the program participants to perform their jobs? In other words, does their on-the-job performance increase? Do they receive promotions more often? Does the quality of their work improve?

  3. Historically, how has the organization leveraged the education it sponsored? Was a career plan in place to make use of what the participants were learning? Did the organization re-evaluate the position of the participant or their compensation upon completion of the education (re-recruiting them)?

  4. What is the performance profile of the typical program participant? Is this a program that is primarily used by existing top performers, average employees or minimally engaged employees who continuously perform just above minimum performance standards?

The key in maximizing the ROI of this program, or any HR program for that matter, is to:

  • Develop and clearly articulate a business reason for the program to exist.
  • Cascade that reason down into clearly defined and measurable goals and objectives for the program.
  • Establish metrics relevant to each goal/objective.
  • Routinely communicate program performance and rigorously investigate/resolve non-ideal results.

Completing a degree or even adding new skills to one’s portfolio increases the person’s perceived market value, if not their actual value. Few organizations manage toward that perception. They do not re-recruit the program participant, placing them into a new position that utilizes their current skills. They do not adjust the compensation to levels that a competitor would now pay. And more often than not, they do not even congratulate the employees on their achievement. If such programs can have a positive ROI, achieving it will require that you manage the program for planned results, not administration.

SOURCE: Dr. John Sullivan, San Francisco State University, July 18, 2006.

LEARN MORE: Here is another article on this topic. Also, an intermediate course on calculating its ROI.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce How Do We Capitalize–and Recognize–Intellectual Capital

Dear Discouraged:

You clearly have a few issues to consider here that revolve around recognizing the individual’s problem-solving skills and willingness to contribute his expertise.

The first step is getting the right stakeholders together to discuss the issue. This group should involve some key business leaders or managers, as well as a human resources partner. Use this situation to review your organization’s overall ability to manage and effectively share employees’ knowledge and expertise. Doing so positions the conversation in a positive light and avoids pointing fingers at managers who fail to recognize an individual’s contributions.

Positioning the conversation in this light is positive versus pointing out the failure of some mangers and leaders to recognize an individual’s valued contributions.

Questions to address to develop a solution

  1. Does the organization currently have formal or informally designated subject matter experts (SMEs) whom people rely on as “go to” players for deep technical expertise?

  2. If there is no formal program or designation of SMEs, consider this: Is your organization at risk in terms of highly qualified experts leaving the business, taking with them valued knowledge that is difficult to replace?

  3. Which types of technical knowledge and expertise are most highly valued? Who has this knowledge and how often does the organization rely on it?

  4. Is it imperative that you designate SMEs/technical experts in key areas, functions and levels across the business?

  5. Does your employee competency model reference deep technical expertise—and willingness to share it—as a valued behavior? If not, can this be added so that contributions are recognized in the performance management process, for example?

  6. How do you foster improved collaboration and knowledge sharing through recognition?

  7. What are the required leadership behaviors to support a collaborative environment and recognize effort and valuable contributions?

Finally, it should be stated that recognition for individuals who play the technical-expert role (as described in the question) doesn’t necessarily saddle your organization with financial or other costs. Simple recognition tools (such as designating the individual as an SME, inviting him/her to coach others, or inviting the employee to present their ideas or solution to company leadership) go a long way to ensuring the person doesn’t walk to a competitor—and take expertise your organization relies on to make important decisions.

SOURCE: Garrett Sheridan, managing partner, Axiom Consulting Partners, Chicago, June 18, 2008.

LEARN MORE: Please read about strategies on formalizing approaches to cross-training for key employees.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce We Use the SMART Format For Setting Goals. Which Appraisal System Best Suits Us?

Dear Smarter:

The first step in your appraisal system should be to establish goals, and to make them “SMART.” The acronym stands for goals that are specific, measurable, attainable, relevant and time-bound.

In construction, the organizational structure is typically based upon projects. Therefore, a company’s performance management system usually follows the project framework. Because each project has its own goals—including revenue, budget and timelines—you will likely want to develop goals on a project-by-project basis. It is the job of management to align the overall project goals, the manager goals and the individual goals to bring the project home on time and on budget.

Your company should make the overall project-based goals clearly visible to the members of each project team. Within the project, individuals should then be assigned specific responsibility to do their part to achieve the overall project goals.

Writing SMART goals

One special consideration in a project-based business is that the timing of performance feedback and goal setting typically follows the timeline of the projects. And because a project may wrap up at any time during the year, when people are reassigned from one project to the next, they usually must also update their goals.

Specific goals:

• Are concise.

• State a clearly observable result.

• Identify a specific reference point from which to track progress.

Measurable goals:

• Quantify the expected result (includes number, percentage and frequency).

• Describe the criteria by which the result will be evaluated.

Attainable goals are:

• Challenging, but within reach of the person doing the work.

• Have a realistic time frame.

• Do not present unrealistic barriers to achievement.

Relevant goals are:

• Aligned across the company from individual goals through higher goals and strategies.

• Integrate the company’s values into the objectives.

Time-bound goals:

• Identify the expected deadline for completion.

• Identify the frequency or duration of the project.

SOURCE: Patsy Svare, managing director, Chatfield Group, Glenview, Illinois

LEARN MORE: It can be helpful to remember the role that job analysis can play in defining roles and responsibilities.

Workforce Management Online, March 2011 — Register Now!

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce What Are Some Techniques to Hire People Whose Personal Values Best Fit Our Company

Dear Fixated:

 

You are correct: The cultural fit between employee and the organization is an extremely important consideration. We have all had a job for which we had the skills and experience but were just not a “good fit.” Such situations often result in poor employee performance and/or turnover, both of which are costly for the employer.

During a down economy, employees who are a poor fit are way less likely to jump ship–and while this may reduce turnover, it also may perpetuate lower performance that eventually shows up in the bottom line.

So what steps can you take to ensure you hire employees whose values and interests jibe with the company? First of all, it is critical for your company to clearly understand its own culture. This requires a bit of soul searching.

This effort can be complex if yours is a larger company with many divisions and geographic locations. Each group within the organization may take on its own unique culture. In your search for a cultural identity, look at the enduring and stable things that the company values as a whole—and identify meaningful differences in these values across various branches or divisions.

Organizational culture has been studied by many different groups and has been defined in many different ways. Industrial psychologists have conducted decades of research aimed at defining organizational culture, the result being a set of relatively stable “work values” that define the aspects of work that are meaningful to an organization, based on the values of the individuals who constitute it.

Some of the most useful work has been performed by Jennifer Chatman, whose Organizational Culture Profile (OCP) identifies the following major dimensions:

• Innovation

• Stability

• Orientation toward people (fair and supportive)

• Orientation toward outcomes (results-oriented, achievement-oriented)

• Easygoing vs. aggressive

• Attention to detail

• Team orientation

The OCP uses these dimensions to measure fit via the following process:

First of all, a baseline for the organization’s culture is established. This is done by having members of the organization make ratings based on their opinions regarding which of the above dimensions they feel are most and least characteristic of the organization. These ratings are then aggregated to provide a profile that defines the organization’s culture in terms of these dimensions.

Second, an individual’s “personal value profile” is created. This process involves having individuals rank their own personal values (using the dimensions listed above) in terms of their most and least preferred work environment.

Finally, the individual’s ranking of the above work values is compared with the aggregate values profile created by the organization to summarize its culture. This comparison process yields detailed information about the overlap between the values of an organization (or one of its many groups) and those of an individual. These outcomes provide a data-based estimate of the fit between an individual and the group or organization.

As you can imagine, this information can be very useful for helping organizations make all kinds of important decisions. Perhaps the most important is within the hiring process. The work values that underlie cultural fit are relatively stable and enduring within individuals, so hiring people and trying to change their values does not often prove to be an easy task.

There are a number of different “fit” inventories available from pre-employment assessment companies, and it makes sense to look into these. When doing so, make sure to ask for the technical documentation that will demonstrate the measure has been created and evaluated using the proper scientific techniques.

SOURCE: Charles A. Handler, Rocket-Hire, New Orleans, August 13, 2009

LEARN MORE: Post-hire introductory periods provide a way to ensure people’s behaviors, attitudes and attributes actually dovetail with those of a company.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce How Do We Rein In a Touchy-Feely Employee?

Dear Trapped:

Communication and awareness of organizational policy are keys to successfully dealing with this and similar situations.

First some background: The idea of personal boundaries in the workplace is not new. Look at traditional office space here in the United States. Traditionally, the higher you go on the corporate ladder, the more personal space you are given. That corner office is desirable to employees in large part because of the privacy it offers. Culture also plays a part in a person’s comfort level regarding personal space, both in one’s personal life and in the workplace. People intuitively know that the level of trust and intimacy in a relationship dictates how much physical space should be maintained among colleagues, friends and family. Finally, studies have revealed that women tend to need less personal space than men do, and some women touch a colleague in order to make a closer connection with the person to whom they are talking. The touching is not necessarily a sign of physical attraction. However, it is always improper to touch someone if it makes him or her feel uncomfortable.

There are several steps that should be taken with the employee in question. The situation needs to be dealt with without regard to the employee’s job performance or seniority. In policy matters, all employees need to be treated equally and consistently. The employee’s professional abilities or executive standing do not make inappropriate actions any more palatable.

The following actions have proved successful in these situations:

• Train employees to understand and respect the clues given to them by co-workers. For example, have you ever watched two people talking and noticed Person A constantly taking one step closer while Person B keeps taking one step backward? Body-language clues can be addressed during employee training sessions.

• Communicate to employees that getting too close for another person’s comfort is easy to do, and can happen before they realize it. Associates, supervisors and customers may take close talking and innocent touching as a threat to their emotional or physical well-being. Also communicate that if it’s not corrected, this behavior can cost employees their jobs. Finally, employees must understand that such behavior with customers can also affect the company’s business relationships.

• Communicate and train your employees on the firm’s generally accepted behavior, and include those behaviors in your employee handbook. Such policies should, however, recognize that everyone expresses themselves differently, and we should not confuse differences with bad behavior.

• Encourage your employees to ask colleagues and supervisors to speak up if certain actions offend them.

In summary, communication and awareness are keys to resolving this situation in a manner that keeps all employees focused and working effectively together.

SOURCE: Rania V. Sedhom, principal, Buck Consultants, New York, October 30, 2009

LEARN MORE: Employee misconduct needn’t be a problem. Learn what should be tolerated and how to handle behaviors that can spell legal trouble.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce How Do You Create a Fun, Yet Serious, Environment

QDear Workforce:


    I would be interested to hearof some communications strategies for situations where the owner of a businessis relatively the same age as his staff (and trying to promote a “fun”workplace), and he is having trouble letting staff know when he is serious aboutdecisions/deadlines/performance factors. Often staff members do not perceive theseriousness of an issue in the midst of the fun environment.


– Peter Moritz, HRConsultant, Shalom Business Development Centre, Brisbane, Australia


Dear Peter:


    Never forget: You are runninga business, not a club. You hire people, not to have fun, but because there is abunch of work to be done. No matter how much you treat your employees likefriends – and no matter how much they may in fact be your friends – they areworking for you because you are paying them. If you stop paying them, they will stop coming to work. Count on it.


    Yes, it is very important tocreate a work environment in which every person feels comfortable, respected, andvalued. It’s important because it is the right thing to do, it is personallygratifying from the standpoint of the boss, and it makes employees feel glad towork hard and contribute. But a healthy enjoyable work environment is perfectlyconsistent with a clear and unyielding focus on the mission of the organizationand all the work that needs to be done every day to pursue that mission.


    As to fun, per se, that meansdifferent things to different people. To one person, fun could mean playing agame, watching a movie, or going to the mall; to another fun might mean goingfor a long walk or having a meaningful talk. But if “work” is to be fun andstill be “work,” it should mean some or all of the following: Working withpeople whom one likes and enjoys. Learning new and interesting things, whileworking. Feeling a sense of excitement about work. Tackling new challenges andtaking pleasure in the fruits of one’s work. And so on. Note that the commontheme here is “work.”


    Sometimes when people saythey want their workplace to be fun, what they really mean is they want tocreate an atmosphere where most people maintain a sense of humor and don’ttake themselves too seriously. This makes for a pleasant workplace, and onceagain, such a workplace is perfectly consistent with a clearfocus on results.


    The problem is that mostbusiness leaders, like most people, want to be liked by others, including theiremployees. As a result, sometimes a boss goes too far and errs on the side ofeasygoing, soft-pedaling his or her authority to the point that the employees -and thus the businesses – loses focus. Once that happens, it can be hard to getpeople back on track without seeming angry and punitive.


    If that’s the situation,here’s what I would do: get each person or each team focused on an importantproject. If the project is the regular work of the day, give it an urgentdeadline, even if you have to manufacture the urgency. Once you have everybody’sattention, clarify goals and deadlines for each individual. Be prepared to coacheach person to success and then hold people accountable. Reward the highperformers and let people who don’t deliver know that their performance isunacceptable.


    Giving people feedback ontheir performance – before, during, and after – is the key to coaching. Butfeedback is not aimless banter. It is the banter of acute focus, ongoingimprovement, and constant accountability. The only thing that matters is what weare doing here today. So that’s what we talk about. And we talk about it allthe time. Nobody gets chewed out, but nobody can hide. Everybody gets remindedall the time, so everybody is always on notice. Standards are high. There are noexcuses, only performance. If somebody is failing to perform, his or her onlychoice is to improve or else leave the team: “Good riddance.”


    By the way, what do you do,once that special project is done? Do it again. And then do it again. And again.Every project is a special project in a high-performance organization. By theway, keep your sense of humor, don’t take yourself too seriously, and makesure everybody is having “fun” while they are
working very well, very hard, and very fast.



SOURCE: Bruce Tulgan, adviser,RainmakerThinking Inc., New Haven, Ct. is author of several books, including Winningthe Talent Wars (WW Norton, 2001), www.winningthetalentwars.com.


E-mail your Dear Workforcequestions to Online Editor Todd Raphael at raphaelt@workforce.com,along with your name, title, organization and location. Unless you stateotherwise, your identifying info may be used on Workforce.com and in Workforcemagazine. We can’t guarantee we’ll be able to answer every question.


 


 


 

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Poor Economy Has Little Effect on Disability, Workers’ Comp Benefits Programs

Employers appear to have been spared the ill effects of a weakened economy on their disability and workers’ compensation benefits programs, a new survey has found.

A survey of as many as 13,000 employers by the Integrated Benefits Institute revealed “no dramatic changes” in the incidence of short- and long-term disability claims from 2008 to 2010. Though median costs associated with disability and workers’ compensation claims rose slightly, the median duration of a disability or workers’ compensation claim has remained largely flat since the beginning of the recession three years ago.

Researchers for the San Francisco-based IBI said the survey’s results, released this week, undermined what previously would have been considered reasonable assumptions of the recession’s effects on employers’ claims experience.

“We might expect that tough economic times would lead to falling claims rates as employees seek to maintain jobs,” researchers wrote in their report. “At the same time, we could envision that in a downsized workforce, employees experience more physical and mental job pressures leading to serious health conditions and worse claims experience.”

Short-term disability claims increased 12 percent between 2008 and 2009, but receded in 2010, yielding an overall rise of just 6 percent during the three-year period. Changes to the median duration of those claims were even more modest, increasing 2 percent per closed claim between 2008 and 2010. Claim costs also increased, but by just 7 percent during the three years.

IBI researchers said more dramatic shifts might have been prevented by higher average wages among claimants (due in part to layoffs), changes in plans designed to attract and retain key employees or an altered mix of medical conditions.

Long-term disability claims remained relatively flat, increasing less than 2 percent from 2008 to 2010, however the median cost of closed claims rose by 26 percent while median open-claim costs jumped up 29 percent in the same three-year period.

New and closed workers’ compensation claims also fell from 2008 to 2010, which researchers said could indicate fewer workers willing to claim benefits, or that “employees remain in the workers’ compensation system longer during difficult economic times.”

However, that has not translated into more lost work time, the survey found. The median number of days lost per workers’ compensation claim remained flat, at 33, in all three years the companies were surveyed.

The cost of medical payments from those claims rose 17 percent, while indemnity payments rose 10 percent.

In their summary of the results, researchers cautioned that employers could see significant increases in incidence, duration and costs associated with workers’ compensation and disability claims if they discontinue health care coverage after the implementation of the health care reform laws.

Those programs, they said, provide valuable assistance in managing workforce health, and that costs associated with disability and workers’ compensation claims must be viewed in tandem with those tied to health care coverage.

“Those that continue to view medical costs in a separate and distinct program silo do so at their peril,” researchers said.  

Filed by Matt Dunning of Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.

 

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