Internal Controls

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Freedom from Rules

Another update from the Jungle…..

Linda opened her business one year ago when she was fed up with all the petty rules and employee bickering at her last job.  Her friends Julie and Rhonda joined her.  They agreed that their new business would be a happy place where workers were free to be creative and enjoy coming to work. That was the last time they agreed on anything.

Their infectious optimism enticed customers to try their products.  Soon they were overwhelmed with customers, but lacked the organizational structure to keep up. The storefront was in shambles and their workshop was littered with half-finished orders. 

After the usual 90-hour week, Rhonda skipped a day to catch up on her sleep. Since she neglected to tell the others, their shop was closed when a customer arrived to pick up her order.  When Linda returned to the office after making a delivery, the fuming customer taught her a few new words.  As soon as the offended customer left, Linda left a scathing voicemail on Rhonda’s phone, using some of the words she had just learned from the customer.

Two hours later, Rhonda galloped into the office. She screamed at Linda that she had been working non-stop for months and couldn’t take it anymore and wished she had never left her old job to work with such an ungrateful witch. Julie bounced out of the workshop to say that Linda’s rotten inability to set priorities was the cause of their problems.

Then Julie noticed that one of the customers was recording their fight with her cell phone.  Julie chased the customer around the store trying to grab her phone. The customer fled out the door with Julie still chasing her.  Rhonda collapsed onto the floor sobbing hysterically.

When Julie returned, the store was empty of customers. Linda announced that she was tired of not knowing where the other two were or what they were doing. 

What options are available to Linda?

  1. She can close the business and go live in a hut in the Rocky Mountains to get in touch with her feelings.   
  2. She can ditch her friends and start over with her worst enemy because, at least then, she would know what she’s getting. 
  3. She can adopt some basic HR policies to ensure the business can grow without imploding.

Most new business owners want to avoid written rules because they dislike bureaucratic boondoggles. They quickly learn that there is a huge difference between bogging down in bureaucratic rules and creating a framework of HR rules to allow the business to grow effectively.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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The Not-So-Little Prince

Another update from the Jungle…

unnamed-36Vicky is the HR person for her company because her business partners are guys who would rather face a starving lion bare-handed than deal with employees. Lately, she’s been seesawing between the urge to kill one of the younger workers or to knock his block off.

Gus is a 30-something millennial who thinks he is a prince who can set his own rules. So Gus ignores the rule that says he should show up on time to work everyday. He also ignores the one that says he should tell his supervisor if he leaves the office during the workday.

Vicky learns that Gus has continued to ignore her verbal warnings when she receives a phone call from Frank, the company founder. Frank is a brilliant man, but he refuses to learn how to use an electronic calendar, his email account, or the internet. When Frank started his career, people actually talked to each other. He sees no reason to change his unnamed-34work habits now.

Frank asks if she declared a work holiday without telling him because he’s alone in the office and needs help with the copier. Vicky is flummoxed. She runs through the list of all twenty employees while Frank breathes heavily down the phone line. Gus is missing.

The next day, Vicky calls Gus to her office. Gus arrives twenty minutes late and slouches into a chair. He takes a big gulp of his energy drink, bored and disinterested, and demands an explanation for being dragged away from his work.

unnamed-35Vicky stares at him through a red haze. The last time a young male addressed her in such a surly tone, he got whapped up-side the head and lost his driving privileges for a month. But her son was sixteen at the time, not a 30-something! With superhuman strength, Vicky restrains herself.

She explains to the oblivious Gus that their small staff requires collaboration, and that means notifying others when he leaves the office. Gus drains his energy drink and tosses the container in the trash, splashing Vicky’s foot. He suggests that Frank should be given an iPad with everyone’s calendar loaded on it. Then he would know where all his staff is at any time. Vicky feels the red haze gathering again.

unnamed-37What options are available to Vicky?

  • She can congratulate herself on her self-restraint for letting Gus live.
  • She can look around for a frenemy who can be conned into hiring Gus.
  • She can give Gus a final warning but begin planning to replace him.

In the actual situation, the millennial was given another chance to improve. He is apparently still unaware of how close he is to termination for cause.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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The Knife in the Back

Another update from the Jungle…

pic-5Bryan is a serial entrepreneur. Every time he gets a new idea, he starts a new company to exploit the idea. He’s successful at starting businesses, but he’s lousy at running them.

Bryan doesn’t like getting bogged down in the details. So he relies on lieutenants to keep him informed of how things are going at each company. Unfortunately, Bryan doesn’t seem to have noticed that one of his trusted lieutenants is deadlier than a rattlesnake.

pic-1Susan learns this the hard way when she begins working at one of his companies. Her first day on the job, she’s introduced to Elaine who is so friendly and helpful that Susan is duped into thinking she’s nice. But Elaine is a snake in the grass.

pic-2Elaine is an intolerable busybody. She stands near the elevator to track the time each employee shows up for work. She wanders the hallways, keeping tabs on what others are doing and saying. Then she passes every tidbit of information along to Bryan with a special Elaine twist.

Susan learns the truth when Bryan stops by for a quarterly meeting with the company’s management team, of which Susan is a junior member. Bryan marches into the conference room and sits opposite Elaine who is taking notes on pic-4the decisions he makes.

Bryan begins the meeting by chewing out Laura for falling sales in the past quarter. Laura replies that it is impossible to boost sales when her team is starved for resources. She produces a stack of receipts showing that her team has to pic-3buy their own office supplies since Elaine locked up the supply closet and hid the key.

Bryan impatiently tells Laura to stop blaming others for her own failings as a manager. Then he turns on Bob, the CFO, who didn’t have the financial reports ready for Bryan. Bob scowls but says nothing.

pic-6Susan knows that Bob was late with the financial reports because Elaine delayed helping him while she worked on other lower priority assignments. Susan looks at Elaine expecting her to defend Bob. Elaine smirks and remains silent.

What are Susan’s options?

  1. She can point out that Elaine sabotaged Bob but doubts that Bryan will believe her.
  2. She can thank her lucky stars that Elaine isn’t gunning for her.
  3. She can use her accrued vacation to begin hunting for a new job, preferably one without another Elaine.

pic-7In the actual situation, the junior manager soon found herself on the backstabber’s hit list and left the company as soon as possible.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Thank God It’s Over!

Another update from the Jungle….

unnamedDawn, the Chief Talent Officer for her company is happy for the first time in months.  The election is over! The chips have fallen.  She no longer cares who won.

She drives to work humming Roy Orbison’s song “It’s Over” and planning an impromptu TGIO (Thank God It’s Over) party for the lunch hour.  Her good mood lasts all the way to the employee parking lot.

The parking lot is partially blocked by a group of employees. Half the crowd is jubilant because their candidate won. The other unnamedhalf is snarling that the election was rigged.  Dawn sighs deeply and wades into the group, greeting everyone by name. To encourage them to actually enter the building, she promises something “special” for lunch at company expense.

Dawn’s day goes further into a hole when she finds Helen, the Voice of Doom, camped out at her office door. Helen claims she saw rioters storming through her neighborhood as she drove to work. Dawn privately wishes Helen would join the riot. Aloud she suggests that Helen should go to her cubicle and sit quietly, waiting for martial law to be declared so that it is safe to drive home.

unnamed-2Dawn calls a local bakery to order a cake for the impromptu TGIO party. Apparently, many people are having TGIO parties because the bakery sold out of cakes. Dawn orders a mix of crème puffs and cookies. She is determined to have a cheerful lunch.

Allen, the Philosopher King, pops into her doorway as she hangs up the phone. He wants to talk about the unnamed-4difference between the popular vote and the Electoral College vote.  Dawn cuts him off in mid-sentence. She has a really important job for him, she says. She needs him to go to the local big box store to buy supplies for the party. She’ll reimburse him, she promises.

Rory, the Prez, hurtles in to Dawn’s office practically frothing at the mouth.  Half the workforce failed to show up this morning due to an excess of alcohol consumed last night while they watched the election returns. He can’t run a business without employees. Heads must roll!

What should Dawn do next?

  1. She can wait for the Prez to hyperventilate and then continue planning her party.
  2. She can promise him first dibs on the crème puffs and cookies.
  3. She can suggest that the employees be given some leeway on absenteeism due to the special circumstance of a hotly contested election.

Have a TGIO party to celebrate the end of this election cycle.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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I’m Mad as Heck about the Election!

Another update from the Jungle….
unnamed-4Dawn, the Chief Talent Officer for her company, is slogging through the remaining weeks of the political campaign. She hates what it’s done to her job. This week she’s thinking of changing her title to Chief Tortured Officer

Helen, the Voice of Doom, didn’t take the hint a couple of weeks ago when Dawn tried to politely tell her to get lost. Helen continues unnamed-6to show up every morning to depress Dawn with her worries that the election will degenerate into violence and mayhem.

After Helen leaves Allen, the Philosopher King, drifts in the door.  His garbled theories on democracy in America sound profound until you listen closely. Then you realize he’s just fogging up the room with BS. Besides Dawn couldn’t care less.

She has a real political crisis this week. She’s been summoned to the President’s office. Rory, the Prez, also wants to discuss the election and what it means for the office.  Rory’s channeling Jack Nicholson’s “Colonel Jessup” from “A Few Good Men” pacing the office and growling.

unnamed-15The workforce is as divided as the nation and it’s getting ugly. Yesterday Rory broke up a fight in the employee parking lot. The Trump and Clinton supporters were trying to rip the opposing candidate’s stickers off car bumpers.  Rory waded in, knocked a few heads together and ordered everyone back to work.

He’s not worried about a little fight in the parking lot. He’s mad as heck that no one seems to be working.  The company’s internet connections are smoking hot as workers visit “news” sites to hear the latest salacious details abouunnamed-14t the candidates and their families. Then they stand around arguing about what they’ve read.

Rory glares at Dawn and asks if he can fire a few people to set an example for everyone else. Dawn begins to explain (again) about the progressive discipline policy. Rory cuts her off.  If he can’t fire anyone, can he ban politics from he workplace?

What advice should Dawn give the Prez?

  1. She can give him a quick civics lesson about free speech.
  2. She can draft an email for him to send to all employees reminding them to do their jobs while on the clock.
  3. She can suggest that he should visit the gym more often to work off his aggression and grit his teeth for one more week.

The good news is that presidential elections happen every four years and we’ve got one more week to go.  Then we’ll all go back to arguing about sports.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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The Perfect Employee for the Job

Another update from the Jungle….

unnamed-23Alana always felt like a misfit, so when she started her own business, she decided to hire people like herself.  Alana’s company sells works of art ranging from paintings to furniture.  Oddballs seem to be more at home in the world of unique “art”.

Alana’s first hire was Suze, a part-time yoga instructor who also designs furniture. Suze’s stuff sells well enough to make up for her shortcomings as an employee. She refuses to answer the phone when trying a new contortionist stretch exercise.  She also hates talking about money to customers.unnamed-21

Trisha wears low-cut, sleeveless shirts to show off her extensive tattoos. Trisha is a painter. She refuses to talk to customers because she believes none of them truly appreciate her artistic vision.

Alana hired Evan and Elsie to actually sell stuff to customers.  Compared to Suze and Trisha they seem almost normal. Evan and Elsie grew up next door to each other in a typical American suburb. They had many youthful adventures, most of which are sealed in their juvenile records.  Evan and Elsie are living proof that screwing up doesn’t prevent gainful employment if you find a sufficiently gullible employer.

unnamed-18They instantly boosted sales due to their smooth handling of customers.  Art wasn’t the only thing they sold at Alana’s shop.  Evan and Elsie had a side business growing high quality marijuana.  To encourage sales, they invited customers to sample the good in the parking lot behind the shop.unnamed-19

Alana learned of their agricultural adventures when she noticed the parking was full but the store had no customers. She walked to the back of the store, through the storeroom and opened the back door. She almost fainted.

unnamed-22Shrieking like a banshee, she chased off the customers. Then she explained  to Evan and Elsie that de-criminalizing marijuana was not the same thing as legalizing it. She threatened
to fire them if they brought their wares to work again. And that’s when Alana began to think that establishing a few employee standards might be a good idea.

What are Alana’s options?

  1. She can fire the misfits and start over with “normal” people.
  2. She can drink an extra glass, or bottle, of wine and accept that she got the employees that she wished for.
  3. She can create a few basic HR policies on what she expects from her employees during their scheduled work hours.

The above scenario demonstrates what can happen when an employer fails to create realistic expectations for employees. A few basic HR policies can solve that problem.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

 

Join the HR Compliance Jungle today. Click here!

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How Do I Hate You? Let Me Count the Ways

Another update from the Jungle….

unnamed-16

Billy and Bobbye opened their business a year after they married.  They hired a couple of employees and everyone was happy.  Billy and Bobbye were proud of their success. Employees enjoyed the perks, like having the company cover 100% of health insurance premiums for employees and the Friday Afternoon Frazzle at a nearby brew pub.

unnamed-15But as the company expanded, new employees lacked the camaraderie of the ones who had helped build the business. Adding employees meant more personality conflicts and scheduling difficulties. Bobbye wanted to add some structure to the company by creating HR policies to ensure everyone understood what was expected of them.

Billy wasn’t ready to give up the entrepreneurial attitude of the early days so he shot down Bobbye’s ideas.  Their disagreement about the business spilled over into their marriage. Before long, they were taking potshots at each other every day.

unnamed-11Bobbye decided to change the brand of coffee for the office.  A day after the change, Billy walked in to the break room, saw the new brand name, and hurled the coffee can across the room into the garbage can.  Now Billy and Bobbye don’t talk to each other in the office. They relay messages through employees. Their employees used to call them B&B or B-squared. Now it’s Bombs Away.

All these spats are tanking the bottom line as deadlines are missed and quality crashes. Clients leave for calmer and more reliable service. To save money, Billy decides arbitrarily to reduce the number of unnamed-13employee perks, starting with the health plan. He tells employees they will have to begin contributing to the premium.  Cutting back on perksannoys the employees and Bobbye.

unnamed-17Even free beer at the Friday Afternoon Frazzle can’t attract most employees because they feel so uncomfortable around Billy and Bobbye. The least bright employees are choosing sides. The smarter employees are trying to stay neutral. The smartest employees have already bailed out for more stable workplaces.  On its present trajectory, the company will implode.

What should Billy and Bobbye do next?

  1. They can continue to fight until there is nothing left but the company’s debts.
  2. They can seek marriage counseling to save their marriage and possibly their company.
  3. They can agree to divorce and split the company’s assets as part of the divorce settlement.

In the actual situation, the feuding owners divorced and the wife bought her former’s husband’s interest in the business. Some employees helped with the transition while most left for other jobs.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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Act Your Age!

Another update from the Jungle….

Jerry feels besieged and overloaded. He’s the CEO and he ought to be bragging about his business. Instead, he’s hiding in his office while he decides what to do next.

2It all started a couple of months ago when two supervisors had a misunderstanding. Brown nosing Bette and motormouth Mike thought the other was responsible for losing a key customer.  Their last face to face meeting degenerated into a yelling, name-calling mess where coffee cups were hurled across the table and a cheese Danish was smashed into the face of Bette’s assistant. Now they communicate strictly by email.

Since they’re supervisors, they’ve managed to drag their respective subordinates into the fight.  Soon 1everyone is communicating via emails that are full of adjectives more appropriate to the schoolyard or a political campaign. Their subordinates don’t even use the same bathrooms anymore to avoid talking face to face.

Jerry doesn’t notice any of the fighting. He’s busy talking to investors that he needs to finance a new product. Besides, he’s the CEO and people talk differently to him. His first inkling that all is not well is when several customers switch to competitors rather than renewing their contracts.

Jerry asks brown nosing Bette why the heck her team of salespeople let the customers get away. She blames motor mouth Mike’s technical team for not answering questions about the products which meant her team couldn’t answer customer questions. Jerry asks Mike what’s going on and he blames Bette’s team of dunces.

Jerry asks the HR manager, Liz, if she’s heard any complaints from co-workers about Bette and Mike.  Liz admits she has. Jerry asks why the heck she didn’t tell him. Liz is hurt; she’s doing her best.

3Liz shows him a series of email exchanges and that’s when Jerry learns the awful truth about Bette and Mike. He can feel the top of his skull popping off as his blood pressure rises. Now he’s sitting in his office trying to decide what to do.

What options are available to Jerry?

  1. He can fire Bette and Mike for showing the emotional development of pre-teens.
  2. He can empty the corporate bank account and “retire” to the Cayman Islands to drink rum.
  3. He can counsel Bette and Mike to act like grownups and work together for the company.     

In the actual situation, the employer chose the third option. The employer’s decision was based on an assessment of the supervisors’ capabilities and skills. The employer also needed to follow the company’s progressive discipline policy before firing employees.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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Visit us at: http://www.complianceriskadvisor.com/

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It Rhymes With Witch

Another update from the Jungle….

Once upon a time in a town not so far away, there lived a nice woman named Alanis. She liked her job and was always willing to learn from more experienced co-workers. Her boss loved her too and wrote embarrassingly glowing performance reviews.

2But fairy tales aren’t the only places with evil beings. A wicked witch named Wanda also works in the office.  Wanda’s not qualified to do the job Alanis was hired for but that doesn’t stop her from trying to take over.  Wanda smiles in Alanis’ face even as she secretly sharpens her talons.

Wanda’s opportunity soon arrives.  At a staff meeting, their boss, Julia, announces that the company is rolling out a new service and asks Alanis to take the lead for their department. Wanda’s death-ray glare bores into Alanis’ skull across the conference room table. After the meeting, Wanda loudly announces in the break room that the new project is doomed because Alanis is unnamed (1)incompetent.

A week later, Alanis’ project notes mysteriously disappear from the system’s shared drive. Fortunately, she a printed copy first and is able to recreate her notes. She saves a copy of the new version on a thumb drive. Sure enough, the shared drive version disappears again.

At the next staff meeting, Julia asks why Alanis she doesn’t share information with the rest of the group. Alanis reports the mysterious deletions and asks that IT investigate the deletions. Julia looks at Wanda and then abruptly ends the meeting.

The next day, Julia calls Alanis to her office. Waiting in Julia’s office is Wanda. Julia says that she’s decided to appoint Wanda as co-chair of the project because it’s obviously too much for Alanis to do alone. Wanda smirks as she demands copies of all Alanis’ notes.

After that, Wanda changes the entire strategy so that their department misses deadlines set by Julia’s bosses. Wanda blames Alanis and complains about a lack of cooperation. Alanis is again called to Julia’s office where she is criticized for disloyalty and undermining the department. Julia says Alanis can resign or be fired.

What should Alanis do next?

  1. She can continue to protest her innocence knowing she won’t win since a weak manager is as dangerous as a witch.
  2. She can booby trap Wanda’s desk with eau de skunk.
  3. She can resign and consult a lawyer about suing for constructive termination.

In the actual situation, the targeted employee resigned. Any office can develop an infestation of wicked witches if management is weak.  Fumigate your workplace with effective HR policies.  3

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

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Low Hanging Fruit

Another update from the Jungle….

Jack owns a small business which provides him with a good living. He owns a big h2ouse with a giant mortgage and he drives an Escalade.  When he goes to the store, he parks in a handicap parking spot near the door so that everyone can see his ride.

Jack once worked for a major corporation where the HR director constantly nagged him about petty rules that he’d supposedly broken. After a few years of her nagging, Jack decided to be successful on his own.

Jack thinks his company runs smoother with fewer written rules so he doesn’t have any written HR policies. He also pays everyone a “salary” so he doesn’t have to track time and attendance.  But he docks the pay of employees who show up late or miss work. His CPA, Susie, wants him to create job descriptions to distinguish between non-exempt and exempt employees.   Jack tells her not to worry about it; he will tell her how much to pay each employee each pay period.

1

Last week, Susie attended a continuing education seminar which struck her with the force of a hurricane wind. She learned details of the new overtime rules. A presenter also said the Department of Labor (DOL) had stepped up enforcement actions against small employers. He used the phrase “low hanging fruit” so often that Susie temporarily gives up fresh fruit and vegetables.

Susie rushes home to prepare a summary of the new overtime rules and hand delivers it to Jack.  Jack thanks her and privately thinks that Susie’s becoming a nag like the old HR director and it may be time to fire her.

This morning Jack arrives at his office to find a polite young man waiting to talk to him. The stranger says he’s a DOL examiner and he wants to see time sheets, payroll records and job descriptions for Jack’s employees.

What should Jack do next?

  1. He can bluster at the DOL examiner to mind his own business.
  2. He can beg the DOL examiner to give him time to fix his many problems in hopes of lowering the penalties his company will ultimately owe.
  3. He can sneak out the back entrance, empty the corporate bank account and escape to a foreign country that has no diplomatic relations with the U.S.

In the actual situation, the employer woke up to his peril before the DOL examiner arrived on his doorstep. He had already implemented a plan to fix his HR problems which convinced the DOL examiner to show mercy when calculating the penalties.   

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Join the HR Compliance Jungle today. Click here!

Follow us on Facebook & Twitter!

Visit us at: http://www.complianceriskadvisor.com/

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