Small Business

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.

 

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Looking for Love!

Another update from the Jungle….

unnamed

  a womanscreen-shot-2016-09-16-at-2-08-32-pm named Trish was searching for true love. Like so many others, she found it at the office.  Her Prince Charming was John, Vin another division of the company.  John was also looking for true love having just wrapped up a nasty divorce with his former true love

unnamed-2Trish met John at the office Christmas Party and thought he was a jerk. She changed her mind at the summer picnic when she saw him playing with his kids and lobbing water balloons at other managers.  John looked like an Olympic athlete compared to some of the other managers.

So when John’s division needed a little extra help with a special project, Trish volunteered. By diligent effort, Trish made herself a star on John’s team and managed to catch his eye. A shared interest in the project led to a little flirting which led to long dinners and then to other extracurricular activities.

Alas, as with every fairy tale a curse fell upon the lovers.  John’s schedule kept him busy with out of town business trips and Trish began to feel neglected. John tired of her whining over the dinner wine about how his career meant more to him than she did, giving John nasty flashbacks to his ex-wife’s complaints.

unnamedAs in a fairytale, when a workplace romance fizzles people behave badly. John stopped responding to her emails and text messages. He also told Trish’s boss that Trish could never work in his division again because she was a lousy worker. Meanwhile, Trish’s performance nosedived as she realized her fairy tale was fizzling.

The final fizzle arrives when Trish hears through the grapevine that John is blacklisting her.  She’s convinced its retaliation for their affair. When her boss counsels her about her cratering performance, Trish remembers that he is John’s friend. Trish storms into Sue’s office to complain about sexual harassment and retaliation.

What options are available to Sue?

  1. She can slap the taste buds out of John’s mouth for being stupid since managers are expected to use their brains to make decisions at the office.
  2. She can recommend settling Trish’s claims to limit the damage caused by John’s violations of company policy.
  3. She can disguise the details and include them in her next popular bodice-ripper novel, which she hopes will earn her enough money to retire early.

unnamed-2In the actual situation, the manager was counseled for violating HR policies and wrecked his chances at a promotion.  The woman accepted a settlement of her claims and left the company still looking for true love.

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

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It Says So Right Here!

Another update from the Jungle….

Jane started her business after being downsized by her corporate employer.  She knew she wanted her business to be different from the bureaucracy of her Big Biz employer and vowed to avoid the burden of written policies.  

3But as she adds employees it becomes clear that a lack of written policies is bad for the bottom line. No written policies allow Evan to claim that he doesn’t know he is supposed to start work at 8:30 am. He thinks showing up by 10 am is okay as long as he gets his work done.  

4Jane decides she needs something in writing. She digs out an old copy of Big Biz’s employee handbook. She customizes it by changing the employer’s name, correcting a few typos, and changing the font.  Then she gives a copy to each employee and receives a signed acknowledgement from each employee.

None of the employees actually read the employee handbook, of course, until they need to. Evan reads the section on progressive discipline after Jane gives him a final written warning about his attendance.

1Meanwhile, Audrey discovers she’s pregnant. She hauls out her copy of the handbook, which is propping up a corner of her desk, and unfolds it to read the section on the Family Medical Leave Act (FMLA). She tells Jane she wants to take FMLA leave to have her baby and asks for the leave request form.  

Jane doesn’t have any FMLA forms. Her internet search eventually leads her to the U.S. Department of Labor (DOL) website where she learns the horrible truth about the FMLA. It applies to companies with more than 50 employees. Her Little Biz shop has 20 employees.  The news is so disturbing that she drinks half a bottle of wine while she thinks about her options.

What should Jane do next?

  1. She can collect every copy of the handbook and burn them in the parking lot knowing that most of her employees never read it.
  2. She can tell Audrey that the FMLA section of the handbook is a mistake because that law doesn’t apply to Jane’s business.
  3. She can grant FMLA leave to Audrey in accordance with the handbook policy. Then she can immediately revise the handbook to delete information about employment laws that don’t apply to her company.

The above scenario is a common problem for small business owners who lack familiarity with employment laws. The lack of familiarity can fix one problem while creating many more problems.

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Masters of the Universe

Another update from the Jungle…

Masters1Jim and Tony run a venture capital fund that specializes in distressed assets. They buy companies, replace the management team, cut most of the employees to generate savings and make the company look profitable (on paper). Then they sell the company.

A business magazine features them in an article and uses the term masters of the universe. After the feature article, Jim and Tony decide to branch out from distressed assets and buy a company that has been successful without being spectacular.

Jim and Tony begin their ownership by holding a company-wide meeting with employees at which they talk about the company’s wonderful financial future. This sales pitch is interrupted by Linda who asks them to reconcile these comments with their established practice of boosting profits by firing most workers. Jim evades her question. So Larry asks pointblank how many jobs will be cut. Jim looks at Tony. Tony shrugs. The meeting ends abruptly.

Masters3After studying the company’s bottom line, Jim and Tony decide that the first employees to go are Linda and Larry. They tell Sandra, the HR rep, to prepare the paperwork. She cautions against firing two of the most respected workers. Jim looks at the org chart again and concludes they are peons.

On Friday, Linda and Larry are ushered out the door. Their first port of call is an employment law attorney where they discuss wrongful termination, retaliation, and age discrimination.  The attorney has a vision of becoming famous by taking down the masters of the universe. He agrees to represent Linda and Larry.

Master2Within weeks, a third of the workforce resigns following Linda and Larry out the door. Jim and Tony are initially relieved; they only had to fire two workers. But the remaining workforce is demoralized. Within six months, the company has lost several key clients and the bottom line is tanking. Jim and Tony call a meeting with Sandra to discuss staffing levels and the status of Linda’s and Larry’s lawsuit.

What should Sandra tell them?

  1. She can say that she warned them that firing Linda and Larry would have dire consequences.
  2. She can tell them that as masters of the universe, she expects them to solve their own problems.
  3. She can hand in her resignation, having already received several job offers.

The above scenario is exaggerated but may seem familiar to anyone who has experienced a change in ownership at an employer. Creating a plan with HR for handling inevitable layoffs can smooth the transition. It is also helpful to see employees as more than just a cost to the bottom line.

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 Not Offensive… You’re Overreacting.

Another update from the Jungle…

Ted-1Ted runs a company that provides website and social media support for small businesses. Ted grew up in the advertising business when it looked a bit like “Mad Men” and some of his habits are outdated. His most annoying habit is using nicknames.

Employees recognize Ted’s professional skills and ability to get customers to sign on the dotted line. Nicknames are part of the package when working for Ted. After all, every workplace has annoyances.

One employee is Italian-American and was nicknamed Guido because he looks like an extra in the Godfather movies.  Another employee is Mario, short for Mario Andretti, because he’s gotten some speeding tickets.  Blondie is an attractive woman who was hired long ago and keeps everyone on task.

Then there’s Tom, the first person Ted hired when he started the business. Tom is the only employee called by his real name and he’s so valuable to the team that Ted made him a partner in the business. Ted calls him Uncle Tom.

Ted-2Recently, Ted agreed with his team that they needed to give back to the community by offering an internship to local college students.  Judy is the first intern they hire. She’s a marketing major with an endless curiosity about all aspects of the business and a willingness to learn.  Ted calls her the Elephant’s Child, after another inquisitive youngster. Judy isn’t familiar with Rudyard Kipling’s “Just So” stories and thinks Ted’s nickname is demeaning.

Two weeks into her internship, Judy hears Ted shout “Uncle Tom” and sees the only black employee heading for Ted’s office. She’s appalled. She tells Blondie that she can’t work for a racist like Ted and wants out of the internship immediately.

What should Blondie do next?

  1. She can tell Judy that real world workplaces don’t come with college “safe zones” to avoid offending people. Succeeding in business requires a thick skin.
  2. She can tell Judy that offensiveness is in the eye of the beholder and if Tom’s not protesting, then Judy shouldn’t either.
  3. She can tell Ted that he needs to join the 21st century and recognize that some of the things he learned “back in the day” are no longer acceptable.

The legal standard for deciding offensiveness is based on reasonableness. Would a reasonable person hearing a nickname, their own or a co-worker’s, be offended?  The answer depends on the specific situation. However, a nickname can be in poor taste even if it doesn’t rise to the level of violating any equal protection laws.

 

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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Ebook Link: https://hrcompliancejungle.com/wp-content/uploads/2015/03/skh-employee-theft.pdf

If It’s Not In Writing…

Another update from the Jungle…

Auto-1Alan owns an auto repair shop and he seems to have a revolving door for employees. He knows that not everyone wants to be a grease monkey and finding employees is not easy.  In fact, he’s hired people who otherwise would never have experienced the joys of employment.  With so much turn over Alan never created written policies for his employees.

When Alan started his business, he was on the edge of town surrounded by fields. Sam and Zeke, a couple of good old boys wandered in from the fields where they were looking for their hunting dog and signed on to work for Alan. Sam and Zeke are good auto mechanics when they pay attention to the job.

Auto-4Alan lets them use some of his tools and equipment to build cars that they race on dirt tracks during the summer.  If they don’t wreck their dirt track car, they celebrate by getting drunk on Jack Daniels (black label only; green label is for sissies). When work is slow, Sam and Zeke also like to do a little target practice at the makeshift shooting range they created on the back part of Alan’s property.

Now the surrounding fields are mostly gone, replaced by a shopping center and McMansions for the urban sorts who want to experience suburban life. Alan’s property still backs up to fields but he’s worried about stray bullets. So he tells Sam and Zeke to dismantle the shooting range and keep their guns at home.  Several weeks pass and Sam and Zeke are still using the shooting range despite repeated verbal warnings of dire consequences.

Now Alan has a policeman in his office politely explaining that the neighborhood was recently annexed and is now within town limits. Town ordinances prohibit firing guns within town limits and violators can be arrested. As the property owner, Alan could be arrested.

What should Alan do next?

  1. He can blame Sam and Zeke and tell the police officer to arrest them.
  2. He can fire Sam and Zeke for ignoring his verbal warnings. Of course, Sam and Zeke have conveniently forgotten the verbal warnings (and they have guns).
  3. He can acknowledge that he needs to take a more organized approach to employee matters by creating written policies and documenting disciplinary actions.

The old adage “if it’s not in writing, it didn’t happen” still holds true. Employers like Alan who fail to document employee actions, including verbal warnings, face a greater chance of being sued for wrongful termination if they fire an employee for disciplinary reasons.

 

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.

Ebook Link: https://hrcompliancejungle.com/wp-content/uploads/2015/03/skh-employee-theft.pdf

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Too Many Hats

Hats(1)Another update from the Jungle…

Tina was the first employee at her company, hired a month after Drew, the owner, created the company.  Tina got the job because she was a friend of Drew’s and she was willing to work for an erratic paycheck.  Also, Tina had a liberal arts degree from a state university which turned out to be not much good when job hunting.

So Tina worked for Drew and was excited each time the company grew. In the early days, they shared ramen noodles for lunch and pooled their money to pay for coffee meetings with prospective clients.  Tina liked the sense of adventure and the fact that each day was different.

Over the next three years, Tina worked on everything from the sales brochures to updating the logo to handling disgruntled customers.  She handled administrative tasks such as ordering office supplies and equipment so that Drew could focus on the company’s strategy. She also helped Drew interview and hire new employees.

Each new employee was hired for a particular job, even though they lacked written job descriptions. Any job that didn’t fit into another employee’s skill set slid onto Tina’s desk.  She knew the history of the company, the way things has always been done, and she was willing to help solve problems faced by other employees.

Hats(2)Drew was happy to delegate employee issues to Tina. But Tina didn’t know anything about employment laws or human resources best practices. She Googled key terms periodically and filled out paperwork to the best of her ability. The company’s CPA was able to answer her questions related to payroll processing, but basically Tina was on her own.

Now Tina’s burnt out.  Although it’s a fine spring day, she’s slumped at her desk, exhausted and dispirited. It’s time to plan the monthly employee birthday party and she just can’t face it. Working for Drew isn’t fun anymore.

What options are available to Tina?

  1. She can continue doing all the tasks that none of her co-workers want to do until she becomes a bitter old woman.
  2. She can explain to Drew that it’s time to professionalize the back office so that the company can grow smoothly.
  3. She can quit and go sit on a beach in the Caribbean drinking rum and eating rum-soaked fruit.

In the actual situation, the company decided to hire a subject matter expert to help them create a formal structure for the administrative side of the business and to implement best practices. Then the subject matter expert helped train a new employee to handle administrative tasks.

 

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.

Ebook Link: https://hrcompliancejungle.com/wp-content/uploads/2015/03/skh-employee-theft.pdf

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Dis-Integration

Mentor

Another Update from the Jungle…

Several years ago Cindy suggested that her company should create a mentoring program to reduce employee churn.  As the HR manager, she was spending most of her time interviewing applicants or completing termination paperwork.  At first, selling the idea to the owners of the company wasn’t easy.

The owners thought a mentoring program was a waste of time. The company founder told her that employees should be happy to have a job and didn’t need “touchy-feely crap”.  Cindy countered with diagrams showing years of trashed productivity and reduced profits caused by the revolving door of new hires. So the founder grudgingly consented to a mentoring program.

Cindy’s next hurdle was finding mentors. No one volunteered when she posted a notice on the bulletin board in the break room.  Her blast email calling for volunteers was ignored, except for the idiot who hit “reply all” when he commented to a co-worker about snowballs and hell. The idiot doesn’t know it yet, but Cindy has decided he needs to volunteer for quality control visits to suppliers in McAllen, Texas in August and Buffalo, New York in January.

Mentor 2Cindy eventually found enough mentors to run a pilot program.  Now six months later she is meeting with the mentees to ask for their feedback on how the program can be made better. What she learns is illuminating but a bit unexpected.

Brian says his mentor took him to dinner at an establishment with pole dancers and cheap booze. Brian admits he doesn’t know much about the company but he now carries lots of dollar bills just in case. Susan’s mentor complained incessantly about the company leading Susan to discreetly search for a new job.

Daniel, on the other hand, is enthusiastic about his mentor. She introduced him to key employees in each department, meets with him regularly to answer his questions, and urges him to volunteer for new duties in order to broaden his experience.

What should Cindy do next?

  1. She can recognize that the corporate culture’s defeatist attitude needs to be fixed first.
  2. She can ask Daniel’s mentor to create a list of her successful mentoring techniques so that others can copy it and hope a successful mentoring program will fix other problems.
  3. She can give up trying to make the workplace better and streamline the firing and termination processes.

In the actual situation, the senior management team never saw the value in a mentoring program and failed to support the initiative. The company continued to experience over 40% turnover in personnel and low productivity and employee morale.

 

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.

Ebook Link

https://hrcompliancejungle.com/wp-content/uploads/2015/03/skh-employee-theft.pdf

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Improving Morale with Beatings

MoraleAnother update from the Jungle….

Don started his tech company in the depths of the financial meltdown a few years ago. After years of struggling, he expanded his client base to the point that he now has employees instead of subbing out the work to independent contractors.

Don ought to feel happy, but he’s not.  His employees make him unhappy. He hired millennials expecting them to be energetic and creative and to keep his company on the cutting edge of technology.  Instead, they infuriate him with their attitude.

Greg and Sam blew a deadline because they went bar-hopping with college friends.  They had not wanted to work on the project but they were next up on the rotation for assignments. So Don ignored their lack of enthusiasm and told them to get busy.  Their final work product was so crappy that Don agreed not to charge the client.

Don was so angry he decided to take away a few perks. He folded up the ping pong table and shoved it inStartup, Business, People, Students the storeroom. Then he ordered Greg and Sam to report to the office every day so that he could keep a closer eye on them. Now they sulk at their desks, doing as little as possible, while surfing the web for other job opportunities.

Don is also annoyed with Beth. Beth wants to work on a fundraising campaign for her favorite non-profit (humane housing for pot-bellied pigs that have outgrown their cuteness) rather than working on client projects. Don likes bacon and ham and doesn’t see any point in coddling a former pet piggy. Besides, he hired Beth to work for his clients; not her favorite charity. He said no.

Morale is so low that even the free-beer-on-Friday promise hasn’t improved the general malaise afflicting the office.  It’s Friday evening. Don’s sitting at home drinking the single malt scotch he reserves for special occasions and wondering what he should do on Monday morning.

What options are available to Don?

  1. He can take away all the perks, including free beer, and enforce more discipline until employees crank out quality work and morale improves.
  2. He can fire his current employees and start over with a new batch of employees who accept his way of doing things.
  3. He can allow his employees more freedom to choose their assignments and set their own schedules as long as they meet project deadlines and submit quality work.

This story is a composite of several actual situations in which the small business owners still believed in face time and didn’t recognize that the newer generation of employees desire autonomy. No one likes to be micro managed, however, a worker still needs to serve the person who has employed them. They still need to earn their paycheck. The difficulty is always in finding a good balance.

 

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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It’s Back Again!

Another update from the Jungle….

unnamed (11)Michelle owns a small business of 35 employees that is slowly expanding. She’s ignored the Affordable Care Act (ACA) ever since she realized that her company was too small to be subject to the employer penalty. Besides, she has other concerns, such as finding new markets for her company so that it can continue to grow.

However, her employees like having benefits, including health coverage. Last year, Michelle encouraged her employees to obtain individual health policies because she couldn’t afford a group health plan. Now the issue has arisen again as the annual open enrollment period for the Exchange approaches on November 1st.

Michelle would like to offer a group health plan because she thinks it would be a nice perk for employees. But she’s heard other small business owners complain about increased premium costs.
image038She’s afraid she can’t afford a group plan this year either.

She does a quick survey of her employees. She learns that 15 of them have coverage through their spouses. One employee is an early retiree covered under a former employer’s plan. Another employee is eligible for Medicare. Part-time workers wouldn’t be eligible for coverage in an employer’s group health plan under the ACA rules.

That leaves a grand total of 12 employees who are interested in a group health plan. Of the 12 employees, several could qualify for a subsidy from the Exchange based on their income and family size.

What should Michelle do next?

  1. She can ignore the issue completely since her company is not subject to the employer penalty.
  2. She can ask her insurance agent to give her information on a group health plan option for the 12 employees who are interested in coverage.
  3. She can arrange for an insurance agent to come to her work place to help employees choose individual health policies, through the Exchange or outside the Exchange.

There are no easy solutions for small employers regarding health coverage. Small employers may find that not offering a group health plan actually helps their lower income employees to qualify for a subsidy through the Exchange. On the other hand, any employer offering a group health plan may use a business tax deduction to offset part of the cost of the plan. An experienced insurance agent or producer can help small employers assess their options.

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.

Download my FREE eBook today! Click here! 

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