Tag: Mike Hayden

Employers Survival Tip #4

Establishing Performance Standards to Achieve Success

Competitiveness, profitability and growth are rooted in the ability of your human capital to execute your strategy. Setting benchmarks for what constitutes success, measuring performance against those benchmarks and finally, rewarding achievement are keys to maximizing the potential of your employees.

So what factors contribute to low performance, low productivity and lack of business success?

Lack of communication, or improper communication greatly contribute to low quality performance and low productivity. Business owners and customers tend to assume that employees and managers see things the same way they do but in reality, not many employees think like business owners because they don’t have the same goals for achievement as an owner does. Creating a crystal clear set of performance standards and communicating it effectively to your employees is the key to business success.

Time Barriers

Unfortunately, due to limited time and resources, businesses owners are typically too busy just focusing on revenue generation, operations and keeping the business growing to really focus on the people that make it possible. Subsequently, small businesses consistently fail to transition to the next level and succeed to their potential. Performance Management is a necessary function of every business to invest the time necessary to accomplish what needs to be done.

Making the Complex Simple

Managing performance involves many complex factors, but can easily be accomplished and scaled down to meet the needs of a small business within the time and resources available to most small business owners. The following steps are foundational to an effective performance management strategy:

  • Determine what needs accomplished, when and who should be responsible
  • Set short term and long term goals, corporately, by department and then individually and break them into small steps
  • Set measurable standards for each goal and make it clear what defines success. Ensure there is consistency between employees with similar duties
  • Communicate in writing what is expected from your employees. Have the employee(s) sign the performance plan. Encourage the employee to take ownership of the goal and be open allow the employee the freedom to choose how to best succeed, within certain boundaries of course
  • Monitor performance on a regular basis, even before the goal is due to determine progress and make adjustments as necessary
  • Avoid linking performance to pay increases or bonuses unless you set up a specific compensation for the performance plan
  • Recognize achievement and completion of goals – recognition drives future performance

Start with the big goals and break them into small goals. Set up a system to review your goals regularly and make adjustments as necessary. Always communicate your goals to your employees and get that “buy-in” factor in place.

Performance Standards Provide Liability Protection

Additionally, failing to set performance goals and measuring performance opens the doors for employer liability. When you have clear documentation illustrating an employee’s shortcomings as compared to organizational/individual goals and objectives and subsequently, to other employee’s performance, you stand a much better chance to defend claims or lawsuits associated with wrongful termination and discrimination.

The primary purpose for goal setting is for everyone to individually succeed, and for the business objectives to succeed. By measuring performance against reasonable goals, the weaknesses in your team will stand out. You can then begin the process of strengthening the weakness or eliminating it.

Employers Survival Tip #3

Taking a Bath in the Sink is NOT ok and 5 Other Reasons to Have an Employee Handbook

Yes, we’ve all heard of the employee that was video taped taking a bath in the sink at the Burger King restaurant he was working. While that’s not likely to happen in your workplace, it’s still a critical that you clearly communicate your company policy to your employees.

Your employees need to know what your policies are so they can confidently work at their optimum level knowing that you have a solid strategy regarding their employment. Additionally, in today’s litigious environment, labor board claims, discrimination lawsuits, sexual harassment claims and employees doing really stupid things are all too real and can drain your time and focus or worse, devastate your business.

Here are 5 top reasons you need to have and Employee Handbook:

Save Time and Money

Comprehensive Employee Handbooks, clearly written and carefully compiled will  save time and avoid confusion about your policies and simply keep the redundant questions about vacation, sick-time, benefits and other policies to a minimum. Employees can focus on their work instead of worrying about the little things and trust me…..they worry about the little things.

It Creates Uniformity and Consistency

One of the worst things you can do as an employer is treat employee disparately or handle employment situations inconsistently. The Employee Handbook is a guide not only for you and your managers to consistently respond to workplace situations, but it will help the employees to know that they are being treated equally and fairly.

Employee Handbooks are a Great Motivational Tool – For You and your Employees

When you  clearly define your mission in language that employees will understand and buy into, it can inspire your own leadership and that of your managers to help keep your employees and your business in line with your mission and values. When your employees understand where you’ve been (company history) and buy-in to where you’re going (mission statement), they can help you not just survive, but thrive in a difficult business environment.

Written Policies Can Avoid Legal Disputes

Written policies, consistently enforced, can help diffuse threatening situations before they get out of control.  A well drafted and enforced handbook can ward off accusations of misapplied benefits, pay or overtime. It can provide clear guidance on the company’s position(s) against discrimination/retaliation/harassment as well as how to manage situations like substance abuse, inappropriate behavior, dress code, etc.

The Government Says You Have to Communicate Certain Employee Rights

That should be good enough but we’ll provide some further clarification. You as an employer are obligated to inform your employees of such programs as Family Medical Leave (FMLA) Pregnancy Disability Leave (PDL) Paid Family Leave (PFL) Sexual Harassment, Workers Compensation, Unemployment, Voting rights, and many more. In addition to required postings, the Employee Handbook is the place where the required notification needs to be.

Okay, 6 Reasons

In addition to covering policies designed to help you manage your workforce and protect your business, an effective employee handbook should tell the story of your company, your business philosophy and where you want to go in the future. Information like this is invaluable to employees as it helps them to understand how their lives can be enhanced by a partnership with your business.

I hope we’ve made the case. An Employee Handbook should be part of your strategy to provide a solid foundation your employees can stand upon so they can work efficiently, effectively and profitably. It should also be updated at least annually to ensure all new laws and changes to existing law have been incorporated.

Don’t have time to make it happen? Contact Champion today and we’ll get you started for less than you can do it yourself.

Employers Survival Tip #2

Give Your Employees the Road Map They Need So You Can Succeed

With limited payroll dollars to work with, you can’t afford mediocre job performance from your employees. Below standard performance is unacceptable in a tight economy and without clear guidelines, your employees may never hit the mark. You need top performers in your circle along with the ability to measure what they are doing and how their performance affects your bottom line. Many factors can dictate how effective an employee’s performance will be but if you fail to set clear guidelines as to what your expectations are, you are guaranteed to have “C” level employees instead of “A” list performers.

Employees want to know what their job is and what your expectations of their performance are. Additionally, they should know what your company values are, where you are going as a business and how they fit into the picture. A simple Job Description can be the road map for your employees to perform at their optimum level and help take you where you want to go with your business. It can also help separate the wheat from the chaff and give you the freedom and confidence to make tough employment decisions when you’re facing a difficult termination.

A good Job Description should describe the mission and values your company espouses. It should document basic information such as start date, exempt or non-exempt status, hourly or salary, pay rate and job title. Detailing all the particulars of a position will avoid ambiguity and provide the measurement by which employee performance can be compared.

Effective Job Descriptions should be designed to provide you, your managers and your employees a clear understanding of how each job fits into your overall operations, and how it contributes to the achievement of your company’s mission.

Job Description Components

Following is a quick look at the categories that make up a well-written job description:

  • Title of the position
  • Department/Division
  • Salary or hourly
  • Exempt of non-exempt
  • Rate of pay
  • Overall responsibility
  • Key areas of responsibility
  • Measurable performance expectations
  • Reports to whom
  • Consults with whom
  • Qualifications required
  • Company mission and values

A Job Description should be presented as part of a Job Offer to new employees or can be developed at any time for existing employees. They should be analyzed, updated and discussed with employees on a regular basis or when the job requirements change. Job descriptions provide clear and comprehensive written recruiting guidelines and clarify performance expectations, which can help you attract the right employee and retain the best performers.

Job Descriptions as a Legal Defense

Job descriptions are important should you need legal defense against discrimination or wrongful termination claims or even to fend off an unwarranted unemployment claim. This means that you’ll need to avoid any language that could be construed as discriminatory or in any way dilutes the “at-will” status of the employee. Accuracy as far as exempt or non-exempt status is crucial to prevent overtime problems and keep you out of labor board hearings.

Getting Started

It should be clear, wasting time managing poor performance will drain your profit and distract you from the efficient operation of your business. Don’t delay this important part of being an employer because it sounds complicated or seems like your company is too small. No company is too small to develop accurate Job Descriptions for their employees. This simple task will benefit you, the employees and the future of your business.

Champion Employer Services offers Job Description advice and assistance as part of its HR Outsourcing program. Contact Champion today for more information.

Employers Survival Tip #1

Know Who You’re Hiring Because You Just Don’t Know Who You’re Hiring

A bad hiring decision can wreak havoc on a company budget, productivity and liability. Employees may apply for a position in your company and come in well dressed, able to articulate well, gush with personality but in reality, they may be hiding critical information that you as an employer should know. In this era of high unemployment, you as the employer are in the drivers seat and its critical that you cautiously approach hiring any new employee. Face it, you have limited payroll dollars and you can’t afford to make a mistake.

According to the Society for Human Resource Managers (SHRM), nearly half of more than 3,100 hiring managers interviewed report they’ve caught a job candidate lying on his or her resume or application.

Skeletons in the Closet?

What else is hiding in the closets of the candidates you are looking at? Illegal drug possession or usage? Embezzlement? Other criminal convictions?

The impact from drug or alcohol abuse in the workplace, includes tardiness, absenteeism, turnover, attitude problems, theft, decreased productivity, crime and violence. Sixty-five percent of all accidents on the job are related to drug or alcohol, and substance abusers utilize 16 times as many health care benefits and are six times more likely to file workers compensation claims then non-abusers.

Deterrence is a Great Prevention Tool

Candidates that are seeking employment with you are not likely to notify you of negative history that might affect their chances for employment. Additionally, knowing ahead of time that background checks are required, employees that have serious past issues will be deterred from seeking employment with you to avoid exposure of their history.

The only way to know who is coming into your place of business is to legally and thoroughly perform a strategic pre-employment screening related to your business needs as part of a specific and consistent hiring process.

Pre-Employment Background Checks

Background Checks are relatively inexpensive and can be customized to meet the needs of your business. Background checks can only be preformed before you hire an employee, or in association with a promotion.

Pre-Employment Drug Testing

Most drug testing is done by sending an applicant to a collection site, where a urine sample is obtained and sent to a certified laboratory for analysis. Negative results are normally available within 24 hours and in some cases immediately.

Physical Fitness Screening

If the position you are filling requires physical fitness to perform, it is wise to require a physical fitness test before employees are hired. It is all too common for an employee who has been injured previously to wind up on your workers compensation insurance.

Pre-Employment  screening is part of a specific hiring process that should be carefully and strategically designed and performed to ensure government compliance and maximum effectiveness.  Contact Champion for more information

Next Tip – Can Employees Reach Their (Your) Destination Without a Road Map?