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Having a successful business means having employees who succeed at their jobs. How does this happen? Most companies who achieve what they envision have formulated a plan from the onset and clearly communicated this to their employees. Many employers feel that if they hire talented people and pay them well, those employees should automatically know what is wanted and needed in their position. This could not be farther from the truth. Even in the case of highly motivated self-starters, employees can be working hard and moving along in a completely different direction than that of the executives of the company.

How do you avoid this? First of all, be as clear as you can about what you expect from an employee. Communicate to them what is needed and wanted, and be open to input, especially as they become more involved in their work, because they will most likely have ideas that will enhance the position even more. Be flexible; show a willingness to try different approaches and give new ideas a chance to work out. Most importantly, accept circumstances that demonstrate that your idea or an employee's didn't work. Maybe it needed some more details; maybe it would work under other circumstances. But employees who are not chastised for "failures" are more likely to continue to try new and better ways to succeed.

Setting goals together is another powerful way not only to increase the possibility of success, but also gives the employee more pride in what they are doing. Reviewing these goals periodically helps keep both of you clear where you are going. The best part of this is that if you continually touch bases about the status of the objectives, you are more likely to nip problems in the bud early on.

Additionally, many companies are confused about the meaning of "at-will" employment and think that means they can fire anyone for any reason, or they are worried about "covering their butts" in the case of a wrongful termination. At-will employment, which is the case in Arizona, means that either the employee or the employer is free to end the employment relationship at any time, for any reason, with or without cause and with or without notice. This does not mean that you can terminate employees for unlawful reasons. The aspect of unemployment compensation must also be considered, because it can be affected based on the reasons for termination. As a result, many employers attempt to document performance issues in order to have some proof if they should ever end up in court. The problem with this is that if this documentation is not done consistently, it can just as easily work against the employer, and it sets a tone of doom with the employee. By approaching performance coaching by goal setting and periodic discussions and documenting the meetings where you are empowering your staff to success provides the proof should that employment situation ever end up in a termination. It also creates a relationship whereby the employer supports the employee in a positive way that enhances the entire process. <Back>


Defining and Communicating Performance Expectations

How do you assure that you are getting the most productivity from your staff? Designing expectations and determining the most effective way to communicate them is critical, as is identifying how to evaluate if your employees are achieving them. If they are, how do you reward them? If not, how do you address it in a way that empowers them to succeed, yet still assuring that you are covered if you terminate them?
A good place to start is by at least considering how you wish to represent your company, and what type of people you wish to hire. Then specify job functions and the connection they have with other organizational functions.
For example, if order processing doesn't meet required timeframes, customer service can't fulfill client expectations. Define parameters for each area and the criteria that designate each level of achievement - from unsatisfactory to excellent. Some generic arenas to include in addition to their specific work standards might be:

  • Are courtesy, respect, and diplomacy displayed? Job knowledge demonstrated? Policies and procedures followed?
  • Do they adapt to new situations positively, and accept/apply feedback in a positive manner? Are they supportive of your organization and each other?
  • Are they punctual and reliable and use break times correctly? Do they model appropriate behavior and express a commitment to ethical conduct and professional standards?
  • Is work consistently performed work accurately and completely? Are they capable of prioritizing effectively to multi-task? Is a commitment to process improvement evident?
  • If they supervise others, do they encourage employees to improve, and treat them fairly and consistently? Is the work environment free of bias and harassment?

It is important when defining these parameters, to quantify wherever possible, and to make sure employees have sufficient training and appropriate tools to meet standards.
When communicating expectations, share the goals process from the initial meeting, including a presentation of the company vision in orientation or training meetings. Set and keep agreed upon follow up meetings for evaluation and review.

For the purposes of evaluation, decide who will be involved in evaluations and start with the employee completing a self-assessment. This will show if you are on the same page concerning their performance. Request evaluation information from customers, both internal and external, of the employee being evaluated. Review the criteria for each area and match with actual accomplishments. Rate employee on areas that criteria have been met, as well as areas that identify a need for improvement. Be sure to acknowledge achievements and define a course of action (with employee) to remediate problem areas, and, if necessary, schedule follow up on improvement areas.

If standards are not being met, first attempt to determine what external factors may be affecting performance. If follow up meetings demonstrate a lack of sufficient improvement in problem areas, define the specific course to be undertaken, furnish information about what will be offered to assist in the process and detail what is expected in terms of specific results. Provide clear timeframes in which these will happen and specify consequences if results are not produced.
It is also extremely important to follow through with all commitments in the timeframes promised. This approach should help clarify for your employees what is expected of them,thus enhancing the potential for their success. At the very least, it will help you to be clear about what they are accomplishing. <Back>


HR Career Path

This month I will address the educational and career path choices involved in becoming a Human Resources professional. I conducted an informal survey with some of my peers and discovered an interesting fact. Among the professionals who had been in the HR arena for more than ten years, over half came to this career unintentionally, or by having the administrative portions of the human resources function added to their workload.

Today, many companies recognize the value of employing HR professionals as part of their strategic teams. They expect their HR managers to have some education in human resources or personnel management, as well as some business background, so today's students are seeking degrees in related fields.

What curriculum should aspiring HR professionals pursue? Most organizational leaders agree that a mix of behavioral science, general business, and labor law is essential. HR professionals encounter a wide range of issues and a diverse background is an asset. Some courses that enhance effective communication, both oral and written, as well as accounting and economics, are useful.

Master's degrees in human resource management, industrial relations, organizational development and behavior, and business administration are becoming a vital part of preparation for today's human resource professionals. Ongoing education, including seminars and certification programs, keep today's human resource team members up to date on the latest developments in the field. With regulations, laws and trends changing frequently, staying current is critical.

In order to succeed in human resources, it is important to be able to deal with challenges involving people all day long. Patience, tact and flexibility are necessary for someone entering this field. An HR manager interacts with a variety of people, including different levels of intelligence, education and abilities. There is also considerable administrative work, which requires attention to detail and an ability to communicate well.

Human resource professionals can pursue a range of careers. Someone who wears many hats and handles all or most areas of HR is known as a Generalist. This individual will perform activities such as staffing, training and development, maintaining compensation programs, developing policies, strategic planning and ensuring compliance with laws and regulations.

Larger organizations require specialists with knowledge in a specific area. This might include Recruiting and Placement, Training and Development, Compensation and Benefits, Employee and Labor Relations, Health, Safety and Security. Human Resource Information Systems is another specialty that is beginning to grow. This involves dealing with technical activities, including management of employee database systems. The growth of global networking has created yet another field of specialization, which involves international HR management.

Hopefully this provides some information on the type of person best suited for a career in HR, the education one might pursue, and the specialty areas one might choose. Further certification is available from HRCI, the Human Resources Certification Institute, the accrediting arm of SHRM, the Society for Human Resource Management. SHRM is the foremost professional organization for HR people. The certification is challenging and has two levels, PHR (Professional in Human Resources) and SPHR (Senior Professional). The requirements include a combination of education and extensive experience, and passing the exam and receiving certification signifies mastery of the human resource body of knowledge.
Fore more information on a career in Human Resources, or more detail about the specialty areas, contact me at 220-4233. You can find out more about SHRM at www.shrm.org. <Back>



Human Resources As Strategic Partners

January, 1999
We are beginning to see a paradigm shift in many business leaders who are making Human Resources part of their strategic team, viewing those who manage their most valuable resources as able to impact the organization's future. This requires aligning HR core competencies to business goals, including organizational development, employee empowerment, management training, and compensation equity and order.

Intelligent organizations are refining their vision for the future by including those who direct their most critical functions. In the same vein, in order to respond to this, HR professionals need to bring their own vision into the next millenium.
Many businesses lacking foresight view HR functions to be superfluous; they do not see any direct connection to the core business. Many employees view them fairly passively, as processes that are done to them, such as renewing their enrollment in the company benefits plan or receiving a compensation increase. A more holistic approach views HR as aligned to the business in its entirety, a significant strategic partner who provides essential value and in return, requires cooperation and support to carry out its mission. HR functions are intensively interactive with everybody in the company.
Many companies see that HR is there to serve the organization, and that employees are accountable for understanding their role in these processes and taking responsibility for participating. Defining processes should involve employees as often as possible, not only getting their input into how policies and procedures are designed and evolve, but engaging them in the fundamental activities of HR. For example, instead of performance evaluations based on expectations that have never been communicated, utilize a shared success program that records the employee's input on their goals and objectives up front.

HR staff historically operates as reactionaries, responding to emergencies or needs, doing damage control, countering current predicaments with advice and action. The organization is better served when HR operates proactively, defining front end strategies to deal with long term issues. This approach requires support and involvement from the executive team. In order to impact the strategic planning of an organization, HR must be used as a partner in planning, part of the architecture team, not the custodial team to clean up the aftermath of bad decisions.

Another antiquated assessment of HR is that of information brokers. HR does manage a wide variety of data, and always will. But HR professionals should also be creators of dynamic processes. HR is perceived as the "communicators" of the organization, providing answers to questions ranging from terminating employees to HMO coverage. A more valuable method is to utilize HR as educators. I would prefer to train a manager to intervene in an employee circumstance than to continually be called upon to intervene.

The most unpleasant component of HR is that of watchdog. This is a natural consequence of executives utilizing HR as a police force, to protect the organization, often at the expense of the employees. It is in a company's best interest to allow HR to be the conscience of the organization instead, looking out for equity and consistency for everyone, as well as for the needs of the business. Not only will this keep you out of court (the key reason executives bring HR professionals on board), but will gain the trust of your staff. If you treat your employees fairly, when you need loyalty, you will have earned it. This creates an environment that attracts and retains good people.

HR professionals in the '90's don't want to police your organizations, they want to eliminate bureaucracy and design processes around people. They want to be kept in the loop at the executive level so they can respond to employee and organizational needs. If an organization allows HR to coach its management team into that corporate culture, it will reflect on the bottom line.

Anne Caldwell is President and Founder of Outsourcing Solutions, a Human Resource consulting firm providing innovative human resource approaches to companies in rapid growth or transition. Outsourcing Solutions specializes in designing HR plans for high tech companies, but will work with organizations of any size or industry.
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Interviewing & Hiring I

A Two Part Series
February, 1999

Effective interviewing is an integral part of not only the hiring process, but of managing a successful business. It is important to select the best qualified individual, as well as one who will fit most closely with your organization's culture, but it is equally imperative that business owners comply with many constantly evolving regulations. This month we will address the basics of interviewing, including many of the questions that are illegal to address.

There are as many ways to approach interviewing as there are management styles. Some prefer to be highly prepared and present the same questions to each prospective candidate. Others elect an intuitive approach, choosing to allow the interview to take on a life of its own. Each of these approaches has its own value, but a slightly more structured format is advised for those with less interviewing experience.

Asking open-ended questions allows the interviewer to obtain more information from the candidate, as well as gaining some sense of their personality, their views on the subject matter and their confidence level under pressure. Keep the questions relevant to the job or to work experience. Do not ask the applicant about their personal life. If they offer this type of information, respond briefly but politely, and lead the conversation back to the issue at hand. This avoids the potential of later being accused of making a decision (especially failing to hire someone) based on some personal information they disclosed.

Watch the body language and any facial expressions that may provide you with further understanding of the candidate. For more details on this aspect of the process, contact Outsourcing Solutions.

Most people are aware that you cannot ask an applicant any questions based on race, sex, color, national origin, religion or age as addressed in Title VII of the 1964 Civil Rights Act. The Americans with Disabilities Act of 1990, protects qualified individuals with disabilities from discrimination in employment. If you need specific information that may touch on any of the above categories, make sure that it relates specifically to a job related qualification. You cannot ask if someone has a disability, but you can present the job requirement of lifting 50 lbs. and ask if they can perform the requirements of the job.

There are other ways in which an employer can obtain information without violating any laws by carefully phrasing the questions. For example, you cannot ask if someone is a United States citizen, but you can ask if they are lawfully employable in the United States either by virtue of citizenship or by having authorization from the INS and the Labor Department. As a matter of fact, you are required to have this information in order to allow them to work for you.
You cannot ask their age, but you can question on your application or in your interview if they are over the age of eighteen. You cannot inquire if they have any children or about their arrangements for child care, but you can tell them the work schedule and ask if they can meet it.

You cannot ask what clubs or organizations they belong to, but you can request if they belong to any professional or trade groups that they consider relevant to their ability to perform this job.

You may not request any information regarding previous workers' compensation claims during the pre-offer stage. You can research this after they have accepted an offer.

It is also not permissible to ask when they graduated from high school, as it is another way to determine age, but you can ask what schools they have attended.

Asking about a maiden name can be construed as attempting to ascertain ethnic background, but it is appropriate to ask if they have ever been known under another name.

You cannot ask if they smoke, but you can inform them of your company's smoking policy and ask if they have any problem adhering to it. You also are prohibited from asking about any medical conditions, including HIV/AIDS.

Next month: The hiring process itself, and the different employment categories within which business owners can employ staff (intern, independent contractor, permanent, temporary, leased, exempt, non-exempt, etc).
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Interviewing & Hiring Part II

March, 1999
You've found the person that will fit your position. Now you need to determine the employment category for that person. In conventional employment, the organization directly hires, supervises, pays and provides benefits to individuals; all other staffing arrangements are considered alternative. But the alternative category includes many different types of staffing arrangements. Temporary or permanent? Exempt or non-exempt? Do you wish to retain them as an independent contractor or do they fall under the definition of intern? Each of these categories is sufficiently complex to fill an entire column. Employers should contact an expert source before making final determinations, but here are some tips on how to approach this determination.

Intern, Independent Contractor (aka 1099), Leased Employee

There are many alternatives to traditional staffing methods. It is important to understand the basics that differentiate the categories, especially as it relates to the Fair Labor Standards Act (FLSA). FLSA defines an employee as performing activities controlled or directed by "an employer." The FLSA notes that people who work for their own interest are not employees, but may be independent contractors or students and trainees acquiring experience. Many businesses misinterpret the meaning of these phrases and inadvertently violate the FLSA.
Interns spend time for their own advantage to gain experience. The employer can't promise future employment or compensation, and the intern cannot be part of the production of the company's routine business. The business cannot use the intern to further its goals or meet commitments. This suggests a company should view the role of an intern's "mentor" as time donated by the firm. If a position is defined as a paid internship, it is probably better to categorize it as a trainee position to avoid confusion with any unpaid interns present within the organization.
What if you wish to hire the individual to do the work, but not as an employee? There are more than twenty tests to define an independent contractor, but there are six basic issues:

  • Does the organization control how the work is performed or merely define the expected outcome?
  • Does the contractor have a skill special or unique to the company?
  • Is the service provided integral to the business?
  • Is there a degree of continuity in the working relationship between the individual and the company?
  • Is there the potential to the individual for loss or profit, depending upon results?
  • Does the individual have an investment in equipment or materials necessary for the work?

The amount of direction provided to the individual is key to the definition as an independent contractor. This is only one of the litmus tests necessary to accurately categorize a contractor.

A leased worker is one who is employed by an agency; the employer pays the agency a fee, which includes the leased worker's wage plus a percentage mark-up for the agency's fee. Even so, there have been court cases where it was determined that, based on how the employees were managed, leased workers were entitled to company benefits.

Permanent vs. Temporary
Has this position been developed because the workload has become too extensive for your present staff? Do you anticipate this volume to continue? If so, you will probably want to define the position as a permanent, full time position. Is the work seasonal or in response to a specific offer that has a limited lifetime? Then maybe a temporary position will be preferable.

Exempt vs. Non-exempt

This is another category defined by the FLSA, also complex with a variety of tests involved to ascertain the appropriate classification. It refers to exemption from overtime pay. A non-exempt employee is one who is usually paid by the hour and is eligible for time and a half for any hours worked over forty in a given week. The basic approach is to use the short test, which examines duties and salary. If an individual is paid more than six and one half times the minimum wage, that satisfies the requirement for exemption in most cases. The duties test examines independent judgment, supervisory responsibilities and sometimes, education.

Remember, these are oversimplifications of some highly intricate definitions comprised of multiple components. If you are not absolutely certain, it is best to consult an expert source. Fines by the Department of Labor, which publishes various periodicals regarding the FLSA, can be large. The Internet is also a good source of basic information, or contact Outsourcing Solutions. <Back>



Management Techniques For A Changing World

December, 1998
Coaching managers for success in this age of information and technology involves balancing the personal and the professional. How many people have spent the last decade working to succeed, only to find that the experience is not satisfying. We feel stressed with no time to recharge. How did this happen in a world where technology is supposed to save us time?

One factor is that, although technology has created more time for us, the sense of what is necessary in our lives has increased. Activities our parents might have considered frivolous are integral to our frenzied schedules - working out, taking our children to soccer or dance. Even quality time is scheduled.

So, we're working hard at our jobs, searching for meaning for ourselves. We look for techniques to improve our lives, and often find our work environment does not reflect our values. We see questionable ethics, rampant incompetence, and a universal lack of responsibility. This adds to our sense of alienation and impotence, and therefore, to our stress.
How to combat this feeling and impact our jobs, our organizations, our relationships? It is possible to improve your working experience by employing some empowerment techniques, and by refusing to compromise your own commitment to joy, in the workplace and elsewhere. Be prepared. Adhering to these notions will have an affect on others in your environment. Many will love it; others will feel threatened by it and will attempt to derail you. Stay committed. Remember, only you are responsible for your behavior and responses, and you are responsible only for your behavior and responses.

DON'T
DO
Don't continually deflect responsibility for your actions onto others. Blaming others provides no power to change the situation. Do take responsibility for your own behavior. Implement what you've learned. Use new information to challenge yourself.
Don't lament about the culture of your organization, or accept it. Change your interactions to change the culture.
Don't push processes ahead and perform the due diligence later. Stop to review what is appropriate and legal or consistent.
Don't focus only on dollars; that is short-sighted and suicidal. Assess the overall growth of the company, including yours personally.
Don't make assumptions. Check your facts before basing a decision or conclusion on them.
Don't expect team members to read your mind. Communicate expectations and check to see if they're reasonable.
Don't assume that in a sea of activity, yours is the only priority. Be flexible. Realize everybody is juggling multiple tasks, and be respectful of that.
Don't drop the ball. Follow through; think about the steps you need to take to do so.
Don't be egocentric in terms of what is important to the organization. Walk in the other guy's moccasins.
Don't view other players in the company as obstacles to your success. View them as your partners, and as resources to aid you in meeting your goals.
Don't gossip and pass on bad news. Demonstrate respect for yourself and others by the way you talk.
Don't bankrupt your personal life to be successful professionally. Balance is key in the four main areas of your life: work, intimacy/social, spiritual, community.
Don't be so wrapped up in what you're doing and forget the simple things. Display common courtesy, be considerate and respectful of others. It will buy you more than you can imagine.
Don't stay stuck on old beliefs. Be open, even excited, about dialogue, new ideas.
Don't violate your personal integrity. Integrity allows you to make authentic connections, not just with others, but with yourself.
Don't believe that you are alone in this or that you have nothing to teach. Mentor others in growing and believing in themselves, and partner with them.
Don't believe that you are alone in this or that you have nothing to learn. Be open to constructive input, or new ways to approach old tasks.


Employing these techniques may enhance your own experience of your day, and will make you a valuable partner to whom others will be drawn. This will make your job easier and more essential to the organization. In addition, you will be modeling behavior for others that could make the entire working environment better for everybody.

Anne Caldwell is President and Founder of Outsourcing Solutions, a Human Resource consulting firm providing innovative human resource approaches to companies in rapid growth or transition. Outsourcing Solutions specializes in designing HR plans for high tech companies, but will work with organizations of any size or industry. Call 228-9191 for more information.
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More On Performance: What Factors Help Employees Suceed?

Examining elements that enhance performance, it is important to remember that success is not merely a function of the employee's competence. We must review the environment in which they perform. Studies have proven that if good performers are placed in bad circumstances, the systems will prevail. Our success is based on the interaction of the person with the environment.

Publications on employee performance provide a wealth of data that ascribes employee achievement issues to the setting. If this is accurate, perhaps we should look to the systems, as opposed to following traditional methods which involved more instruction or correctional actions.

These days most businesses are aware that employees need clearer goals, shared between the staff and the managers. This helps to shift the orientation from specific task competence to a more holistic approach of the staff and the organization as symbiotic parts of a whole.

Tom Gilbert developed a six-step model for looking at these areas called the Behavior Engineering Model. The first three areas, information, resources, and incentives, depict the work environment factors, which need to be assessed first. If these arenas have been thoroughly reviewed, the next step is to analyze issues with the employees, who are related to the last three topics, skills and knowledge, capacity, and motivation.

Communication of information includes disseminating what employees are expected to generate, in addition to supplying data on policy and procedures. Appropriate resources are necessary, because no matter how competent an employee, if they are not provided with the tools, materials, and training that their position requires, they cannot be successful. Incentives can be anything from a corporate culture that supports the entrepreneurial spirit, appreciation for good work, to 401k's and childcare centers.

Skills and knowledge are the keystone to employee selection. We hire people that we feel have the experience to do the job, or the ability to learn. Capacity addresses choosing someone for a position that has the potential to achieve success within the specific parameters of a job. Past performance and evidence of adaptability are factors to take into consideration when determining someone's capacity for a position. Motivation is key to staff success, but is so individual when attempting to identify the best way to encourage an employee. The best managers determine, often through direct communication with the employee, what is most effective in motivating them. Some may be inspired by the attention given to asking them what they need; others want written instructions, flexible work schedules, or mentor-training systems. All of these efforts are minimal in cost and often very effective.

If we examine these factors and consider their impact on productivity, we may achieve exceptional performance. Organizations recognize that employee awareness evolves, and a sequence of programs over the years has dealt with achieving success. From total quality management to reengineering and business process redesign, these programs have attempted to enhance working conditions to improve performance. This establishes a more global approach to organizational success than merely looking at training and disciplinary action as the keys to motivating employees. <Back>


Small Business Checklist

You've started your own business, found the right niche for your product or service and gotten a tremendous response. You've had to hire more people, and before you know it, you actually have a company. You spend most of your time focusing on marketing and finding new business, as well as meeting your customer's needs.

What else should you be thinking about? You may think that with only six, fourteen or twenty employees, you don't need to be concerned about structure or policies and procedures. But actually, it is advantageous to think through how you want certain aspects of your company managed, even if you are not planning on continued growth. Some strategic planning in these areas will enhance your ability to make decisions without trauma, and avoid the inclination to "shoot from the hip." If continued growth is anticipated, putting structures in place while you are still small will increase your effectiveness, and eliminate the strain of transitioning to a larger format. It is especially important to define structures to avoid discrimination.

Here are some of the areas you might want to think about.

Benefits administration: What sort of benefits do you wish to offer? Who is eligible for them, and who pays for them? Do you pay all or a portion; same amount for single and married? Will you combine vacation and sick time into Paid Time Off? How will PTO be defined? Will it accrue or be awarded on a calendar basis? Will it be dumped or can it be carried over, and if so, how much, and will it be tracked by calendar or anniversary year?

Compensation structure - internal and external equity:
How do your wages compare with your competition? Do employees of similar experience and tenure have equal wages? How do you determine increases? How often, what percentage and with what criteria?

Recruitment, recognition, retention: How do you attract and retain the best possible staff most cost effectively?
Policies and procedure handbooks: Do you have policies that define what you expect? How do you address harassment? Hiring? How do you effectively communicate performance expectations, and address when they are not being met in order to maximize the potential of success for your staff? How do you address disciplinary issues in a way that empowers your employees? Do you have ways to resolve employee relation issues efficiently?

Compliance issues: How do you keep current with prevailing legal updates? Are you required to comply with the Fair Labor Standards Act, the Department of Labor, Family Medical Leave Act, American with Disabilities Act? If not, do you want to adopt a modified version of any of the above?

Not all of the above categories will apply to every business, but the question is, do you know which apply to yours? The more professionally you run your business, the more professional and efficient you appear to your clients and customers, as well as eliminating the worry of these day to day types of decisions so that you can focus on your core business. Feel free to contact us with any questions regarding these issues. <Back>

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