Companies look for ways to thank employees and incentivize them – keep the team happy and productive!  One traditional reward has been the holiday bonus.  The bonus can come in many forms, from checks in various amounts (or sometimes the same amount for all) to in one case, a holiday turkey…
The problem is, this particular reward doesn’t have much lasting effect on employee morale, job satisfaction, or productivity.  In many cases it becomes perceived as part of the annual salary.  It can also cause resentment when everyone gets the same reward no matter how much they contributed to the company’s success that year.  In a case I’m familiar with, the executive team got significantly higher holiday bonuses, creating resentment among staff that felt those folks already had enough money for the holidays and it should go to the “worker bees”. 
A better idea, as suggested in an article on the Society for Human Resource Management website, is incentive pay based on meeting company goals.  A reward should align the growth and wealth-building of the company and its employees.  When companies develop the correct incentives, their growth and success can increase significantly.
This requires some groundwork.  The first, as always, is to clearly identify company goals for the short term.  These goals have to be quantifiable in order to use them as a guide for rewarding employees.  Then comes the hard part – identify specific behaviors or work that will help achieve these goals.  In addition, employees should articulate their particular goals as they relate to the business of the company. 
Company leaders should recognize that employees are motivated by similar elements—an atmosphere that encourages development, participation in the decision-making processes, opportunities for professional growth and a comfortable living now and the ability to increase their well being in the future.
So how to reward:  bonuses, deferred compensation, stock plans or other options?  This has to be defined by the leadership and be based on the company structure and financial situation. 
Finally, the reward program won’t be effective unless it is kept front and center in the business process.  It will only motivate if employees remember the commitments made and rewards available.  This type of program serves as recognition and appreciation of the individual effort to make the company more successful.
There is always opportunity to celebrate and appreciate the employees of the company en mass via luncheons or simple gift exchanges.  Bear in mind, however, that not everyone celebrates the holidays in the same way, and some not at all.  That’s another reason for not doing holiday bonuses!

Tags: employee benefits, employee morale, performance management

I have read numerous articles on the changing requirements of the job seeker – especially the newest generation of earners.  Some of the comments are not flattering – such as that the new wave of workers doesn’t really expect to have to show up to work every day, or that they expect to be paid exceptional salaries without any experience.  In reality there are good and not so good applicants in any generation.  One of the most commented – on wishes of today’s employee is more TIME.  When an applicant looks at a job opportunity, don’t be surprised if they look at salary and benefits, but also pay close attention to how much personal time/vacation time is included in the offer. 
In a  survey done by the Society for Human Resource Management(SHRM) earlier in 2011, 86% of the 550 respondents to the survey said flexibility – the ability to balance their work and personal life – is an important or very important aspect of job satisfaction.  Acknowledging the pressure of balancing personal needs and their work requirements, many employers are offering work flexibility to keep their best and brightest.  Others are using the flexible work arrangements to attract workers from their competitors!
There were actually awards given for workplace flexibility through a rigorous process developed by the Families and Work Institute.  One example – Turner Construction finds that listening to staff needs and communicating how important they are to the company resulted in a voluntary staff turnover rate of just 3.8%.  Employees surveyed feel they were being heard (an increase of from 59% in 2005 to 72% in 2011), and management  evaluations include a section on how well they promote flexible work options.  There are such perks as Friday afternoons off in the summer, even though it is a peak time for their industry. 
Another company, Ben Secours Health System, has used a variety of flexible work schedules for years – partly because of a shortage of health care workers, and partly because many departments require 24-hour coverage.  Employees can work compressed workweeks or either four 10-hour shifts or three 12-hour shifts a week.  There is enhanced pay for weekend hours, and many more.  Because women make up 85% of the workforce and women are still the primary caregiver in a majority of family units, these options are especially important in meeting staffing needs.
Even in the factory (Futura Industries in Utah) there are opportunities.  At Futura 85% of the employees take advantage of flexible work times without sacrificing pay.  Employees are cross trained, and managers can decide if they need to backfill when an employee needs some time off or if they can work with one less for that time. 
It seems that investigating flextime options can be an important factor in the success of a company to hire and retain their workforce.  Check it out!

Tags: employee benefits, employee morale, Hiring Trends

There have been headlines in the news lately concerning performance bonuses in the banking and finance industry.  In some cases such as that of Goldman Sachs, lower overall company performance didn’t dampen the pay raises and bonuses significantly last year.  So is there really a connection, and how is “performance” determined?

According to an article in the Society for Human Resources Management (SHRM) news, over 90% of U.S. organizations tie salary increases and bonuses to specific performance measures.  There was a study done by the Institute for Corporate Productivity (i4cp) that found high-performer organizations are more likely to use performance measures than the “low performers”. 

There is also a difference between companies saying they evaluate performance and companies doing so successfully.  Being successful depends heavily on identifying the appropriate drivers to use in the evaluation process, and clearly understanding these drivers.

The SHRM article said that high-performer companies were driven primarily by a desire to recognize and reward their best employees.  This desire also translates into needing to retain their best and brightest at a time when these folks may be a target for other organizations looking for new employees. As a secondary driver, the high-performer hoped to increase the likelihood of achieving corporate goals through their review program. 

In these times of tight budgets, very few of the companies studied identified the compensation budget as a driver for performance evaluations and raises.  During the 2009 downturn there was a general attitude among companies that if you kept your job, even if it meant a salary reduction, everyone was grateful.  Now, slowly, companies are able to give raises and bonuses, and are trying to do so effectively.

Interestingly, the i4cp study found that low-performing organizations put emphasis more on achieving corporate goals (in other words how well did the employee fit into that business vision).  While this might make sense, sometimes the best input you can receive from staff is why the goal/vision needs tweaking, and being able to provide new vision or innovation to achieve success.  Meeting corporate objectives and improving productivity are useful short term goals, but the best and brightest can see the broader picture and help the organization get there.

Tags: benefits, employee morale, performance management

Many of the news stories on job losses/job creation/unemployment state that small businesses, led by start-ups, generate over 50% of new jobs in the economy.  An article in the Wall Street Journal (9/15/2011) quotes the Small Business Administration as saying that 65% of new jobs over the last 17 years were due to small employers.
That same article “With New Technology, Start-ups Go Lean”, says that the number of workers needed to launch a new company has decreased by almost half in the past decade.  Start-ups are being launched with an average of 4.9 employees vs. the 7.5 workers in the 1990s.  At the same time, the number of start-ups has held steady, or even showed a slight increase since the recession, according to a study by the Kauffman Foundation.  This factor can have a huge impact on overall job recovery.
Efficiency is a good thing, but how do they do it?  As it turns out, using Web-based business tools, and working with contract developers/workers online has reduced the need for bodies in the company. The availability of web-based collaborative tools allows disparate groups to work together on projects, and eliminates the need for a large staff. 
One thing occurs to me – maybe the start-up or small business doesn’t add to its staff, but the work (managing the projects, ordering supplies, keeping financial records, etc) still needs to be done.   Someone outside the company is getting paid for providing these services in another setting.  Whereas the work may be done more efficiently, we still have a job opportunity for some bright soul.  It might be interesting to compare costs for outside services and support between today’s start-up and the earlier versions. 
Sadly there’s one part of this story that doesn’t help our jobs picture – the ease of collaboration with overseas talent.  Good for keeping costs down, but not so good for the job market either. 
In the meantime, the really good news is that start-ups are continuing to launch at a steady rate, and our innovative talent is still at work.  Keep up the good work!

Tags: change management, Hiring Trends, industry news, recruiting, technical jobs

The New Mexico Department of Workforce Solutions (NMDWS) received an individual State Labor Market Information Improvement Grant, in the amount of $1,250,000, to gather information on employers and opportunities in New Mexico in four key sectors:
* Renewable Energy;
* Green Clean Manufacturing;
* Energy Efficiency; and
* Research, Development, and Administration.

Research is being conducted by the Arrowhead Center at New Mexico State University. ER&A will conduct an educational inventory with the assistance of the New Mexico Public Education and Higher Education Departments. Ultimately, survey results and data will be provided to job seekers, educational institutions, business communities, and state agencies to help guide the State Energy Sector Partnership and Training grant efforts. (see below)
Another goal of the grant is development of the Mobile Green Jobs Workforce Center (MGJWC), whereby job seekers will have access to new computer workstations, software, and online services resulting from the Grant research utilizing this new resource. The MGJWC will be more responsive to the targeted population needs by making resources available to job seekers in all areas and communities with the most need, such as the state’s rural population, isolated Native American tribal areas, and other underserved communities. The MGJWC can also serve as a training center to promote workforce information and other topics at mass layoff rapid response locations around the state. All the data collected and outlined under this Grant will provide essential information to help stimulate the growth of New Mexico’s new green economy and help fill the job market void left by recent business contractions and closures.

State Energy Sector Partnership Program
The goal is to establish a statewide approach to job seeker training in renewable energy/energy efficiency occupations in solar, wind, green building/energy efficiency and biofuels.  These are identified as sectors active in the State with a potential for job opportunities in the future.  The oversight council, a subcommitte of the State Workforce Board will work to identify industry needs and job opportunities to make sure that training matches with the sector needs.
To be eligible for training candidates must be over 18 and 1) have a Social Security number, 2) have the right to work in the U.S., and 3) comply with Selective Service registration requirements (for males)
AND
Be included in one or more of the following groups:
1. An incumbent (currently employed) worker in need of skills upgrades for a solar, wind, biofuels, green building/energy efficiency green job;
2. A displaced (currently unemployed) worker ;
3. A woman;
4. A veteran or qualified spouses of a veteran;
5. A high school dropout; and/or
6. meet low-income eligibility guidelines.
To apply for this program complete the SESP training pre-application, available at the project website, www.greenjobs.state.nm.us,  and take it to your local Workforce Connection Center. Your nearest Workforce Connection Center can be found by visiting http://www.dws.state.nm.us/dws-offices.html.

Tags: industry news, job seeker, retraining, technical jobs