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

Because employers are at an advantage in the current job market, some leaders develop a superior attitude, implying that the employee is lucky to have a job (somewhat true but not nice to say).  Others recognize that even with lots of job seekers out there, keeping their star employees is even more important because of the hiring and training costs involved in adding staff.

Those employers that appreciate happy productive employees are more likely to say things like “thanks, good job” or let me know if you need help” or even “why don’t you take the rest of the day off – you’ve worked hard to complete this project”.  Their employees are also more productive overall (See my previous blog on paying for performance).

A column in Bloomberg Businessweek, by Liz Ryan (10/4/2011) gives some great examples of what “bad bosses” say and how it negatively affects the company.  One I’ve already alluded to- “If you don’t want this job, I’ll find someone who does”.  These bosses love to remind employees that it’s all about the money, and that “You work for me”.  In actual fact money is not as important in a professional relationship as feeling like the employee makes an important contribution. 

Another (and we’ve all heard it) is “I don’t pay you to think”.  In my experience, those bosses felt threatened by anyone with a good idea, or they were stuck in old ways and didn’t want to make an effort to change.  Any employee with a brain is going to look for a new job asap.

How about “I’ll take it under advisement”?  Much like Mom or Dad saying “We’ll see”, and not a very positive response.  It usually means the boss doesn’t value your input enough to make an effort.

“Bring me solutions – not problems” can be perceived in two ways.  During the “re-engineering” craze in the ‘80s this was a catchphrase for the movement.  It should be empowering to the employees , as those closest to the problem usually can find better solutions.  It has also been misinterpreted as “don’t complain – just deal with it”, not nearly as positive an attitude.  It is also possible, that in the complicated business environment we live in now, the solution is a much more complicated one, and needs a manager’s involvement. 

“Who gave you permission” is such an antiquated attitude, but does still prevail.  Any organization has rules and guidelines for the workplace and the business, but when employees want to stick their collective necks out and try new ideas, there should be support and advice available from management – rather than roadblocks.  Companies that can respond quickly to new opportunities or crises don’t use that phrase.

Others – “sounds like a personal problem to me”, “drop everything and do this NOW”, and “everyone here feels the same way” can be belittling and create a negative work environment to those having to hear these comments.  So, whether you are just leading a meeting, or leading a department, think before opening your mouth “how would this sound if a boss said it to me”?  Thinking before speaking is always a good idea!

Tags: change management, employee morale, employment issues

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

Performance reviews are not fun for either the employee or the reviewer, but in the past were viewed as a necessary evil of working in an organization.  The fact is, however, that they are not a requirement except in the case of some governmental or union employees.  The other fact is that they take an enormous amount of time and create lots of stress for everyone.  So why do them?
An article in Legal Section of the Society for Human Resource Management site brings up some interesting points.  The April article by Judith Droz Keyes discusses both the reasons for and the pitfalls of performance reviews.
The formal review system was developed predominantly as a defense against discrimination lawsuits in the 50’s and 60’s, to justify terminations and disciplinary actions.  They were also supposed to serve as an honest and accurate assessment of an employee’s job performance relative to the employer’s standards and, to the performance of the team.  They were intended to motivate the employee to achieve great things and improve the morale of the company. 
The problems with these evaluations are many.  First and foremost, most supervisors are not good at reviewing their staff, and tend to avoid confrontation.  Therefore the employee may have been reprimanded in some way during the year, and at review time will get a satisfactory rating, so as not to cause waves.  In other cases, the language used in the review is not clear – saying “I would like to see” rather than “this job requires”.  In addition, most supervisors are not held accountable for the quality of their review process, so there is no consequence, until the employee is let go and a lawsuit is file.
That brings up the second problem.  Many times the review process is designed more as a career path management tool than a disciplinary tool and so problems with employees may not be accurately documented in the process.  Then, when an employee files a “wrongful termination” suit, they cite their years of positive reviews as evidence.  Sadly this means that the supervisor must now always look at the process as a potential legal pitfall rather than a helpful tool for management.
Yet another problem with the process is the lack of timeliness of the feedback.  Management should be addressing problems or achievements as they occur, rather than waiting a prescribed amount of time to give praise or criticism.  As a supervisor I had to keep careful notes during the year to avoid the “feeling of the moment” – the employee had just done something to irritate me that might affect my attitude during the review.
Finally (though there are probably more issues I haven’t thought of) there is the legal side of employment which says you need to be careful about commenting on things such as “professional attitude”, excessive absences, or cases where there is a conflict with the supervisor.  Any comments must be weighed against the protected rights of the individual employee, which tends to lead to a very bland review.  It is very difficult to deal with an employee with serious health issues when their position is vital to the organization and slows down the whole business process.  A supervisor must be very careful to comment in language that addresses the goals of the company and how they are not being met…or some other cleaver way to discuss the problem.
So if not performance reviews, what?  As mentioned earlier, timely addressing of the issue, either positive or negative, is much more useful for both employer and employee.  Record of these discussions need to be documented just as in a review, especially when compensation is tied to performance.  In place of a review, a “career plan” showing goals for the employee to work toward would be much more useful.  The goals should be developed through mutual input and allow the employee to show how they would like to grow in the business. 
Whether you are a manager or part of the staff in an organization, it is a challenge to keep dialogue open and keep everyone on the same page.  Good luck!

Tags: change management, employee feedback, employee morale, job seeker attitudes, performance management, team building