Religion in the workplace: a constitutional right

We frequently receive questions regarding employers’ obligation to accommodate religion in the workplace—particularly as it deals with Sabbath observance. The following outlines important information that every employer should understand about Sabbath observance and the workplace:

• The Equal Employment Opportunity Commission has recognized that a claim to Sabbath work restriction may be brought by an individual based on his personal belief, even if he is not a member of any established group with rules about Sabbath work.
• Courts recognize that businesses activities may regularly involve Saturday and Sunday work. In these circumstances companies may be required to provide scheduling and/or unpaid leave accommodations.
• To be entitled to accommodation, an employee must make known his religious obligations to his employer and be reasonable in considering his employer’s good faith efforts to accommodate.
• An employee’s request must be based on religious observances, not on optional activities or convenience. Nevertheless, the law protects more than the observance of strictly mandated activities. For example, the law requires accommodation to attend a bar mitzvah, but does not require accommodation to allow an employee to prepare for a church social activity.
• The EEOC and several federal circuit courts have determined that an employer satisfies the duty of reasonable accommodation of a Sabbath or holiday request when it allows an employee to exercise a right to seek job transfers or shift changes with coworkers. However, where the employee’s religious objections include the view that to induce another employee to work in his stead on the Sabbath would be wrong, such trading opportunities would not satisfy the reasonable accommodation requirement.
• Employers are not required to make accommodation if that accommodation would result in an undue hardship on the conduct of their business. Factors in considering whether a requested accommodation will constitute an undue hardship include the size of the employer, the nature of the employer’s business, the type of accommodation required, the cost of the accommodation, whether the employee provided reasonable notice to the employer of the desired accommodation, and the composition and structure of the workforce.

Strategic planning: your roadmap to the future

Strategic planning is an integral management tool. To succeed in today’s chaotic business environment, the executive team must understand and adopt strategic planning as part of its regular methodology for doing business. For organizations unfamiliar with strategic planning, the best way to learn and implement the planning process is through practice.
BAI’s two-day Strategic Planning workshop will guide your executive team through strategic planning. This includes reviewing the organization’s mission and values, performing a SWOT analysis, identifying key results and forming an action plan to initiate and sustain necessary changes.

2013 Obamacare mandates

Now that implementation of the Patient Protection and Affordable Care Act (Obamacare) is poured in concrete, it is critical for employers to understand and comply with the administrative impact of the legislation. Below is a summary of the legislative requirements effective January 1, 2013:

• W-2 reporting for benefits provided during the previous year. Employers with over 250 W-2’s will be required to report the total cost of coverage under and employer-sponsored health plan. This information is intended to provide employees information regarding the actual cost of health insurance. The employer contribution is not taxable at his point.
• Flexible spending account contribution limits are reduced to $2,500 annually. This amount only applies to employee contributions and does not cap employer matching or other contribution programs.
• Medicare tax will increase for high earners. The current Medicare tax rate of 1.45% will increase to 2.35% for all wages over $200,000 for single filers, $250,000 for joint filers, and $125,000 for persons who are married filing separately. Employers are not required to consider the spouses wages or an employee’s wages at a second job. The tax would begin at the point the employee’s annual wages exceeds $200,000.
• First dollar coverage for women’s preventive care services is required. Companies will be prohibited for imposing co-payments, deductibles or other cost-sharing mechanisms for certain women’s preventive care services including contraceptive methods and counseling.

In addition to the January 1, 2013, changes, effective March 1, 2013, employers will be required to provide notices to employees regarding state health insurances exchanges which must be operational in 2014.

When was the last time you took the pulse of your organization?

When was the last time you asked your employees how they feel about working for you? The BAI employee opinion survey process is an invaluable tool that secures and analyzes employee perceptions on a variety of critical business issues. Not only does it generate the hard data required to make sound decisions related to successfully managing employees, it helps identify training needs, potential discrimination or harassment problems, perceived salary inequities, possible union organizing initiatives and a myriad of other issues that cost organization’s valuable time, attention and money.

Ultimately, the BAI employee opinion survey process creates greater employee commitment to the organization and its ongoing success by giving employees an opportunity to share their opinions and perspectives in a meaningful way.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Compressed workweeks may reduce costs and improve morale

With high transportation and energy costs affecting business and workers, more employers are considering compressed workweeks as a tool to save money and improve employee morale. Compressed work weeks typically involve schedules that enable employees who work a traditional 40 hour workweek to put in their 40 hours in fewer than five days. While some companies allow compressed work weeks as scheduling options other organizations make the revised schedule mandatory.

The most common approach to compressed workweeks is four 10-hour workdays. This schedule allows the employer to close business three days each week and enjoy the economic benefits of reduced operating costs.

If your business requirements necessitate staffing five or more days a week, the additional day off can vary for each employee. For example, some organizations place half their staff on a Monday through Thursday schedule, while the other half works Tuesday through Friday. Some organizations choose to assign a different day off to each employee to ensure adequate coverage.

A second option involves working nine out of every 10 workdays with each workday nine hours in length. This approach is somewhat problematic as a result of Fair Labor Standards Act regulations. FLSA requires employers to pay overtime at 1½ times the hourly rate to nonexempt workers who work more than 40 hours in a given workweek. To comply with the law, the employer begins the workweek on Friday at noon. By working nine hours on Monday through Thursday and four hours on Friday morning, the employee completes 40 hours of work. Beginning at noon, the employee works the remaining four hours on Friday and 36 hours on Monday through Thursday the following week.

Problems with this schedule will arise, however, when an employee comes in early on Friday so he or she can leave early at the end of the day. If the employee comes in an hour early Friday morning, the result will be 41 hours in one workweek and 39 in the next. Overtime will have to be paid for one hour during the first week while the employee will only receive pay for 39 hours during the second week.

Although compressed workweeks are no panacea, they do offer employers a scheduling option that can impact overhead and morale in a positive way. Careful consideration should be given before adopting a compressed workweek.

Strategic planning: your roadmap to the future

Strategic planning is an integral management tool. To succeed in today’s chaotic business environment, the executive team must understand and adopt strategic planning as part of its regular methodology for doing business. For organizations unfamiliar with strategic planning, the best way to learn and implement the planning process is through practice.

BAI’s two-day Strategic Planning workshop will guide your executive team through strategic planning. This includes reviewing the organization’s mission and values, performing a SWOT analysis, identifying key results and forming an action plan to initiate and sustain necessary changes.

To learn more about how this workshop can help your organization plan for the future you deserve, call BAI today at 801.444.9919.

Retaliation leads to litigation

When employees bring charges or discrimination to management’s attention, it is essential that management avoid actions that can be construed to be retaliatory.

What must you know?

• You must be careful about any changes in job assignment, duties, work schedules, work locations, etc., after an individual has made a charge of harassment or discrimination in the workplace. As the US Supreme Court has stated: “Context matters. A schedule change in an employee’s work schedule may make little difference to many workers, but may matter enormously to a young mother with school age children…A supervisor’s refusal to invite an employee to lunch is normally trivial, a non-actionable petty slight. But to retaliate by excluding an employee from a weekly training lunch that contributes significantly to the employee’s professional advancement might well deter a reasonable employee from complaining about discrimination.”
• Managing employees while CONSISTENTLY utilizing metrics-based performance standards and clearly documenting that process is critical. Without this record, a bright yet poorly performing employee can file a discrimination claim in anticipation of any discipline and then claim retaliation when the discipline is actually initiated.
• You need to review your discrimination policy to ensure that retaliation will not be tolerated, claims will be thoroughly investigated and that workers will be treated consistently and fairly. This policy must be communicated clearly and regularly to all employees.

To avoid costly litigation and payouts, management must ensure that it takes every claim of discrimination or retaliation with the utmost seriousness, that each claim is thoroughly investigated, and that the employee is satisfied that the investigation and the outcome was fairly concluded.

The alternative will be painful and costly for both your managers and your company.

Business Ethics: Constancy in a world of change

Unprecedented change is affecting our business and personal lives. Does this mean personal and professional ethical values are changing too?

The Committee of Sponsoring Organizations (COSO) formed under the direction of the Treadway Commission (a gathering of public and private sector representatives asked to study fraudulent business activity) identified integrity and ethical values as a primary component of organization success.

Business Ethics: Constancy in a World of Change is a half-day seminar that helps participants to understand the role of ethics in business dealings and gain a greater appreciation for strong moral principles that not only minimize corporate liability, but ultimately, maximize company profitability.

For more information about Business Ethics: Constancy in a World of Change and other BAI seminars, workshops and services, call us today at 801.444.9919 or email us at amiller@gotobai.com.

Common sense rewards in a tough economic environment

All too often managers and supervisors have the mistaken idea that money is the best way to motivate employees to work harder and smarter. While the paycheck is important to most employees, it generally fails to generate that added commitment that moves an organization to excellence. This is a particularly important principle to understand when the economy tightens and outlays for salary increases or bonuses are hard to come by.

What do employees identify as the most effective reward?

Personal heartfelt congratulations from the boss—not just the BIG BOSS, but even better, the boss to whom the employee reports. It’s a reward that each employee should receive in some form with real regularity.

Other less formal recognition and reward tools may also have a strong positive impact on motivation and morale. Listed below are a few no-cost or low-cost rewards that can generate positive results:

• A personal note from the boss
• A new title
• Name on electronic bulletin board
• Flowers
• Home helper (to cut the lawn, wash windows, weed, etc)
• Candy
• Movie tickets
• A car wash
• Gift certificate
• A make over
• A one month health club membership
• Cake and ice cream
• A traveling trophy
• A magazine subscription
• An afternoon off
• A tee-shirt
• Lunch with the company president
• A round of golf
• Massage
• Dinner for employee and spouse
• Balloons
• Limo ride

This list could go on forever. Just remember that recognition and reward does not have to be big or expensive. It just has to be there. Even in periods of economic difficulty, there is increasing competition for talent. Keeping our best and brightest employees is critical. Effective recognition and reward will go a long way to accomplishing this objective.

Business Ethics: Constancy in a world of change

Unprecedented change is affecting our business and personal lives. Does this mean personal and professional ethical values are changing too?

The Committee of Sponsoring Organizations (COSO) formed under the direction of the Treadway Commission (a gathering of public and private sector representatives asked to study fraudulent business activity) identified integrity and ethical values as a primary component of organization success.

Business Ethics: Constancy in a World of Change is a half-day seminar that helps participants to understand the role of ethics in business dealings and gain a greater appreciation for strong moral principles that not only minimize corporate liability, but ultimately, maximize company profitability.

For more information about Business Ethics: Constancy in a World of Change and other BAI seminars, workshops and services, call us today at 801.444.9919

Body odor in the workplace

Eventually, every manager is confronted with a complaint about an employee’s body odor. There is no human resource problem that is more difficult or causes the manager greater discomfort and embarrassment to resolve. For the sake of the team, however, the problem must be addressed head-on and a solution identified.

When you have a malodorous employee, keep the following points in mind:

Meet with the worker personally to confirm that the problem actually exists. Sometimes employees will use body odor as the basis of a prank or practical joke to embarrass the worker or the supervisor. By meeting personally with the employee, you can ensure there is substance to the complaint.

Address the problem directly and confidentially with the offending employee. Treat the body odor as you would any other performance problem. With sensitivity, tell the person that his body odor is impacting others’ ability to work with him. His job is not at risk, but he must resolve the problem.

Offer appropriate help. Suggest that the employee shower, see a doctor, bring a change of clothing, etc.

Recognize the legal implications of the problem. Making assumptions or inquiring about the cause of the odor is entirely inappropriate. To avoid ADA problems, do not discuss medical issues related to the condition with the employee. If the employee volunteers information, you may be required to provide reasonable accommodation. Never suggest that the employee change his diet. This may result in a discrimination claim based on ethnic origin.

Protect the offending employee. Ensure that other employees are neither harassing nor ostracizing the malodorous worker. If co-workers behave inappropriately, bring it to their attention and put the bad behavior to a stop using discipline if necessary.

The BAI Leadership Imperatives program makes good leaders great!

The typical manager expends 40-60% of his or her time dealing with employee-related issues that are often distractions from core business activities. By mastering advanced leadership and management principles, the time spent dealing with employee problems and concerns can be cut in half. Leadership Imperatives is a two day seminar that identifies those issues and skills that help participants move from being good leaders and managers to great ones and utilize their time and resources to more successfully influence the organization’s financial success.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

The low down on personnel files

We frequently receive requests for information about personnel files. Below are the most common questions and our answers to those questions.

What should and shouldn’t be kept in personnel files?

The bottom line is that personnel files are the repositories of information that may be used by the company for making job-related decisions affecting employees. These files should, therefore, contain only information that can be legally used in making these decisions. Employment applications, pay records, performance evaluation forms, and disciplinary action records can and should remain in the personnel file.

Because federal and state law prohibits the use of sex, race, national origin, color, religion, disability or veteran's status to make employment decisions, documents containing this information should not be retained in personnel files. Likewise, medical information, garnishment orders and records, and I-9 documents should also be kept separate from personnel files.

Who should have access to personnel files?

Files containing information that is used in making job-related decisions should be maintained by a custodian that allows access only to those managers who have responsibility for a particular employee. Protected information (e.g., information related to race, national origin, medical issues and I-9 forms) should be accessible only to the file custodian. All personnel files should be kept locked at all times.

Should employees have access to their individual personnel files?

While some states grant employees the right to inspect personnel files, many do not. As a matter of policy, however, we recommend that employees be allowed to view their own personnel files so long as they make an appointment in advance to examine the file and a company representative is present at the time of the review.

Why do we recommend this?

We believe that if you do not allow employees opportunity to view their personnel files, they will assume that you are hiding information that is at odds with their interests. As a result, a potential conflict between the employee and the company might arise where none is warranted.

Moreover, if an employee is involved in discipline, it is important that the employee have a complete and accurate picture of the performance deficiency so that the individual’s performance might be corrected or the employee can begin looking for work elsewhere. Finally, from our perspective, if the personnel file is appropriately maintained, we can’t think of a logical reason why the employee should not see the file.

Be sure to examine the file prior to allowing the employee to review its contents and purge any documents that may not be appropriate for a personnel file.

Should the employee wish to copy the contents of the file, most companies agree to provide a copy at the employee’s request. Some companies charge a nominal fee to cover the costs related to making the copy of the file.

How long should documents remain in personnel files?

The period of time that personnel records must be retained depends on the specific record. If you have questions about retention, feel free to contact us by email.

When was the last time your organization had its temperature taken?

When was the last time you asked your employees about how things are going in your company? Taking the pulse of your organization through regular employee opinion surveys is a tremendous tool for facilitating organization growth and success.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Scheduling and the exempt employee

Questions often arise regarding work schedules for exempt employees. According to the Department of Labor, employers:

• MAY require exempt employees to work specified work schedules,
• MAY require exempt employees to track hours worked, and
• MAY require exempt employees to make up un-worked hours.

Any or all of these work rules may be adopted without invalidating the employee’s exemption status.

It should be noted that while an employer MAY discipline employees for failure to comply with these matters of policy, the employer MAY NOT dock the employee’s pay without losing the exemption.

The DOL has stated that the Fair Labor Standards Act provides a complete minimum wage and overtime pay exemption for any employee employed in a bona fide executive, administrative, or professional capacity. An employee may qualify for exemption if all of the pertinent tests relating to duty, salary level, and salary basis are met.

“An employee will be considered to be paid on a ‘salary basis’ within the meaning of these regulations if the employee regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employee’s compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed. Subject to the exceptions provided in the rule, an exempt employee must receive the full salary for any week in which the employee performs any work without regard to the number of days or hours worked.

“Exempt employees need not be paid for any workweek in which they perform no work.

“An employee is not paid on a salary basis if deductions from the employee’s predetermined compensation are made for absences occasioned by the employer or by the operating requirements of the business. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available.”

According to the DOL, the number of hours worked by exempt employees and the scheduling of those hours is a matter left to the employer.

An employer may require an exempt employee to record and track hours and to work a specified schedule without affecting the employee’s exemption status. So long as the company does not dock the employee’s pay for violating these rules, the exemption remains valid.

When was the last time your organization had its temperature taken?

When was the last time you asked your employees about how things are going in your company? Taking the pulse of your organization through regular employee opinion surveys is a tremendous tool for facilitating organization growth and success.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Keep violence out of the workplace!

With a contentious political environment and consumer confidence at new lows, employees are feeling tremendous insecurity about their jobs and their futures. During periods of political and economic uncertainty, violence tends to rise in the workplace. It is critical that managers and supervisors vigilantly guard against violence.

Frequently, there are obvious signals given by employees, customers or venders prior to committing acts of violence. An individual who exhibits some of the following warning signs may have a propensity for violence and should be monitored by management.

• Exhibits argumentative or uncooperative behavior;
• Holds grudges, especially against supervisors;
• Has a history of interpersonal conflict;
• Has been fired or laid off or is expecting to be soon;
• Engages in physical or verbal intimidation;
• Has alcohol or drug abuse problems;
• Has a fascination with weapons;
• Has difficulty controlling temper;
• Becomes irritated easily;
• Displays decreased social connections;
• Has asked for help in the past, but did not receive it;
• Is experiencing a personal crisis such as divorce or the death of a loved one.

While these warning signs by themselves may not indicate violence, managers must determine the overall impact of these behaviors on the organization and initiate action accordingly. Threats of violence, temper tantrums or other irrational behavior should be reported to management immediately.

Strategic planning is essential
To succeed in business today, organizations must align their energy and resources to meet the changes forced on them by a dynamic market. Strategic planning is the process that ensures all stakeholders are working together to create the competitive advantage that enables the organization to thrive in the midst of chaos. Through strategic planning, BAI assists organizations implement a process in which tactical goals are clarified and linked to the business outcomes that drive organization success.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

PLEASE—document employee discussions

For years we have regularly encouraged you to carefully document your discussions with employees. While there are a variety of practical reasons to document employee discussions, the bottom line is that good documentation is an integral part of good management whether you are dealing with processes, policies or people.

When documenting employee-related issues remember the following:

• Document your discussion in a timely manner. That means you should sign and date the document. (DO NOT back date a document after the fact.)
• Stick to the facts—the who, what, where and when of the issue.
• Focus on how the employee’s behavior relates to company policy. If the employee violated policy, state the policy that was violated and how the violation occurred.
• Avoid including your opinions or impressions.
• Avoid legal language or conclusions.
• Avoid inflammatory language or moral judgments.
• Avoid medical language or diagnosis.
• If performance changes are required, clearly identify the changes needed and the timeframe provided to achieve acceptable performance.
• If the discussion is disciplinary in nature, have the employee sign the document. Although this is not required, it establishes clearly that the employee was notified of performance deficiencies.
• Give the employee a copy of the document to ensure he or she clearly understands the issues discussed and the performance requirements.

Customer service is the name of the game
To be successful in today’s dynamic business environment, every member of an organization must understand who the customer is and how to address the customer’s needs. Keeping Contented Customers is a BAI seminar that provides a useful framework to help all employees identify and support their internal and external customers.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Surviving a visit by the Feds: How do handle the regulators and survive

Because the current administration is taking an aggressive stance to ensure compliance to these and existing rules, tens of thousands of new regulators are being added to the federal payroll.

As a result, the chances that your organization will be audited by one or more federal agencies are significantly higher than ever before.
If your organization is confronted by a federal regulator, keep the following points in mind:

• Beat the regulators to the punch. Conduct an annual self-assessment of your organization focusing on those areas where you might be the most vulnerable. Particularly audit FLSA exemptions, discrimination in hiring, pay, promotions and other employment benefits, and safety. Familiarize yourself and ensure compliance with new federal healthcare regulations as they are published.
• Get help. Your first act after receiving notice of a federal audit or having a regulator knock on your door for a surprise visit should be to call your attorney. In certain situations, it is better to deal with regulators through an experienced representative.
• Remember the golden rule. Regulators should be treated professionally and with courtesy. Rude or obstructive behavior will only come back to bite you in the end.
• Regulators are not your friends. They have come to your organization to ensure that you are complying with the law and will do what it takes to ensure your compliance.
• Document discussions and agreements. Do not assume the regulators will remember tomorrow what they agreed to today. Make sure any disagreements with findings, views, or processes are noted in writing and delivered to the lead regulator as soon after the event as possible.
• Understand the regulator’s options and your options. Make sure you are clear as to what the regulators can examine, how the examination may occur and what types of decisions the regulators might render. Understand your options in dealing with the regulator’s proposals. DON’T ASSUME ANYTHING.
• Work for a win/win solution. Understand that the regulators are not there to put you out of business, but to ensure your compliance. As a result, they may be willing to negotiate a reasonable conclusion that corrects the problems they identify while limiting the financial or administrative impact on the organization.

Business ethics: constancy in a world of change
Unprecedented change is affecting our business and personal lives. Does this mean personal and professional ethical values are changing too? The Committee of Sponsoring Organizations (COSO) formed under the direction of the Treadway Commission (a gathering of public and private sector representatives asked to study fraudulent business activity) identified integrity and ethical values as a primary component of organization success.

Participants in this training program will understand the role of ethics in business dealings and gain a greater appreciation for strong moral principles that not only minimize corporate liability, but ultimately, maximize company profits.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919

Pay overtime or pay up!

As we’ve mentioned in previous editions of The Employer’s Advantage, the US Department of Labor is significantly stepping up its oversight and regulatory enforcement activities. As proof, the Department of Labor announced that employers who intentionally or unintentionally fail to comply with federal regulations will be liable for back pay AND liquidated damages. In the past, liquidated damages were only assessed for intentional violations.

To support this increased regulatory intervention, the DOL has hired over 1,500 new compliance officers.

We cannot emphasize enough the importance of accurately tracking hours worked and paying overtime at one and one-half times the hourly rate for any work done in excess of 40 hours per week. Even if employees volunteer to work overtime without pay or work overtime without permission, THEY MUST BE PAID.

For private sector employers comp time unless taken in the work week in which it is earned is not permissible. While the public sector has enjoyed the flexibility of comp time for over two decades, federal law strictly prohibits private employers from doing so.

Paying employees on a salaried basis DOES NOT alleviate overtime pay requirements. ALL employees must be paid overtime regardless of whether they are paid hourly or a salary unless the employee’s specific job duties qualify for a federal overtime exemption.

For your protection, establish and distribute your pay policy to all employees. Ensure first line supervisors are particularly familiar with the policy and understand that violation of the policy may lead to disciplinary action, up to and including discharge.

Pay issues are coming to the legal forefront and they are costly in time and money. To avoid problems with the regulators, ensure you scrupulously comply with every aspect of federal wage and hour law.

The BAI employee opinion survey will let you take your organization’s temperature!

The BAI employee opinion survey process is an invaluable tool that secures and analyzes employee perceptions on a variety of critical business issues. Not only does it generate the hard data required to make sound decisions related to successfully managing employees, it helps identify training needs, potential discrimination or harassment problems, perceived salary inequities, possible union organizing initiatives and a myriad of other issues that cost organization’s valuable time, attention and money.

Ultimately, the BAI employee opinion survey process creates greater employee commitment to the organization and its ongoing success by giving employees an opportunity to share their opinions and perspectives in a meaningful way.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Asking job applicants about criminal convictions

Several weeks ago, the Equal Employment Opportunity Commission issued guidance to employers regarding criminal background checks. The commission suggested that employers should remove questions about criminal convictions from employment applications because these questions adversely impact African American and Hispanic job applicants.

Instead, employers are encouraged to evaluate what information they ask in relation to the specific position being filled and when they should ask it. In most situations, information regarding criminal convictions should be incorporated into later phases of the selection process and tailored to the exact job in question.

For example, if the applicant is being considered for a cashier position, questions probing for information about convictions for theft, fraud, or related crimes would be appropriate during a job interview. Likewise, candidates being considered for a position in a school or similar work environment should be asked about convictions for sex-related offenses.

Because the guidance does not have the force of law, employers may choose not to follow the commission’s direction and instead continue to request conviction information on the employment application. While this may be an appropriate short term strategy, careful consideration should be given to reviewing policies regarding criminal convictions and how these policies apply to specific job families in your organization.

Understanding the brain and how it helps you be a better manager

Neuroscience is the physiological study of the brain. Thanks to new technology including magnetic resonance imaging (MRI) and positron emission tomography, researchers are able to study the neural connections as they happen in the living brain. This research is shedding new light on human behavior and has tremendous implications in how to most effectively manage people.
Some of the most important implications include:

• People need sufficient sleep to integrate learning into long-term memory.
• Social pain such as rejection or being belittled affects the brain in the same way as physical pain.
• Social fairness and respect give the brain a chemical boost while unfairness and disrespect do the opposite.
• Stress causes people to think unclearly.
• Uncertainty arouses fear circuits and decreases the ability to make decisions.
• People require ownership over decisions to accept change.
• Engaging people in more active learning techniques improves retention.
• People’s ability to think clearly is hindered when they are exposed to uncertainty or their expectations are not met.

By understanding the results of neuroscientific research, managers can better create and implement strategies that will maximize employee productivity and engagement.

Think carefully before you add to staff!

As the economy gradually improves and your organization starts to consider adding to your headcount, ask yourself the following questions:

• Is adding full time positions to the organization congruent with our strategic plan? It’s critical that staffing requirements are based on your organization’s strategy. If you haven’t updated your strategic plan and established a clear direction for your organization, you should not even begin to consider additional headcount.
• Have we considered the cost of a new hire? Base salary is only a portion of the overall cost of an employee. You must also consider costs related to recruiting, benefits, employment taxes, and other overhead expenses.
• Have we considered using temps? Not only do temporary agencies relieve you of much of the administrative burden connected with the hiring process, but they allow you staffing flexibility and the opportunity to “try before you buy.”
• Have we clearly identified the skill sets and character attributes that we require to meet our internal job requirements and ensure the employee fits in the organization’s culture? The better you clarify the type of person who will be successful in a given position, the greater the chance that the person will succeed in the job.
• Are the managers, supervisors, and employees who will be involved in the recruiting process adequately trained? This means these individuals not only understand the full range of skills and personality traits that the organization requires, but they are intimately familiar with best practices and legal requirements related to recruiting and hiring.

While an improved business outlook may be great for your organization, don’t create future problems by making staffing decisions precipitously. Wise managers understand that adding to regular headcount should always be a course of last resort.


BAI salary surveys help you keep pace with the market
Most organizations desire a pay structure that is competitive within the marketplace. This, however, is easier said than done. Because market pricing is not an exact science and because market pressures create an endless ebb and flow, it is difficult for most companies to identify and manage salaries relative to their actual market position.
To help organizations maintain a competitive compensation structure that makes sense and controls costs, BAI provides the following assistance:

• Conduct targeted salary surveys tailored to a client’s particular target market.
• Design and conduct surveys to identify competitive benefit and perquisite packages.
• Wage and salary data from BAI’s proprietary salary database.

To speak with a BAI compensation consultant about this and other services and workshops, call us today at 801.444.9919.

Fair compensation key to employee retention

Despite the fact that unemployment continues to hover above 8%, an increased demand for skilled workers and key contributors is creating higher turnover for many employers. To avoid losing their best and brightest, organizations should be doing all they can to retain their talent and limit the likelihood that these valuable assets are wooed to work for the competition.

For many companies, this may be an uphill battle. According to a recent Watson Wyatt survey, commitment levels of top performers have fallen by nearly 25%, while over a third of top performers feel their relationship with their company has worsened.

As the economy improves, valuable workers who have felt neglected and unappreciated will readily discover that the fastest way to obtain a significant pay increase and brighter employment prospects may be to change employers. The loss of key performers during this period of renewed economic expansion can be devastating.

While it should be noted that increasing pay does not typically enhance employee satisfaction, failure to pay what the employee feels is fair is a prime dis-satisfier. It is, therefore, critical for employers to ensure that they are paying competitively, particularly for skilled workers and key contributors.

Another compensation challenge facing employers is the continuing downward pressure on wages of unskilled and semi-skilled workers. As a result, many employees in these positions may be currently over-paid relative to the market.

As employers look for ways to manage payroll costs, careful evaluation of compensation levels for all job groups should be undertaken. Traditional annual merit increases might be reconsidered in light of the market’s downward pressure.

The bottom line is that it is now time to sit down with your organization's compensation consultant to develop an appropriate strategy and plan that best fits your retention objectives. Failure to do so could well result in a situation where you retain employees you can afford to lose and lose employees that your organization is counting on.

To speak with a compensation consultant or to learn about other ways BAI can help your company grow, call us today at 801.444.9919.

Obamacare mandates time and space for nursing mothers

Under provisions of the Patient Protection and Affordable Care Act (a.k.a. Obamacare), companies are required to provide break time for nursing mothers “to express breast milk for her nursing child for 1 year after the child’s birth each time such employee has need to express milk.” According to the law, employers must also provide “a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk.”

This law applies to all companies with a total of 50 or more employees regardless of where these employees are located and applies to all nonexempt employees of the organization.

Employers with fewer than 50 employees are not subject to the law if compliance imposes undue hardship determined by the difficulty or expense of compliance in comparison to the size, financial resources, nature and structure of the employer’s business.

While under federal law employees need not be compensated for the break, if the company currently provides compensated breaks, an employee who uses this time to express milk must be paid in the same way other employees are paid for breaks.

For additional information about break time for nursing mothers, please refer to the following US Department of Labor Fact Sheet: http://www.dol.gov/whd/regs/compliance/whdfs73.htm .

To learn more about this and other human resources issues, call BAI today at 801.444.9919.

Executive coaching creates competitive advantage

Executive coaching is a management development approach that involves personal interaction between a coach and an executive to improve job performance. Like personal trainers hired by athletes to enhance their competitive capacity, coaching has become the tool of choice for helping executives and managers adjust to the challenges of today’s demanding business environment.

Executive coaching typically consists of a series of one-on-one interactions between a coach and an executive or manager that focuses on the components of job performance. Coaching typically involves an initial assessment, face-to-face discussions, telephone conversations and email communication. Coaches serve as trainers, facilitators, motivators, moderators, sounding boards and confidantes. Although not a substitute for psychological counseling or substance abuse treatment, coaching assists individuals in addressing crucial managerial weaknesses and can empower executives to higher levels of performance.

While coaching was originally intended as a mechanism designed to save problem managers, it has become the central process for enhancing performance of key personnel throughout the organization. Because of the effectiveness of this one-on-one approach to management development, companies like Coca-Cola have made coaching central to their management development process.

Although large organizations have adopted comprehensive coaching initiatives, executives and managers of small and midsize companies find even greater success with coaching efforts. Because executives in these organizations generally have limited developmental resources, coaches offer the objective perspective that only an outsider can provide.

When was the last time you took the pulse of your organization?
When was the last time you asked your employees how they feel about working for you? The BAI employee opinion survey process is an invaluable tool that secures and analyzes employee perceptions on a variety of critical business issues. Not only does it generate the hard data required to make sound decisions related to successfully managing employees, it helps identify training needs, potential discrimination or harassment problems, perceived salary inequities, possible union organizing initiatives and a myriad of other issues that cost organization’s valuable time, attention and money.

Ultimately, the BAI employee opinion survey process creates greater employee commitment to the organization and its ongoing success by giving employees an opportunity to share their opinions and perspectives in a meaningful way.

To learn more about this and other BAI services and workshops, call us today at 801.444.9919.

Your HR to-do list

With a more aggressive federal regulatory stance, it is critical that you are proactive in your efforts to protect your organization. The following is a list of action items that should be priorities for every organization:

• Update your company FMLA policy. The Family and Medical Leave Act impacts most organizations with 50 or more employees. Although changes in the policy went into effect in 2009, many organizations have failed to update their policy to reflect those changes. 
• Review your organization’s harassment policy. During the next staff meeting, ask each supervisor to read and discuss the company’s harassment policy with all employees. Specific prohibited behaviors should be discussed along with penalties for failure to comply with the policy and avenues for reporting harassment. Dates for annual harassment training should also be set.
• Get to know GINA. The Genetic Information Nondiscrimination Act which became law in November, 2008, prohibits among other things, employers from collecting genetic information or engaging in any type of employment discrimination based on genetic information. As a result, it is critical that you review your wellness programs, your physical exam practices, your hiring procedures to ensure that prohibited data is not collected. It is also critical that EEO, discrimination, and harassment policies are revised to reflect a prohibition of discrimination or harassment based on genetic information.
• Audit your I-9 files. Review your I-9 documents and procedures to ensure you are complying with the law. US Immigration and Customs Enforcement has recently announced that it will significantly increase I-9 audits. Failure to comply with the regulations may result not just in stiff monetary penalties, but could also result in jail time for company managers.
• Review the exemption status of each employee. Re-familiarize yourself with the Fair Labor Standards Act and review the exemption status of each exempt employee to ensure the exemption is appropriately granted. REMEMBER, YOU CANNOT JUST PUT AN EMPLOYEE ON A SALARY AND THEN EXPECT THEM TO WORK OVERTIME WITHOUT COMPENSATION. The law requires that all employees who are exempt from overtime pay meet a series of very strict rules. Failure to comply may result in costly litigation and stiff fines.
• Update your technology resources and social media policies. Ensure that these policies clearly inform employees that they have no ownership of emails, text messages, voice mails, or other media using company equipment. They should also limit the employees’ ability to share confidential or proprietary information on blogs, postings or through other electronic means. Finally, the policies should clearly state that the employee should expect no right of privacy with regard to the workplace and work-related activities.

While this list of action items is by no means comprehensive, it does provide a starting point for protecting your organization’s investment in its human capital.

If you have questions about any of these or other issues impacting your organization, feel free to call BAI consultant Allen Miller at 801.444.9919.

Have you held your annual harassment training?

In 1998, the U.S. Supreme Court issued two decisions that have had tremendous impact on business. These decisions, known as Faragher and Ellerth, set standards regarding sexual harassment in the workplace. While the Faragher and Ellerth decisions clarified definitions of sexual harassment, the real impact of the cases involved who was liable for harassment when it occurred.

In Faragher, the court ruled that the employer was liable for harassment regardless of whether or not the company was aware of the behavior. In Ellerth, the court declared that harassment could occur even if there was no tangible detrimental impact on the job of the person being harassed.

While these decisions seemed to make life more difficult for employers, the court provided a clear defense. This defense has two parts: The company can show that 1) it used reasonable care to prevent harassment and 2) the employee failed to make the issue known to proper authorities in the company.

In one of the written decisions, the court specifically cited the employer for not providing adequate training. This sent a clear message to companies throughout the country that failure to adequately train supervisors and employees regarding all aspects of sexual harassment in the workplace deprives the company of its most effective defense.

To paraphrase a Nation’s Business article that appeared soon after the decisions, as a result of the Supreme Court’s most recent sexual harassment rulings, companies of any size must have sexual harassment training for supervisors and employees. (Nation’s Business, December 1, 1998, p. 18.)

With over 25% of all discrimination and harassment suits costing businesses in excess of $1,000,000 each, conducting a carefully developed sexual harassment seminar for supervisors and employees will be time and money well spent.

Contact BAI consultant Allen Miller today at 801.444.9919 for to schedule harassment training for your organization.

Employee punishment punishes the employer...

Over the years, it has become clear that punishment in the workplace is generally not an effective tool for stimulating long term behavior change. 

Whether it is in the form of discipline, a reduction in pay, an unwanted work assignment, or an angry retort, punishment undermines employee engagement and reduces commitment. 

Admittedly, punishment may improve performance on the short term, but the use of punishment typically results in negative consequences with far reaching effects.

Before resorting to punishment to correct a problem in your workgroup, consider the following costs you may actually accrue for any temporary gain punishment might afford.

• Employee fear. Whether you are punishing one employee or a team, you typically create a sense of fear in the employee and his or her cohorts that the punishment, whether deserved or not, will reappear. Nothing saps efficiency and focus from employees more destructively than fear.
• Employee hostility. Typically, employee hostility is not obvious, but is instead subtle. A hostile employee may work just enough to stay under the radar, but is unwilling to provide the discretionary effort that contributes to creating a competitive advantage. The hostile employee sees the company and management in particular as an enemy to be ultimately vanquished. This employee is not focused on building the organization, but spends time and energy undermining its success instead.

Illegal job interview questions...Let's not go there!

You might be thinking of adding to or replacing someone on your staff. If you are, it’s important to remember that not all job interview questions are created equal. To keep yourself free of unwanted litigation and the cost and heartburn that comes with it, avoid questions deal with the following: 

• Race. It is illegal to make hiring decisions based on race. That means you don’t ask any questions that deal with race. 
• Gender. It is illegal to ask questions about gender even if you can’t determine by observation the gender of the individual you are interviewing. 
• Religion. Not only should you avoid questions that deal with religious beliefs, you can’t ask questions about holidays they celebrate or religious institutions to which they might belong. 

Neuroscience makes better people managers

Neuroscience is the physiological study of the brain. Thanks to new technology including magnetic resonance imaging (MRI) and positron emission tomography, researchers are able to study the neural connections as they happen in the living brain. This research is shedding new light on human behavior and has tremendous implications in how to most effectively manage people.

Some of the most important implications include:

• People need sufficient sleep to integrate learning into long-term memory.

• Social pain such as rejection or being belittled affects the brain in the same way as physical pain.

• Social fairness and respect give the brain a chemical boost while unfairness and disrespect do the opposite.

Think before you hire!

According to the latest Manpower Employment Outlook Survey, hiring during the first quarter continued to grow at an anemic level. Of 18,000 employers surveyed, 14% said that they increased staffing levels during the first quarter, while only 9% made additional cuts.

As the economy gradually improves and your organization starts to consider adding to your headcount, ask yourself the following questions:

• Is adding full time positions to the organization congruent with our strategic plan? It’s critical that staffing requirements are based on your organization’s strategy. If you haven’t updated your strategic plan and established a clear direction for your organization, you shouldn't even begin to consider additional headcount.

Executive coaching creates competitive advantage

Executive coaching is a management development approach that involves personal interaction between a coach and an executive to improve job performance. Like personal trainers hired by athletes to enhance their competitive capacity, coaching has become the tool of choice for helping executives and managers adjust to the challenges of today’s demanding business environment. 

Executive coaching typically consists of a series of one-on-one interactions between a coach and an executive or manager that focuses on the components of job performance. Coaching typically involves an initial assessment, face-to-face discussions, telephone conversations and email communication. Coaches serve as trainers, facilitators, motivators, moderators, sounding boards and confidantes. Although not a substitute for psychological counseling or substance abuse treatment, coaching assists individuals in addressing crucial managerial weaknesses and can empower executives to higher levels of performance.

Responding to the untimely death of an employee

The untimely death of a co-worker can have devastating effects on an organization. According to The Grief Recovery Institute, lost productivity as a result of the death of employees, friends and family costs American business $7 billion annually.

To reduce the impact of an employee death on the workplace, keep the following points in mind:

• Act promptly. It is important that the information surrounding an employee’s death come through management rather than percolate through the grapevine.
• Determine circles of relationship and notify each circle appropriately. First inform those closest to the employee in private settings, perhaps individually. Notify other co-workers in small groups or in a department wide meeting.
• Give thought to what you will say. Give careful consideration as to what employees will be told. Be as open as possible while keeping in mind of privacy of the deceased and his or her family.
• Allow co-workers to share their grief. Perhaps they can get together during lunch or to discuss their feelings about, and memories of, their deceased co-worker. A memorial service in the workplace might be appropriate. A permanent tribute, such as naming a company event, room, or award after the deceased, might also help employees deal with their grief.
• Contact customers and vendors. Inform all those outside the organization who did business with the deceased regarding the death. Depending on the circumstances, this might be done in person, over the telephone, or via email. Assure them that the company will continue to value the relationship and that a new contact has been identified.
• Provide grief counseling. Employees should be provided access to grief counselors in necessary either through the organization’s EAP or by contracted therapists.
• Expect a period of mourning. Realize that different employees will respond to the death differently. Be sensitive and respectful of those individuals who require a period of time to complete the grieving process.

This blog post is provided by Allen Miller and Business Advantage International. For assistance in dealing with human resources issues including organization effectiveness, training, compensation, and compliance, call Allen at 801.444.9919. 

Commission sales plan essentials…

I am frequently asked about commission sales plans. If you have a commission sales plan in your organization, keep the following points in mind:

• Only OUTSIDE sales are exempt from overtime requirements. The Fair Labor Standards Act allows an exemption from overtime only for those sales made in the customer’s place of business or home. Sales made from the employer’s place of business, over the Internet, by mail or by telephone do not qualify for the exemption. Reps engaged in these sales must be paid overtime for any hours over 40 in a workweek regardless of how much that actually make in commissions.
• Plan your commission structure carefully.  To a great extent, your sales reps’ focus depends on the way they are paid. You can’t throw your plan together at the last minute. Each element of the plan should be considered with care. Whatever you do, avoid making your plan too complicated or too easy.
• Your commission plan should reflect your sales strategy. Do not copy your plan from another company or base your plan entirely on a model you read about in a book or magazine. Your plan must be based on your sales strategy, not on that of a competitor.
• You get more of what you pay for. If you increase commissions on a particular line or product, your sales reps will sell more of that line or product. Be careful that you don’t make selling a particular line or product so attractive that your other line sales actually suffer.
• Think carefully about volume-only commissions. If your commission structure is based solely on volume, your reps may be tempted to discount more than is necessary and ignore the need for ongoing customer service.
• Think carefully about customer service factors in your commission formula. While including a customer service measure in your commission formula is probably a good thing, guard against rewarding customer service at the expense of additional sales.
• Remember your top sales reps. When you have your plan designed, run a few tests to see how the plan impacts your top producers. If it hurts them, change the plan.
• Rollout your plan with care. Once you have your compensation plan designed and tested, plan your rollout carefully. Consider how you will sell your plan to your sales people so they are motivated to make that next sale.

If you have questions about this or other human resources issues, please contact Business Advantage International or Allen Miller at 801.444.9919. 

Don't let National Employee Appreciation Day pass you by

Tomorrow is National Employee Appreciation Day. Especially in this moribund business environment, it wouldn’t hurt to show a little love to those who ultimately ensure your company's success.

Recognition doesn’t need to be fancy or expensive. It should be sincere and meaningful. Below are a few ideas to stimulate your sense of appreciation.

•  Throw a party. A midday break attached to cake and soft drinks always has a positive impact on morale. As the boss, don’t just show up though. Come with a few prepared remarks highlighting your work group’s successes and accomplishments. Make sure you congratulate and express appreciation to staff members for making all that possible.
• Take ‘em to lunch. Expressing thanks to employees while enjoying a delicious meal together moves morale mountains.
• Give a little time off. If business can be managed effectively, allow employees a little time off. Whether it’s the entire afternoon or an hour at the end of the day, employees will be grateful for the opportunity to sneak out of the office a little early.
• Write a note. Sometimes a handwritten thank you note from the boss can have a tremendous impact on an employee’s morale. This is especially true if the note is personalized by targeting specific contributions made by the recipient.
• Perk things up. Employees always love perks. Whether its movie tickets, a massage, dry cleaning or a car wash, a gift of nominal value can be leveraged to create a tremendous boost in morale.
• Just say “thank you”. For some organizations, coming up with cash to show appreciation can be daunting and the time to write a note unavailable. In such cases, it would be good just to stop by each employee’s workstation for a moment and thank the individual personally for his or her contribution.

While there are a thousand reasons why you should just let National Employee Appreciation Day slip by unnoticed, taking the day as an opportunity to recognize those people who have helped you make it this far will  reap tremendous benefits including improved morale and enhanced employee engagement.

If you have questions about this or other human resources issues, please contact Business Advantage International or Allen Miller at 801.444.9919. 

Avoiding credit check problems

With economic difficulties besetting many of your job candidates or current employees, you might feel it necessary to run a credit check to mitigate potential risks related to shrinkage or outright malfeasance. If you decide that credit checks are in your plans, become familiar with The Fair Credit Reporting Act.

Under the act, before you can get a credit report for any employment purpose, you must notify the individual  you are investigating in writing — in a document consisting solely of this notice — that a credit report may be requested and used for an employment purpose.

You also must get the person's written authorization before you ask a consumer reporting agency (CRA) for the report.

If you rely on a consumer report for an "adverse action"—denying a job application, reassigning or terminating an employee, or denying a promotion—you must do the following:

Step 1: Before you take the adverse action, you must give the individual a pre-adverse action disclosure that includes a copy of the individual's consumer report and a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act"—a document prescribed by the Federal Trade Commission.

Step 2: After you've taken an adverse action, you must give the individual notice—orally, in writing, or electronically—that the action has been taken in an adverse action notice. The notice must include:

• The name, address, and phone number of the CRA that supplied the report; 
• A statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give specific reasons for it; and 
• A notice of the individual's right to dispute the accuracy or completeness of any information the agency furnished, and his or her right to an additional free consumer report from the agency upon request within 60 days. 

If you have questions about this or other human resources issues, please contact Business Advantage International or Allen Miller at 801.444.9919.

Exit interviews are invaluable

Exit interviews are proven tools for identifying organizational and cultural issues that impact turnover. If exit interviews are utilized consistently and the findings of these interviews incorporated into an organization’s self-evaluation process, problems that impact turnover, productivity, and morale can be identified and effectively resolved.

As you review your exit interview procedure, keep the following points in mind:

• The exit interview, regardless of the reason for separation, should be a positive engaging experience for the departing employee. If the employee leaves as a friend rather than an enemy, the likelihood is that even disgruntled employees will have better feelings toward the organization and will be less likely to engage in malicious behavior or litigation.
• Face-to-face interviews are preferable to printed questionnaires. This allows for some degree of flexibility so  the interviewer can explore issues the employee might raise during the interview that may not have otherwise been addressed.
• The exit interview should be standardized and conducted by someone not in the employee’s direct chain-of-command. The organization should utilize an exit interview form that is consistent across the organization. By having someone outside of the employee’s supervisory chain conduct the interview, the employee is more likely to feel unthreatened and to respond positively and candidly.
• Give the interviewee time and space to answer. Coax and reassure where appropriate. Seek to interpret, reflect and understand. Be a good listener.
• The interview should utilize open questions. Each question should begin with “what”, “when”, “where” or “how”. “Who” questions should be limited to avoid defamation. “Yes” or “no” questions should generally not be used.
• Information gained from exit interviews should be compiled and analyzed for issues as well as trends. While the interview may identify problems that can be immediately resolved, by compiling data over time, trends that imply more comprehensive issues can be observed.

This blog post is provided by Allen Miller and Business Advantage International. For assistance in dealing with human resources issues including organization effectiveness, training, compensation, and compliance, call Allen at 801.444.9919.

Electronic media policy is essential

According to a recent survey sponsored by the American Management Association and The ePolicy Institute, monitoring of employee use of electronic media in the workplace continues to rise. Some of the survey findings include:

• 65% of companies use software to block connections to inappropriate websites. 
• 96% block access to adult sites, 61% to game sites, 50% to social networking sites, 40% to entertainment sites, 27% to shopping and auction sites and 21% to sports sites. 
• 18% use URL blocks to stop employees from visiting external blogs. 
• 45% track content, keystrokes and time spent at the keyboard. 43% store and review computer files. 
• 12% monitor the blogosphere to learn what is being written about the company while 10% monitor social networking sites. 
• 43% monitor email; 73% use technology tools to automatically monitor email while 40 assign an individual to manually review email. 

Companies should have a technology use policy in place with signed acknowledgments from each employee. These policies should clearly state that all electronic communications are subject to monitoring, that employees should have no expectation of privacy with regard to those communications, and that employees consent to any monitoring conducted by the company.

This blog post is provided by Allen Miller and Business Advantage International. For assistance in dealing with human resources issues including organization effectiveness, training, compensation, and compliance, call Allen at 801.444.9919.