Friday, May 30, 2014

Who's packing your parachute?



My last blog was about firing employees so I wanted to flip that and talk about celebrating those employees who contribute to your business each and every day.  I am passionate about counseling my clients on employee retention.  Reminding them that retaining good employees is not only more productive but more cost effective than going through the time and effort of hiring and training new employees.  

Following is a true inspirational story that many have heard over the years… but recently I learned that there are many who haven’t heard the story.  And it is a story worth repeating.  It may seem odd that I have chosen to use this to illustrate employer/employee relations but as you will see it is the basic truth within the story that carries a powerful message.   

Captain Charles Plumb, a US Naval Academy graduate and jet fighter pilot in Vietnam in the 60’s had completed 75 combat missions when he was shot down. Plumb ejected and parachuted into enemy hands, spending six years in a Vietnamese prison.

One day while eating at a restaurant with his wife a man came up and said, "Your Plumb! You flew jet fighters in Vietnam from the aircraft carrier Kitty Hawk. You were shot down!"

"How in the world did you know that?" asked Plumb. "Because I packed your parachute," the man replied. Charles Plumb in surprise and gratitude staggered to his feet and held out a very grateful hand of thanks. “I guess it worked.” “Yes sir, indeed it did”, Plumb said, “And I must tell you I’ve said a lot of prayers of thanks for your nimble fingers, but I never thought I’d have the opportunity to express my gratitude in person.”
 
That night Plumb could not sleep. He said, "I kept pondering what he might have looked like in a Navy uniform - a Dixie cup hat, a bib in the back, and bell bottom trousers. I wonder how many times I might have seen him and not even said good morning, how are you, or anything because, you see, I was a fighter pilot and he was just a sailor."

Every job in your business is important. If it weren’t, you wouldn’t have someone spending their day doing it.  Thank your employee at the front desk who greets your customers, or perhaps your Admin Assistant who keeps you organized, and how about the employee in accounting that keeps your finances in order and up to date so you can make sound business decisions. And don't forget to recognize your maintenance worker who keeps the machines running so you can meet your quotas. Recognize whoever it is that does all the little things necessary for you to succeed.
 
People want to be proud of what they do. Give them that opportunity. Recognize those people doing all the little things that are critical to your success. Those employees may not save your life as the sailor did for Charles Plumb, but their contributions are the key to the success of your business.

Now go find your parachute packer and recognize them for their contribution, right now!

Tuesday, April 22, 2014

Is There a Good Way to Fire an Employee?



Is There a Good Way to Fire an Employee?

You may be wondering if this is a trick question.  It isn’t…. the goal is to help make a bad situation as “okay” as it can possibly be.  Although I can’t cover everything in this article I can provide some general tips that will help you develop a process. 


Firing an employee should always be the last step in a structured process but when you have to terminate an employee…

Don’t let emotions take over.

Acting in the heat of the moment can often bring negative results.

Have an exit process.

Do you have a process to have the employee return company property, collect their personal items, or their last paycheck?   Are you prepared to provide the employee with the information regarding any possible benefits they may have through the company? 

Don’t do it alone.

Having someone else in the room eliminates the possibility of an employee claiming you said things you didn’t.

What do you say?

Keep it simple.  This is life changing news and it isn’t good for you or the employee to drag it out.  Invite them in, sit them down and say… “I'm sorry, but your employment with the company has been terminated as of today.” 

Never argue.

Most people who get fired are fairly quiet. Some get mad. Some argue and then get mad.  No matter what the reaction, stay calm. Be professional and don’t speak without thinking and open yourself up to possible legal issues. 

And finally…

Accept that you'll feel terrible. No matter how much the employee deserved to be let go. Feeling terrible about playing a role in changing someone's life for the worse is something you will (or should) never get used to.

Wednesday, January 15, 2014

Creating a Strategy for Business Success



 Year end is an excellent time to look back at what worked and what didn’t work in your business over the past year, and strategize for the coming year. No business is too small to create a map to help them along the uncharted path to their growth or change in their business.  In fact the smaller the business the larger the benefit of creating a strategic plan for your business. 

How do you begin? 

Begin by writing down key points you want to focus on in the coming year. You will want to reference this list so you stay on track and don’t lose focus.  Post it somewhere where it is easily referenced by you and those who are working with you to carry out your plan..

Create an action plan.
An action plan provides concrete and measurable specifics that make a strategy actually happen,
so focus on getting those specifics written down:

  • Set a time for a regular review. Choose one day each month to have a short meeting to review the plan, results, and the fine tuning required to keep your plan relevant and on track.
  • Identify significant changes. In your monthly review meeting identify significant changes in your business related to the strategy you have applied. Look for results that will be factors in deciding whether to stick with a plan or revise it. If you aren’t getting the results you wanted or expected, the plan needs to change.
  • Set milestones to measure your progress. Milestones include specific dates, deadlines, and responsibilities. Make a list of who is supposed to do what, when, and how much it costs. Plus how much revenue it is expected to generate, for revenue generating activities.  Find other determinates to measure success for non-revenue generating activities.
  • Create projections. You can’t track progress and strategically manage your business towards growth if you don’t project your basic numbers. Examples include projected sales, cost of sales, expenses, profits, and cash flow. Other measurements to track are units, calls, presentations, leads, proposals, page views, unique visits, clicks, emails, conversion rates, and so on.  Adopt a system that works for your specific business type.
General MacArthur said " A good plan today is better than a perfect plan tomorrow."  So now that you have a plan, make sure to stick to the review schedule, meet as planned to look at the difference between plan and actual, and keep your plan alive.

Friday, January 3, 2014

2014 Employment Law Changes for Oregon Employers



So what’s new for employers in 2014?

The new year brings in more than just resolutions... for Oregon employers it generally means some new employment laws that could affect your business.  Included in this article is detail regarding the most significant changes in Oregon's employment laws for 2014. 



Bereavement Leave protected under the OFLA (Effective Jan. 1, 2014)
Qualifying employees may soon take Oregon Family Leave Act (OFLA) leave to deal with the death of a family member to attend a funeral or alternative, make arrangements necessitated by the death, or grieve the death. Eligible employees receive two weeks of leave within a one-year period for each death, and must take the leave within 60 days of receiving notice of the death. Additional leave periods may be taken for additional qualifying deaths, up to the total 12-week allotment under OFLA. The leave counts against the employee’s overall OFLA entitlement. Unlike other types of OFLA leave, the employer may not reduce the bereavement leave allowance when the employee fails to timely provide notice. 

OFLA-covered employers (with at least 25 employees in Oregon) need to revise their handbooks and procedures to allow for this expanded protected leave, and may need to review their attendance and disciplinary policies to ensure that protected leave is not counted against an employee.

Social Media Access Restrictions (Effective Jan. 1, 2014)
Under a potentially broad-reaching new law, employers may need to curtail their involvement with employees’ or applicants’ social media accounts, personal email, and other online content. Under the new law, employers may not:
  1. Require or request that an employee or applicant allow the employer access to the individual’s personal social media account (e.g. cannot ask for the password)
  2. Compel an employee or applicant to add the employer to the individual’s social media contact list, (e.g. cannot require the employee to “friend” the employer on Facebook); or 
  3. Compel an employee or applicant to allow the employer to view the personal account.
The term “social media” reaches far beyond Facebook and Twitter, and is defined to include user-generated content including but not limited to email, videos, photos, blogs, video blogs, podcasts, instant messages, and website profiles and locations.

The law also prohibits retaliation, including taking or threatening to take action to discipline, discharge, or “otherwise penalize” an employee who asserts his or her rights under the law.
Employers may still act with respect to social media and email accounts operated on behalf of the employer and may conduct investigations regarding illegal or work-related misconduct that do not require the user name or password. The law does not affect an employer’s ability to access information already available to the public about the employee or applicant. An employer who inadvertently receives a user name and password through electronic monitoring is not liable but may not use the information to actually access the social media account.

Employers may need to revise their handbooks and procedures, and may use this as a reminder to revisit social media and electronic communications policies generally in light of recent NLRB decisions restricting both union and non-union employers’ rights regarding social media. Washington has also passed a similar law that is already in effect. 
 
Direct Deposit for Wage Payments without Express Authorization (Effective Jan. 1, 2014)
Employers will now have an easier time paying wages due through direct deposit to an employee’s account. Under prior law, an employee and employer needed to agree to authorize the direct deposit. Employers will now be authorized to utilize direct deposit unless an employee makes an oral or written request for payment by check. Businesses should evaluate this option with payroll staff or providers.

Expanded Domestic Violence, Harassment, Sexual Assault and Stalking Leave laws (Effective Jan. 1, 2014)
These leave laws, in effect for several years, have now have been expanded. The law already allowed eligible employees who are victims of domestic violence, harassment, sexual assault or stalking to take “reasonable leave” to deal with the consequences of such events (e.g. to seek specified legal or law enforcement assistance, medical treatment, mental health or victim services, or relocate or secure a safe home).

Under the new amendments, employees of a covered employer (one with at least six employees in Oregon) are eligible for leave from the very first day of employment (eliminating the requirement that employees work an average of more than 25 hours per week for 180 days prior to the leave).
The law also includes a poster requirement. The BOLI All in One Poster for 2104 includes the new revision of this law.

Veterans Day Holiday for Veterans
Employers must provide the Veterans Day holiday off work to qualifying veterans who provide at least 21 calendar days’ notice and proof of qualifying veteran status. At least 14 calendar days before Veterans Day, the employer must notify the employee whether the time off will be granted, and whether it will be paid or unpaid. There is an exception for undue hardship or business disruption to the employer but, even if the employer qualifies for that exception, it must still grant an alternative day off work during the year. 

The law details which persons qualify as a veteran. (The definition generally means those who served on active duty in the Armed Forces for at least 6 months or in a combat zone, and received a discharge under honorable conditions. It generally does not include normal military training in the reserves or National Guard. Further clarification may require legal counsel.) Employers need to revise their handbooks and procedures to allow for this expanded protected leave.

For serious consideration for employers outside of Portland.  The following law was just adopted in Portland.  This follows Seattle’s adoption of a paid sick leave policy last year. I believe that eventually we will have either a state or federal sick leave policy requirement that will affect most if not all employers.  More pressure is being applied due to the financial impact illness can have in the workplace as well as the general health concerns related to the spread of things like the flu. 

Paid Sick Leave for employees working in the City of Portland (Effective Jan. 1, 2014)
Portland employers—and those businesses outside Portland who have an employee working at least 240 hours per year within the City boundaries—must provide mandatory paid sick leave beginning Jan. 1, 2014. Companies with 5 or fewer employees may grant the leave as unpaid, but must still provide the mandatory leave.

The rules are detailed, covering accrual, carry-over, and other aspects of use and administration. In essence, qualifying employees accrue sick leave at a rate of one hour of leave for every 30 hours of work performed within the City of Portland (with full-time exempt employees presumed to work 40 hours per week). Leave begins accruing immediately upon hire but an employer may prohibit use during the first 90 days of employment if consistent with its policies. The time can be used for a broad variety of reasons, including health conditions of the employee or a family member; to deal with the consequences of domestic abuse, sexual assault or stalking; or if a place of business or child’s school or place of care is closed for a public health emergency. Under the verification provisions, employers may require documentation of illness under certain conditions.

There is an exception for employers who currently provide paid sick time or paid time off if the current policy is deemed equivalent under the ordinance. There is also an exception for independent contractors—a reminder for employers to revisit their current classifications to be sure employees and independent contractors are properly designated.

Employers are prohibited from retaliating against employees for exercising their rights under the ordinance, with authority by BOLI to enforce the ordinance. Employers are also required to keep records of sick time accrued and used for at least two years, and to post notice of employee rights. Regulations are scheduled to be issued later this month and should further detail the new requirements. 
Employers currently granting sick leave or paid time off need to analyze their policies to determine whether it will be deemed equivalent under the new law. Employers who are not compliant need to revise their handbooks and procedures.

Portland's new sick leave policy can give the rest of Oregon employers a glimpse into what could be in store for them in the not so distant future.  More and more employers are choosing to adopt sick leave policies within their workplace to reduce the spread of illness among their own workers or to prevent the spread of illness to their own customers.  Perhaps its time for your business to consider adopting its own sick leave policy...