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Happy Employees Create Profits

Sunday, January 30th, 2011

“From the earliest days of our founding, America has been the story of ordinary people who dare to dream.  That’s how we win the future. 

 The first step in winning the future is encouraging American innovation. In America, innovation doesn’t change our lives. It’s how we make our living.”     - State of the Union 2011,  President Barack Obama

If you had the chance to catch President Obama’s State of the Union address last Tuesday, were you struck by his emphasis on innovation in American business? On more than one occasion in the speech. he mentioned the importance of innovation. As we move forward into the new year, it might be time for innovation in Human Resources.

After a few years of sluggish business, there seems to be a glimmer of light quietly announcing that business is bouncing back and companies are poised to start hiring again. This is prime time for Human Resources to re-evaluate employee benefit and compensation packages. Is your company plan attractive to a prospective employee? Is your plan competitive in the workplace?  And how does a current employee’s package line up with that of a new hire? Your current employees have weathered the hard times of the recession by taking on more responsibility and often doing the work of one and a half to two people but collecting a single salary. Without your current employees dedication and diligent work, production would have decreased and company profits would have plummeted. As business rebounds, what are the company plans for the standing employees? Has your Human Resources Department considered preparing a proposal for CEO’s or Executive Boards to address changes in employee benefit and compensation packages for both new and existing employees? Does your company offer an Employees Incentive Program? If not, now is the time for innovation.

 An Employee Incentive Program is an opportunity to create a win/win situation for employers and employees. It does not matter whether the company is part of a huge conglomerate or a small business; an Employee Incentive Program can become an effective change agent in any company. If implemented correctly, an incentive program can change the culture of a company from employer- dominated top down business to an all- inclusive, customer satisfaction priority organization. Employees want to be valued by employers. Time and time again successful companies have shown that customer satisfaction plus employee satisfaction equal company profits. Other positive consequences to establishing an incentive plan include improved employee morale, a productive company environment and better employee retention.

In order to create an effective Employee Incentive Program Human Resources needs to take into account the following steps:

  •  Purpose of the program
  1. Motivate employees to be productive
  2. Increase company profits
  3. Attract and retain best in the business
  •  Program Design
  1. Develop a committee including management, non-management and senior level employees and add HR representative
  2. Review current compensation packages, benefits and wages
  3. Review current employee incentives both formal and informal
  4. Develop an anonymous survey to ask employees about motivation, incentives, attainable benchmarks, views about employers, profit ratios
  5. Use data from survey to begin creating a company plan
  •  Develop incentives that are generic to your organization (examples)
  1. Performance pay (individual or team)
  2. Periodic monetary increments for exceeding benchmarks
  3. Time off with pay
  4. Profit Sharing
  5. Tangible Merchandise Rewards
  6. Company paid trips
  7. Employee Recognition in a public forum (luncheon, media)
  8. Implement an employee business solution
  9. Exchange business strategies with senior level management
  10. Pay and recognition for new idea to improve productivity
  •  Enlist senior level support for implementation
  • Market to employees to insure buy in
  • Communicate widely and often to keep employee motivation active
  • Original committee including HR revisit program annually to measure effectiveness and adjust accordingly
  • Manage the program up and down (Board or senior level to employees)

By using the steps outlined above, your Human Resources department would be taking a bold step to become an innovator in your company. Rarely is HR seen in this light but as President Obama says, “In America, innovation doesn’t change our lives. It’s how we make our living.”

To read more about employee incentive compensation ideas visit the APLS online store.

New Year, Better Business

Friday, January 14th, 2011

Happy New Year 2011! It’s great to be back in the swing of things after the
holiday season.

According to the Bureau of Labor Statistics, there were 556,000 fewer
unemployed people, dropping the unemployment rate to 9.4 percent. The figure is still
high but edging downward, which is hopeful information for American business and
American workers. While looking at the new figures, it occurred to me that this is an
opportune time for businesses to reinvent their corporate cultures to become more
employee focused. Employees are the backbone of the business. Before you yell foul to
my idea and call me a flaming, free spending liberal let me share some examples of
companies that have embraced the employee-focused philosophy. You might be surprised
by the effects this philosophy has had on their bottom lines and reputation.

Technology, hospitality and retail including food stores, have weathered the recent
recession far better than other industries. When I checked Fortune’s list of “best
companies to work for” it was no surprise that SAS, Google, Cisco, Wegmans, and
Whole Foods topped the list. Marriott held the top spot for hourly workers according
to Working Mother Media. I couldn’t help but wonder what these companies had in
common.

SAS, Wegmans and Marriott are three very different companies but share similar
philosophies when it comes to their employees. The best news is that all three companies
are currently hiring. The CEO at SAS (tech company) described their company
philosophy as a triangle effect — happy employees, happy customers, company
profits. According to a company employee, “ …a happy, healthy environment is more
productive.” SAS provides employees with a 35- hour workweek. The full time benefits
include:
 Profit sharing
 On-site health care facility
 Flex time/ ability to work from home
 Work/Life Center
 Day Care Center
 Meditation Garden

Wegmans (food chain) company philosophy is value-based. Their motto is people caring
about people. Wegmans is a family owned business and treats their employees like
family. Employees at Wegmans are guided by five principles: Caring, Respect, High
Standards, Make A Difference and Empowerment. If you have ever been to a Wegmans
it is obvious that “caring” is a company value. Wegmans provides employees with the
following benefits:
 Health insurance
 Vacation/holiday pay
 401K
 Retirement Plan
 Dependent Care Reimbursement Account
 Adoption Assistance

Employee Assistance Program
Wegmans Scholarship Program
**full- time employees have additional benefits

Bill Marriott stated at the luncheon honoring Marriott (hospitality) as a top employer for
hourly workers, “Our terrific associates are the cornerstone of our success.” He went on
further to say that when his parents founded the company they operated “…under the
principle that if you take care of your associates, they will take care of the customer and
the customer will come back again and again.” The health and welfare of the associates
was and still is a prime concern of Marriott. They offer health coverage to all full time
employees even in recent years when hours had to be reduced periodically.

As a new year begins with all the promise of a better fiscal year, keep the employees in
the forefront of company decisions. Try not to balance your budget or pad your CEO’s
wallet on your employees’ backs. If you are a small business and cannot offer big perks
then try other incentives:

Tiered benefit plans
Profit sharing
Bring in local speakers on health issues, fiscal management
Partner with other organizations to bring in health screening, diet/exercise classes
Promote lifelong learning such as paying part tuition/books
Provide tickets to movies, local events
Partner with other small business to sponsor a company sport team

Think new year, better business.

For more ideas about how to revitalize your employee relations visit the APLS online
store.

‘Tis the Season to be Jolly, But be Careful in the Workplace

Monday, November 29th, 2010

At this time of year it would be prudent to provide employees with a refresher course in office party etiquette. For many organizations the end of the year marks a time when spirits are high, the fiscal year is at a close, and celebrations are frequent. If the company has had a good year, congratulations, bonuses and office parties abound. The seemingly relaxed atmosphere can be deceiving to the unsuspecting employee. Contrary to the office merriment this is not a time to relax and let your “ party self” loose at work. Office parties are serious business and should be treated as subtle networking opportunities as well as an occasion for the employee to be seen in a social situation. How an employee acts socially can be as important to a CEO as his/her on the job performance.
Let’s pretend we are designing a training module for office party etiquette.  Consider the following questions: 
  What do we want the training to cover?
  What is the overall benefit to the organization if we do the training?
  What is the most effective way to present the material? 
  What is the time limit?
  Who should be trained?
  What is the cost?
  Who should do the training?
  How do we measure the effectiveness of the training?
The most important question is the first question. What do we want the training to cover? Each organization has a culture that would dictate the answer to that question; however, there are generic topics that all office party etiquette training should include. The answers to the subsequent questions will fall in line after question one is addressed. Business etiquette guru Hilka Klinkenberg stands by the following essential topics:
  Appropriate dress for a business affair/party
  Check if invitation includes spouses, date or children
  Arrival/departure time to/from the event
  How to mingle effectively (do not spend the entire time with co-workers)
  Eat and drink in moderation
  How to give/receive a business toast
  Manners (greeting, please, thank you)
 
I would also add reminders about the following topics: 
  Review of the organizational chart
  Diversity (people socialize differently, set a norm)
  Language (expletives, ethnic, sexual, age jokes inappropriate)
  Cell phones, electronic devices
  Improper liaisons on company time
 
This may have a Big Brother feel to some readers. It may even sound elementary or ridiculous for an organization to consider spending any time or training dollars on reminding employees how to act at a social function. However, aren’t actions at the office Christmas party a perennial joke?  Almost any seasoned employee can tell a story about a bad episode in a business social situation that stymied a career in the workplace. How many young employees think that an office party is a time to get loose with free booze and free food? They have not had the exposure to realize that making a fool of yourself at an office party can have far reaching negative effects on your career at the company.  Young people learn too late the ramifications of poor behavior at an office social situation by becoming the office joke at the water cooler, or by watching their contemporaries move into better positions.  
Whether it is HR or sectional leadership that takes up the gauntlet, an office party/social situation refresher training for employees is an idea that is worth considering.  Happy Holidays!

 
Wondering how to spend that end of the year surplus money in your training budget? Check out the many offerings at the APLS Online Store. Excellent resources at value prices.