Top 10 Human Resources Trends of 2010

"Challenging times inspire creative solutions, and the volatile economy has forged many changes in the human resources sector," says Jeff Fenster, founder of CanopyHR Solutions. "Businesses are trimming excesses in order to succeed, and that means human resources has become a more integral part of business planning than ever before."

Stretching the Compensation Dollar. Although 2010 showed some signs of recovery, HR managed workforces that were considerably smaller than just a few years ago. HR's role in managing productivity through ancillary projects while maintaining employee morale and well-being was challenged by the parallel expectation that workers be twice as productive. Innovative HR professionals instituted creative programs such as gift card giveaways and lottery prizes to boost employee enthusiasm in lieu of raises and bonuses.

Embracing Social Media. Social networking's undeniable impact hit the big screen in 2010, and it hit workplaces in a number of ways as well. Managers learned to be on the lookout for lost productivity as employees grew increasingly concerned with checking in with their favorite social networking sites. On the upside, savvy HR pros saw a shift in the landscape as hiring and firing trends played out online. Posts cost some careless employees their jobs as HR monitored Facebook, Twitter and LinkedIn accounts. Smart employees landed new gigs by harnessing the power of social networking to market themselves and share information about job openings. Policies were developed to communicate clear boundaries and expectations and to attract top talent with the latest tools-with some even canceling subscriptions to Monster.com and shifting to social media recruiting.

Keeping the Communication Lines Open-Especially Amid Health Care Reform Anxiety. Maintaining employees' trust in the company and its business decisions through the ups and downs of health care reform was a must. Smart senior management kept communication lines open to demonstrate accessibility and willingness to answer questions and address concerns as they arose. That applied not only to top-down communication, but to lateral lines as well. Human resources professionals were charged with bringing functional departments together; communications, legal, payroll, and IT departments-everyone had to communicate a unified message to maintain employee trust.

Retaining Top Talent. When soaring unemployment numbers left many top performers handling increasing workloads for the same old salary, human resources departments had to focus on retaining company stars. Some of these high performers got antsy as compensation froze and expectations rose. Many continued to struggle with the lingering losses they've felt after company layoffs. This delicate situation required that HR pros soothe sore nerves and keep these folks from looking for greener pastures with creative incentives and sincere appreciation.

Managing Three Generations of Work Styles. As young Millennials entered the workforce, companies had their hands full integrating three distinct generations: Millennials, Gen Xers and Baby Boomers. The aging Boomers believe strongly in security and loyalty. They don't always see eye to eye with hard-working Gen Xers who have more of an independent streak. The Millennials shook things up with the attitude that if they don't like what's happening at work, they'll go home to Mom and Dad. This generational juggling was best handled with management training that stressed the characteristics of these disparate groups and how to motivate and inspire the most productivity from them. Succession planning also came into play as firms prepared for the replacement of retiring Boomers with less motivation to stick around now that they're feeling overworked and underpaid.

Sharing an Ounce of Prevention. Healthcare reform drew the spotlight to employee wellness issues in 2010, shifting more emphasis to preventive programs like smoking cessation and obesity reduction. Ben Franklin's proverbial "ounce of prevention" may finally see its day in the sun in 2011 workplaces, as employers continue the 2010 trend of encouraging employee participation in wellness programs in order to increase productivity, reduce absenteeism and boost the health of their staffs. For some, it's also a long-term strategy to avoid higher health coverage costs for increasingly overweight and unhealthy American employees.

Clearing Up Confusion. Another obvious consequence of healthcare reform's starring role in 2010 was employee confusion and uncertainty about health benefits. It became an imperative for human resources staffers to communicate benefit changes in advance, whenever possible, and explain changes in terms of how they would affect individual employees and their families. A crucial piece of that puzzle was often dispelling the misperceptions that dominated the public conversation-from dire cuts to death panels. Few changes have occurred yet, so this trend will persist in 2011 and beyond, compelling HR teams to closely monitor things like free flu shots, effective dates and the details of grandfathered health plans-and of course, clearly communicating these details to employees in a timely manner. The smartest pros will keep arming themselves with concise answers to difficult questions that will continue to arise as changes are implemented and look for new ways to reach employees with relevant information.

Managing the Virtual Workplace. Tech advances continued to lure employees into new territory, especially when it came to virtual work and telecommuting. The trend came with pluses and minuses. Some companies slid into this trend with ease, as exempt Gen Xers with no defined hours blended work and personal responsibilities into an organic off-site workday. Other companies struggled with non-exempt workers. Meticulous time tracking was required to ensure proper payment of overtime and the like. Most of the latter companies discovered the concept was detrimental to business. It's a lifestyle management issue that will continue to show up on HR radar screens in 2011 and could be further impacted by additional tech developments.

Working Together. Leaner, more streamlined companies must share information laterally to get the most from scarce resources. HR teams took a leadership role in reaching out to other departments and "sharing the sandbox." More than ever, employees in every department have a sense of facing adversity together. Strategic-minded businesses used the momentum to support strong teamwork and innovative solutions that crossed department lines for everyone's benefit.

Riding Out the Recession. As much as circumstances have improved, the recession we battled against throughout 2010 continues to impact companies and individuals-a trend that will likely continue beyond 2011. HR departments and executives need to tune into their resources and prioritize more than ever before. True innovation is the best way to establish solid initiatives without a solid budget. Successful firms will continue to prioritize wisely, focusing on the most effective tools to enhance business strategy and achievements and develop new business.

"Uncertainty breeds fear in everyone from employees to executives," says Fenster. "Perhaps the most important take-away from the major shifts we saw in 2010 is that the best HR professionals are those who are best at managing uncertainty and allaying fears. That means always reaching out for new information and reliable answers and communicating that information clearly. It also means creating new ways of helping managers and employees move forward, even when the future remains uncertain. Great change requires great innovation, so I think we're going to see some exciting programs and strategies come out of this adversity."




About this list.

This list was compiled by CanopyHR Solutions: Based in Irvine, Calif., CanopyHR Solutions is a progressive payroll and human resources company dedicated to helping its customers maximize the power of their people, increase business efficiencies, lower costs and focus on what they do best. Canopy HR Solutions first disrupted the status quo of the payroll and human resources in 2008 with a customer-first business model that allowed its customers to select only those service modules they need. Their innovative style and superior, consultative approach to service has allowed the agile company to thrive by arming customers with the tools and technology to support their payroll, benefits and HR administrative needs from recruitment to retirement at an unbeatable price point. For more information, visit http://www.canopyhr.com/.

End of the Year Employee Satisfaction and Engagement Surveys

When was the last time your company took a good hard look at itself? And I don't mean the books?

Looking for a great gift to give your employees this holiday season? How about a year end soap box? Some of the best consulting advice can come from in house. Our research has shown that organizations are significantly more likely to have a high acceptance of changes to day-to-day operations if those changes are the result of suggestions coming from employees.

Simply by implementing a year end employee engagement and climate survey can immediately improve:

• Employee satisfaction
• Employee confidence
• Employee performance and productivity
• Employee - Managerial interaction
• Over all morale

Give your employees a voice this holiday season.

10 Reasons Your Employees Hate You (Or at least reject you)

Here's a fun (though serious) list to ponder.

Being the boss comes with some great perks- a better bank account, corporate benefits, and a fancier title- but why, before you even hold your first meeting, do you get the sense your employees hate you? Unfortunately, more power comes with more problems, and Neil Giarratana, author of "CEO Priorities" and former CEO himself, offers 10 reasons your employees hate you before you even settle into your office:

1)Someone else had aspirations for your job, didn't get it, and concluded that the selection process had serious flaws.

2)Blame MUST fall on someone, and, because you're the biggest beneficiary of the company, you are the biggest target.

3)Your style of leadership or rumored future plans could be the problem. Even if you made NO indication of any future plans, rest assured the rumor mill is alive and well.

4)Someone in the company knows you from another company situation or from within the company, and got to know you during your climb up the ladder. His 'memories' of you are more like nightmares. He might have even worked for you at a previous company.

5) There are concerns you will bring in a new team and replace current management, which could involve new hires or people from your old company.

6)Your real or rumored lifestyle may offend certain people in the company.

7)You seem so different from their beloved previous leader that you can't be any good.

8)You come from another industry and don't understand what "our industry" and "our culture" are all about.

9)No one really knows what you're going to do, how you're going to act, or what policies you will follow, but everyone knows that in spite of that, it will be and has to be stopped.

10)You may already know an executive in the company and you may not think very highly of him. In all probability, he will know this, too, and be part of an 'undercurrent' problem you experience with him because he will be concerned that you will readily replace him.

In his book, CEO PRIORITIES (Career Press), retired international CEO, Neil Giarratana, shares "conduct and survival related" insights and recommendations aimed at providing future and current CEOs with the means to be on the positive side of that "popular opinion" equation and thereby reduce or eliminate the disdain factor so omnipresent in today's discussion of business leadership.

Can HRM Practices Boost Employees Job Satisfaction?

A joint study by the Colorado State University and the Texas State University highlighted the relationship between perceived favorability of HRM practices vs. job satisfaction, and the extent to which trait entitlement alters that balance. While it appears that there is a direct link between perceived favorability of HRM practices and high employee job satisfaction, offering more or better HRM practices will not automatically yield increased job satisfaction as employees expectations differ with regard to what they feel they deserve.

Bottom line, employers need to consider other factors than just employee satisfaction when deciding what HRM practices to implement.

Do you have a particular success story related to HRM practices that you would like to share? You can leave your comments here or join the discussion on our Facebook page.



Zinta S. Byrne, Brian K. Miller and Virginia E. Pitts. "Trait Entitlement and Perceived Favorability of Human Resource Management Practices in the Prediction of Job Satisfaction.” Journal of Business and Psychology, Volume 25, Number 3 (2010): 451-464

Culture Wars: Driving a Positive Change in your Corporate Culture

It may be 10 months or 10 years since starting your company, but somewhere along either that short or longer road you have come to realize the culture that distinguishes your business isn’t up to par with your vision and expectations.

Defined by the values and practices shared across-the-board by staff, company culture is essentially the manner in which an organization exhibits behavior. And while every company culture contains some elements of uniqueness, all have two basic qualities – character and personality.

Company character is a reflection of the commitment and engagement employees have to an organization’s value system; company character becomes evident in numerous areas, including customer responsiveness, innovation, team interaction and daily job performance.

Company personality is somewhat less tangible, presenting itself in the attitude and tone exhibited by employees. As examples, some organizations are known for their open and friendly aura while others are best described as competitive. One is not necessarily better than the other; businesses can have a successful personality if built upon the right character foundation.

Be advised – if you’re looking to re-define your company’s culture, it won’t happen overnight. Certain steps must be carefully taken in order to build a high performance culture.

First, identify the results you want to achieve. How do you want your company to be perceived? Isolate the potential obstacles that might impede your company culture vision and work toward their elimination while establishing the strengths upon which you can build right now.

It’s vital to clearly communicate your plan. Make sure your entire executive team and all employees understand your vision, and then seek their feedback. This important information will help, not hinder culture creation.

Build a rewards structure that reflects your culture model, including mission, values, strategy, roles and expectations and then foster that structure to best advantage.

High performance cultures can translate into company value that can exceed that of competitors and often even your own expectations. But this cannot occur in the absence of commitment and engagement from everyone within your organization – starting at the top with you.


About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Do your employees know where they stand?

Sure... right? We do our annual reviews. We sit down with our employees and we say, "good job with this or that" or "we'd like to see some improvment on your TPS reports". Of course our employees know where they stand.

Ok, and if I were to ask you, say, "what percentage of your employees is uncertain about their job security?" or perhaps something a little more specific like, "what percentage of your employees thought they were on the right track for a promotion right up until they didn't get one?" and "how did not getting that promotion affect their performance?", "did they start looking for another job?", "do they think you care?". You might say something like, "I'm not sure. But, more importantly, I'm not sure it matters"... and I'd believe you. And you'd have to also give me that your employees don't know where they stand; that you don't know where your employees stand; that maybe you don't know where you stand.

It starts to look somewhat amazing that the company functions. Of course, if you were to ask around, folks would say, "ahh, but we are such a dysfunctional, uncooperative, catty, bunch." He knows it, she knows it, I know it and you know it.

If you're a mamanager, start scheduling some time, right now, for each memeber of you team to come in and talk to you about "things". Maybe type up and distribute a little survey and put a box outside your door or cube or tent. Make it a "check yes or no" survey and pass it out. Get some feedback. Ask your team if they want to do a little survey too. Ask HR if you can do a big survey. Ask HR to ask if you can do a really really big survey. Ask some questions.

Maybe the problem is not you … just your environment

Today we present an article by a new HR-Worldview Guest Author.

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This year at My Next Path, we have worked with a certain number of clients who started a coaching process because they felt uneasy with their current job. Some of them even got the unpleasant sensation they might have some sort of issue. When we started working together, they in fact quite quickly came to realize that they did not have any problem themselves: the source of their trouble was their environment! Therefore, instead of feeling bad, stuck, paralyzed or sometimes worst, what they had to do was actively take action and work their way out to another environment that would better fit them. Let us explain more below.

Mary*has been working for 8 years in the same company. She was a middle manager in the sales and marketing area. She had always been travelling a lot for her job and liked it. She liked her industry and was very knowledgeable about key factors of success, players, etc. But more recently, she had 3 different bosses in 2 years, an increasing pressure and despite good results in her region, little recognition. Her self confidence was eroded and she found herself drowned in micro-management tasks imposed by an insecure manager. When we started working together, Mary was really unsure about her own abilities.

After a few sessions of analyzing what she thought were her issues, she came to realize, she had lost her self confidence because of the environment (poor management, wrong cultural fit etc), not because she had problems herself! In fact, she was perceptive enough to take action, seek help, and finally take that healthy distance to realize that. A few months later, Mary landed a new job in a company more in line with her style and expectations. Although everyone around her told her to stick to her current job because of the tough economy, she overcame her initial fear, dedicated the appropriate time to look for the right opportunity and found one.

We have seen more than one case similar to Mary’s this year: Before feeling bad about yourself and jumping to conclusions, make sure you are able to analyze your situation with perspective. Actively take action to find a work environment that better fits you maybe the best decision you will ever make! This obviously could mean changing company but not necessarily. This could also mean changing job/department within a corporation: very often in big companies, people have been offered jobs that do not properly fit their profile; by changing to another job, area or department within the company, they suddenly feel better and everybody wins.

About our Guest Authors:

Myriam Le Cannellier and Catherine Bortolotti are Career Coaches who work with professionals who are experiencing a transition in their career, because of relocation, an unexpected situation in their current job or the will to make a significant change in their professional life. Learn more about them at www.mynextpath.com

ePraise

I just heard about a silly new form of "around the office praise". It's called ePraise. ePraise is a kind of eCard that is designed for the sole purpose of praising the performance of a coworker. For those of you who don't know, an eCard is just like a real card except that it is sent to your e-mail box instead of your real mail box...

Anyway, ePraise is a free service from Baudville.com and, while it's silly, I think it has it's place.

These ePraise cards don't take themselves seriously, so hopefully the sender doesn't either. Rather, it seems to me that the ePraise serves as a kind of lighthearted supplement to broader "around the office recognition" programs or initiatives that hopefully all companies attempt to implement (even if only in a limited way).

They're good because they show that someone has taken a moment to personalize and send them. They show that someone recognizes the work someone else has done and they're kind of funny so they lighten the mood.

Lots of ePraise for Baudville.com

Beyond the Cookie Cutter Approach: Customizing your Company’s Incentive Program

August Benefits Installment by Jim Moniz

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Vision, potential, communication and motivation – are the key elements to an effective company’s incentive program. But in the absence of well-defined indicators and a “best practices” framework, even the most comprehensive program can fall short.

The foundation of an incentive program is basic; it must project the potential that can be realized by the company if its purpose if fulfilled. It must also identify employees who are in a position to impact those outcomes. Moreover, it should standardize its benefits/rewards and determine how much of an increased shareholder value will be allocated to employees and how its value will be measured.

Indicators, sometimes referred to as measures and metrics in a company’s reward strategies, are pivotal to a well-oiled incentive program.

The role of indicators is straightforward – they should seek to improve performance, influence behavior and create focus. This is accomplished through communication and reinforcement to encourage a company wide culture of employee ownership mentality.

Indicators should not be confused with motivators. Motivation is an internal element, something that is encouraged by aligning employees with roles and tasks that are consistent with their abilities. This will encourage them to shine. Motivation is additionally stimulated by a mutual vision between the company and employees.

That said, if indicators are not properly nor thoroughly defined, employee motivation can collapse under an incentive program – this can happen when workforce members see a disconnection between their role in the company and how rewards are earned. This is why a “best practices” framework – a Profit Based Allocation – is a vital component to a company’s incentive program.

A “best practices” framework should address a number of issues, including how company growth is defined; the baseline upon which contributions to the profit pool will be based; payment threshold; percentage to be shared; an allocation formula; and a definition of the expected individual’s performance.

There is nothing “cookie cutter” about an effective incentive program– what may work for one company could be way off the mark for another. The most expedient way to achieve the ideal program for your company is to be fully aware of best practice standards and frameworks, and then work within that structure to customize indicators and measures specific to your organization.

Incentive programs that work best are based on a company’s culture, business model and goals. Communication and reinforcement of results on an ongoing basis is critical. A C- incentive program will outperform an A+ program without ongoing communication and reinforcement. Companies should match their incentive program to those crucial components and then stay the course.

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About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

The Trouble With HR

Today we present an article by guest Coaching Author, Wendy Reeves.

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As a former HR manager, and latterly in my employment as HR director, I know only too well the pressures and the difficult assignments that befall the corporate HR department.

The key function of good HR is to provide a service to the organisation and its staff. The workforce, from the top to the bottom, need to be treated as ‘the customer’, supporting and delivering to that customer as required. I have always believed in HR operating an ‘open door’ policy to anyone within the organisation. An accessible and visible HR department creates trust and confidence, and cohesion. Not always easy at the best of times, and in this current economic climate beleaguered HR personnel are beginning to suffer.

Cut backs and waves of redundancies are currently on businesses’ agendas, as they fight to survive the credit crunch. Head office functions and responsibilities such as marketing, are being removed and re-assigned to be delivered by line management, and effecting the change that these situations bring not only for those leaving, but also for those remaining - often requires HR input. And frequently when all that is done, it’s the turn of HR being the last to go. If your boss asks you for details of the redundancy process, be wary.

At my last employment the company was working towards floating on the stock market, and the share options awarded to me at the time of my directorship would turn in to ordinary shares, which I could cash in. It was at this stage that I made the decision to make some life changes as this windfall would support and help me move forward to a new chapter in my life. Part of the company’s preparation to float was to tidy up the management structure, which fell upon my department. Even though I was preparing my own exit some months ahead, it came as a huge shock that I was included in that tidy up process – they didn’t require an HR director going forward. Thankfully, the timing of my redundancy hit three years ago when the economy was buoyant, and receiving a redundancy package as well as the payout from the shares did ease the blow. I was lucky. But at the time, being forced out of a job you’ve given many years to is never easy to face, no matter what the circumstances.

So, who looks after the wellbeing of HR during these difficult times?

In my coaching business I have come across many HR people who are really struggling to cope under these current pressures. Their sense of self preservation buckles as they try to deal with making their colleagues redundant - colleagues whom they’ve known over a number of years and who perform well with an excellent record of conduct.

Before we can attempt to minimise the stress and pressures we first need to recognise that we are suffering from it. The next step is to realise what the triggers are. Stress comes in two directions; internally – the stress we create…pressure we put on ourselves, and; externally – work, boss, family etc.

Here are some tips on how to deal with stress:

• Find a support network, either a ‘buddy’ at work, or someone outside whom you can talk to about how you are feeling.
• Build up a resilience to stress and implement the three “R’s” to help focus on things you can control
• Rest: For example, move away from your computer and do something different, such as getting a drink every 30-40 minutes.
• Relaxation: What can you do to chill out? Perhaps listen to music or meditate? Yoga or other holistic therapies can really help.
• Recreation: Physically being active in some way, walking, swimming or going to the gym. Don’t become a hermit - keep up a social life.
• Always aim to take a break for lunch. Taking time out during the day is very important if you want to stay fresh and recharged for the next part of the day. The mind has an opportunity to relax and think about something else, which helps improve the concentration. Change your state, go for a walk and get some fresh air to rejuvenate and restore energy, do something for yourself and fulfil a personal task. These small steps reap huge benefits – stress levels reduce, performance improves and you will feel a lot better.
• Stress can really effect how you sleep exasperating how you feel. Try and follow some basic rules; for example, avoid caffeinated drinks in the evening; go to bed when you are tired; relax before bedtime, many find taking a hot bath really helps relax both the body and the mind; exercise regularly (but not before bedtime) and stick to a healthy diet. By getting plenty of sleep you will be rewarded by performing more efficiently and sustainably.
• Mind Set: Think positive and focus on what you can do and influence, rather than on what you ‘can’t do’. Negativity is unhelpful and gets you nowhere. Ask yourself empowering questions. In the midst of a crisis, for example, don’t ask why you got into this mess; ask how you can improve it.
• Be self-aware: Stress and worry lead to loss of motivation and procrastination. If you feel you can’t break the stress cycle, seek help to get you back on track and in control.
• Consider the ‘what if’s’ and what your options are.

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By HR-Worldview guest author Wendy Reeves, founder of LifeGoal.

Employer Turnaround

According to a new poll conducted by Careerbuilder, “72% of employers are taking steps to strengthen their employment brand to prepare for when the economy turns around.”

Of course, the first major take away is that there seems to be something a return of confidence in the U.S. Market. That's good news.

Another major take away is that if your company is looking to grow coming out of this recession, then you better be one of the above 72% .

So, what exactly are these 72% up to?

• Outlining potential career paths for current and future employees.
• Offering more employee recognition programs.
• Offering more flexible work schedules.
• Revising job listings to emphasize a positive work culture.
• Revising recruitment materials.
• Revamping their company career sites.
  

These things make you visible, competitive and desirable. Are you doing these things?

Are Your Employees Afraid of You?

At a meeting in a manufacturing town in the old Soviet Union, the speaker was wrapping up his presentation. The factory had once again exceeded its goals for the five year plan, “Thanks to the wisdom and inspiration of our great leader, Comrade Stalin!” The audience leaped to its feet, shaking the hall with their clapping. The applause went on for a minute. Then two minutes. After five minutes, people started looking around to see who would stop first. After ten minutes, hands sore from clapping, old white-haired Ivan sat down. Relieved, the rest of the group settled back down in their seats.

Ivan didn’t show up for work the next day. No one seemed to know what had happened to him, but no one asked, either.

I was never that kind of leader, or so I thought. At a staff cocktail party after work, my fiancee pointed out that my staff members were really very good at sucking up to me without being obvious. “Nonsense!” I told her. “They don’t need to butter me up. They know they can say anything they want to me, good or bad.” She just smiled. I then realized that, while I genuinely liked my subordinates, I had power over them, even when I didn’t use it. I could put off that raise, delay that promotion, reduce that bonus, and not realize I was doing it. And then I saw I treated my boss the same way. I always held back a little, knowing that my career depended on his good opinion.

It’s hard to manage, even when you have good information to work with. But if your staff is afraid to deliver bad news, criticize your proposals, or argue with you over a decision, you’re operating in the dark. You may have already told your staff that you want to hear open and honest communication. But your message to them consists of more than words. All it takes is a frown or a roll of the eyes to let people know that what they just said was not welcome. Even worse, a comment like, “That’s a dumb idea” will shut down all but the most self-confident employee.

I was lucky. I always had at least one staff member who realized I would always be fair (see my other blogs on Trust.) They would alert me to my blunders. Find one of those folks if you can. In addition, there are some things you could do to keep the communication lines open:

• Have someone watch your body language in meetings. They should let you know what messages you’re sending without realizing it.
• Practice neutral language to handle ideas or comments from your staff when you really don’t agree with something they’ve said. Try, “Interesting idea, Ted. I’ll give it some thought,” instead of, “No, I don’t think that will work.” Follow up with a one-on-one session with Ted to let him know where his idea fell short - if it did.
• Put criticisms in a “parking lot” for later review, and let people know you’ll go over them later. Then give yourself time to react rationally rather than emotionally.
• Learn to listen. That means hearing what people say and mean, both verbally and emotionally. Mirror what they’ve said to let them know you heard and understood it, and to be sure you really got it right.
• Give credit where it’s due. Acknowledge the person who came up with an idea or a valid criticism.
• Acknowledge your mistakes and say what you’ll do to prevent them from happening again.
• Finally, say what you mean and mean what you say. If your actions match the words the use, your employees will learn to trust you.

George Krafcisin is President of Mosaic Management, Inc., where he does coaching and training for businesses and executives who want to become better leaders. He gives his services away to those who don’t have “profit” in their mission statements. Contact him at Mosaic_Management@mac.com, www.MosaicCoaching.biz, or www.LinkedIn.com/in/krafcisin.

The New First Class Compromise

When companies cut budgets, a typical target is anything considered to be a frivolous gadget. An unneeded gizmo. There certainly are a lot of frivolous gadgets and unneeded gizmos. It all makes perfect sense.

But then I feel like I'm in the Twilight Zone when I talk to clients who have cut their annual or bi-annual on-line performance appraisals and assessments when I clearly remember them saying to me in the past that they don't know how their team, their department, even their business as a whole could continue to function and grow without them. 

They used to say stuff like “We were such a dysfunctional, uncooperative bunch.” 

So when the tools that 'functionalized' the dysfunctional and got the 'uncooperative' to cooperate are put to pasture, I always want to say “My word! Is it that bad? I hope you didn't have to get rid of the Tassimo coffee maker too!” But, inevitably, I get my head on straight and get with it again.

Here is what we need to do. 

If your team, department, or company as a whole is a dysfunctional, uncooperative bunch but you can't seem to find room in the budget for the tools and support that you need to 'fix it' then either you're company is not taking the 'human factor' seriously enough or providers are not taking your budgets seriously enough. It's probably a little bit of both.

They say that in money, a perceived need is as real a need as a real need. I don't know if they actually say that, but I think it's true. We were going in this direction anyway, and it is simply the case that the state of the economy has accelerated the HR market's need for easy to use (which is time efficient) and cost-effective (which is cash efficient) technology solutions. 

HR needs to start making the case that these tools are as necessary a part of the frictionless functioning of a business as the workstations, the network bandwidth and the Tassimo. Uncooperative people don't just start cooperating especially when they are afraid that their jobs are on the line. No company would sell all of their workstations and replace them with typewriters to save money. It would end up being more expensive... that's why we have computers. The best question to ask is, “How is that any different than getting rid of the other tool that time and again has provided stability and openness to the workforce?” 

At the same time, HR solutions providers need to start innovating and moving away from the old model that companies don't see room for in their budgets. Solutions providers cannot just weather the storm and when the skies clear up approach their clients with the same garbage that got tossed at the first sign of trouble. That is about as backward as selling off workstations for typewriters. HR solutions providers need to learn that HR is now going to want more control over implementation and management of these systems. It's a particular brand of protectionism. HR solutions providers need to have a whole new game that's easy to learn. The products need to be better than they were before and we can actually define what we mean by "better": easy to integrate into company culture, easy for the client to learn, easy to use, quick to deploy, stable, error free. Of course, some HR solutions providers will be quick to say “oh but our systems have always been like that”. But, if that were true then we wouldn't be having this conversation.  

Results: 360 Degree Feedback Systems

Year after year, companies treat their 360 Degree Feedback process as a routine. They claim they are happy with it. We have never encountered a 360 Degree Feedback program that is perfect. There is always significant room for improvement.

I want to thank all of you who participated in our survey to study the perceived effectiveness of 360 Degree Feedback projects within companies. This has been just one of many studies conducted by HR-Meter and HR-Worldview into the effectiveness of 360 Degree Feedback.

Here are the main results:

• 45% of individuals surveyed believe that their current tool is not time efficient.
  
• 38% of individuals surveyed say that their current report types are not easy to read.
  
• 46% of individuals surveyed said that their tool did not ask the relevant questions.
  
• 68% of individuals surveyed said that their tool would profit from more customization to their job.
  

For the full report, Click the Report Button below

or just click here

A Question of Balance: Querying the Work-Life Conundrum

As part of our series of articles by exceptional HR professionals, today we present a coaching article by a new guest author, David Finney.

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I have a problem with the term ‘work-life balance’. It implies that life begins when work finishes. The words we use are critical to our self awareness, our situation-reading and to our learning and development, and yet we pick up phrases like jackets in a wardrobe, trying them on for size and sometimes keeping on something that doesn’t quite fit in the absence of anything better.

Our conversations are derived from a variety of sources: education, literacy, sound bites from the media, parental hand-me-downs and phrases we’ve picked up from our friends, family or business colleagues. Words are not truly our own. They sit on a large menu from which we make our selection, in an attempt to find the right combination that suits the way we are feeling at any given time.

Interpreting stress

The phrase ‘work/life balance’ originated in the eighties. it seemed OK at the time: a way of interpreting stress, a reminder to leave the office before dark. it’s a phrase we have picked up, taken on board and maybe even formed a goal around.

But what if WLB is reinforcing the belief that the working day is simply a prelude to a sigh of relief at the end of it? What if these words are encouraging our clients to move away from rather than towards something? As coach Graham Guest says “Part of the perceived problem of the work-life balance comes about through regarding work as the stuff you do, often reluctantly, to earn money to do the things you really want to do”.

Balance of opposites

Chinese philosophy has always been intrigued with balance: night and day, high and low, winter and summer, dark and light, black and white, left and right,false and true, female and male, as encapsulated by the yin and yang in the I Ching, the ancient Chinese classic text. The yin and yang represent the negative and positive forces in the universe and the “dynamic balance of opposites”. 

The Chinese language itself works in a similar way, using antonyms. These are opposite words placed side by side to represent a concept. So ’hei’ (black) plus ‘bai’ (white) represents morality. ‘Cheng’ (success) plus ‘bai’ (failure) represents outcome or result. ‘Chang’ (long) with ‘duan’ (short) represents the concept of the situation: that’s the long and short of it. So maybe to fully understand certain concepts, one needs to locate and appreciate its direct opposite.

Restoring social order

The Ifaluk are a people that live on an Island in the Pacific Ocean, just a few hundred souls on a piece of land about half a mile in diameter. The Ifaluk don’t approve of anger, so they don’t have a word for it. They have a similar word, and that word is ‘song’. If someone on the island is in a ‘state of song’, they must have a very good reason for it. For instance, the person causing them to experience ‘song’ must have acted in a very immoral way. Then, the person experiencing ‘song’ must find a way to express their feeling in a non-physical, nonviolent, controlled manner.

And so ’song’ is a sign that the social order of the island has been disturbed, the equilibrium tipped. Balance is only restored when the person causing ‘song’ has apologized or offered a gift or similar. Until then, the person experiences ‘metagu’, and feels guilt or pressure from the Ifaluk society until making amends.

The conceptual width of balance is far reaching, and people have the power to create language that suits the world they inhabit.

Authenticity

Buddhism – like Hinduism - is based upon the principle of cause and effect and centers round the Noble Eightfold Path, The Middle Way, which is the avoidance of extremes, leading to balance in thought, words and action. Author Michael Carroll references balance in Buddhism in a different way, encouraging us to accept disorder at work and achieve balance by taking time out in the day, moments to stop and listen to our surroundings, find our source and be authentic.

In our quest for authenticity in love, in leadership and in life, we can discover a harmony that is enduring, that underlies work, play and all the events and segments in our day, something independent of the divides we create.

There is a flip side to the WLB phrase. Its alternate implications are that our ‘work’ finishes when the bell goes. This can cause us to switch off when we come home and lose the social disciplines we had at work: politeness, courtesy, interest in the projects of others, for instance. This could mean we disconnect from our loved ones and the lives they are leading. But true balance is ‘karmic’: every action performed in one part of our lives affects another. Every extra hour at work is one hour less with our families. Every extra hour in bed could mean one less working on our goals.

Unpacking the phrase

As coaches we are trained to use the words our clients use, in a matching and mirroring effect. We are also trained to help our clients analyze their words and check they are the right ones, ensuring that they accurately summarize the intent behind them. So if a client wants to discuss ‘work-life balance’, I believe the coach should help the client reach the ‘right’ words to express exactly how they feel as soon as possible, before progressing too far into the program. I can recall suggesting the word ‘buzz’ to a client to help identify a set of feelings. "Yes! That's the word: buzz!” he exclaimed. “Yes that’s how I feel, thank you!”

Clients tackling issues labeled ‘work-life balance’ need to achieve the same sense of recognition in locating words that describe exactly how they, individually, feel, and then in defining the kind of balance they really want.

In balance

So ‘work-life balance’: is it a harmless label, or an influencing phrase working quietly away in our subconscious? The phrase still concerns me. It’s like a dusty old jacket that needs replacing. An “unhelpful dichotomy” as coach Bill Brand puts it. Our lives are surely not divided up into two opposing parts. It has to be simply a question of balance and what that means to the individual.

A final word from a previous client of mine who revealed in our sixth session, “My life feels more in balance now”. No mention of work or life, just “balance”. Music to a coach’s ears!

About our Guest Author:

David Finney is Quality Director & Coaching Champion in an international market research company with twenty years managerial and people development experience. David has a Diploma in both Corporate & Personal Coaching and is a member of The Association for Coaching.

Executive Compensation as a Strategic Tool

As part of our series of articles by exceptional HR professionals, today we present article by a new guest author, Jim Moniz.

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With the year 2008 gone and its legacy of a weakened economy and even the most understated financial pundits already designating 2009 as volatile, many companies are reevaluating their business plans and shifting into survival mode. While attracting, retaining and motivating key employees are vital to the success of any business, the current economic environment may be the ideal time to re-think executive compensation measures.

The days of the “holiday bonus” may soon be by gone as companies – both private and public – progressively recognize there are other, more creative vehicles that can serve as incentive for retention. For instance, that annual check bestowed during the office holiday party is a short-lived and anticipated incentive and once received, what’s to stop employees from moving on to newer landscapes? This yearly “reward” come the end of December or the fiscal year is often looked upon as part and parcel of salary, essentially diminishing the true definition of performance incentive – and while the intention may be good, this type of across the board reward mechanism can alienate certain employees whose performance is consistently outstanding.

By creating a business environment that fosters achievement and implements long-term incentive programs, the loss of vital employees whose skill and knowledge are fundamental to the overall success of a company may be avoided.

For example, deferral plans are fast becoming a popular executive benefit, since they allow for pre-tax contributions that mirror 401(k) contributions lost under limitation rules. A deferral plan is the bonus that keeps on giving year-round as it allows employees to reduce their current income tax liability and watch their funds grow tax-deferred. In addition, the employer can make matching contributions to cover those contributions not allowed under a 401(k) plan, making the deferral plan a genuine incentive for longevity within a company.

Phantom stock is another incentive that can be tied exclusively to performance. Simply put, phantom stock is a promise to pay a bonus in the form of the equivalent of either the value of company shares or the increase in that value over a period of time. The most essential element of this incentive approach is its long-term understanding. Also, phantom stock plans are not tax-qualified, and as such not subject to the same tax rules as 401(k) plans. A company can promise a new and valuable executive this durable bonus every three or five years or over a longer period of time, making it attractive to remain for an extended run.

Another form of executive bonus is the performance unit – an offer to pay an executive a sum of cash at the end of a long-term performance period. The amount of a performance unit is based on attainment of certain pre-established financial objectives of the company. Some may define this brand of incentive as the ultimate performance carrot, as it consistently encourages an executive employee to tie his or her individual success into that of the company.

Company stock options are another form of incentive compensation appealing to many executive level employees. The amount of equity can be tied to the number of years in service, translating into potentially high returns for employee longevity.

It must be said that there are occasions when a well-timed “spontaneous” reward can be worth its proverbial weight in gold. A check for a modest amount in the aftermath of a key company success can go a long way toward providing management team members with a sense of company loyalty.

Finally, don’t discount other, more imaginative approaches to executive compensation. Options that should be considered are life insurance programs, health-club memberships, tuition reimbursement, flexible hours, and the leeway to work from a home office on occasion.

Ultimately, incentives should be connected to a company’s broad mission and scope of values. Companies must create an environment that fosters success and incentives should be tied to that success. Failure to keep an eye on that goal may result in lack of motivation for certain key employees, whose performance or lack of performance can make or break a business.

An effectively designed executive compensation program impacts the overall success of a company. A well integrated compensation arrangement can assist in promoting the core values of a company and help it along the path to continued success.

About our Guest Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

The Big Question: "What's up?"

There was a moment there, when March was drawing to a close and the markets were showing signs of stabilization (even maybe a bounce), where (the national) 'we' held our breath and thought that the job market was going to show signs of lightly touching bottom... then we got the March report and thought again. 

We've been talking to a lot of companies lately about how their own internal restructuring is going. “What have your meetings been like? Are you still planning lay-offs? Are you, communally, searching for normalcy in your operations? … What's up?”

They 'answer' these questions and, in the same breath, I hear the steady drone of the holding pattern, fear of bird strike and concerns about fuel levels... and I just hope that employees aren't hearing the same hum in the buzz around the office because that hum has a captivating quality akin to a car crash.

Offices are strange places. They have the acoustics of a sea-side cave and the frenetic energy of a carnival perpetually leaving town.

When you get asked, “What's up?”, answer that question with a wide, sweeping gesture, a stroke of confidence and a smile because everyone can see and hear you. If you don't know "What's up?" ask someone else. 

If it turns out that no one knows, then the one thing you can be sure of is that this is the last time the carnival is leaving town.

360 Degree Feedback Month

For the month of February, we will be running a series of articles on the topic of 360 Degree Feedback. We're kicking the series off today with the introduction to a Research Study that we recently conducted into the soundness and reliability of 360 Degree Feedback projects.

It only seems natural to start at the beginning: To define what a 360 Degree Feedback process is.

Best practice in 360 degree feedback

Results and experiences from practice

“The concept of 360 Feedback makes a lot of sense and, if used well, should have a great deal to offer. It seems to suit the move towards the less hierarchical, more flexibly structured an knowledge based organizations of the future” – Dr. Clive Fletcher 

Companies are shaped by the goals they have, the people they work with and the contemporary texture in which they are embedded. Several decades ago, organizations were modeled upon hierarchical frameworks which, inevitably, rendered a very clear and precise organizational model. With the wave of lean management came the toppling of organizational hierarchies and the installation of more interlaced, dynamic organizational settings focused upon cross functional and project based corporations. These new organizational settings have proven to be more conducive to a setting in which projects and goals arise and are tackled by team based structures rather than hierarchical ones. Within these new frameworks, team oriented goal setting flourished, in part, because of the dynamic relationship between managers and subordinates. These structures create a broader span of control for leaders making it indispensable for them to use more systematic leadership instruments like MBO processes and performance feedbacks. Besides the evaluation of productivity and the reaching of certain goals, the so called “social and networking skills” of employees gained a once unnoticeable relevance. It has been found that these, “social skills”, can be measured through 360 degree feedbacks. Behind this assertion lies the assumption that both personal and operative competencies contribute to the success of a manager and that these competencies are vibrant enough for assess

ment.

In the meantime there are a wide array of studies and experience reports proving the effectiveness of 360 degree feedbacks for both individuals and companies alike.

I: Definition: “What a 360 Degree Feedback really is”.

A 360 degree feedback is based on several opinions about the contributions and behavior of an employee as well as his or her own assessment through a structured procedure. A proper 360 demands that third party evaluations come from groups with a variety of relationships to the focus person: i.e. peers, managers, subordinates external suppliers and customers. The various viewpoints of the different feedback groups within 360 degree feedbacks contribute to comprehensive and authoritative results based on average values.

360 degree feedbacks are methodologically diverse and can, according to what is ultimately sought after, point to an equally diverse range of goals. Nevertheless, there is one guiding principal involved: good feedback should be precise and behavior focused and that focus should be value neutral. Assessments should yield positive change and depict relevant behavioral alternatives that the focus person can implement. Besides the goals deducted for the company setting, a good multi-perspective feedback instrument is especially instructive for the personal development of employees.

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In February, we will be putting up many more posts on this topic as part of our "360 Degree Feedback Month".

PLEASE NOTE: On February 20th 2009, the President and CEO of HR-Meter International, Christina Dietzsch-Kley, will be hosting an informative Webinar on the topic of 360 Degree Feedback implementation and follow-through. 

To attend this event or to request a copy of our 360 Degree Feedback study: