YPP California Human Resources Blog

Lone Eagles Soaring in the Clouds

2009-12-16T13:45:00.000-08:00

"Lone eagles, soaring in the clouds, fly with silent, peaceful poise, While turkeys, in their earth-bound crowds, fill the atmosphere with noise."

Those words of scholar William Arthur Ward succinctly capture the different characteristics of two kinds of birds. But Ward is talking about more than just birds. He is telling us that we should admire and emulate the eagle, and that too many of us fit in too well among the "earth-bound crowds."

Nothing against turkeys, but Ward has a point. Yes, turkeys are the icons of a well-set Holiday table, but consider what that means: They get eaten, especially this time of year. So why not soar with the eagles? That's a good goal for both individuals and organizations, and it fits well with recognizing incompetence on the managerial team and doing something about it.

If you know you have some work to do with your Managers, here are some ideas for proceeding:

Before you make your next managerial hire or promotion, make sure the person you are considering for a position of responsibility is management material. Some people can grow into the role, and some cannot. Scientific assessments such as ProfileXT and Profiles Performance Indicator provide insight that helps improve selection and team performance. Our clients have used one or both tools successfully, depending on their needs. Either way, these assessments work. They offer more validity than just guessing or following your instincts.

If you already know you have managers who are not performing to your standards, take action sooner rather than later. Planning a course of action is good, but only if you execute the plan in a timely manner. If the person in charge of execution puts off corrective action week after week because he or the plan "is not ready," you have just discovered another ineffective leader in your organization. Leading often means going outside one's comfort zone to do what needs doing, and some managers need training to do this. Demonstrate to subordinates what action looks like. Show them that taking action is essential. Letting a poorly performing manager squeak by for an extended period can damage your organization.

If you determine a manager cannot fit the role of leading others, you owe it to him or her, and to yourself, to find out how he can best serve. Look at what he was doing before management. What aspects of his previous performance prompted his promotion? Was he a strong salesman? An expert technician? Superb at customer service? If he showed strength in a prior position, your next step is to move him to the place he performs best with the message that you want both him and the company to succeed. If this employee adds value to the organization, you do not want to imply that he failed. Some people are just not management material, and chances are that your worker knows that as well as you do.

Use your high performers as models for both current and future employees. Smart recruiters use PXT on the front end to make sure they are hiring people that look like the organization's top-performers. Creative workplaces find methods of spreading high performance around. Leaders put their high performers in teams to train others. They give them the responsibility of an important project and let them detail to the rest of the organization how they executed it. Show off anyone who does the job the right way. Remember: Praise in public, correct in private. Get to the point where you praise more than correct, and your job will be more enjoyable and certainly easier.

These ideas will put your organization on the flight path of soaring eagles. May their numbers increase.

Article written by: Profiles International, published with permission.

HR Recession Lessons

2009-12-14T16:23:00.000-08:00

2009 will go down as a year to remember but for many businesses the memories may be painful ones. As we move from depths of the recession into the glimmer of a recovery we have an opportunity to reflect on valuable HR lessons learned and use those lessons to become more resilient, to survive and thrive despite the inevitable ups and downs of a complex global economy.

The most recent economic downturn is still too fresh for us to have the full benefit of 20/20 hindsight but this is the perfect moment to start to analyze what worked, what got us into trouble and how we can more effectively manage, train and deploy our human capital resources.

Some companies gain market share during a recession and even during the Great Depression Kellog, Proctor & Gamble and Chevrolet all managed to grow. Google and Amazon showed it could happen during the 2000-2001 recession and continue to be resilient and successful even in the current troubled economy. These large companies are not alone. Many small and midsize businesses also have demonstrated a winning business strategy can work even in the midst of a raging economic storm and a major key to success is a focused, efficient and engaged workforce

So what are some of the "first glance" HR lessons from the current recession?

Head in the sand is not a winning strategy. Employees have powerful antennae that tell them when there is trouble in the company so don't let the elephant in the room go unacknowledged.

Rumors and fear are costly distractions and will eat time and resources if not addressed. The truth is seldom as awful as the collective imaginations of your employees who hear doom and gloom on the nightly news and project it into the workplace.

Cutting your payroll too deeply can leave you without the talent necessary to respond to changing market conditions. If cuts are inevitable make them as strategically as possible because talent is expensive to acquire and train.

Outsourcing can maintain the key HR functions while controlling costs and minimizing risks. HR related complaints and lawsuits rise in seemingly direct correlation to worsening economic conditions.

Even in a tight job market talented employees have other options. If you cannot offer raises or other incentives to your superstars get creative about what you can offer. Your human capital investment may be your most valuable business asset when times are tough.

Focus on the positive and encourage innovation. Everyone wants to be part of a winning team and your talent in the trenches may have the fresh ideas or vision your company needs to succeed in challenging economic times.

The job market will improve sooner or later and employees will remember how they were treated during the difficult times. In many companies cutbacks were so extreme that the survivors are exhausted and unhappy. If your employees have been pushed to the breaking point and are poised to bolt at the first opportunity now is the time to begin rebuilding relationships.

Employees will want to be rewarded for their efforts as the economy gets better. Employers should plan to evaluate compensation and benefits as the economy improves in order to remain competitive when the job market opens up again but not at the expense of rebuilding capital reserves.

HR expertise is invaluable when addressing a complex and challenging employment landscape and bringing HR into the strategic process early can help avoid costly mistakes.

HR will play a vital role in the transition from recession to recovery, especially in companies where the economic crisis has been severe and survival mode has meant putting out HR fires but left little time or attention to strategic HR. A good look back gives us an opportunity to assess and reevaluate as we formulate new strategies that incorporate the lessons learned.

Business Pandemic Planning

2009-11-13T12:53:00.000-08:00

Imagine tomorrow morning you discover that 40% of your staff is out sick and the missing people are in clusters wiping out entire critical functions within your business for the NEXT 10 DAYS! How would you make sure that your business survives this very real situation? What would you do and who would you do it with? A well written policy can help your business survive.

In drafting that policy, it's important to keep in mind guidance just issued by the EEOC. That's right - as you develop your policy you have to keep in mind the ADA and other employment regulations.

The Society for Human Resource Management offers a number of practical tips to keep your business on track during this swine flu pandemic:

Don't discriminate against people who might have H1N1 flu or have been exposed to the virus.
Know your company's leave policies so that you can explain them to your employees. Apply them consistently to all of your employees.
Identify critical functions and the skills needed to complete them.
Inventory your employees' skills. Who has the skills to complete critical functions?
Cross-train workers so more employees can complete more critical functions.
Identify which workers can serve as substitutes for others.
Keep an eye on absentee rates. If they appear to be rising, get ready to move your employees into their cross-trained roles. If any of those roles require certification or other preparation, make sure the cross-trained employees are up-to-date before moving into their new roles.
Consider virtual meetings instead of face-to-face gatherings. Try to limit contact among employees to halt the spread of the virus.
If possible, allow employees to work staggered shifts to reduce the number of people in the workplace. Allowing workers to commute outside of rush hour can also help reduce contact with potentially ill people on mass transit.
Find out if you are authorized to make decisions about activating emergency plans.

If you have questions about your planning strategy and compliance YPP's HR professionals are available to assist.

The Holiday Office Party

2009-11-13T12:51:00.000-08:00

Last year we joked about the grumpy HR Grinch, ready to shut down your rollicking good time this holiday season. You know, the anything goes office party where your employees leave their inhibitions at the door. The celebratory occasion that provides months of post party gossip.

This year, more employers are evaluating whether to even have that party and associated expense. We recommend that you reinvent the office party concept and try something new like a lunch event, group outing to an amusement park or volunteer activity with a local charity.

And the formal party isn't always what employees enjoy the most. At YPP, the CEO's have cooked lunch for our employees for the last several years, and that's been just as much fun as when we did more elaborate evening parties -and far less risky since we don't serve alcohol. We also treat everyone to the holiday show at our local theater, PCPA.

However you choose to celebrate the holidays with your employees this year, we want you to have a bright and "HR Safe" holiday season. We have a few tips to help our employers avoid the biggest holiday party danger zones, alcohol and sexual harassment.

The following tips were prepared by the U.S. Department of Labor, Working Partners for an Alcohol and Drug Free Workplace in an attempt to assist employers in minimizing negative consequences of alcohol consumption at their holiday parties.

Be honest with employees. Make sure your employees know your workplace substance abuse policy and that the policy addresses the use of alcoholic beverages in any work-related situation and office social function.

Post the policy. Use every communication vehicle to make sure your employees know the policy. Prior to an office party, use break room bulletin boards, office e-mail and paycheck envelopes to communicate your policy and concerns.

Make sure employees know when to say when. If you do serve alcohol at an office event, make sure all employees know that they are welcome to attend and have a good time, but they are expected to act responsibly.

Make it the office party of choice. Make sure there are plenty of non-alcoholic beverages available.

Eat...and be merry! Avoid serving lots of salty, greasy or sweet foods which tend to make people thirsty. Serve foods rich in starch and protein which stay in the stomach longer and slow down the absorption of alcohol in the bloodstream.

Designate party managers. Remind managers that even at the office party, they may need to implement the company's alcohol and substance abuse policy.

Arrange alternative transportation. Anticipate the need for alternative transportation for all party goers and make special transportation arrangements in advance of the party. Encourage all employees to make use of the alternative transportation if they consume any alcohol.

Serve none for the road. Stop serving alcohol before the party officially ends. Employers are encouraged to review their company policies regarding alcohol consumption and furthermore, to enforce their policies at all company celebrations.

Sexual Harassment
With or without too much alcohol a holiday party can become the opportunity for sexual harassment claims. As a California employer you must know that State law forbids sexual harassment under FEHA and Government Code section 12940.
The California Fair Employment and Housing Commission (FEHC) enforces FEHA law and has found sexual harassment to include:

Verbal harassment, such as epithets, derogatory comments, or slurs;

Physical harassment, such as assault or physical interference with movement or work; and

Visual harassment, such as derogatory cartoons, drawings, or posters.
As an employer what can you do to help minimize the risk? The following tips can help you avoid holiday party harassment liability:

Remind employees beforehand that their liability for sexual harassment applies at all times, including during the party.

Make sure your supervisors' sexual harassment training is up to date, and you may want to redistribute the company's sexual harassment and substance abuse policies to everyone a week or so before the party.

If you know or suspect someone in your organization is putting you at risk for a sexual harassment claim take steps now to address it now, don't wait until it is too late.

YPP HR Managers can help you in planning an "HR Safe" holiday celebration. We want you to enjoy the season knowing you have done everything possible to avoid a post holiday legal hangover.

How poor managers threaten us

2009-11-13T08:31:00.000-08:00

What have ineffective managers contributed to organizations around the world? No list would be complete without these "gifts" from those who manage poorly:

The 80-hour work week
Discouragement of initiative, creative thinking and risk-taking
Massive turnover
Ultimate failure of the organization

This is the story of business that gets repeated, often in scandalously public ways, year after year. One spectacular collapse of a poorly run company earlier this decade included a customer service vice-president who did not exist, even though his name appeared at the bottom of the company's form letters. The business received so many complaints from customers that it made up the name so that no one had to deal one-on-one with dissatisfied people.

Although poor management is the standard operating procedure at many places - and although poorly managed companies often seem to thrive - believing that they will prevail is like believing a house of straw can survive 150-mph winds. Unless the builder erected the straw house underground or reinforced it with steel, it cannot withstand a storm. So goes the poorly managed company.

We are devoting this issue of Profiles Advantage to the subject of incompetent managers because they are so prevalent and so destructive. A new Profiles International report, "Eight Signs of Incompetent Managers," notes that 40 percent of workers believe they have bad bosses. Yet organizations often manage to survive for years or even decades even though they are poorly run.

How does this happen? First, many of them likely provide important goods and services, something that a majority of the population needs or wants.

Second, if they are about to miss important deadlines, they are well versed in reactionary management. They throw more people and hours at a problem, forcing others to bear the burden of poor management.

Third, they reward poor managers for finishing the project on deadline. This ensures that nothing changes and sends the message to other workers - some of whom put in 20-hour workdays to help finish poorly managed projects on time, that:

a. Planning is not necessary or perhaps not even something the boss wants.

b. Poor performance is not only acceptable, we reward it.

c. Creative thinking is not welcome, even when the project is foundering

d. If you complain or offer ideas different from the boss's, you will not fit in.

e. If you don't like the way things are, here's the door.

Sadly, people who might offer courageous solutions and a brighter future to a troubled business either fall in lockstep with poor management, or they do leave. And when poor operation causes high turnover, we have a perfect storm. Because in most areas of commerce, there is too much competition for poorly managed organizations to survive.

Their failure might occur in stages, so that it's not all that evident. But it will happen, as surely as the house of straw will blow away in a hurricane.

Top leaders who are paying attention to detail will want to act quickly if they see any of these symptoms of incompetence:

Managers discourage decision-making by failing to make decisions themselves, or refusing to own up to a decision if it might result in criticism.
They prevent the completion of tasks because they give no one the responsibility to do things; often, they try to do too much themselves because they don't want to give control of a project to someone who might do it worse - or better.
They react to problems instead of thinking ahead and planning. Projects are late; new initiatives are non-existent.
Since they do not engage anyone, there is no team play. Communication is rarely face-to-face. They don't value people, or if they do, don't know how to show it.
They don't often improve because they fail to see problems in themselves and problems they create.

Leading the managers is not easy, but it's not impossible, either. It requires paying attention to the big picture and, sometimes, to the details. This is the kind of foundation work that ensures an organization will stand up even to gale-force winds.

Contributed by: Jim Sirbasku, CEO, Profiles International

YPP Book Club

2009-10-19T10:29:00.001-07:00

Having really enjoying Keith McFarland's last book, The Breakthrough Company, I was looking forward to reading his newest one, Bounce. It's a very quick read, but tells a strong story.

There have been some mixed opinions about McFarland's choice of style for this book. He uses a fable to tell the story of a CEO whose company is facing serious challenges, including the loss of a major client, a key employee quitting and the corporate entity demanding significant budget cuts. Through a friendship with an ex-Army Ranger, the CEO learns valuable lessons he implements to help his company "bounce" and turn itself around. His choice is very effective. While he could certainly detail his research from seven years of studying the performance of thousands of companies and more years consulting for businesses, the fable lets him wind that research and experience into a strong story.

The military insight from the Ranger started from the observation that in many companies that begin disintegrating, everyone becomes focused on blame and excuses, and so often are not able to recover. His analogy of these companies is a Christmas ornament - when they're dropped, they simply fall apart. Those that can use that downturn as an opportunity to reassess and improve or reinvent, can reintegrate themselves and benefit substantially from it.

The book contains 6 principles that are interdependent and create increasing levels of bounce. As the fable CEO applied these principles, he was able to engage his employees in an in-depth analysis of why there were failing and identify opportunities they had been overlooking.

Even if your company isn't disintegrating, you can apply these principles for a process of improvement and growth. YPP has been engaged this year in an in-depth revision of our strategic plan and we have begun applying some of the principles of this book in that process. For example, principle 3 is to "manage the mental factors" and includes involving people in thinking through issues and involving outsiders. We are doing both of these this year. We have staff evaluating processes and services to help identify ways we can improve efficiency and we have re-engaged a group of trusted advisors. We encourage you to see how these principles can be applied in your business.

Employers Facing Social Media Policy Challenges

2009-10-19T09:58:00.000-07:00

"Social media is content created by people using highly accessible and scalable publishing technologies..." en.wikipedia.org/wiki/Social_media

Social media has expanded exponentially in recent years, leaving many businesses and their employees in uncharted territory. Facebook, MySpace, Twitter, LinkedIn, Blogs, Instant Messaging... and countless others means of humans interacting electronically. People are interacting in ways that did not even exist until very recently and creating serious challenges for businesses and their employees because there are no established guidelines, no one-size-fits-all policy and no slow down in sight. It isn't just Gen Y either. My 80 year old mother regularly communicates with friends and family on Facebook so don't assume your employees aren't there or in countless other places in cyberspace.

Not very long ago if companies added computer, internet and email usage policies to their handbooks they could be pretty confident that their risk was minimized even if not completely eliminated. If the policies were properly communicated and enforced, in conjunction with solid non-disclosure rules, most employees would not breach company security, disclose proprietary information or waste their work hours playing video poker. With the addition of some basic monitoring of employee computer usage, a good firewall and sometimes more sophisticated surveillance it was relatively easy to control the electronic flow of information into and out of the company. Ah, the good old days.

Now, completely new electronic communication methods are leaving business owners and managers befuddled and frustrated in their attempts to address them in the work setting. Social media is a constantly moving target. It has incredible potential as a business development tool but also a much darker side. The potential to destroy reputations, put proprietary information in the wrong hands, and create legal and ethical complications create new challenges for businesses.

Challenging, yes, but as this new technology evolves it is possible to establish a workable Social Media Policy to help you take advantage of the upside and manage the downside of this technological evolution reshaping how we communicate and do business. Each business will need to design a policy based on their unique corporate culture.

So what exactly is a Social Media Policy? A review of more than 100 published policies showed that while they are very diverse, there are repeated themes such as common sense, good judgment, responsibility, confidentiality and staying within legal parameters. The other thing found was a tacit recognition of First Amendment free speech rights, carefully balanced against the rights of companies to protect their reputations and proprietary information.

This is a relatively new field of study but there is a large body of information already published, indicative of the vital importance this issue is taking on in the business community. A recent About.com article on developing social media policies quoted Shama Kabani, author of the Zen of Social Media Marketing and her 10 steps to developing a Social Media Policy, which are as follows:

Decide where your company stands with respect to their desired relationship with social media. You also need to decide where you stand relative to monitoring employee use of social media too.

Determine what constitutes social media.

As with any offline or online content written, used, received, developed or saved in company owned electronics provided to employees, clarify who owns what.

Keep confidential and proprietary information private. Respect the privacy rights of other employees and your customers.

Decide who is responsible for managing and participating in social media.

Establish ground rules for employee participation in social media.

While your employees probably already exercise good common sense while participating online, your social media policy must specifically address examples of taboo topics.

Create a system for monitoring the social media sphere.

Make training easily available for employees who want to participate in social media.

One of the other real risks inherent in social media is the instant nature of communication. Once the button is pushed the message is out there and it cannot be retrieved. As we all know, Google has a very long memory. Regularly review your policy and maintain an ongoing dialogue with employees so they know what the policy contains and what the consequences for violating the policy will be. It may be that there are already inadvertent policy violations you will need to address. For instance if your company has a policy that only human resources can give references and employees in your company are using sites like LinkedIn you may need to evaluate those LinkedIn recommendations within the context of your current policy.

Although there is no single policy that covers every conceivable issue, the Social Media Policy developed by IBM and published on their web site http://www.ibm.com/blogs/zz/en/guidelines.html offers a good look at the issues to be considered. IBM has more than a little experience in addressing the consequences of technology innovations and while they encourage employee use of social media technology they have also developed a very comprehensive policy to ensure employees follow company guidelines.

It truly isn't a question of whether or not you need a Social Media Policy because if you have employees and they have access to computers, cell phones or other electronic communication devices you will be faced with these issues sooner or later. The question is really one of what to include and how much monitoring you are willing or able to ensure the policy works for you and your employees.

YPP can assist you with developing your social media policy, so contact your YPP HR Manager or sales@ypp.com.

2010 the year YOU need a PEO

2009-09-18T10:35:00.000-07:00

2010 is shaping up to be an especially dangerous year to be a California Employer. We have the national health care debate, massive losses in the unemployment system, and let's not forget workers comp. While we have no idea what will come out of Washington or Sacramento, what we do know is that there will be tough decisions to make and your business is much better off with a seasoned HR professional available to consult with your executive team. PEOs bring this expertise to your business at an affordable cost.

A PEO is a business that specializes in employment just like your business specializes in whatever it is that you do. They create a co-employer relationship and bring many of the advantages of a large business to small businesses. A PEO administers a large group health program, giving them leverage that small businesses can only dream of. This same leverage exists in many places within the employment relationships and nowhere is that more true than in California. California is a great state to live in but it is a tough state to be an employer. Let's look at how a PEO might assist your business when these hot topics hit your inbox.

The Health Care Debate is clearly going to bring change to the employee benefit area of your business. It makes no difference if you provide health insurance or not, the rules are going to be reshuffled and your entire strategy is going to have to be reevaluated. When the smoke clears there will be changes and your business will have to adapt. A PEO will have seasoned professionals that will evaluate the options and be able to help guide your business through the decision that best fits your business. Nobody knows what the outcome of the debate will be, but change is assured and having experience professionals on your team will be critical to your decision process.

Unemployment Insurance is going up but employers are not necessarily going to be helpless victims. Like any fund, when the unemployment peaks and starts to come back to earth the political process in Sacramento will start looking for ways to rebuild the fund and the first wallet they are going to look in is yours. This is the time to make sure that your team has an experienced player that knows how the system works so you can develop strategies for what is sure to be a tough year.

Grab your wallet because Workers Compensation is headed up again and with history as our guide, we know that the increase will not be even or fair and how you manage your business in this area can make a big difference in the bills you pay. We already know that the WCIRB has proposed increases over 20%, and there is probably more than that for businesses that fail to manage this part of their business properly. The base rates and what finally hits your wallet is impacted by many different areas, most importantly your experience rate - that is directly connected to your safety programs. So managing these costs can have a long term impact on the bottom line profitability of your business. Does your Safety Officer do everything they can to manage the experience and make sure that you only pay your fair share? Some businesses end up paying more than their fair share because they do not understand how the system works.

As the Program Director for a regional CEO Roundtable program I have the privilege of personally knowing more that 50 CEOs who run some of the leading businesses in the region and not one of them claims to be a Professional Employer. They are all employers but their focus is like a laser beam on the "Business of their Business", not the business of employment. They are employers because it is required to serve the mission of the business. Their passion is to build or serve the market with a product or service and rarely is that employer services. California has an especially complex set of laws and regulations imposed on businesses and it often gets in the way of serving the mission of the business.

The largest of these companies have Professional HR staff but for the smaller ones this is either not addressed or relegated as an additional duty to someone with little or no background in HR. So it is no surprise that many experience major difficulties in these areas. The liability in HR is often silent until it suddenly hits the business in the form of a law suit or regulatory fine.

I am a serial entrepreneur and have owned and operated small businesses since 1988, and have used a basic strategy of outsourcing everything except for the critical path of the service or product delivery. In other words, I outsource all the things that do not create specific and unique value to my product or service delivery. Because of this strategy I have been a YPP Client since 1999 and I find it one of the most economical and low impact ways of taking care of the employer responsibilities. As I look to next year with all the changes in employer responsibilities in the pipeline, I know that I have YPP monitoring these areas and helping me make the decisions I need to make to implement whatever comes out of Washington or Sacramento.

Like any business decision you have lots of choices when you are selecting a PEO and like lots of other decisions it is the people you chose that make the difference.

Building Harmony in the Workplace

2009-09-15T16:31:00.000-07:00

Wouldn't it be wonderful if every workplace operated in a harmonious way? Fortunately, for many companies in our community, this is the case. Organizations with people who work in harmony have capabilities that nurture their capacity for pleasure and work. Ultimately, companies in which people collaborate best will have a competitive edge.

Naturally, conflict is inevitable. People are human and sometimes drama just happens. While some conflict can be good and productive in a dynamic environment where people are challenged to take risks, most conflict is detrimental to an organization... especially if it's not dealt with effectively. Hence, conflict becomes an obstacle that leaders must learn to manage to the benefit of the organization.

Organizational leaders are responsible for creating a work environment that enables people to thrive. If turf wars, disagreements and differences of opinion escalate into interpersonal conflict, you must intervene immediately.

Five key considerations for building harmony in the workplace:

1. Do not avoid the conflict, hoping it will go away. It won't! Conflict that appears to have been superficially put to rest will rear its ugly head whenever stress increases or a new disagreement occurs.

2. Do not meet separately with people in conflict, and leave it at that. It's good to understand each side's point of view. It's even better to bring the individuals together to facilitate communication between the two individuals to help them understand the impact that one is having on the other.

3. You can't force people to like each other, but you definitely can contend for a respectful work environment. Keep in mind that this is one hurdle you will likely never jump over if you don't lead by example.

4. Remember, the participants are not the only ones affected by the conflict. Everyone is influenced by the tension! People feel as if they are walking on egg shells in the presence of the antagonist. Your team members may take sides and cause division in your organization.

5. Do not allow problem employees (those negative instigators) to overpower your organization. After you've done all that you can to coach and counsel those individuals, consider parting ways with them.

An organization is better equipped to handle conflict if it has laid a strong foundation. Working in a way that builds harmony can be learned both at the individual and group level. The key is practice! Extinguishing dysfunctional patterns and habits, and replacing them with new ones that reflect the company's values will result in a harmonious workplace.

YPP Book Club

2009-09-15T15:24:00.000-07:00

Emotional Intelligence, by Daniel Goleman

We've all had that employee who we hired with such great expectations. Their resume was impressive, including both experience and education that indicated they could be a star employee, and they generated such confidence during their interviews. However, they failed to engage with other staff, de-motivated co-workers, and just generally failed to perform. What happened?

The 10th Anniversary Edition of Emotional Intelligence provides a lot of insight into how this happens. Daniel Goleman was one of the people who put the concept of Emotional Intelligence (EI) at the forefront of discussions about the "ingredients of life success". Since the original book was published, EI has spread globally, far beyond Goldman's expectations. Educators now assess "social and emotional learning", and companies now routinely evaluate EI in hiring, promoting and developing their employees. We selected it for this months Book Club because we have been surprised by how many times recently we have heard EI used in discussing concerns about employees.

The EI concept challenges the idea that IQ, while a measure of intellectual ability, also equates to the probability of success. One myth that has developed since the original publication is that EI accounts for a full 80-100% of career success, and Goleman makes it clear that this estimate doesn't take into account some other factors. However, there is data that indicates IQ accounts for only about 20% of career success and that Emotional Intelligence is a much stronger prediction factor, particularly in positions where the ability to control and motivate oneself, control impulse and emotions and have empathy and hope are important. How many positions do you have where these abilities are not important?

Chapter 10 brings the concept of EI straight to the workplace, with examples of how low EI impacts it. Goleman conveys his belief that the workplace where empathy and compassion for employees conflicts with accomplishing the organizations goals is outmoded. Instead, EI is essential to the workplace of today. A quote from a psychologist at Harvard Business School captures this idea: "...the virtuoso in interpersonal skills is the corporate future."

What the rapid embracing of EI since the original publication means for our businesses is the early development, at the grade school level, of assessments and education focused on EI, so we will have an opportunity to hire people who have stronger development in this area. In the meantime, it's important to screen, coach and develop towards strong EI to ensure the best probability of success of our employees. For YPP's recommendations in this area, see our HR article this month Emotional Intelligence: It Takes More than a High IQ.

While the book has a lot of psychological detail, it is worth reading to understand the interplay between IQ and EI, and help improve your workplace and success.

For more information on the "Business Case" for EI, see: http://www.eiconsortium.org/reports/business_case_for_ei.html.

Emotional Intelligence: It Takes More than a High IQ

2009-09-15T14:54:00.000-07:00

"Emotional intelligence is the ability to sense, understand, and effectively apply the power and acumen of emotions as a source of human energy, information, connection, and influence." Robert K. Cooper. Ph.D.

As Human Resource professionals we experience firsthand the complexities and challenges of managing people in organizations each day. We often find ourselves completely baffled when really smart people act very "un-smart", sometimes sabotaging their careers and personal lives in ways that seem inconsistent with their IQ scores. The flip side of the coin is the individual with only average intelligence who consistently excels in their career and personal lives at a level far above what their IQ score would lead us to expect.

Could it be that IQ measurements are only giving us part of the picture or have we even been measuring IQ in a meaningful way? All of us have encountered high IQ individuals whose career/personal lives just don't seem to jive with their high IQs. Obviously IQ alone isn't telling the story. If it did then everyone with a high IQ would be a star performer in their professional and personal lives. We could just hire people with the highest IQs and all of those messy HR issues and performance problems would be a distant memory. We all know that just isn't the case and as early as the 1970's and 1980's the theory of "emotional intelligence" began to be put forth as the missing link in the IQ puzzle. Daniel Goleman's book "Emotional Intelligence: Why It Can Matter More Than IQ" was first published in 1995 and continues to be considered a groundbreaking work on the subject although the body of literature on the topic has become very substantial.

The true significance of the theory of Emotional Intelligence or EI really struck me recently when my nephew, a college psychology major, enrolled in a full semester course that uses Goleman's book as a text. Our subsequent discussions have been enlightening as I've come to understand that Emotional Intelligence is now viewed as a mainstream concept and fully embraced by many in the academic and business communities.

So what exactly is Emotional Intelligence and what role can it play in your business life? The fundamentals of EI based on Goleman's model are fairly straightforward: to be successful requires the effective awareness, control and management of one's own emotions, and those of other people. Ok, so what if an employee lacks EI? Is it something we are born with or can it be developed throughout the course of our lives? The question has been studied and debated extensively. The definitive answer remains a work in progress because we are constantly increasing our understanding of human psychology and how the brain really works. For now we will leave the minutia to academia and focus on the question from a practical employee management perspective. The bulk of the available literature says yes, your employees and managers can improve their EIs.

Adele B. Lynn's book "The Emotional Intelligence Activity Book" , offers the following five sets of talents as critical to EI development. I am including these in their entirety as a concise framework from which to begin examining EI:

Self Awareness and Control - This talent comprised two separate skills. The self-awareness component demands intimate and accurate knowledge of one's self and one's emotions. It also demands understanding and predicting one's emotional reactions to situations. One who is emotionally competent at self-awareness is also fully aware of one's values and core beliefs and knows the impact and effect of compromising these core components. The self control component requires full mastery of being in control on one's emotions. Both positive and negative emotions are challenged in the most productive manner when one controls the emotion versus having the emotion control the person. The person with mastery and control of emotions can anticipate and plan emotional reactions to maximize effectiveness.

Empathy - empathy requires the ability to understand how others perceive situations. This perception includes knowing how others feels about a particular set of events or circumstances. Empathy requires knowing the perspective of others and being very able to see things from the value and belief system of the other person. It is the ability to fully immerse oneself in another's viewpoint, yet be able to remain wholly apart. The understanding associated with empathy is both cognitive and emotional. It takes into consideration the reasons and logic behind another's feelings or point of view, while also allowing the empathic party to feel the spirit of a person or thing.

Social Expertness - Social expertness is the ability to build genuine relationships and bonds with others that are based on an assumption of human equality. It allows people to genuinely express feelings, even conflict, in a way that builds rather than destroys relationships. Social expertness also enables a person to choose appropriate actions based on his or her feelings of empathy. The talent of social expertness allows caring, support, and concern to show for fellow humans in all of life's situations. Social expertness also demands that one read social situations for readiness, appropriateness, and spoken and unspoken norms. Resolving conflict without compromising core beliefs or values is an important component of social expertness. High social expertness also allows for strong networks on both a professional and personal level that can be enlisted readily when needed for aid.

Personal Influence - Personal influence is the ability to inspire others through example, words, and deeds. It is the ability to lead others by way of social expertness. Personal influence is the ability to read situations and exert influence and leadership in the desired direction. It is also the ability to confront issues that are debilitating to relationships, goals, missions, or visions. Personal influence is, in addition, exhibiting motivation for one's visions, missions, core values, and beliefs.

Mastery of Vision - Mastery of vision requires that the individual has the ability to set direction and vision guided by a strong personal philosophy. The ability to communicate and articulate with passion regarding direction and vision are also essential to mastery of vision. The talent serves as the inner compass that guides and influences one's actions. This inner compass also provides resilience and strength to overcome obstacles. It is the inner motivator and the guardian angel of our purpose. Mastery of vision allows us to know who we are and what we are compelled to do with our lives. When our actions words are consistent with this personal philosophy, it is our sense of authenticity. When inconsistent, it is our sense of stress and discomfort.

So, you may be asking, why does any of this matter to me as a business owner or manager? For those of us who address HR issues on a daily basis it doesn't require psychologists or academics to tell us EI is important. We seldom receive calls about employee issues that are rooted in a lack of IQ but each and every day we address issues with employees and managers that are EI based. Employees and managers with low EIs cost you time and money. High EI performers will quickly flee a situation where managers and coworkers are lacking good EI's. A frustrated high EI employee may not know the technical term but will know the work environment is "off" and seek a more positive and constructive job opportunity.

The concept of EI and its relevance to work/life success has become integrated into the framework of even the largest corporations. "Interpersonal communication and other so-called soft skills are what corporate recruiters crave most but find most elusive in M.B.A. graduates," says the Wall Street Journal. "The major business schools produce graduates with analytical horsepower and solid command of the basics - finance, marketing and strategy. But soft skills such as communication, leadership and a team mentality sometimes receive cursory treatment." Wall Street Journal.

While you may not have the time to become fully conversant in the language of EI that doesn't mean your company cannot derive benefit from the concept. You can easily implement some basic business practices that can help improve your company EI. For instance, when you are recruiting new employees include a few behavioral interview questions that will give you some indication of the applicants EI. As an example, ask someone about a work situation that was frustrating and listen carefully to how they respond. Do they have a balanced view or is their first response to lay blame or take all the credit for the solution? Another opportunity to up the EI in your organization is by consciously and consistently modeling communication and behavior that supports improved EI. It may be tempting to use some of the trendy pop EI assessment instruments you will find on the internet and in various popular books. While these can be a lot of fun and offer some personal insight we urge caution with these as hiring or promotion tools. Profiles International, the company we use for our psychometric assessment instruments has been working to develop a comprehensive EI assessment instrument for more than 5 years. The instrument is still in development and testing, since they have found it very difficult to develop a reliable tool that will meet validation standards, so if some of the best professionals in the world are proceeding cautiously we urge you to do the same.

As managers, if we can better maximize individual effectiveness we can achieve better organizational results. Working with our employees and managers to raise their EIs is an opportunity to improve the quality of their lives, their job performance, the work environment and ultimately your bottom line. So where to begin? In addition to the two excellent books cited here you can log onto www.eiconsortium.org and find a substantial number of recommended books and articles.

HR Impacts - Healthcare Reform & Public Policy Mandates

2009-08-21T09:50:00.000-07:00

We are watching the health care reform debate with keen interest. Not from a political perspective, although like most Americans we have personal opinions and preferences, but from an HR perspective. Ours is a pragmatic view gained from more than twenty years on the front lines in HR helping businesses of all sizes address significant changes in public policy. This experience makes us acutely aware of the risks and the challenges dramatic public policy shifts bring including consequences both intended and unintended. All of this public policy change must be analyzed, managed and solidly integrated into the revised business model to minimize disruption and stay in compliance.

The current healthcare debate illustrates the turbulence significant policy changes bring. While the present debate rages on, it is important to put it into historical context. The history of how health care policy came to be so closely linked to employment is an interesting one. Even prior to the 1920's there were proposals to enact some form of nationalized health insurance but the proposals failed for a number of reasons including low demand for medical care, low health care costs, and a medical community determined to avoid government intervention.

As medical care improved the demand for health care increased as did the cost. The first insurance programs were prepaid hospital plans, eventually leading to the formation of Blue Cross and later the Blue Shield programs in the 1930s. These early efforts required legislative changes to support their operation and much of the development of this private system was led by hospitals and physicians who wanted to avoid creation of a public insurance system. Insurance continued to evolve while remaining in the private sector, and Blue Cross and Blue Shield discovered they could address the issue of adverse selection by offering insurance to groups of employed workers. Thus the birth of the link between health care and employment that continued to evolve and grow stronger as public policy continued to support an employer-based health care system, including tax related financial incentives. Health insurance and HR remain firmly interconnected as a result and unless the entire employer-based healthcare system is completely eliminated and replaced by a public option that will remain true.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) first enacted in1985 was one such policy shift. COBRA was implemented to bridge the gap created when individuals and/or their dependents lose employer sponsored health coverage. Although COBRA policy is now well integrated into the fabric of our health care system it was a hotly debated public policy change when first proposed. Later a heated debate followed in California when CAL-COBRA brought employers with as few as two employees under the COBRA mandate. And again in 2008 we saw major COBRA change with premium subsidies mandated in response to the recent economic downturn.

Another major HR mandate created by a shift in public policy was the passage of the Americans with Disabilities Act of 1990. A direct descendent of the civil rights movement, this legislation had significant impact on employers as facilities, hiring and management practices underwent dramatic changes. Even after nearly 20 years we find organizations in need of guidance to ensure compliance with all of the complex regulations resulting from this public policy decision. Even when failure to comply is unintentional businesses can face serious consequences.

The creation of the Family Medical Leave Act of 1993 (FLMA) was a policy mandate that grew directly out of dramatic changes in the make-up of the workforce. Women often lost their jobs due to pregnancy and their role as caregivers had become increasingly complex as families struggled with challenges of protecting their jobs when faced with personal or family medical or care giving responsibilities. California and some other states also created programs supplementing or overlapping the Federal legislation, leaving employers faced with complex leave management issues. Again, a shift in public policy created complex challenges as organizations sought answers to a maze of regulations and YPP became the resource they relied on to assure they remained compliant.

These and many other public policy changes over the years have given YPP a great deal of hard earned expertise in implementing HR mandates created by public policy changes. Partnering with clients to manage these and other policy implementation challenges over many years has given us some insight on how an employer can best prepare to integrate policy changes with a minimum of disruption to the business.

So how do we navigate though the policy shift process? At YPP we take a multifaceted approach beginning with close attention to any policy debate that may impact HR. Such diligence ensures we have a comprehensive understanding of the issues and outcomes. Once we know a policy change is likely we perform a painstaking analysis to determine how clients will be affected. The final stage of the process is the development of an implementation strategy including procedural steps to incorporate the changes and timetables to ensure timely compliance. Policy development is never tidy, as the current healthcare reform debate demonstrates, and the target is always moving so we must be prepared to make many adjustments throughout the process.

Although the current situation is uncertain and the final outcome unpredictable we believe every organization can take steps to begin prepare for this or any significant policy shift to minimize disruption, especially during the implementation phase of the process.

Stay informed, for instance trade associations or other professional memberships will provide more relevant information than the talking heads on cable news.

Identify your team of experts and stay in touch. Their help with analysis and an implementation strategy will save time and prevent missteps.

Check in with your HR team and get their perspective

Know your current status, in this case your present health plan and what it offers.

Plan your resource allocation including people, time and money.

Consider outsourcing the transition so you can focus on the business of your business and minimize your risk of getting it wrong with the attendant penalties and frustrations.

Caution - Even Good Intentions May Violate Employee Rights

2009-08-21T09:44:00.000-07:00

Sometimes an employer's best intentions will lead decisions or actions which unintentionally violate an employee's rights and can even lead to discrimination charges.

We regularly see this happen when an employee returns from leave or notifies their employer of a pregnancy or other medical issue. Often the employer, either out of concern for the employee, business productivity, or company liability, wants to impose restrictions or limitations on an employee's job activities beyond what their physician has outlined or what is legally permissible. Even, in very rare instances, an employer will want to terminate an employee who is pregnant or otherwise limited by a medical issue because they do not understand the legal protections afforded to their workers or find required accommodations inconvenient or too costly.

In the case of a pregnancy or other medical issue an employer cannot allow personal bias, business productivity or even concern for the worker or your business to overrule the legal protections afforded employees. Seek professional guidance before limiting an employee's work activities or taking an adverse action against an employee who is pregnant or has a medical issue to ensure you fully understand the applicable laws and regulations. Sound advice can help you avoid unintentionally violating an employee's legal rights and the serious consequences that may follow.

We recently received this from Shepard Mullin, one of the leading labor law firms and YPP's employment law firm, illustrating just what can happen when an employer oversteps these legal boundaries.

Unsubstantiated Concerns Ruled Pregnancy Discrimination - A Cautionary Tale

The California Court of Appeal recently affirmed a decision by the Fair Employment and Housing Commission ("FEHC") finding that an employer discriminated against a pregnant employee in violation of the Fair Employment and Housing Act. In SASCO Electric v. FEHC, an extremely experienced female who served as a second captain of a yacht was terminated shortly after she informed her employer that she was pregnant. Her employer was admittedly disappointed by the news because he believed that "mothers do not want to work in the boating business." Moreover, he believed the employee's plan to work as long as possible during her pregnancy was "cavalier." Further, he had liability concerns (e.g., her exposure to chemicals and possibly falling on the boat which could lead to a miscarriage). These fears lead the employer to terminate her employment under the guise of a layoff.

The court held that the employer's paternalistic assumptions took away the woman's right to decide when during her pregnancy she should stop working and when she should return to work after her child's birth. In addition, it held that the "reduction-in-force" reason for her termination was a pretext because when additional help was needed, the employer did not attempt to recall the plaintiff and instead hired less experienced individuals. Accordingly, the court affirmed the award to plaintiff of back pay, even for the period of time the plaintiff's doctor would have restricted her work because the employer would have had an obligation to provide a reasonable accommodation (e.g., temporarily transferring her to a less strenuous or hazardous position). The court also affirmed the award of $85,000 for emotional distress damages and the FEHC's decision to impose an administrative fine as there was clear and convincing evidence of oppression and malice.

The SASCO Electric case serves as a good reminder to employers to tread carefully when dealing with pregnancy issues. Employers must not impose their own views onto expecting employees and instead should work with them to explore reasonable accommodations in order to avoid allegations of discrimination.

Book Review - Small Giants

2009-08-20T11:17:00.000-07:00

A management consultant YPP works with recommended a number of business books for us to read recently. I have to admit, I am someone who generally finds business books either very dull or too simplistic; I don't want to read an entire book to glean a few truly new ideas or concepts that I haven't already come across in my years as a business owner. However, I have been very pleasantly surprised by our recent experiences with some of these, so Cindy and I have decided to launch the YPP Book Club. We'll provide you with our review each month of a business book that we believe is excellent and informative.

Our first review is Small Giants: Companies That Choose to Be Great Instead of Big. While this was first published in 2005, we finally just read it and were excited about it. We reevaluated our own growth goals several years ago and realized that we had no desire to become a very large company. For us to accomplish that meant a substantial change in what we consider the core of our business: our ability to know our clients, understand their business, and adapt services quickly to meet their needs.

Small Giants is about companies like YPP who have chosen to stay "small", but can still achieve success. The author interviews 14 diverse companies of all sizes, from 2 to over 1900 employees and a variety of industries, and then identifies the similar traits he found among all of them. "Success" for all of them includes sustained profitability, connections with their community, strong relationships with their clients, and engaging workplaces. Growth simply for the sake of growth isn't all that it's made out to be, and many small companies will lose what makes them Small Giants by trying to do that.

I do have to disagree with one aspect of this book. The author tells the story of a PEO owner who struggled with his business and believes that the only way a PEO can be successful is to become very large. I know this PEO owner and have the highest regard for his knowledge and business, which he has developed into one of the largest in the country, but I fundamentally disagree with the idea that companies in some industries have to become huge to be successful. The most successful PEO's in the country, defined as the most profitable, are smaller ones!

This well-written book should inspire thousands of entrepreneurs to reject a mantra of growth for growth's sake in favor of a passionate dedication to becoming the absolute best. Bo Burlingham reminds us of a vital truth: big does not equal great, and great does not equal big. -- Jim Collins, author of Good to Great

Reviewer: Sandra Dickerson, co-CEO, Your People Professionals.

The new face in your Mangement Team

2009-07-17T10:59:00.000-07:00

Why should management and HR make a dramatic shift and change the dynamic of HR as usual? Given the challenges of this prolonged economic downturn and the crucial need to leverage every available brain cell in our organizations how can we not? The landscape around us has changed and we need a different map, or better yet a high tech HR GPS system, because business is heading into uncharted territory.

We believe the basic principles below can become the foundation for that HR GPS system. By applying these simple principles you can transition HR from transactional nuisance to transformational strategic partner within your organization. Why bother? Because people are the foundation of every successful business and HR is about people. That means you need to leverage your people talent the same way you seek to leverage your other business assets.

If you need an HR manager or department that "gets it" then how do you help them get there?

1. Business acumen

HR often begins as an "other duties as assigned" function when organizations begin to grow, tacked onto accounting or some other administrative function within the organization. Frequently HR managers, even those with lots of experience, do not come from the trenches of production, sales or general business management. Before HR can understand and manage your human capital needs there must be a comprehensive understanding of the company, its business, products, customers and the competitive environment in which it operates.

As the team leader you must develop a plan to bring HR fully up to speed on what you do, how you do it and why. Drag them out of the rarified world of handbooks and insurance forms into the trenches where your products or services are conceived and delivered. The nuts and bolts of how to achieve this will be vary depending on your organization but if your want your HR to function as a strategic partner then you need to find or develop HR managers who understand the big picture.

2. Analytical mindset

Everyone knows people are complex and cannot be reduced to charts and numbers. However, HR needs to bring their analytical tools of the trade to the table just as accounting, production and sales must. HR should be expected to understand what the big picture numbers mean and where their information fits within the overall organization to maximize your human capital resources.

Be sure HR metrics are understood and applied. If you want HR to be a credible contributor the management team then HR needs the tools and training to give you more than best guesses about your human capital investment. HR metrics properly analyzed and effectively communicated to key decision makers can improve every critical aspect of your organizational management process.

3. Accountability

If you want HR leadership capable of making hard, critical decisions independently, the kind of leadership willing to put their proverbial "ass on the line" then you need to give them a seat at the table and the opportunity to be heard. It also means that as a manager to take a leadership role in changing the perception of HR from the "no sayers" everyone avoids to the "people specialists" within your organization. While it is ultimately up to HR to achieve a favorable reputation within the organization the leadership can set a new tone of respect that creates a more collaborative environment within the management team.

4. It is ok for HR to know what they don't know

There is no question HR should already "know their stuff" when it comes to the nuts and bolts of technical HR. If HR in your organization has never really had a seat at the table then the transition will mean lots of questions, a shift in organizational dynamics and a learning curve. Create a climate that encourages questions and exploration as HR assumes a new position in your organizational structure and develops confidence and their own voice.

5. See HR as a fully vested member of the management team

Before HR can see themselves in their new role as strategic management partner the entire management team must be on board. That means leadership must clearly establish a climate that says HR is as integral to the organization and its success as production, sales, or any other key management area. Give HR the opportunity to make some substantive contributions to help create a new tone within the organization, HR as fully vested member of the management team.

Our current economic situation with all its complexities and frustrations may offer HR the opportunity to gain the position at the management table we have long claimed we should have. No matter how high tech our HR GPS is we will still face challenges as we create new HR models and opportunities as strategic management partners.

Will Creativity be a Recession Casualty?

2009-07-17T10:49:00.000-07:00

Could this seemingly endless recession claim yet another victim, our creative spirit?

As I see my friends, family and coworkers struggling to keep heads above water in an economy stuck in the muck I'm developing a new concern, that our creative spark may get lost. Fear and frustration seem to be driving personal and business decisions and caution is the new black.

Understandably our energy is flagging and the urge to retreat and withdraw is natural given the daily bombardment of poor economic news, but our creativity is the key that can transform our personal and professional lives. For a single individual to lose their creative energy is concerning but for business the loss of the collective creative spark would be devastating. Creativity drives new ideas, technologies and opportunities in every industry throughout the world, always has and always will.

Could the erosion of creative energy slow our economic recovery even further? If so, how can business turn the tide and reignite this vital spark that truly drives our economic engine? There is no single answer because every business culture is unique but the first step is to put it on the agenda.

Putting creativity on the agenda can begin with a simple commitment followed by simple actions. Build creative space into the workday. You delude yourself if you think employees must be relentlessly task driven or they are unproductive. If you fail to build in some breathing room you are depriving your business of perhaps your most valuable asset even if it isn’t reflected with a line on your balance sheet.

Some readily available and inspirational resources are as close as your local library or go to Amazon and type in "creativity". You will soon find yourself inspired by the titles alone. Jump in and rediscover your own creative inspiration and assume a unique leadership role as the CCO, Chief Creativity Officer.

How well do you know your people?

2009-04-16T08:52:00.001-07:00

Are you sometimes surprised by how people respond differently to changing business environments? The American workplace is a fluid environment that is constantly changing and this is especially true of the combinations of people that need to work together. Today's managers have to make critical decisions in an ever changing, dynamic and culturally diverse workplace. This requires an in-depth knowledge of each person's strengths and weaknesses and guessing at this exponentially increases the risks to the business.

In most businesses this knowledge is accumulated over a long period of time through an expensive process of trial and error. One challenge with this is that the loss of the manager results in the loss of a tremendous amount of very expensive tribal knowledge. This is even more important when you consider the new hire. In this case the new person coming into the team is largely an unknown. Through the interview process we learned a little bit about them and expanded our knowledge with reference checking and some skill tests but in reality we know next to nothing about the real person. So the manager is faced with the job of fitting an unknown person into a poorly documented existing team. It is no wonder that this does not work sometimes.

While there is no substitution for a personal relationship with another person, you can rapidly gain a better perspective of another person through the use of psychometric assessments. This tool gives the manager a better understanding of the core characteristics of employees and improves their ability to make team decisions that work better. If your objective is to increase employee performance, improve employee communication, provide leadership training and development, reduce turnover, improve employee motivation, increase sales, or hire the right person this tool needs to be in your toolbox.

So what is a Psychometric Assessment? Simply stated it is a profile of the attributes of the person's personality. It helps you understand strengths, weaknesses, and values/perspective that person uses to make decisions. It advances your knowledge of the job match attributes of that person. We all know that different personality types perform at different levels depending on the challenge at hand. For example an entrepreneurial personality is not likely to be happy in a very structured and repetitive work place but they are incredibly valuable in new product development.

The areas measured by these assessments include: Learning Index, Verbal Skill, Verbal Reasoning, Numerical Ability, Numeric Reasoning, Energy Level, Assertiveness, Sociability, Manageability, Attitude, Decisiveness, Accommodating, Independence, and Objective Judgment. Beyond these measurements it also identifies their interests including Enterprising, Financial/Admin, People Service, Technical, Creative, and Mechanical.

As a business grows, eventually it becomes impossible to know everyone at a personal level. People have many facets to them and these assessments can help you discover things that could take years of working with the person. These tests are not perfect and there is no single answer to how to deal the diverse workforce of today but the more you information you have the better your decisions can be. The question you have to ask yourself is do you have the time to use trial and error or should you step up to something more scientific.

Stimulus Package More Than $...HR Changes Too

2009-03-10T11:08:00.000-07:00

There have already been countless laundry lists published of the HR tasks generated by the new economic stimulus package. HR departments everywhere are scrambling to make the nuts and bolts changes needed to comply. Rather than focusing solely on the new tasks generated by the stimulus package it may be the perfect time to step back and look at the bigger HR picture and how your HR professionals can make a more significant contribution to the management team. The economic stimulus package is ultimately about jobs and a more viable economy. With so much on the table and at stake this may be the perfect opportunity for an HR stimulus as well.

The urgency of the current economic situation means we must move the conversation forward and make our HR professionals much more than masters of the HR task list. Your Human Resource professionals need to assume a far more critical role, strategic management partner. When the economy is good and things are humming smoothly it is easy to for companies to let HR to fall into the role of compliance cops or worse, the equivalent of the shovel and the dustpan at the end of the parade. HR has much more to offer and they will never face greater tests or have a better opportunity to demonstrate their skills, resources and capacity to be key members of the management team.

Business owners, managers and employees are all stakeholders in the economic recovery and it is time for all hands on deck. The moment has come to strip away the endless TV commentary and politics surrounding the Stimulus Package to focus on the day to day work we all must engage in. HR has long held that they deserve a seat at the management table and in the current business climate HR professionals will have a golden opportunity take a seat and assume a meaningful leadership role. This means you should expect your HR professionals must to forth innovative ideas on effective human capital deployment and employee engagement which will bolster business survivability and success. In short, they must demonstrate the ability to be less transactional and more transformational. Only then will HR become your strategic management partner.

Jason Corsello recently wrote an interesting piece on the Human Capitalist Blog summarizing some key points made by Tod Loofbourrow, Chairman of Authoria, when he spoke recently at the Strategic e-HR Conference. He was talking about HR executives that "get it" and laid out the first three qualities summarized below. Jason added the fourth point. These thought provoking ideas put forth by Tom Loofbourrow's and Jason Corsello are the perfect jumping off point to begin an HR stimulus conversation.

1. Business acumen. They have a true understanding of their own company, its business, the products and the industry it operates. Too many HR executives don't even know the products their company sells and at what price or margin.

2. Analytical mindset. They think in numbers not emotions. They leverage data to make decisions and measure their business proactively.

3. Accountability. They are willing to make hard, critical decisions independently and will to put their proverbial “ass on the line”. Accountability also means they have a favorable reputation within the organization and can garner support throughout.

4. They know what they don't know. This really means they know the right questions to ask and surround themselves with smart people, experts and knowledge.

And I would like to suggest another point for inclusion on the list:

5. They see HR as a fully vested member of the management team. They have a thorough understanding where HR fits in big picture of the management puzzle and understand why HR is vital to the success of the company.

So how do management and HR make such a dramatic shift and change the dynamic of HR as usual? In the next few months we will examine each of the areas on this list and discuss what owners, managers and HR professionals can do to more fully integrate HR into the management team.

The Untapped Potential of HR

2009-02-23T13:57:00.000-08:00

Another CEO that I respect stated; "There is no doubt of the potential of HR to move my business forward; what is in doubt is the ability of HR to live up to that potential." While this is stinging comment about the HR profession it is a reasonably fair comment. HR rarely lives up to its potential because the potential is almost unlimited. HR is part of the team that hires, retains, and develops the staff that is the next generation of the business. HR is responsible for a wide range of challenges involving the management of the human capital of the business, while being in charge of very little and having extremely limited authority in most businesses. HR's potential impact is nothing less than the future of the business and HR, by design, must negotiate with other managers to accomplish the decisions that must be made.

The role of HR is to maximize the effectiveness and organization of your staff. This was elegantly put forward by the book "From Good to Great". In this business classic the author expresses a goal of "Getting the right people on the bus" and putting them in the "Right Seat". This is the potential of HR and the task is inherently difficult because every person put on the bus and every change in business strategy changes the right fit for the next seat. Proper assessment of your employees, contractors, and partners is critical to these bus decisions.

HR is a never ending stream of investigations, recommendations, negotiations, and decisions intended to assemble the best team. The problem, as every executive knows, is that there are a thousand ways to build a business, and not all people you build it with are the same. Right now our businesses are facing a very difficult economic period and it is time for many businesses to take roll call on the bus and assess the fitness of the team. This is where HR professionals can be a great asset to your management team.

HR's role is to manage the complexities of job match and to establish policy that provides a fair system for managing the unavoidable conflicts that happen in every organization. Some degree of personality conflict is actually good for a business and certainly we need diversity when we are trying to solve complex business issues. With diversity comes conflict and competition and when managed properly these are assets not liabilities. A strong HR can contribute as a natural third party that brings the diversity together and helps focus it on the business objectives.
As we lead our organizations through this difficult economic period we need to make sure we have the right people on the bus, and HR should take a lead role in validating this. We need to deploy the best tools we have for staff assessments, examine group dynamics, and professional development plans. We need to be asking the tough questions like:

Do we have people that have been over promoted?

Do we have people that need to be promoted?

Do we have technical experts in leadership roles rather than creating innovation in the organization?

Do we have leaders in technical roles?

Do the styles of the various leaders fit together as a well balanced team?

Do we need every position that is authorized?

Are salaries in line with the current market?

Do we have obtainable and clearly expressed goals for each position?

Are goals across the organization aligned with each other?

Are bonuses and incentives designed for maximum advancement of the business?

Are policies and procedures updated for changes in technology and staffing?

Do we have effective team practices in place?

Are people properly motivated?

These are tough introspective questions about your business but those that answer and then address these issues will be the ones talking about how they flourished during the 2009 recession. In the current economic condition some are going extremely defensive cutting every expense in sight and going to into extreme defensive mode. While others are taking advantage of their competitor's defensive position to gain market share. Which strategy is right for your business depends on who is on the bus and where you are going? It is time for the HR profession to step up and help their organizations facilitate this discussion.

Author: Sandra Dickerson Esq., Co-CEO, Your People Professionals

POP QUIZ: What Kind of Leader Are YOU?

2009-02-23T08:40:00.000-08:00

Take our quiz to find out what kind of leader you are. Keep in mind that leadership qualities can change depending on your role, your manager's leadership style, and your employees' differences. Also, you might use a combination of several styles depending on your team's personality, the type of role you have, and the work issues you face. This quiz only suggests how you might respond to important decisions that you might face on a regular basis.

1. You have two days to make a big decision. You:

2. What do employees want most from their jobs?

3. Your team misses a deadline. You:

4. When you have an idea you believe is good for the company, you:

5. When a trusted team member is late for three meetings in a row and is evasive with you about the reason, you:

6. Budget concerns mean there will be no raises in the new fiscal year. You:

A. Discuss the issue with no one, but write and distribute an internal memo instructing people with questions to see you.

B. Tell your veteran team members there will be no raises, and let them inform employees the way they see fit.

C. Convene a meeting of team members, break the news and allow questions. Then ask them for ideas on how to tell everyone else and what your organization can offer instead of raises.

D. You never plan raises in your budget anyway, so it doesn't matter.

If you answered mostly A: A is for autocratic leadership. Although you get the job done efficiently, you tend to be a bit inflexible and this could build resentment among employees, giving you results that will prevent your organization's growth (lack of development and high turnover).

Light-bulb moment: Develop some of your trusted subordinates by teaching them what you do so well, and you won't have to work such long hours. You might even enjoy work more!

If you answered mostly B: B is for benign, or laissez-faire leadership. Your style works best when people are old hands at their jobs, and your employees appreciate you for putting your trust in them. However, be sure to designate specifically who is responsible for which projects or they may not get done.

Light-bulb moment: Set firm deadlines and check along the way to make sure you get what you expect. Also, schedule dates for reports to come directly to you in the form (written or oral) that makes sense for you and the team.

If you answered mostly C: C is for collaborative leadership. It's a nice way to make team members feel useful and a good development tool. It also cuts down on cutthroat competition if everyone has an equal say.

Light-bulb moment: If you are a leader who thrives on quick decisions, or if your organization requires them, find a way to compromise between you-think and group-think.

If you answered mostly D: Your employees probably do not trust you. Do you trust yourself?

Light-bulb moment: One of the first things you can do is to lay a strong foundation by treating others the way you wish to be treated. If you want the responsibility of leading, develop your interpersonal skills in leadership training courses.

"Business is a combination of war and sport." - Andre Maurois, French Author

Who is your Chief Performance Officer?

2009-02-23T08:27:00.000-08:00

This week Barack Obama appointed a Chief Performance Officer for the Federal Government, focused on assessing the performance of government programs and finding opportunities to reduce waste and eliminate low-performing investments. So who is the Chief Performance Officer in a business?

We have been studying this issue and I wrote about this topic several years ago in CLO Magazine, so lets revisit this issue in today's economy. My thesis is that that strong Human Resources and L&D leaders have the opportunity to play this role in a highly strategic way.

Let us look at the three "owners" of performance in a business:

1. Business Leaders own operational business performance.

Unlike the Federal Government, where program managers are really "spenders," in our companies the people who spend money are held directly accountable for results. The VP of Sales has a sales quota, the VP of Manufacturing has a production and quality quota, and the VP of Customer Service has a customer satisfaction and rate of response quota.

2. Finance Leaders own financial monitoring and budgeting.

In most companies the CFO or Finance organization monitors spending, headcount, and expenses. Their job is not to drive performance, per-se, but rather to monitor financial performance and give the business and HR leaders the information they need to quickly realign resources when things are not going well.

For example, when Starbucks realized its business was slowing last Fall, the CFO quickly announced a slowdown in sales, store traffic, and other information - this information was then used by retail operations and staffing to cut or reduce hiring and close strategic locations. Ultimately the work of improving performance goes back to the business leaders.

3. Strategic HR and L&D Leaders create Processes and Systems to drive performance.

When done well, strategic HR or L&D leaders (often the CLO, or VP of OD) actually know more about why performance suffers than many other leaders. They have the tools and visibility to understand where weak leadership, low engagement, mis-alignment, or skills-gaps are holding the organization back.

In addition, the tools of talent management (performance management, goal alignment, leadership and supervisory development, succession management, total rewards) are powerful levers over performance. Our research clearly shows that these "people processes" really matter.

How People Processes drive Performance

Consider some of our research findings over the years. Organizations with a strong "learning culture" are 12-15% more profitable over a 10 year period than those without such a learning culture (The High Impact Learning Organization®, 2008). Organizations with strong competency-based performance management processes drive higher revenue growth and profitability by industry (The Role of Competencies in Driving Financial Performance, 2007).

Consider the impact of people on expense and resource allocation. The typical business spends 60-70% of its total expenses on payroll, and of course employees make decisions every day about where to spend money. When people are unproductive or misaligned, vast amounts of money are wasted.

Finally consider the importance of decision-making in an organziation. Every day virtually every employee makes decisions about what to do, how to behave, how to deal with customer or internal problems, and how to share or interact with others. These individual decisions (like tiny little economies in the macro-economy) make up the lifeblood of organizational performance. When the people side of the business is not managed, dysfunctional and unproductive decisions are being made all the time.

Building the "People Performance Model"

I would suggest that one of the most strategic things you can do as an HR or L&D leaders is to build your organization's "People Performance Model." Essentially this means uncovering the "secret sauce" which makes your organization perform. Let me give you an example.

This week I had the opportunity to talk with the Chief Talent Officer of Lowes. He told me that after a year of research among thousands of stores they found that the #1 driver of retail store financial performance is employee engagement. This is not a glib or simple conclusion. Similar research by Gallup (The Human Sigma), found that retail stores with high employee commitment levels generate 3.4X the return of stores with low employee commitment levels. In fact, this research found that retail employee engagement has a bigger factor on customer retention than satisfaction with the products themselves.

So in the case of Lowes, where the Chief Talent Officer analyzed store performance in detail, the company has now decomposed the level of engagement into three driving factors: employee-manager relationship, job fit and career opportunity, and total rewards. These findings are not rocket-science, but in the case of Lowes the correlation analysis is so strong that the company can go into each store, measure these three engagement elements, and predict how well a store will perform.
Lowes also found something else. There are two pivotal job roles which drive these three engagement indexes: the store manager and store sales manager. The store manager is a real manager; the store sales manager is actually an individual contributor who one would consider a strong "influencer" of in-store employee engagement.

This work is what one could call the "People Model" or "People Performance Model."
What Lowes can now do is filter all their HR and L&D investments against this model. In their case the Chief Talent Officer is looking at the company's leadership develpment programs with a strong focus on what it takes to help store managers better coach, align, and communicate with employees. In this case the solution involves a very specialized, highly customized supervisory development program.

Why HR or L&D Leaders are so Important

I would argue that you, as a strong HR or L&D leader, must lead this type of effort. You, as an HR or L&D professional, best understand the way that performance management, leadership, rewards, learning, and systems fit together to drive high performing teams and organizations. By working with your leadership, you also have the closest understanding of your company's "secret sauce."

As I will be presenting at IMPACT 2009® this year, our latest research clearly shows that organizations which implement high-performing learning cultures, strong talent management strategies, and build a true "people plan" drive much higher long term (5-10 year) financial performance than those which have weaker or less mature people strategies. If you are an HR or L&D leader, you should rethink your role as the "Chief Performance Officer." Rather than just "implement HR programs," focus on understanding the core people model in your organization:

What are the critical roles that drive success? What is the profile of a high-performer in your organization? What cultural and leadership elements drive success? Why do people fail in your organization? How can you use this information to build HR and L&D processes which build, reinforce, and improve these factors?

If you think about your role in this way, I can guarantee that you will become a "Chief Performance Officer" - and such a focus will improve your career, your impact, and your organization's success.

About This Analyst

Josh Bersin writes on the ever-changing landscape of business-driven learning and talent management. His favorite topics include strategic talent management, creating high-impact learning organizations, and how organizations drive business change and competitive advantage through talent strategy and technology.

The Americans with Disabilities Amendments Act (ADAAA):

2009-01-13T14:09:00.000-08:00

On September 25, 2008, President Bush signed the ADA Amendments Act of 2008 (ADAAA), for an effective date of January 1, 2009. The Act updated the Americans with Disabilities Act to provide broader protections (at the federal level). The Act is intended to strengthen the original intent of the Americans with Disabilities Act by clarifying several Supreme Court decisions. This new legislation allows more American workers to qualify as disabled under the new guidelines.

There are three major changes to the current Americans with Disabilities Act. The new law:

So what does this new federal legislation mean for the small business employer in California? Not as much as you may think.

The Fair Employment and Housing Act (FEHA) in California, which applies to employers with 5 or more employees, requires that an employer provide reasonable accommodation to persons with disabilities. California law also prohibits discrimination against a person based on a medical condition. A "medical condition includes any health related to or associated with a diagnosis of cancer, or a record or history of cancer, as well as an individual's genetic characteristics". In a California Court of Appeal, it was held that the FEHA does require reasonable accommodation in a "regarded as" situation.

FEHA remains as strict as the newly amended federal ADA, and may be even stricter in some regards. However, any time there is publicity about employment laws, remember that your employees hear or read it also, and your exposure to lawsuits increases. It's important to be aware of your ADA obligations and be alert to possible ADA triggers such as:

candidate screening: including a question on your application that asks if an applicant has a disability
employee absences: frequent absences or absences for long periods of time
performance issues: a sudden change in productivity or quality of work
behavioral change: inability to focus, inconsistency with job tasks, inability to work with others
employee termination: your employee resigns and then rescinds their resignation, or resigns for personal reasons.

As always, stay alert and if you need clarity or have questions contact your Human Resources representative or legal counsel.

Don't Let Economic Stress Become an Employment Lawsuit

2008-12-31T10:56:00.002-08:00

None of us can be certain of what to expect in these turbulent economic times but we can be certain most of us will see increased workplace challenges. HR professionals and the labor law community are being advised to anticipate significant increases in work related complaints and lawsuits as the fallout from the current economic downturn continues.

In this volatile business climate employees are anxious to alleviate their economic and emotional pain and an employer may become the focus of employee frustration and anger. The result may be a financially and emotionally draining lawsuit at a time when every business resource is already stretched too thin. The U.S. Equal Employment Opportunity Commission (EEOC) reported 2007 as having the highest volume of incoming private sector discrimination charge filings since 2002 and the largest annual increase since the early 1990's. We can only imagine what the final tally for 2008 and beyond will be given the rapid deterioration in overall economic conditions. Employers who believe this won't happen to them can be seriously wrong; former employees who find their unemployment benefits ending, savings gone and no other job prospects in sight have significant motivation to look for a lawsuit.

Lawsuits can run the gamut from age discrimination to harassment. In a volatile economic climate employers must be extra vigilant to ensure legally compliant employment practices are in place and enforced. Managers and supervisors must be educated on legal employment practices and held accountable for maintaining sound HR practices.

Workforce reductions are a particularly difficult issue and employers often make serious legal mistakes which leave them vulnerable to wrongful termination suits. Some simple advance planning and careful management of the termination process can make all the difference in terms of legal liability.

If a workforce reduction becomes necessary the following steps are critically important:

Determine the criteria to be used to establish who will be laid off and be certain it is consistently applied. Carefully evaluate whether your criteria have a disparate impact on protected categories before you implement your plan. If there is any question call on a professional to do an objective evaluation.
If you are basing reductions on merit be certain your selection process can withstand scrutiny. Nothing spells lawsuit faster than laying off someone for poor performance when their performance reviews have been positive. This is also not a time to try to rewrite history so be sure if you have a performance appraisal process in place it gives an accurate picture of an employee's performance.
Document the workforce reduction process and educate your managers on the process and their responsibilities.
Be honest with employees during the process and avoid making promises or sugar coating the truth.
Always treat laid off employees with dignity.
If at all possible have more than one person present during the termination and document it.

Maintaining solid HR practices during difficult economic times is the key to preventing difficult and costly legal challenges.

How to Judge Applicants

2008-11-18T13:12:00.000-08:00

"The trouble with doing something right the first time is that nobody appreciates how difficult it was"
Walt West

Most employers are still using the interview as their primary screening device. While the interview is an important aspect of the process, it is very
subjective. Studies show that using an interview alone gives you only a 14% chance of the employee being successful.

By doing background checks and checking references this percentage increases to 26%, or about 1 out of 4 people you hire will ultimately be successful in the position.

What Works?
It is important to look at the steps leading to a hiring decision and to limit personal biases as much as possible.

Today, employers have proven scientific ways to make the hiring decision a less emotional one. For instance, many people have told me they can know in 30 seconds if a person is right to hire. Unless you are a psychic, this is a very unproductive and
dangerous way to make hiring decisions. Decisions based primarily on personal biases upon first impression typically backfire.

The more scientific the screening process, the better opportunity you have of hiring the best person for the right position in your company.

What works is extensive recruiting and testing. Broader recruitment increases the talent pool. Let's look at what integrated processes can do to increase employee success and lower turnover. Turnover in a company is extremely expensive and disruptive to production.

Self Screening Devices
A supplemental questionnaire to your normal application that asks pertinent questions specifically related to the skills, knowledge abilities and duties
for this specific position is important.

Candidates often determine that they do not have the appropriate skills or would not like the specific duties that are critical to the position.

Personality Characteristics
Measuring personality characteristics needed for the position improve the hiring process success rate to 38%.

Abilities
When applicants are assessed for abilities as well as personality, employers found they hired the right people approximately 54% percent of the time.

Interests
Using more sophisticated assessments that measure the interests of the candidate compared to the position raises the bar to 66%.

Job Match
The most impressive assessments to date are integrated assessments that measure a combination of factors, as well as introduce the component of "job match."

This cutting-edge technology combined with empirical data evaluate "The Total Person" in a way that measures how candidates match the exemplary employees in the position.

These assessments have increased an employer's ability to identify potentially excellent employees better than 75% of the time; a far cry from the rate of 14% rate using interviews only.

The Payoff
Doing it right really pays off! Take the time and make the small upfront investment to learn about the position being filled, what type of behavior it requires and what type of person best fits the job. The rewards are great; your business is more successful since your company is only as good as your employees.

I try to do the right thing at the right time. They may just be little things, but usually they make the difference between winning
and losing.”
Kareem Abdul-Jabbar , LA Lakers

Interviews: Rambling Candidates Can Be Risky

2008-11-18T13:05:00.000-08:00

Strong interviewing skills enable hiring managers to avoid crossing the "too much information" (TMI) line and to rein an interview back in when a job candidate oversteps that boundary.

Interviewers who are not skilled in the process sometimes ask questions or make comments that are inappropriate or irrelevant. They intentionally or unintentionally broach certain topics that are off-limits during an interview, including marital status, personal companionship practices, the Candidate's medical history, and religious affiliations, and they sometimes use that information when making hiring decisions.

Similarly, some interviewers are not adept at reining in an interview when an Candidate goes off on a tangent or reveals personal information. That's a problem, because interviewees who cross the TMI line reveal information that employers could--purposely or inadvertently--factor in when making an employment decision.

If the information relates to the candidate's ethnic background or religious affiliation, for example, that could lead to a claim of discrimination under Title VII of the Civil Rights Act.

In addition, allowing an interviewee to ramble about irrelevant information, provide details about his or her personal life, or complain about a previous job, takes away from the purpose of the interview---to determine whether the candidate is the best match for the job.

Skilled interviewers are able to focus on the requirements of a particular job and how closely a candidate matches those requirements, she says.

Many employees with interviewing responsibilities need more training. Training should cover the topics that can--and can't--be addressed during the interview process, as well as effective interviewing techniques.

To minimize your risk:

Know what the job entails. Before starting an interview, interviewers need to understand the requirements of the particular job and what skills and competencies the successful candidate should have.

Prepare interview questions. This helps ensure consistency with all Candidate interviews and keep focus on getting the information you need to make a good assessment of the Candidate.

Rein in the interview when necessary. Interviewees who are nervous or who don't have a good response to a question may ramble, she says. "The onus is on the interviewer to rein it in and help the candidate get back on track." That often can be accomplished by rephrasing a question, and not allowing the Candidate to evade the question. The goal of an interview is to get the best essence of someone you can, relative to what you're interviewing them for.

Making objective personnel decisions. If an interviewee reveals personal information, the interviewer must not let his or her own biases factor into the employment decision, she says. "Bias has to be kept out of the decision-making process. It's hard. It's natural for all of us to interject our bias."