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First Who, Then What: How Great Companies Attract the Right People

September 22, 2011 By: azjogger Category: Jobs, Management, Workforce

By Adam Kay

In his landmark bestseller Good to Great, Jim Collins lays out the  results of a five-year empirical study on exactly what it is that differentiates  ‘good’ companies from ‘great’ ones. Of his various findings, perhaps none is as  significant as this: above all else, truly great companies place their people at  the very top of their priorities – not marketing, not finance, not strategy -  people.

This means that truly great companies take recruitment and hiring very  seriously, and go to enormous lengths to make sure they attract and keep the  right people.

First Who, Then What

As Collins puts it, all truly great companies abide by a common principle,  which he sums up in one short phrase: ‘first who, then what’. Collins draws upon  the metaphor of a bus to describe this principle. He says that what great  companies do before all else is make sure that they get “the right people on the  bus.”

Once they have the right people aboard, great companies then make sure  they put “the right people in the right seats on the bus”. And finally, once  they have the right people in the right seats, great companies then figure out  where to actually drive the bus.

Collins explains that there are three main reasons why the “first who, then  what” principle is so crucial. First, by placing the emphasis on people before  strategy, it allows companies to adapt more easily to change. In a time when  change has never been as lightning fast, this has never been as important as it  is today.

With the right people in the right place, there is less need to worry

Second, if you make sure you have the right people on the bus in the  first place, many human resource problems simply fade away. With the right  people in the right places, there’s less need to worry about such common  concerns as sick leave, office politics, turnover, motivation and the like.  Instead, focus, passion and synergy naturally emerge as the dominant operating  principles.

Third, if you have the wrong people on the bus, it really doesn’t  matter what direction you drive in, you still won’t achieve greatness. As  Collins succinctly puts it “great vision without great people is  irrelevant.”

Hire for Talent, Train for Skill

But how do you put the “first who, then what” principle into practice? The  answer can be boiled down in the axiomatic phrase: “hire for talent, train for  skill”. Collins places special emphasis on this key point:

In determining ‘the right people’, the good-to-great companies  placed greater weight on character attributes than on specific educational  background, practical skills, specialized knowledge, or work  experience.

While this may be easy enough to say, the question arises: how do you know  who has the right character attributes? After all, people’s core attributes are  not easily identifiable in a resume, or discoverable in a job interview. Collins  offers no answer to this important question.

Use of Hartman Value Profile provides in-depth, scientifically reliable and legally defensive process

Yet he can be easily forgiven for  this, not only because it didn’t fall within the ambit of his research, but also  because since the time he wrote Good to Great, fantastic new  technologies have emerged to help. Now, with the use of technologies based on  the Hartman Value Profile and the science of formal axiology, employers can  assess prospective and current employees in in-depth, scientifically reliable,  and legally defensible ways.

Indeed, all great companies today are now doing so. Not only does this easily  and affordably allow them to determine how well-suited a job candidate is for  employment with their company, but it also allows them to accurately determine  what their natural talents are so they know exactly where on the bus to place  them. Never before has it been so easy to effectively implement a “hire for  talent, train for skill” policy.

Never before has it been so straightforward to  put the basic building blocks of a truly great company in place.

Great Company, Great Life

Not only is the principle of “first who, then what” fundamental to building a  truly great company; it’s also critical to enjoying a truly great life. When you  have all the right people in the right seats on the bus, the bus will be much  easier to drive. This is because people will naturally enjoy their work,  identify with the company and its objectives, and thrive in the cohesive culture  that emerges.

‘First who’ might be the closest link between a great company and a great life

These are all hallmarks of a great work environment. And given how  much time the average person spends at work these days, a great work environment  is essential to a great life. Jim Collins describes this very well when he  says:

Adherence to the idea of ‘first who’ might be the closest link  between a great company and a great life. For no matter what we achieve, if we  don’t spend the vast majority of our time with people we love and respect, we  cannot possibly have a great life.

But if we spend the vast majority of our time  with people we love and respect – people we really enjoy being on the bus with  and who will never disappoint us – then we will almost certainly have a great  life, no matter where the bus goes.

In the end, ‘first who, then what’ is not just a key principle for a truly  great business – it’s an abiding standard for a truly great life. Anybody who is  really committed to building a great business and living a great life, should  take note.

Adam A. Kay, Esq. is a Business & Professional Development Consultant & Coach with J.D. Strategist. To find out more, visit http://www.jdstrategist.com

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What’s Your Impact?

September 16, 2011 By: azjogger Category: Management, Operations, Workforce

By Bernard Donkerbrook in Leading Effectively, Center for Creative Leadership

Leaders and bosses are used to being listened to. They expect it. Some find it quite satisfying to be the person others listen to and look up to. They enjoy the attention and influence in this role. But being in the spotlight also means taking responsibility for your impact on others.

As boss or executive, you need to remember that you are being observed all the time. Big decisions and actions are front and center, but even small things can have unintended consequences.

Everything you do is observed

Everything you do (or do not do) is observed, analyzed and discussed by your people. What you talk about, include on an agenda and get personally involved with – as well as what you choose to avoid or delegate — sends powerful messages. Your employees then draw conclusions and implications about “what it meant” — whether you meant it that way or not!

Many managers are unaware that their behavior genuinely matters, or are oblivious as to how their behavior may be interpreted by others. For example, maybe you don’t make eye contact with an employee as you walk to the cafeteria; unbeknownst to you, this can be perceived as a sign of disapproval or unimportance, thereby increasing employee anxiety or mistrust. And you thought you were so self-aware!

To better understand the impact you are having on those around you, take a careful look at three things:

What You Say: Of course pay attention to the words, but your impact goes further. What you emphasize, what you repeat and the tone you use all have impact. Are you supportive or critical? Are you sending positive and encouraging messages or demanding, pressuring messages? Is your body language consistent with the words spoken? Remember, your people “listen” beyond the words to what you appear to convey.

What You Do: Your actions send a message of what and who are really important to you regardless of what you espouse. What relationships do you choose to develop and which people do you avoid? Which ones will you listen to and which do you overlook, dismiss or interrupt? Are you warm and open to some people and not to others? How do you listen? Do you have good eye contact when others are talking? Or are you focused on what you will say next? Are you distracted, keeping one eye on your smart phone?

What You Pay Attention To: You send signals by what you recognize, what you reward and whom you reward. The meetings you attend versus those you don’t tell people how you feel about the topic, the person and/or the priority. What you put on the agenda, follow up on or focus on will be given more weight than other projects or issues. Ask yourself: What do I personally get involved with? And what do I rarely pay attention to?

Consider Susan, the CEO of a small marketing company, who believed in the importance of diversity within the company, particularly to reach the range of clients she was targeting for growth. She conducted an appropriate off-site meeting, presented her strong views and expectations at the quarterly management gathering and assigned an implementation team. After that meeting, however, it was business as usual. Susan proceeded to focus on the next client crisis, ignoring the necessary continuing attention that building diversity requires.

Avoid creating a gap between words and actions

Bad manager? Poor leader? Not really. Susan forgot, with the best of intentions, that what she does and what she does not do have a huge impact. She inadvertently sent the message that “other” things were more important than diversity. By creating a gap between her words and actions, Susan undermined her efforts at supporting diversity — and undermined herself as a leader.

Are you getting the idea? Your ordinary actions and behaviors have an impact on the people around you. If you want to be influential as a leader, you have to accept the scrutiny, be highly self-aware and think carefully about the messages you want to send. Psychologist and author Nathaniel Branden says it well when he paraphrases a favorite Spanish proverb: “Take what you want in life — and pay for it.”

Bernard Donkerbrook is a coach and management development consultant based in Ann Arbor, Michigan.

The Limits of Talent

September 16, 2011 By: azjogger Category: Jobs, Management, Training, Workforce

From: Leading Effectively, Center for Creative Leadership

It’s easy to be impressed by the natural leader, the brainy student, the gifted musician or the star athlete. “What talent!” we think. But talent alone doesn’t lead to success, says Carol Dweck, noted psychologist and author of Mindset: The New Psychology of Success. “Success comes with a growth mindset.”

People with a “growth mindset” believe that ability or talent can be developed, says Dweck. In contrast, people with a “fixed mindset” see ability as built-in: “You either have it or you don’t.”

Dweck’s research has shown that our beliefs about innate talent can either support or stifle success. If you have a growth mindset, you are willing to take risks, accept mistakes and seek out chances to learn. You become resilient and view setbacks and challenges as learning opportunities.

The belief that you can’t improve your ability actually stunts achievement. If you have a fixed mindset, you feel the pressure to repeatedly prove yourself in areas of “strength” and you avoid activities and experiences that may reveal weaknesses. As a result, you don’t gain the experiences, perspectives or skills that are needed to succeed at work or adapt to change. A fixed mindset also makes it hard to admit to or correct mistakes.

Growth minded individuals gain self confidence by taking on challenges

Dweck has also challenged the view that innate ability fuels self-confidence. In the short-term, people feel good and confident because of their natural abilities — until setbacks or challenges cause them to question themselves. People with a growth mindset derive self-confidence from the very act of taking on challenges and pursuing them with vigor.

What are the implications of Dweck’s work for leaders? “To succeed in a world where our work is always changing, where challenges are unpredictable and competition abounds, we need to be agile learners,” says CCL’s President and CEO, John Ryan. “We need to apply our new knowledge. Perhaps most of all, we need to believe we can rise to the challenge.”

It takes hard work and real focus

“By taking on a growth mindset, we can learn new behaviors and modify deep-set behaviors at any age,” Ryan continues. “It takes hard work and real focus, but all of us really can learn new and effective behaviors — and help take our organizations to new levels of performance.”

Dweck agrees. “If an organization believes in natural talent, they are not developing the potential talent,” she says. “Not only are these organizations missing out on a big pool of possible leaders, but their belief in natural talent might actually squash the very people they think are the naturals, making them into defensive nonlearners. The lesson is: Create an organization that prizes the development of ability — and watch the leaders emerge.”

Is There a World Without the Performance Review?

September 12, 2011 By: azjogger Category: Management, Operations, Workforce

By Wally Hauck

You may have heard the interesting story “allegedly found in a diary in  Magellan’s own handwriting”, which describes how the South Americans he first  encountered in the early 1500′s could see the boats that his explorers landed  in, but not the ships anchored offshore. As the story goes, only their shaman  was finally able to make out the ships offshore because he was open to the  possibilities of strange things from other worlds.

The story may or not be true but the lesson for Human Resources is valuable.  Being open to very new ideas from different worlds would be very useful for this  important function within an organization.

Performance review is a form of control

In my opinion, the current performance review process and rewards and  recognition are a form of control that is left over from the industrial age and  Taylor Scientific Management methods. Like the South Americans in 1500′s, HR  professionals are having trouble seeing a world without these outdated  management tools.

There are consultants today making a great living claiming the Millennial  Generation is very different and the workplace must adapt to their special  needs. I can agree that their behaviors and beliefs may be different because the  context within which they grew up.

Even I can remember the 60′s and how my  generation felt unique. We expressed ourselves in my new ways because of the  context of the 60′s. We had different music, lots of love, drugs, and anti-war  sentiments. The Millennial Generation has computers, iPods, iPhone, iPads, the  Internet, multi-tasking, social consciousness etc.

Each generation is NOT entitled to it’s own principles

Each generation is entitled to its own behaviors and tendencies. It is NOT  entitled to its own principles. The principles upon which the typical  performance review and pay for performance policies are based are flawed. The  shift from the menial task Industrial Age workplace to the complex system  knowledge age is shedding the bright light of truth on why and how these polices  no longer add value.

They don’t work anymore, not necessarily because of the  generational differences per se but because the nature of work has changed. We  don’t do menial tasks any more. Menial tasks can be done by computers. For  example, if we wish we can shop and then checkout at the grocery store without  even contacting a human.

We need less control and more freedom and choices

To function more effectively in the knowledge economy we need less control  and more freedom and choices. If we want to understand what the millennial  generation needs we can read the book Flow by Mihaly Csikszentmihalyi. They want  the same things we all want including to know why and how our work makes a  difference to others. They want challenge, feedback, a sense of progress, and a  chance to focus on their work. They want to use their creativity and they want  freedom.

These principles of motivation don’t change over generations and they  don’t get satisfied with rewards and recognition and they certainly can be  damaged by the typical performance review. That is why as many as 60% of people  see either no value or see negative results immediately after participating in a  performance review.

I am hopeful HR professionals can begin to see the ships off shore soon.  Those ships are from the new knowledge economy and they don’t carry policies  that include the typical performance review or the typical pay for performance  policy.

Learn how to improve employee engagement in your team:
http://www.wallyhauck.com/

Learn to improve leadership skills:
The Art of Leading: 3 Principles for  Predictable Performance Improvement
http://www.wallyhauck.com/page.asp?PageID=10041

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Brands Turn to Facial Recognition Tools

September 01, 2011 By: azjogger Category: Marketing, Technology, Workforce

From: World Advertising Research Center (WARC)

Brand owners such as Kraft and Adidas are considering making use of facial recognition technology in a bid to provide shoppers with more targeted information in stores.

Intel, the technology company, is one of a number of firms that has created software capable of scanning the faces of consumers, and then determining the approximate age and gender of the person concerned.
Christopher O’Malley, director, retail marketing, of Intel’s embedded and communications unit, told the LA Times:  ”You can put this technology into kiosks, vending machines, digital signs. It’s going to become a much more common thing in the next few years. 

Adidas, the sportswear manufacturer, is working with Intel to test digital “walls” in several UK and US stores, displaying certain products on screens depending on a shopper’s specific profile. For example, a female consumer in her fifties would be shown a range of Adidas goods, roughly split between 60% footwear and 40% of other items from its portfolio.

“If a retailer can offer the right products quickly, people are more likely to buy something,” Chris Aubrey, Adidas’s vice president, global retail marketing said.

Kraft, the food group, is also in negotiations with a supermarket chain, which it did not name, about the possibility of trialling kiosks that achieve similar objectives. “If it recognises that there is a female between 25 to 29 standing there, it may surmise that you are more likely to have minor children at home and give suggestions on how to spice up Kraft Macaroni & Cheese for the kids,” Donald King, Kraft’s vice president, retail experience, said.

Japan has enthusiastically adopted the technology

Facial recognition tools have been more enthusiastically adopted by companies in Japan, where Universal Studios has employed a system provided by NEC to identify annual pass holders, and thus speed up their entry to its theme park.

“It’s not just [for] clothing stores or restaurant chains,” Joseph Jasper, of NEC’s corporate communications division, said.

Google and Facebook has developed tools for online photos

Facebook, the social network, has developed equivalent tools for online photos, as has Google, which produced software that took the face of someone in a picture and searched the web for images of the individual, but then opted against rolling it out.

“As far as I know, it’s the only technology Google has built and, after looking at it, we decided to stop,” Eric Schmidt, Google’s chairman, said earlier this year. “People could use this stuff in a very, very bad way as well as in a good way.”

Data sourced from Los Angeles Times; additional content by Warc staff, 25 August

What Does Your Team Need?

September 01, 2011 By: azjogger Category: Management, Operations, Workforce

From: Leading Effectively, Center for Creative Leadership

Several years ago, an EVP of a Fortune 100 company pulled together a team of HR directors from across several divisions. Their assignment was to develop and implement a new HR process across the organization. The problem? Vague goals and unclear direction.

A product team for a large multinational company was in the process of launching two new products in North America and Europe. In the wake of a recent restructuring, the 18-member team struggled with divided loyalties and new pressures. Communication was poor, meetings were unproductive and progress stalled.

Competition was fierce among the functional and business unit leaders that made up a senior team in the global firm. Team members wanted to be on the team because of high exposure, but none of them wanted the other team members to interfere in their own divisions or functional areas. With low trust and high competition, conflict and dysfunction ruled the day.

Each of these teams faltered — but each was able to recover.

“Teams may be challenged by their assignment, but the work context and interpersonal factors are powerful realities, too,” says CCL’s Laura Quinn. “Effective leadership — on the part of the team manager or sponsor and on the part of team members — allows teams to meet those challenges and have a positive impact on the organization.”

Participants in CCL’s Leading Teams for Impact program (and in customized team programs or team coaching initiatives) learn to zero in on specific team needs. “Teams have different needs when they are in planning mode than they have during action phases,” Quinn explains. “They have interpersonal needs as well.”

Planning-Phase Needs. This phase takes place both when the team is planning actions it is about to take or evaluating the impact of actions it has just taken. New teams, re-configured teams and floundering teams benefit from giving time and attention to six planning needs:

  • Team charter. Are overall objectives, resources and constraints defined and clear to all team members?
  • Goals. What are the measurable team outputs and related milestones?
  • Team norms. What standards of behavior do team members agree to? How will they handle routine issues, such as how work is divided or how disagreements are to be resolved? Team norms also help members address unexpected or complex situations.
  • Task performance strategy. What is the overall approach the team will take and what key actions are needed to achieve goals?
  • Shared understanding. Do team members have a common perspective? What key assumptions may affect performance? Teams can be easily tripped up by different beliefs about the challenges the team faces, the tools or resources available or the desired working relationships among team members, for example.
  • Team memory. What relevant knowledge, information and skills do team members have or can access? What gaps exist?

Action-Phase Needs. When teams are in action — engaged in activities that directly lead to goal accomplishment — they also have six needs:

  • Monitoring output. How does the team track and communicate progress?
  • Monitoring systems. What methods or resources are available for tracking people, budgets and information – and for keeping up with stakeholders, markets or other external factors?
  • Coordination. How does the team prioritize and sequence key activities and events?
  • Communication. Do team members communicate openly with each other? Does the team experience a high-quality exchange of ideas and information?
  • Monitoring team behavior. How is feedback given to team members?
  • Maintaining boundaries. How and when does information flow with other groups or units?

Interpersonal Needs. In addition to needs that arise in the planning and action phases, teams have four interpersonal needs:

  • Motivation-building. Do team members have a sense of personal accountability for performance? Is the team cohesive and motivated?
  • Psychological safety. Is there a sense of trust on the team? Are team members able to speak their minds, knowing they will be respected and listened to?
  • Emotion management. How does the team handle emotions? Setbacks, frustration – even overconfidence – can cause an emotional strain among team members.
  • Conflict management. Do differences of opinion prevent the team from meeting its goals? Does the team allow healthy debate while avoiding personal attacks or acrimony?

“When team members know about these needs, they have a way to identify and discuss what is working well and what isn’t,” says Quinn. “Teams can then be more focused and proactive in making changes that will lead to better team performance.”

This article is based on “Developing Team Leadership Capability,” by Frederick P. Morgeson, Dennis Lindoerfer and David J. Loring in The Center for Creative Leadership Handbook of Leadership Development, 3rd Edition, and CCL’s Leading Teams for Impact program. Look for more “Leading Teams” tips and activities in upcoming issues of Leading Effectively.

Two in Five Mobile Owners Use Internet on the Go

August 31, 2011 By: azjogger Category: Marketing, Technology, Workforce

From: e-Marketer
Almost 100 million consumers will be on the mobile web this year

The US mobile web population will be up almost 25% this year as 97.3 million mobile owners log on to the internet from their device at least monthly, eMarketer estimates.

Almost half the total of  US Population will use mobile Internet

By 2015, more than three in five mobile users and almost half the total US population will be using the mobile internet, eMarketer forecasts.

“The rapidly expanding smartphone and mobile internet user populations raise the stakes for marketers and make the mobile web more of an imperative than ever,” said Noah Elkin, eMarketer principal analyst for mobile.

eMarketer’s estimates of mobile internet usage include people of any age who access the internet from a mobile browser or installed application at least once per month.

Most growth will come from increased smartphone penetration

Most of the growth in mobile internet usage will come from increased smartphone penetration, which will reach 38% of mobile users and 28.8% of the overall population by the end of this year. The number of smartphone users is set to increase 49.6% this year and continue growing at a steady double-digit pace through 2015, when nearly 150 million US consumers will have such a device.

Mobile internet usage is still heaviest among younger adults, with 43.2 million US consumers ages 18 to 34 logging on to the mobile web this year, eMarketer estimates—or 44.4% of the total.

Mobile Internet usage among older adults will rise

Usage is on the rise among older adults as well, however. This year, eMarketer estimates 21.5 million 45- to 64-year-olds and 3.7 million seniors 65 and older will use the mobile internet. By 2015, those numbers will both more than double to 45.4 million and 11.3 million, respectively.

For complete data charts and story, go to e-marketer.com

Managing Remote Employees; Off Site Management in 6 Principles

August 28, 2011 By: azjogger Category: Jobs, Management, Training, Workforce

By Steven Nichols

Technology and business pressures have led to more and more managers needing to lead teams that work off site, in a different state, or are constantly in the field. Though a manager can no longer simply walk down the hall to talk to team members, the employee’s need for management is no less real. In fact, good management is even more important in remote environments than in traditional cubicles, conference rooms, and break rooms.

A distributed workforce requires different management techniques and skills to keep motivated, productive, on track, and trained. Although many management techniques and skills parallel those used in managing a centrally based workforce, there are 6 key additional techniques a manager needs to be successful in the remote environment.

1) Better communication

Often managers assume that they will have less communication with their employees when they are remote, but in fact, the reverse is true. Managers of a distributed workforce need more communication with their employees located off site.

Employees who work off-site can feel isolated, and they can have trouble adopting company standards and procedures. They can have higher turn-over, and even develop into loan wolfs that are unwilling to work in teams.

Increased communication counteracts this tendency, and helps each employee cohere with the rest of the company. Whether it comes by e-mail, text message, phone, fax, or a tin can and string, communication is essential. Remote managers need to make sure they are accessible to their employees by multiple avenues.

2) Establishing respect

Many remote managers make the mistake of trying to establish their credibility through demands and force- a type of “because I said so” approach. The managers fear their employees aren’t on the job, and this translates into overbearing micromanaging.

But when a manager has the employees’ respect and respects his/her employees in return, everyone benefits and the forcefulness of tone can be lessened.

Respect is created when managers give reasons and explanations for their actions, and the perspectives of the employees are valued. This doesn’t mean a manager needs to evoke consensus, but working to make sure everyone is on board or understands the reasoning behind a change will save time in the long run.

3) Building a team culture

Employees in a distributed workforce might not even have a desk in the main office, so it is no surprise that they may have trouble feeling like a part of a company or a team. Ironically, this feeling of inclusion is highly important to the success of company initiatives and overall motivation and morale.

Remote managers need to focus consciously on building a team community and culture for their employees. Managers can do this by fostering intra-team communication, creating partnerships amongst remote employees for projects, and by forming virtual water coolers and opportunities for small talk, re-living past successes, humor and experiences.

4) Creating accountability through self-monitoring

The hardest conundrum for most remote managers is how to ensure that the job is getting done without micro-managing. Many managers can overcompensate for the inherent disconnect of the remote environment by trying to control every aspect of their employee’s day.

This is, of course, counterproductive because it trains employees to be dependent on ever present management, when a remote employee actually needs the exact opposite skill. Remote employees need to be able to work independently, and managers need to train them along this end.

The key to growing an employee to work effectively in a remote environment is to help them be self motivated by providing clearly outlined goals, making them responsible for results, and generating individual accountability plans with a self-monitoring system.

5) Training

The speed at which a remote employee develops is more important than the speed of a traditional employee because cost of development is so much higher. Underperforming employees and miss hires can slip under the radar much more easily, and this can be very expensive.

On-boarding needs to be thorough and tuned to the employee’s position. Initial training should be conducted with face-to-face mentoring either by the manager or team peers to ensure the employee can work independently as soon as possible.

For all remote employees, on-going mentoring and training is critical to keep them connected to the company, goals and team. It also creates an opportunity to identify performance issues before they have escalated too far. Managers of field teams should think of each employee’s development as a continuous process, and use training as an opportunity for building relationships and evaluating performance.

6) Disciplining and conflicts

Resolving conflict between remote team members can be more difficult and take longer because there is less opportunity to build relationships and find common ground. The avoidance of good, productive conflict is also very tempting for remote teams who don’t have to interact daily.

Managers need to address conflicts as soon as possible, so the problems cannot grow and cause dissention among the team. It is important to address performance issues with individual employees as soon as possible.

Some remote managers try to ignore these issues until a more convenient time (out of sight, out of mind), but this can be devastating to a team’s morale.

Either someone is doing the extra work, or no one is doing it. Both possibilities are unacceptable.

The remote employee management environment doesn’t need to spell painful transitions for employees and corporations. By appreciating the difference in managing remote employees and implementing these unique skills, companies can be successful despite the challenges.

Please see http://www.mcstech.net/remote-employee-management.cfm for more information about managing remote employees.

MCS Training is based in Denver Colorado. We train in Management, Team Building, Softskills, Microsoft Office, and Project Management. We customize and design materials for clients nationwide. Please contact us for more information.

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Drug Abusers and Small Business

August 28, 2011 By: azjogger Category: Health Plan, Management, Workforce

By Susan McCullah

Drug use in the United States is rising at an alarming pace, and this is being felt in no greater place than the small American business.

While substance abuse is a valid concern for businesses of any size, smaller businesses are at a greater risk of drug abusers damaging or completely destroying the company. More drug abusers work there.
As far as American employees go as a whole, about half work at large corporations and the other half work at small business.

 The landscape shifts dramatically when looking at drug users. 90% of drug users work at small businesses. There’s more than one reason for this:

1: Smaller businesses often do not require new employees to undergo drug testing during the hiring process. Drug users have a better chance of ‘slipping through’ to jobs than at a larger corporation.

2: Small businesses often do not have an established drug-free workplace policy.

3. Owners of smaller businesses often have a more personal relationship with their employees than larger business owners. This creates a more difficult and complex situation when dealing with a drug abusing employee. Small business owners are more likely to turn a blind eye to drug abuse and give more ‘second chances’ than owners of larger companies.

The large amount of drug users leaves small businesses extremely vulnerable to high costs of employing drug abusers.

-The ‘dead weight’ costs. Drug users are more likely to miss work, be less productive, and be less focused. While the cost of these actions is difficult to quantify, it can add up to lots of dollars down the drain.

-The ‘lost customer’ costs. An unproductive employee may mishandle customer requests, needs, and complaints, causing disgruntled customers to take their business elsewhere. A small company most likely cannot absorb losing customers as easily nor can attract customers as quickly as a larger company. These losses can greatly impact the bottom line.

-The legal costs. Smaller businesses pockets are not as deep as larger corporations. If an impaired employee causes an accident or injury, the resulting lawsuits, workers comp claims, and property damage could devastate a small business much faster than a large corporation.

-The co-worker costs. Employees of small businesses work closely together, and a drug abusing employee can strangle the productivity. Knowing other employees are abusing drugs can bring down morale. Workers may also have to redo work or cover for a drug abusing co-worker. The top producing employees may become disgruntled by the drug abusers performance to the point that they may leave the company.

Smaller business owners need to be aware of this trend and take steps to protect their company from drug abusing employees.

Step 1: Implement drug screening as part of the pre-employment screening process. A good portion of drug testing is relatively low-cost. This step can bring about a high level of benefit by screening out drug abusers BEFORE they are hired.

Step 2: Check out OSHA’s website. There are lots of free tools and resources available to create a drug free workplace.

Step 3: It’s advisable to have a written plan of how and on what occasions your company screens for drugs, and the actions that will be taken if an employee has drugs in their system. Stay consistent with that plan.

These 3 steps are low cost to the company and a good starting point to minimize a company’s risk and expense of employing drug abusers.

Having a program in place can play a vital role in increasing productivity, minimizing accidents, decreasing theft, and improving safety and attendance. And, for small companies, this can be the difference in thriving or going out of business.

Susan McCullah is the Product Development Director for Data Facts Inc, a 22 year old Memphis based company. Data Facts is a leading nationwide provider of employment screening solutions. http://www.datafacts.com. Follow us on Twitter at http://www.twitter.com/dfempscreening.

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The Office Romance: An Employers Guide to Dealing With Dating at Work

August 24, 2011 By: azjogger Category: Management, Operations, Workforce

By Diane Shaddock

When the love bug bites two employees, it is often left to managers and HR personnel to deal with the consequences of the office romance. It is not an uncommon situation. A CareerBuilder.com survey revealed that nearly 40% of participants had dated a co-worker, and 18% admitted to having at least 2 inter-office relationships. What does all that dating at work mean for employers?

Not all employee romances create problems

It’s true that not all employee romances create problems for managers, but when dating at work relationships sour, they create the potential for anything from low morale to litigation. Here are examples of how the office romance may affect your workplace:

  • Love blooms between a manager and a subordinate, creating ill feelings among other team members.
  • Excessive public displays of affection (what we called PDAs in high school) cause other employees to feel uncomfortable.
  • A bitter worker in an office romance gone bad files false sexual harassment claims.
  • A manager who is a serial office dater creates the perception of favoritism for those he or she dates.

 So what is an employer to do about staffers who begin dating at work?

Although you know you have a responsibility to provide a workplace free from sexual harassment, you may question how far you can go in dictating how employees engage in office romance. Consider incorporating one of these three workplace romance policies used by other employers:

1. Non-Fraternization Policy: These workplace romance guidelines prohibit romantic relationships between employees. This can seem like a good, no-frills solution to love in the workplace problems, but there are challenges. For example, it can be tricky to monitor for compliance, casting managers and HR personnel as office anti-Cupids charged with policing illicit relationships. What is more, some workers may argue that a non-fraternization policy tramples on their constitutional right to privacy. The state of California actually prohibits employers from restricting off-the-clock activities.

2. Conflict of Interest Policy: Another example of workplace romance policies is one that prevents conflicts of interest between managers and subordinates. It might prohibit any close personal connection, whether it’s a family relationship or an office romance. One solution to a manager/subordinate relationship with a conflict of interest would be to reassign one of the employees.

3. Informed Consent Policy: An informed consent policy ensures both parties involved in an office romance are aware of and comply with the employer’s sexual harassment policies. For example, you might ask both parties to sign what is sometimes called a “love contract,” in which the employees acknowledge they are aware of the sexual harassment policy.

When it is time to implement workplace romance policies, you will also need to consider how the company will inform and train staff and management about the new guidelines.

Of course, some companies default to having no policy for dealing with love in the workplace. This might seem like an easier option than hashing out a new company policy, but the reality is that the no-policy approach could cost you in time and litigation down the road.

Navigating the repercussions of an office romance can be challenging for business owners and managers. Protect yourself and the company by considering if workplace romance policies are right for your workplace.

Dianne Shaddock is the Founder of Easy Small Business HR, Employee Hiring and Managing Tips. Through the Employee Hiring and Managing Tips podcast, blog, and weekly ‘quick tips’ e-newsletters, Dianne offers expert advice on how to make better hiring decisions, manage difficult employees, develop employee policies, motivate staff, and so much more. No stuffy, corporate HR policy lingo; but straight forward, easy to understand and implement advice for businesses just like yours. Stay ahead of the curve and go to Easy Small Business HR.com for more tips on how to hire and manage your staff effectively.

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