Author: raylana

A Teeny Bit Less Fuzziness: Wage & Hour Update

On March 14, 2016, the Office of Management and Budget (OMB) received final changes for proposed revisions to the federal wage & hour law from the Department of Labor (DOL).

 

One former DOL wage & hour administrator believes the rule will move quickly and may be published as early as July 7.  That date would make new regulations effective on Labor Day, September 5 (60 days from the date of publication in the Federal Register).  An alternative view anticipates publication just before Labor Day with an effective date just prior to Election Day.

 

Regardless, it is as important as ever – and now is a good time – to review your compensation practices to plan for likely changes that may be required by these updates.

 

(More information in the October 22, 2015, post on this site.)

Candor in Action: Benefits all Around

One cannot hide far enough below any radar at this time to avoid hearing negative, ugly language.  In some circles such language has been identified as candor.  One asks: Really?

 

Candor stems from candere meaning ‘to glow.’  Think for a moment not about the glare of a classic interrogation light but about a sunny, warm glow.  Could that be the basis for candor (i.e., sincerity, straightforwardness, truth)?

 

In workplace encounters managers’ employee relations goals are at best forward focused.  To build the team and the organization, managers’ candor with their employees builds rather than damages.  So, the ideal may be to base candid conversations in a warm glow of kindness for the best results.

 

Consider:

 

Recently two leaders raised concerns about an employee’s repeated unacceptable conduct.  Frustration led one manager to focus on immediate discharge.  The other manager proposed “one last chance.”  Some persuasion led to both managers’ willingness to lead with candor.  The final “writeup” shared with the employee focused on mutual understanding of expectations and accountability.  The candid message was delivered with care: with a glow of respect if you will.

 

What could have led to a job loss, frustration or anger led instead to behavior change and a sincere apology.  The employee simply had not been aware how her conduct was being perceived, and there had not before been a candid conversation in which everyone was focused on moving positively forward together.

 

A recent article described a colleague who was willing to talk with an individual identified as a workplace bully: a situation far beyond what is described above.  One colleague was willing to confront the bully candidly with the glow of mutual respect.

 

In this situation, the bully’s behavior had stemmed from frustration.  He neither asked for his promotion to manager nor was he trained for it.  He’d been very successful and happy in his role as a talented engineer.  He didn’t know how nor want to be a manager.  He was virtually unaware of how his frustrations were leading his conduct and how negatively others were perceiving it.

 

  • As a manager, have you created a situation in which an employee may be feeling frustrated and may be acting on that frustration?
  • Is there a colleague or friend with whom you might share the glow of candor to strengthen a mutually respectful relationship?

Might considering candor as a glow of kindness help you approach any seemingly difficult conversation?

Visits Along the Spectrum between “Can we?” and “Do we have to?”

The spectrum tracks questions often asked by organizational leaders.  In the next several comments here, we will visit some of those issues.  Today –

 

Can we change an employee’s pay rate?

 

This question nearly always arises when the anticipated change is a reduction.  It seems the question fades to moot when the change is an increase.  Consideration is important regardless of the direction of change.

 

The short answer:  Yes, you can change an employee’s rate of pay.  You can increase it or you can decrease it.

 

The longer answer:

 

When pay rates are evaluated, leaders do well to consider a variety of factors:

  • Market competition
  • The relationship of (base) pay to the value or contribution of a job to the organization
  • Internal equity: relative pay rates across organizational levels, locations, jobs, etc., in terms of the skills, experience, education and other factors contributing to the value of the position.
  • Applicable external requirements (including but not limited to) state requirements to provide:
    • Written notice of pay at the beginning of employment (i.e., at hire)
    • Written notice any time a pay rate is changed.

 

Under these circumstances, a general announcement of a broad pay change (e.g., an X% across-the-board change announced at an annual meeting) would be insufficient.

 

Some states’ requirements are more specific and clarify that pay rates may be changed if an individual is notified of a change prior to performing work at the new rate.

 

Of course it is critical that any rate of pay complies with applicable minimum wage and overtime pay requirements: federal and/or state.

 

Overall when considering pay rates, it is good practice to be mindful of current applicable forces: internal and external.

 

As noted in prior ‘spectrum’ writings, things change: external regulations, organizational expectations, needs and practices.

 

Information and ideas are not offered or intended as legal advice.

Visits Along the Spectrum between “Can we?” and “Do we have to?”

 

The spectrum tracks questions often asked by organizational leaders.

 

In future posts here, we will visit some of those issues.

 

To begin –

Do we have to have an “employee handbook?”

 

The short answer is, “not necessarily.”

 

The longer answer:

 

There may be applicable external requirements (including but not limited to):

  • State requirements for written information to employees about pay days, places and times of wage payments
  • Industry requirements (e.g., day care centers) for certain written “personnel policies”
  • Public contractor and bidder requirements for written harassment policies

 

Beyond any requirement to reduce an employment policy to writing and share it with employees, there are reasonable considerations for choosing to do so:

  • Describing the organization’s history and its role in its industry, community, etc.
  • Reinforcing Mission and Values, which form the basis for mutual workplace expectations of employees and the organization
  • Outlining workplace practices such as schedules, time off of work or benefits

 

An employer in an At-Will (state) environment would do well to clearly communicate that at-will employment relationship (in writing) and to avoid any conflicting policy statement or practice that would be inconsistent with an at-will relationship.

 

A written policy or handbook full of them needs routine care and feeding.  Upon initial writing and introduction into the workplace, care is needed to avoid unintentional promises by the organization and to well preserve appropriate organizational/ management discretion.  Legal counsel may be valuable.

 

Once a document is introduced, periodic review is critical.  After all, things change: external regulatory things, internal expectations and practices.

Gratitude

In his recently posted compilation of results of more than 40 research studies on gratitude, “The 31 Benefits of Gratitude You Didn’t Know About: How Gratitude Can Change Your Life,” http://happierhuman.com/benefits-of-gratitude/,” Amit Amin includes some valuable organizational findings.

 

This holiday season seems a fitting time to remind us all of the Career, Social, Emotional, Personality and Health benefits found through research.

 

Focusing on our careers:

 

Gratitude helps you network.  Gratitude has been shown to increase social behavior across a number of studies including two longitudinal studies that showed people with higher levels of gratitude developed more social capital than those with lower levels.

 

Gratitude increases your goal achievement.  At the least, gratitude will not make you lazy and passive. It might even do the opposite!

 

Gratitude improves your decision making.  Decision making is really tiring – so tiring that we automate to our subconscious much of the reasoning that goes behind making a decision.  Even for the most basic of decisions, like where to go eat, there are dozens of variables to consider: how much time and money to spend, what cuisine to choose, whether or how far to travel, what to order and so on. If you deliberated on each of these decisions one at a time, your mind would be overwhelmed and tired, and the problem gets even worse for more complex decisions.  At least one study shows that gratitude motivates and might energize improved decision making.

 

Gratitude increases productivity.  People who are highly confident are able to be more productive, because they can direct more of their focus toward their work. Gratitude has been shown to increase self-esteem and reduce insecurity: it can help us focus and improve our productivity.

 

Last, and perhaps best, gratitude makes you a more effective manager.  Effective management requires a toolbox of skills. Criticism comes all too easily to many, while the ability to feel gratitude and express praise is often lacking. Multiple studies have found expressions of gratitude to be highly motivating.  If praise is moderate and focused on behaviors, repeat expressions of gratitude (contrary to expectation) will not lose their impact, and employee performance will increase.

 

A 2001 Gallup survey revealed that 65% of Americans didn’t receive recognition in the workplace in the prior year.  Knowing that, consider the potential positive impact on your team’s performance through your learning and practicing expressions of workplace praise.

 

Separately, looking at the broad impact of gratitude on organizations, a 2015 study published in the International Business Research journal showed that collective gratitude (many individuals in the work place practicing gratitude) can reduce employees’ turnover intention, foster employees’ organizational commitment, lead to positive organizational outcomes and help eliminate toxic workplace emotions and negative attitudes.

 

Imagine what a conscious practice of intentional gratitude could do!

Developing Creativity

I am struck by the frequency of seeing Innovation among business goals in a variety of organizations and industries.  Makes sense.  Innovation leads to acceptance and management of change; adoption of tools and practices; development of new services and products.

 

In at least a few organizations, however, active development of creativity (i.e., innovation) fails to occur.  Perhaps it is useful to consider that creativity, as many competencies, needs attention to develop.  It does not “just happen.”  How might creativity be actively developed?

 

According to experts, creativity is first largely based on knowledge: increasing one’s knowledge of a subject (e.g., management) is a way to expand one’s ability to be creative.

 

Another aspect of creativity may be developed through actively associating previously unrelated concepts or ideas: learning to think differently.  This step in building creativity can be achieved if one can break from some common social/cultural barriers as well as ingrained individual/ emotional barriers.  Examples of social/cultural barriers:

  • Fantasy and reflection are a sign of laziness, a waste of time.
  • Problem solving is serious stuff, and humor has no place in it.

 

A third dimension of creativity seems well within most managers’ influence: creating an environment in which employees feel encouraged to offer their creative thinking and ideas.  Enlightened managers may need to address barriers in this dimension as well.  For example:

  • Awareness of an organization’s highly structured rules, procedures and communication channels
  • Recognition of – and overcoming – personal behaviors such as reacting to negative parts of a proposed idea rather than the positive ones; acting as a boss and controller rather than as a facilitator or resource.

 

Working to develop your own creativity is personally rewarding and sets a positive example for your team.  Working to develop your team’s creativity builds a resource: new ideas and improved problem solving. Perhaps more important, developing your team’s creativity is motivational.

 

What better reason to offer one’s creativity than to work in an environment in which new ideas are heard, valued and encouraged?

Recruiting: Simon says, “Take One Giant Step”

An individual has resigned, and you’re the potential hiring manager.  Where to begin?

 

If your response is to contact human resources and re-fill the position just as it was, you’re not alone.  Perhaps, though, this is an opportunity to (re)consider your approach: one that builds on the strengths of your team and the organization.

 

Past and Present

  • Consider your current team: their talents, skills, experience and competencies.
  • Consider situations in which your team has succeeded and note the reasons.

 

Future:  Now look ahead to situations the business will face over the planning period ahead.

  • What needs to be accomplished?
  • What skills and competencies will help your team continue to succeed and contribute to business success?
  • Which individuals do you or will you rely on?
  • Whose strengths can be leveraged and shared?
  • Whose skills or competencies need additional polish?

 

Based upon these considerations, decide what competencies will be important to the success of a new hire within the team.  Consider the variety of prior experience an individual may have that would demonstrate these competencies.

 

If the organization talks about promoting and developing from within,  look for individuals ‘hidden’ within other departments or locations who could be successful in this position if only offered the opportunity.

 

Asking current team members for connections and suggestions can add to your store of knowledge while adding the additional benefits of continuing team building, trust building and team ownership of the process.

 

This combined information and knowledge will be a giant step to initiate active recruiting – internal and/or external – that can bring potentially strong applicants to your attention.

Peering Into Fuzzy Crystal Balls

The Department of Labor (DOL) is busy reviewing over 290,000 public comments submitted on proposed key changes to the regulations defining exemptions from the Fair Labor Standards Act (FLSA).  Good for business leaders who made their opinions known: whether in support or contention.

Experts agree that change will come, as this issue has the focused attention of the Administration.  While there is some thought that the DOL may reduce the target salary threshold to something less than the 40th percentile of earnings for full-time salaried workers, change will be significant.

Now is a good time to consider how best to manage the impact of proposed changes, whether the salary threshold is set at $970 per week, the current 40th percentile; $852 per week, the current 35th percentile or $773 per week, the current 30th percentile.

There are financial and operational considerations:

  • The first obvious question: What positions’ pay rates will fall below each of these thresholds?
  • Will pay rates below a threshold be increased to maintain exempt status or will positions be reclassified as nonexempt, eligible for overtime pay?
    • If reclassification is elected, are timekeeping and other systems adequate?
    • How will pay rates for positions “close to” the thresholds be managed?
  • How many hours do employees in likely reclassified nonexempt positions routinely work per week?
    • If a routine work week is more than 40 hours, will base pay rates remain the same or will rates be reduced to account for likely overtime compensation?
    • Will alternative salary practices be considered?
  • How will anticipated changes impact operational issues such as staffing, scheduling and work assignments?
  • What changes will be required to job duties or descriptions?

There are also important workplace culture considerations:

  • What is your communication plan?
  • When will you talk with employees?
  • What information will you share?
  • What tone will you set?

Answers to these and other questions will be important to your business.  Consider them well.  Consult your advisors.  Be as prepared as you can be.

 

It’s Everywhere!

Remember the last time you heard an idea for the first time – or bought a new car or heard the really unusual name your friends gave their baby?  After that, you kept hearing it or seeing it over and over.

I have been the happy victim of this phenomenon* over the last few weeks.

  • I reviewed some useful business texts and re-discovered a favorite teamwork concept: Somebody, Nobody, Everybody.
    • If Somebody on the team makes a mistake, needs help, etc. – and Nobody steps up – then Everybody loses. Alternatively, if Somebody helps correct that mistake or clean up the mess or share information – then Everybody wins.
  • A colleague shared some ideas about what her organization calls “team service.” Hers is a food service business.  One example made her point:
    • The work standard is that guests are not served their entrée while empty appetizer dishes remain on the table. Team service directs that no matter your title or position, when a guest has finished an appetizer, you step up to remove that plate. You do not look away or pretend you didn’t notice the empty plate.  Team service reflects well on everyone.
  • A friend described a recent positive experience as a hotel guest. While she was complimenting one of the individuals who had served her well, he shared:
    • As an individual contributor, he can fully control two things: service and cleanliness. He understands that his consistent attention to getting those two things right helps his team and the entire hotel.

Over the next several weeks, I will continue to observe more situations that support what these episodes demonstrate: that we each need others on our teams to succeed.  Details will vary but each situation will offer opportunities to learn, build skills and reinforce knowledge.  What a happy phenomenon.

* In case you’re wondering – as I would be wondering – the phenomenon has been named.  The term Baader-Meinhof Phenomenon was invented in 1994.  Then in 2006, the more colloquial “frequency illusion” term was coined.

Sprinkling and Dunking

Of the many reports and research articles I have read over the years, some findings stay with me and form a baseline from which ideas can spring.  I don’t propose here to repeat the research or even to assure that I’ve stated findings precisely.  Nonetheless, there are opportunities to learn.

 

Apparently, a habit “comes of age” at 21!  I have heard that it takes 21 repetitions to create or change a habit.  It is probably most valuable to achieve the desired change if those repetitions occur over more than a day or two.  I have also read that it takes three positive people – with some considerable energy extended – to outweigh a negativist.  In a room together, one positive and one negative or even two positives and one negative will, in a matter of minutes, talk and think about negative things.  Adding the third positive perspective won’t make the outcome certain or easy; it’s a minimum.  It seems we humans find it quicker and easier to tear down rather than build up.

 

What might managers take away from these findings?

  • Choose every day to be the positive one: model behaviors that you want your team to exhibit. Being a nice manager does not mean you have reduced standards.
  • Get out of your office and spend time with your team: listen to them, offer encouragement and recognition, remove barriers.
  • Take an appropriate interest in employees’ lives outside of work: connect with them.
  • Be vigilant to notice any actions, words or efforts that can be appreciated and thank people. The “size” of the deed makes little difference.
  • Don’t tolerate negativity: retaining your best employees may depend upon keeping the workplace positive.

 

These practices and others are not one-time fixes (i.e., a dunking).  They work when they’re connected to an intentional, mutually understood set of expectations about how people will treat each other (including customers, vendors, etc) in your workplace: when they’re sprinkled consistently, visibly and liberally each day.