Get the Most from this Year’s Annual Performance Reviews

It’s the end of the year and time for you to conduct performance reviews for your employees. Managers often perceive performance reviews as a tedious and pointless requirement but, to the contrary, annual reviews are essential for the development of your employees. A meaningful review should consist of both a written review and a face-to-face meeting. By the end of the process it should be clear to both you and your employee what aspects of the job the employee does well and what areas, if any, need improvement. Below are a few tips to help you get the most out of this year’s review process. 

Prepare for the Written Review: Being prepared is probably the single most important step towards making written performance reviews meaningful. If you simply check the “satisfactory” box and don’t provide any details – the review isn’t productive. Even worse, if you check the “good” box for employees who need improvement, you’ll jeopardize the organization’s ability to take disciplinary action against that employee in the future. Likewise, an employee can’t improve their performance if they’re unaware of any problems. Accordingly, you must provide accurate and thorough information on the written review. 

Begin by summarizing the employee’s performance before completing the performance review paperwork and before meeting with the employee. Ideally you’ve discussed your employee’s performance (good or bad) throughout the year and hopefully you’ve documented these discussions. To prepare for the review, simply summarize your notes. If, however, the employee’s performance hasn’t been previously addressed then you’ll need to set aside some time to reflect, review, and document. Put simply, this means that you should review any work-product, customer comments, etc. that have been provided prior to the review before documenting your comments on the written review. 

Employee Input: Getting the employee’s input in the performance review process will help the employee to appreciate the review process. Consider providing your employees with a self-evaluation form well in advance of the performance review meeting. Ask about their successes and challenges throughout the previous year and if they need any additional resources to meet the organization’s expectations. 

Talking Points for the Meeting: A meaningful review should include a face-to-face meeting. The meeting should include you, the employee, and another manager. Make notes of what you’d like to cover during the meeting and prepare specific examples of instances when the employee has performed well and/or when their performance has fallen below expected standards. 

Set Goals for the Next Year: The performance review is the perfect time to set new goals for your employee(s). Review your expectations with the employee during the meeting and document those expectations. Where feasible, make the goals as objective as possible. Objective goals make it easier for both you and the employee to determine whether the goals are realistic for the next year and if the goals are ultimately met. 

Follow-up: After meeting with the employee and reviewing their performance, make sure to follow-up with the employee. Don’t wait another year before you discuss their performance again. 

Above all, don’t dismiss the review process as meaningless and mundane. Make it worthwhile and hopefully you’ll see an improvement in your employee’s performance and job satisfaction. 

© 2013 ePlace Solutions, Inc.

Do You Have to Be a Grinch this Holiday Season?

Nobody wants to play the part of the Grinch during the holidays, but employers who fail to control employees during the holiday season may have no choice. If, however, you follow the guidelines below, it might just be possible to keep the holiday spirit alive and well at work this year. 

Celebrations
Employees and employers alike enjoy celebrating the holidays together. In order to avoid the common pitfalls of the infamous “holiday party”, review these tips. 

• Keep holiday parties non-denominational. Put simply, keep religion out of the party. A lot of people associate the holidays with deep religious beliefs; however, not everyone at the organization will share the same belief system, traditions, etc. It’s better to keep the party theme “generic” rather than attach any religious message to the celebration. 
• Alcohol should be avoided. Not serving alcohol is the safest decision, but it may not be the most popular. If your organization provides alcohol at the holiday celebration, understand that you may be legally responsible for drunk-driving incidents, underage drinking issues, and, of course, the employee who drinks too much and acts inappropriately. Consider having an afternoon gathering or something more casual to avoid the issue of drinking. 
•  Appropriate venue and entertainment. Planning your organization’s holiday celebration isn’t the same as planning a bachelor party. Keep this in mind while you plan. 

Attendance Issues 
Your organization will likely see an uptake in “sick” days as the holiday season draws near. Typically the days prior to and after a major holiday bring a large amount of unexpected absences due to employees missing work because they’re “sick.” 

• Strictly enforce your attendance policy. Remind your employees that they’re expected to report to work during their regularly scheduled hours. If you normally require a doctor’s note or other form of verification for absences then don’t let your guard down simply because you’re in the holiday spirit. Enforce the policy to avoid the headache of having to scramble to cover shifts and deal with angry co-workers who didn’t take advantage of you. 
• Absences = No Holiday Pay. Plan ahead and implement a clear policy notifying your employees that employees won’t receive any holiday pay (if you provide it) if they don’t work the day prior to or after the paid holiday. If your employee’s regular day off falls on a holiday, you’re not required to pay them holiday pay. 

Overtime and Double Time 
For many industries, the holidays mean longer hours and lots of overtime opportunities for employees. 

• Keep Track. With the chaos of the holidays it may be difficult for you to accurately track employees’ overtime hours. Plan ahead by informing your managers, supervisors, and employees of the organization’s policies and procedures regarding overtime. Remember, holiday craze isn’t a defense to a wage and hour claim. 
• Equal Opportunity. Oftentimes employees desperately want to earn extra money during the holiday season. You need to make sure that managers aren’t giving the extra earning opportunities to their “favorites” or excluding certain classes of workers (e.g. women, older workers, etc.). If you have a policy dictating how overtime and/or the opportunity to earn double pay is determined – follow it! 

In short, you don’t have to be a Grinch this holiday season; but be prepared and make wise choices. Nobody wants the gift of a claim or a lawsuit! 

© 2013 ePlace Solutions, Inc.

Message to Managers – Lead by Example

Manager Training This Way

Guidance for Trainer 
This training is provided to facilitate talking with your managers and supervisors about their responsibility to lead by example. Often, the best time to review the subject is during regular weekly or monthly meetings. Review the following examples with your managers, considering your specific environment and industry. Make sure your managers are aware of your expectations and the consequences for failing to meet those expectations. 

How to Lead by Example 
As managers and supervisors, you’re the face of the organization. Employees look to you for instruction and guidance. Accordingly, if you fail to lead by example, you’re doing a great disservice to both the employee and the organization. Managers who fail to abide by the organization’s policies and procedures will be subject to discipline. 

Review the two hypothetical scenarios below and think about how you’d have handled the situation. Next, consider whether your actions would've set a good example for your subordinates. 

•  You walk into the break room and notice a group of employees staring at a cell phone laughing hysterically. You approach the group and notice that they’re watching an online video poking fun at people in wheelchairs. The video features a well-known comedian and even though you know it’s inappropriate, you think it’s pretty funny. 

What kind of example will you set? What did you decide? Did you laugh? Or did you ask the employees to turn off the video?
It should be readily apparent to you that joking about disabled persons isn't appropriate for the workplace. Take this opportunity to remind the group that this type of behavior is unacceptable at work and require that they immediately turn off the video. Laughing would send the wrong message to your employees and undermine the organization’s commitment to providing a harassment-free working environment. 

•  It’s Super Bowl Sunday and you’re the only manager working. Your favorite team’s playing and you’re dying to check the score. There’s a strict policy against using the organization’s computers for personal use, including searching the internet or streaming videos. Likewise, the organization prohibits use of personal mobile devices during working hours. An employee comes into your office and asks if you could check the score of the game on your computer or cell phone. You could easily check and you know the employee won’t tell on you – they want to know as much as you do! 

What should you do? What did you decide? Did you quickly do an internet search? Or did you tell the employee “no”? 
As tempting as it might be, you can’t violate company policy. Sympathize with the employee and remind them of the organization’s policy. Tell the employee that you’ll check your phone on a break or after your shift and let them know about the game. It’s not always easy to do the right thing; however, if you fail to lead by example, your ability to enforce workplace policies and your credibility as a manager will be jeopardized. 

ePlace Solutions 2013

The Mobile Device has Replaced the Water Cooler as the Center for Employee Gossip and Distraction

Keeping a watchful eye on today’s workforce can be challenging. Gone are the days where groups of employees would congregate around the water cooler to discuss the latest gossip or swap stories about the weekend’s best parties. The gossip and loss of valuable work time continues – it’s just not as obvious. Employees today are tweeting, posting, texting, uploading, playing, etc. on their mobile devices constantly throughout the day. Get control of this modern day water cooler by following the steps outlined below. 

Implement a Mobile Device Use Policy 
The employer controls the work environment. It’s well within your organization’s prerogative to prohibit the use of mobile devices during working hours. If an absolute prohibition is too strict for your organization, then craft a policy that clearly sets forth the acceptable circumstances when an employee is permitted to use their mobile device (i.e., during breaks, in an emergency, etc.). Remember the more exceptions, the harder it will be to monitor and enforce the policy. Your policy should be in writing and distributed to all employees with an acknowledgment of receipt. 

Enforce the Policy 
Preparing and distributing a policy is the easy part – enforcing the policy is the challenge. 

•  Train Managers: If the policy is to work, all managers and supervisors must understand the parameters of the policy and the consequences for violating the policy. Most importantly, managers will need to set a good example. If a manager is seen texting or playing their favorite app during the workday, employees will likely determine that the organization isn't really serious about the use policy. 

•  Consistent Discipline: As with any policy, enforcement must be consistent. Don’t allow certain employees more freedom than others. Don’t discipline some, but not all, for violating the policy. If discipline is inconsistent, it may create the appearance of unlawful discrimination or favoritism. 

 Review and Update 
Technology changes fast and your policy should change with it. Make sure to periodically review your policy to ensure that it’s appropriate given the latest technology. If you modify the policy, re-distribute it to employees and highlight the changes. 

Be Observant 
Just as in the past, the approaching manager or supervisor can still cause the gossipers to stop and get back to work. It may not be as easy as spotting a group around the water cooler but it isn't impossible. Watch your employees, make your presence known. It will be much more difficult to sneak a tweet or text if they know that you’re watching and monitoring their behavior. 

ePlace Solutions 2013

Common Mistakes Managers Make When Terminating Employees

Terminating an employee, whether for performance or financial reasons, is probably the least favorite part of your job. Most people like to avoid conflict – not tackle it head-on. Unfortunately, most managers will have to terminate an employee (or two or more) during their career. We can’t make the process painless but we can help you avoid some of the most common mistakes managers make when terminating an employee.

Clear Message: Be kind and respectful to the employee but don’t beat around the bush during the termination meeting. Be direct and let the employee know that you’re terminating the employment relationship. Don’t use words like “change” or “different direction”. These terms may lead the employee to believe that they’re being re-assigned or that their job duties are changing. Confusion doesn't help the employee or you.

Avoid Long Delays: Don’t unnecessarily delay the inevitable. If you’ve made the decision to terminate an employee, it doesn't do you or the employee any good to delay the process. Indeed, if you delay without reason something might happen that’ll make the termination risky or that’ll require you to keep the employee (e.g., the employee gets injured on the job or files a complaint about unlawful treatment).

It Shouldn't be a Surprise: If you have properly addressed the performance problems or insubordination leading up to the termination then the employee shouldn’t be surprised by your decision. Have you put the employee on an improvement plan or have you given the employee a written warning? If not, you may want to do so prior to termination.

Don’t Make it About You: Don’t spend time talking about how bad the decision makes you and other managers feel. Let the employee know that you’re sorry it didn’t work out and provide them with the reason for termination so that they don’t come up with one on their own. Enough said.

Plan Ahead for the Meeting: Don’t think that you can just handle the termination meeting without preparing for it. You’ll need to decide what you’ll say, what documents you must have ready for the employee, and how you should arrange to provide the employee with their final paycheck. Unprepared managers are much more likely to say something they shouldn’t, forget to have the employee sign the required paperwork, etc. This’ll make the termination very risky for the company.

Avoid the above mistakes to help make the termination process easier on you and the employee. No termination is entirely risk free; however, if done correctly and with forethought, the risks can be significantly reduced.

© 2013 ePlace Solutions, Inc. October 2013 Newsletter

PEOs By The Numbers

1. Master policy clients of a PEO average 9.7 employees, while multiple coordinated policy clients average 6.7 employees.  By contrast, the average number of employees for non-PEO policies is 19.4.
2. PEOs represent 1-2% of all payroll
3. In Florida, it is 6% of the market
4. Five PEOs make up 48.8% of the overall PEO market
5. PEO loss development is less for PEO’s then standard market.  For large deductible clients, 1.278 at 42 months versus 1.41 for the non-PEO business
6. Approximately 90% of PEO client companies are not large enough to promulgate an experience modification
7. PEOs have had comparable or lower loss ratios

Via: Industry Leaders Meet With NCCI | Chief Economist Provides Positive Update on the PEO Industry

The ADA Interactive Process in Five Easy Steps

Jill has worked for as a cashier for two years but she has had ongoing performance problems. As you talk to her about it, she tells you the reason she cannot perform a certain task is because she has a disability. You are not sure what to say next, afraid to say the wrong thing but concerned because this task is an essential function of her job. There is no need for concern, the next step is simple. Go through the interactive process that is required under the ADA. Follow these steps and you’ll find the process is easy.

1. Talk with your employee. Ask them how their disability affects their ability to perform the task in question. Do not ask about diagnosis, only how job performance is affected.
2. Ask what accommodation they think is necessary so they can perform the task. If the information they provide is insufficient or they do not have an answer, you can ask them to have their doctor complete an assessment of their disability as it relates to their job functions. This includes asking what the doctor suggests as an accommodation.
3. Determine if you can make the accommodation. The employee must be able to perform the essential functions of the job, but there are usually always ways to accommodate. For example, moving less essential parts of the job to another employee, changing a shift, providing lifting assistance, or a chair. Most accommodations are easily accomplished and two-thirds cost less than $500, with many costing nothing at all.
4. If you cannot provide the requested accommodation, you can make a suggestion for an alternative modification which will allow the employee to perform the job. The provided accommodation does not always have to be the one the employee requested but it does need to allow them to perform the job.
5. Come to agreement on the accommodation and implement. Document your conversation and the outcome with the employee for your confidential file.

If you reach a point where you feel you cannot accommodate the employee because doing so would be an undue hardship, you are encouraged to talk with an HR professional or employment law attorney before proceeding. Undue hardship is very difficult to prove and we do not encourage taking that approach.

Follow these simple steps and get professional assistance when needed. Remember that the interactive process is a conversation with your employee; do not make it harder than it needs to be!


© 2012 ePlace Solutions, Inc.

Avoiding a Claim: Reduce Your Risks by Taking These Steps Before Terminating an Employee

Making a mistake when firing an employee can result in a wrongful termination claim. The four steps outlined below can help guide you through the process and reduce the likelihood of a claim.

Step One: Conduct a Pre-Termination Analysis
A pre-termination analysis requires you to carefully think through your decision to terminate a particular employee. Oftentimes, the process exposes a potential risk that you had not reviously factored into our decision. Review the employee’s employment history to identify any “Red flags”. A red flag would be any fact or characteristic that tends to make the termination risky. For example, has this employee complained of harassment, discrimination, working conditions, wage and hour violations, etc.? The termination is risky whether or not the complaint has merit. Also, consider whether the employee is a member of a protected class (e.g., gender, race, age) or if the employee has taken a medical leave. Any of the above circumstances may encourage an employee to file a claim after termination.

Step Two: Get Professional Help, if Needed
If the employee you want to fire is in a protected category identified in Step One, you should consult with an HR professional or attorney prior to taking any action against the employee.

Step Three: If No Red-Flags, Complete Required & Recommended Forms/Polices
Processing a termination can be confusing. The law requires that certain forms and procedures be followed. Both federal and state laws apply to the termination process. Be sure to consult your individual state’s laws prior to terminating an employee.

Make sure you understand the following:

•  Final paychecks
•  Acknowledgment of final paycheck
•  COBRA/HIPPA notifications and information
•  Any unemployment forms
•  Change of relationship form
•  Return of company property

Step Four: Final Review
As a last step, review all the paperwork and notes that you have regarding the termination and then document your final review. The purpose of this step is twofold: one, you can verify that all the required procedures have been followed and two, you will have one last opportunity to document the steps that you have taken to minimize the risks of the termination. 

No termination is completely without risk; however, you can mitigate the risks if you follow the steps above.

© 2013 ePlace Solutions, Inc October 2013 Newsletter

How Does the Shutdown Effect Employee Benefits?

With the launch of the new health insurance exchanges; open enrollment; and now, the federal government shutdown, an already confusing time of year for benefits managers has been made even more challenging. As of Oct. 1, federal government offices have been short-staffed or closed, leaving employers and employees with more questions than answers.

Jill Collins, an attorney at the law firm Mintz Levin in Boston, outlined key points regarding employee benefits and the shutdown. Click Here to view these points covered in the SHRM Article, "Shutdown Has Limited Impact on Employee Benefits—For Now."

Why Work With a PEO?

I know, it's the burning question on your mind day and night... Should I use a PEO? While we may be a little partial, there has recently been some pretty compelling evidence released that might help you put this question to rest.

PEOs are able to provide a broad array of HR services at a lower cost. According to recent release by the NAPEO, a conservative estimate is that PEO clients enjoy a 21 percent savings on HR administration. For the typical PEO client, the savings are likely to be many times greater than this conservative estimate.

Small business executives who use PEOs are better able to focus their attention on the core business. PEOs help their clients manage the “people side” of their businesses more effectively, avoiding compliance pitfalls and creating key benefits for the businesses and their employees,while simultaneously freeing up time for owners and executives to concentrate on growing their businesses by focusing on operations,strategy, and innovation.

If PEOs are successful in enabling small businesses to focus more directly on what it takes to succeed in a competitive marketplace, it follows that PEO clients should grow faster than other comparable organizations. And, indeed, this is what the evidence shows.

To learn more about the benefits of PEOs or to see the statistics behind the evidence we referenced above view the NAPEO White Paper Series.

BREAKING NEWS: PPACA Exchange Notice Update

PPACA requires employers covered by the Fair Labor Standards Act to provide a notice about the upcoming health marketplaces (also called exchanges) to their employees. The notice is due Oct. 1, 2013.

On Sept. 11, 2013 the Department of Labor (DOL) announced that it will not penalize employers that do not provide this notice. As a practical matter, this means that providing the notice is now optional.

Employers that have already provided the notice do not need to do anything - it is fine to provide the notice. The change simply is that the DOL will not penalize employers that fail to provide the notice.

Employers that have not yet provided the notice may either distribute the notice or not, as they prefer. Employers that want to increase awareness of the marketplace (perhaps because they expect that some of their employees will need or want to purchase from the marketplace) may still want to provide the notice. Employers with complicated distribution situations, or that are concerned that the notices may generate questions the employer is not staffed to answer, may prefer to not distribute the notice.