EffortlessHR Blog

Managing Change

Lola Kakes — Fri, 06 Nov 2009 22:12:16 +0000

The elections are finally behind us and the political ads are over – at least for now. President Obama has reiterated that he is an agent for change – change in how government works, change in who we are in the global experience, change in many other ways. So, what is change?

All organizations go through change. There might be a change in management, or a change in policy, change in staff, change in location, change in customers, and even change in size of the organization as in mergers and acquisitions. We even face change in our personal lives – change in marital status, change in family dynamics, relocation of family, and change in job status.

Change is all around us. It is what we do with change and how we react to change that causes the most difficulty. The issue becomes how do we manage change?

I’m not sure how President Obama will affect change in our bureaucratic society; nor how the world will react to some of the changes he has indicated he will implement. I do know he has his work cut out for him and his staff and we

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Health Care Reform – Some thoughts

Lola Kakes — Wed, 09 Sep 2009 16:51:15 +0000

What’s a small company to do if required to offer health insurance? This is a question many small business owners are facing. The federal government is gearing up to tell the American business owner:

When or how to form a union
When to provide paid sick leave
When to provide paid family medical leave and
When to provide health care benefits

All of these issues are important – not only to the business owner but to the employees that they hire. There are really three perspectives that we need to look at:

The HR Perspective
The Business Perspective
The Government Perspective

The HR perspective is that in order to attract and retain quality employees, quality benefits need to be available. These benefits could include paid sick leave and/or paid leave for medical reasons, and especially health benefits – usually for employee and sometimes for employee and family. The unionization of a company may become easier if the card-check provision of the Employee Free Choice Act passes. With only 7% of private business employees belonging to a union, the issues at stake are very high. From an HR perspective, many organizations might face new forms of HR issues that they have not had to deal with in the past, such as labor negotiations.

The Business Perspective, especially for the small to mid-sized business, is one of focus and cost. Most small businesses want to be able to provide the incentives that attract quality employees. However, if they are forced to comply, many small businesses may have no other choice than to close the door. Being forced to accept a union under the proposed law would require a business to seek labor specialists to help in the establishing of a union. That might force an employer to stop thinking about the day to day business issues and to focus on labor laws instead. Negotiation can be expensive and that is another nail that small business owners cannot afford.

Small businesses, who are forced to pay sick leave or medical leave, or provide health care benefits, may find the cost of doing business too great. It may not be that they don’t want to provide better benefits – they just might not be able to afford them. Or, if they are forced to provide these benefits, they will most likely be forced to raise their prices, which will impact the public as well.

The Government Perspective seems to be a very altruistic thought process. If only 7% of the private sector is currently unionized, what makes the government think the other 93% wishes to be unionized? Have they done a focus group? Have they surveyed those businesses? Or are they listening to lobbyist who are encouraging them to act? I doubt if many of the Senators and probably just a few of the Representatives, have every been a business owner. The cost of doing business runs from not providing benefits and paying for it by not being able to attract “star” players, to providing benefits at a cost of approximately 40% of the salary of the employees. If a business has a salary total of $100,000, the cost of benefits may reach $40,000.

Many individuals believe that health care is their right. It is not a covered issue in the Constitution. It is however, a privilege, just as voting is a privilege. Most employers want to provide and promote that privilege, but I do not believe we should mandate that privilege, especially when it may cost a business their opportunity to succeed.

We can put a man on the moon and do many other wonderful things, so surely we should be able to fix this problem. The bottom line is that businesses know what they can afford (both from a cost standpoint to the HR issue) and it should be left to them to fix their own problem. If they can provide some sort of paid health benefit they stand a better chance of attracting good employees, which in turn will help them grow their business. If they can’t, they may have to pay the piper and either stagnate or close the door. Either way, it should be their choice.

Related articles 1

Health Care Plan Could Undermine Small Business (myventurepad.com)
Will health reform chase employers away? (money.cnn.com)

Source: Effortless HR Software's HR Blog | Health Care Reform – Some thoughts
Tags: health care, health care costs

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Understanding Diversity in the Workplace

Lola Kakes — Tue, 08 Sep 2009 21:52:03 +0000

As a business owner, consultant, and entrepreneur I have been told by many small business owners that “diversity” is really only applicable to larger businesses. When asked what diversity means to them (the small business owner), many respond it is about differences in race or gender. It is not about making the workplace a better place in which to work, but more about following the law.

I believe that diversity is really about being open to the global community and being prepared to respond to inquiries and ideas from a diverse community. If one truly understands the diverse culture we all bring to the table, we will have more open communication, better understanding, cultural and economic agreement, and less conflict.

By bringing diversity to your workplace, you can help to build a stronger organization and provide broader profits and capabilities to your customer base. As technology makes our world “smaller” , bringing cultures together, forcing us to work if not live together, diversity is undeniable and must be managed.

Let’s start by defining “Diversity”.

Diversity is bringing together a diverse group of people to work and communicate effectively and efficiently. Diversity is not just about race and gender, but also about diverse thoughts on religion, areas of the country, age, disability, and any other issue where more than one individual working, living, and communicating with another individual brings different thoughts together. Diversity can even be how different people learn, how they communicate (language), and how they perceive a problem or issue. Diversity is defining the differences we all have.

Look at your family dynamics. The family unit is made up of several types of individuals – for example, maybe different genders, possibly different age groups, different backgrounds and belief systems, different values, different up-bringing and different thought processes. If there was not a desire to learn about one another or to be a part of one another’s life, the family unit would not be there. It is only with the development of understanding between the primary individuals that the family will develop.

The same is true in a business. Diversity begins at the top, with the primary contact person understanding and looking for individuals that work well together, communicate with one another, and fit the culture of the company. Will there always be agreement? No, and in fact you don’t want blanket agreement. If you always agree about everything, you become stagnant and boring and you won’t move forward.

Diversity is understanding the differences we all bring to the table and being able to respond to those differences in a positive manner. Grow your business and yourself through association with diverse individuals. You and your business will be glad you did.

Carnival of HR for July 08

Aaron Queen — Wed, 08 Jul 2009 13:00:12 +0000

EffortlessHR is honored to be hosting this week’s Carnival of HR.

Thanks to HR Minion for keeping track and organizing the carnivals! As this is our first time hosting the carnival, please forgive any mistakes.

Plenty of posts came in this week, so without further delay, let’s get going:

Jason Seiden was the first to submit his article and writes about how social media is blending our personal and professional lives, making it harder to hide behind corporate facades in his post entitled “Ethics, social media, and… “profersonalism”

Susannah from Advorto chimes in with her 15-minute guide to recruiting graduates in a recession

Cathy Martin from Intellectual Capital Consulting wants us to ponder if Engaged Employees can Sell more Soup

Sharlyn Lauby from ITM has an excellent post on business agility

Erik Samdahl of i4cp would like us to think about How High-Performers Support Employee Engagement

Mark Stelzner, who hosted the previous HR carnival over at the Inflexion Point Blog has some Observations & Conclusions from SHRM 2009

Drew Tarvin shows us how to Team-Build Through 3 Pictures

Jon Ingham explains about developing people management strategy and the value of templates in this process

Dan McCarthy wants us to Beware of Cult-like Leadership Development Programs

Mark, Amy, and Meg (The TalentedApps team) discusses social networking in their submission One, but not the same

Marie Adams has 2 very good posts this week: Are “lunch and learns” bad for business? and When cookie-cutter sexual harassment training just won’t cut it

From the G.Neil HR Forum, some insight on Employees putting your data security at risk

Lisa Rosendahl writes about Easier Federal Job Applications

Trisha McFarlane has an interesting article entitled Yo Adrian! You Don’t Have to Win to be Great (yes you have to read it to understand the title!)

Amit Bhagria lets us all think about How to Manage Human Capital

Lexi Ruben Clifford Junio from PRECEPT has an excellent article on Health Care Reform: The Simple Truth

Chris Young posts a Book Review on Three Laws of Performance
Susan Burns has a good article on What’s your Employment Brand Relevancy
Michael VanDervort authored an article titled Social Media and Human Resources
Wally Bock gives us a lesson on Home Depot at 30: A Lesson in Corporate Culture

There you have it.. The last few were fairly late entries so they may have been rushed on here. We’ve been incredibly busy with the launch of Effortless Business Forms and the new pricing model for Effortless HR Software that our blog postings have been slow lately. We’ll be sure to catch up and get some recent posts online ASAP.

Source: Effortless HR Software's HR Blog | Carnival of HR for July 08
Tags: carnival of hr

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EffortlessHR.com Introduces New Pricing Model

Aaron Queen — Thu, 02 Jul 2009 20:34:07 +0000

We have been hard at work with our new pricing plans and are proud to announce that effective today, you can find our new pricing at http://www.effortlesshr.com/

Our lowest cost plan is just $29.95/month and includes a full featured online HR Software solution.

Let us know what you think and if we are crazy or not for offering the most affordable Online HRIS in the world.

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Join EffortlessHR.com on Twitter and Facebook!

Aaron Queen — Thu, 02 Jul 2009 17:11:27 +0000

This post should have been made a long time ago. This is just friendly reminder that we are (and have been) on Twitter and Facebook.

Twitter: http://twitter.com/effortlesshr

Facebook Group: http://www.facebook.com/group.php?gid=34653399510 (for all HR bloggers and Professionals)

That’s all for now. Have a good 4th guys and gals!

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Is Outsourcing Right for My Small Business?

Aaron Queen — Tue, 30 Jun 2009 19:41:10 +0000

There are so many options available during this difficult economic time to reduce costs. Trying to make the right decision regarding which way to go can be daunting. So many companies are making decisions that while thought to be short term, have long term effects. So every decision has to count!

With the internet, however, there are lots of ways a company can outsource functions without giving up control. In the past, if you were outsourced, you were transferring oversight to a third party. There are now effective ways to stay in control while reducing company costs.

It may be more effective to to automate a process that was previously handled manually than to give control to a third party in order to reduce administrative staff. A great example of this is payroll services such as CompuPay. You handle all the data entry and have full access to all the information and reports without having to maintain knowledge of all the laws governing payroll, a never ending series of updates.

Another example is using Quick Books. Your company information can be stored centrally with templates for entering data in a way in which you can then retrieve valuable financial data. This allows data entry to be handled by an administrative individual and then reviewed by management/owner. Another example is an HR service such as EffortlessHR.com where company and employee information can be stored, managed and the company can remain compliant, all while managing the information themselves. Along this line, when hiring, Jobing.com is also an excellent resource in the recruiting process.

The intent of using these automated systems is to free up the owner and company administrators so that they can spend more time on revenue producing activities such as sales, customer service and employee retention. There just aren’t enough hours in the day to keep up on all the changes happening in these three areas and run a business unless you have a large enough staff, and those are at a premium right now. A perfect example of this was the recent changes in COBRA because of the economic stimulus package enacted this year.

For the small business owner with 20 or more employees, this was a major interruption in business that had to be attended to immediately and has created a need for meticulous actions and record keeping. Have expert systems in place certainly helps alleviate some of the stress of this one change that occurred.

Another avenue to consider is hiring experts for specific needs. This way you do not incur additional employee expense or increase the workload of current employees to handle certain functions and needs. These experts could include trusted financial advisors, (such as financial consultants, a bookkeeper), marketing specialist, benefits coordinator, etc. You don’t have to figure all these things out by yourself and still try and run a business! If you needed a product expert, you would hire one. Think about the other aspects of your business too. This is surrounding yourself with the best to ensure that your company is operating profitably and you will be geared up for the future as the economy changes for the better.

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Employee Handbooks – Yes or No

Aaron Queen — Tue, 30 Jun 2009 18:08:39 +0000

Over the years, as I consulted with small businesses, I was often asked if an employee handbook was necessary. The questions usually amounted to:

- the cost of having an employee handbook written,

- the number of employees (I only have one employee),

- the idea that having written policies would cause more problems than not having written policies, and

- I tell the employee everything they need to know and if they have a question they can come and ask me.

Handbooks are not required as a regulation or law. However, some laws and regulations require posting in the place of business – for example Minimum Wage. The way handbooks are written could be a deterrent, i.e. if it is too legal no one will read it or care to read it and it then is a waste of time. If it is too simple, it gives the impression of “fluff” and is not taken seriously and is then a waste of time.

I tell clients that Handbooks are a guide for both the company and the employees. It helps define the way the organization does business and how they treat one another. It gives the employee a sense of fairness and consistency because it says that everyone is treated the same way. It tells the court (if there is litigation) that policies are in place and they are followed.

Does it matter how big or how small the company is? If you only have one employee, you probably don’t need a full blown handbook. That being said, however, as you start growing your business and you hire your first employee, you start to develop policies – sometimes without even realizing it. So, having a simple handbook from the very beginning helps keep you focused and consistent.

For example, you have one employee and that employee seems to always have a question. “What are our holidays?” “When do I get paid?” “Do I get vacation or sick time?” “Do I have to wear a uniform or can I wear jeans?” “Mr. Smith made a pass at me, what should I do?”

These questions may not come all at the same time but over a period of time. Your answer becomes the policy of the company and as you add more employees, you need to give them the same information you gave your first employee. Sometimes it is hard for me to remember what I did last week, much less having to remember what I told an employee three months ago. That is why a handbook is helpful.

Another reason is that employees are going to learn what is accepted and what is not within the company whether you have a handbook or not. You have to determine how you want them to learn about the company. Do they learn from a disgruntled employee, an irate customer, an easy going supervisor, or do they learn from the written policy that you have put in place?

Remember, however, if you have a policy you must follow it. Do not put policies in your handbook that you cannot or will not follow. You should review your handbook on a regular basis and you have the right and obligation to up-date the handbook to comply with state and federal laws and to address issues as they arise.

Finally, the cost is minimal compared to what a lawsuit might be. Handbooks help minimize the liability associated with having employees as it indicates consistent management styles, fairness to all employees, and compliance with the laws.

If you have a handbook, good for you! If you don’t, you might want to look at putting a simple handbook together.

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Are You Ready for a TRIP?

Lola Kakes — Tue, 30 Jun 2009 17:22:58 +0000

Everyone says the economy will be turning around by the end of the 4^th quarter 2009, with the employment outlook ticking upwards the first part of 2010. As a business owner, we can only imagine what the journey over the next couple of months will be. Because of the economic upheaval of the past few months, the face of business as we know it has changed. We need to understand and acknowledge the changes. We can do this by putting together our own TRIP ticket.

The American Automobile Association (AAA) has a wonderful program to help their customers prepare for a trip by providing them with a Trip Ticket. It is a detailed map from point of origin to final destination, with references to detours and obstacles. They provide guidebooks of points of interest and places to stay, to dine, to visit.

As we come out of this recession, are you ready? I suggest that as a business owner, we need to prepare our own TRIP ticket. We, too, need a road map of how to get to where we want to go, what obstacles may be in our way, and how to navigate the detours, We need to be aware of our competition (points of interest) and understand our processes (where to stay and visit) What does TRIP stand for, you may ask? TRIP stands for:

T – Technology
R – Realignment
I – Infrastructure
P – People

T is for Technology

Computers are smaller and faster than ever. I-Pods and I-Phones, as well as BlueTooth, BlueWave and a multitude of handheld devices are all the rage. In addition, we have You Tube, FaceBook, Linked In, blogs, and the newest Tweeters. Technology has taken enormous steps to help business owners stay in contact with their clients, their employees, and the global community. If your business is not in sync with the latest technology, you will have a harder time keeping up.

Is this an easy thing to do? It depends upon your mindset. Younger entrepreneurs will most likely be there already. The more mature or seasoned entrepreneur may struggle with all the “social media” that is out there. I recommend, however, that this is a good time to take a class, talk to the up and coming young business mind to learn how to stay current with technology. Look at your website (and if you don’t have a website, get one) and make sure it is current and appealing. It makes me stop and think if I see a website that has not been updated for several years. That in itself sends a message – and not always a good message.

R is for Realignment

According to the dictionary, realignment means to reorganize or make new groupings. The recent problems with credit availability, high executive salaries, poor business decisions in the big automobile industry, should be telling all the small to mid-size business that they need to look at their current business plan and see where and how to realign their culture to meet the needs of the 21^st Century consumer. Ensuring there are the right work ethics in your company is imperative in the new business culture of this Century. If you do not realign your policies and your procedures, you run the risk of falling behind and losing the ability to grow.

How do you do this? You look at your mission and vision statement and determine if it fits where you are in your business or where you want to be. Are you following your mission and vision, or are they merely pretty words used to inspire. Do you “walk the walk and talk the talk” or do you say to your staff “do as I say, not as I do”. Realignment comes from the top – you, as the decision maker, have to believe it is important and make it a priority, Change is not easy, especially in organizations. It takes time and dedication and belief. With the economic down turn, now may be the right time, so that you position yourself well for the “trip” ahead.

I is for Infrastructure

When you talk about infrastructure, most people think about the roads, highways and bridges. In our Nation, the economic stimulus packages are aimed at developing jobs rebuilding our infrastructure. In a company, the infrastructure I think about is the communication highway. Communication is a cornerstone to building a strong business.

Have you revisited your business plan since the recession started? Have you built in policies and procedures to help guide you through this time? Do you have an up-to-date Employee Manual and use it to communicate your policies to your employees? Are you putting together good training programs for your customer service people to empower them in responding to customer questions, thus increasing customer retention? Have you identified your “star” performers and looked to see why they shine and be sure these attributes can be found in other employees or new hires?

Look at your office layout (which is also part of your infrastructure) and see if you have “dead” space that can be eliminated or put to better use. Now may be a good time to do your performance reviews and determine if you have the right people in the right positions or if you can let someone go.

It is also a good time to look at your benefits by talking to your agent and determining if there are other options available, Now is the time to shore up your infrastructure to be better prepared in the future.

P is for People

We touched on the “people” aspect above, but let’s really look at our People. The people element of doing business is probably one of the biggest expenses for businesses. On average, an employee is about 40% of a business expense. That includes salary and benefits. I know of some businesses that think of their employees as a necessary evil and that if they had a choice they wouldn’t have employees.

Those businesses probably don’t have loyal employees or have a very good reputation as a good place to work. They probably have high turnover, low morale, and wonder why customers don’t come back. I believe that if you have employees, you have them to help you grow your business. How you treat your employees will determine the type of business you are or what you will become,

Do you have the right people in place? Do you have good job descriptions and do you check them regularly? Do you communicate with your employees so they feel they are a part of the process? Do you conduct performance appraisals and coach your employees through a rough time?

If your business has slowed down, as many businesses have, now may be the time to look at your people and make sure all the above mentioned issues are being properly managed. Be prepared and be ready to move forward.

Having your own TRIP ticket is important as we move out of this recession. It will put you ahead of those businesses that have “hunkered” down and done nothing but complain. Take advantage of the situation and you will be stronger for it. See you down the highway!

Source: Effortless HR Software's HR Blog | Are You Ready for a TRIP?
Tags: business plan, employee handbooks, infrastructure, people, performance appraisals, realignment, technology

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Top Ten Tips for Resume Writing

Cathy Baniewicz — Tue, 09 Jun 2009 18:01:07 +0000

We are all well aware that the job market is very tight and there are many people who are competing for the same positions. The first step in the process is for employers to review the resumes of people applying for a position. What are they looking for and what can you do to increase your chance of landing an interview?

1. Start with a clearly stated job objective or background summary. An objective works best when you can be specific as to the type of position you are looking for. If you are flexible and can consider several types of positions, the background summary may be the best way to highlight your skills and abilities.

Examples:

Objective:

Position as a Controller utilizing successful accounting and managerial experience.

Background Summary:

Experienced manager with excellent team abilities and strong leadershipskills. Enthusiastic, highly motivated and can be counted on to get the job done.Excellent communication skills with the ability to relate to all levels within an organization.

(Note: If you have your resume on your computer, you can change the objectiveand/or background summary to fit a particular position.)

2. A good resume sets forth your accomplishments. It should not be a list of jobduties. Employers want to know what can do for them and how you havecontributed in your previous positions. Begin each statement with an action verb and provided quantifiable information whenever possible:

Examples:

Increased sales by ___% each quarter for the past two years.

Developed a ___________program resulting in savings of $__________.

Served as team leader on a project which resulted in cost savings of $________.

Designed and implemented a performance appraisal program for six locations.

3. It is not necessary to list every job you have ever had. Employers are most concerned about what you’ve done recently and not what you did fifteen years ago. Listing many years of work experience could be a liability in competing with younger workers.

4. Do not list hobbies or outside interests unless they have a direct correlation to the skills and abilities an employer is seeking.

Examples:

The following could raise a red flag with an employer:

Hobbies; skydiving, racing – employer may consider you an insurance risk

However, if you a volunteer for a hospice program and you are applying toa social service agency, this could be a plus.

5. There is nothing magic about a one-page resume. In fact, if you have been inthe workforce for any length of time, it would be impossible to communicateeverything you have to offer in one page. Try not to go beyond two pages or your resume might not get read.

6. DO NOT FALSIFY your work history or education. More employers than ever are doing background checks and you will not get hired if you are found to be dishonest. The employer can terminate you at anytime if they find out your application and/or resume was false.

7. Use a quality bond paper, white, cream or grey. Don’t get cute or fancy withbold colors or graphics unless you are applying for a position in the arts. Do not include a picture!

8. Do not overuse bolding, underlining or mix fonts. Make sure your resume is easy to read and has lots of white space. Check and double check for spelling and typos. Using spell check is not full proof. For example, if you use the word their when you really meant there, spell check would not pick this up as the word is not misspelled. Have two or three people proof your resume. After you’ve been working on it awhile, you can easily miss something.

9. Make sure your contact information at the top of your resume is current. If you are using your cell phone, be sure your voice mail message is professional! You will definitely turn a recruiter off if your voice mail is offensive. When job hunting, do not have little children on your voice mail.

10. Seek professional help if you do not have good writing skills. It is well worth the cost as you only have one chance to make a good first impression.

One final piece of advice! When sending out your resume, you increase your chances of getting an interview if your cover letter specifically addresses how your background and skills match what the company is looking for. Do not use a one-size-fits-all cover letter. It will be obvious to the recruiter. Do your research and find out something about the company. You will truly stand out if you do this as most people don’t take the time to go that extra step.

Good luck and happy job hunting!

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EffortlessHR launches “Effortless Forms” for Business and HR

Aaron Queen — Fri, 29 May 2009 21:01:00 +0000

Well.. We finished up our programming and design ahead of schedule and are proud to introduce Effortless Forms.

http://www.EffortlessForms.com has 325 business and HR forms (many of which are free!) , templates, and spreadsheets available at the time of launch. We will be rapidly expanding our database and would love your feedback on what other types and categories of forms you would like to see on this site.

That’s it.. short and sweet! Be sure to check it out and let me know what you think of the site.

Source: Effortless HR Software's HR Blog | EffortlessHR launches “Effortless Forms” for Business and HR
Tags: business forms, forms, HR, spreadsheets, templates

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Can You Make an Angry Customer Loyal?

Darrell Griffiths — Fri, 29 May 2009 17:58:06 +0000

One of the most difficult situations we come across in business, is the “angry customer”. We want nothing more than to slap this person and send them on their way. Please resist this urge as it’s not worth losing that customer or going to jailJ Seriously, fighting will just make the situation worse and you could lose the customer or even lose many customers.

Understanding where that anger comes from will help you avoid being sucked into a fight with a customer. Psychologists say that anger is not a primary emotion. Anger usually comes from fear or a feeling of hurt. Once you realize that yelling and strong words come from fear or hurt then you can figure out how to calm that customer down.

If a friend came to you upset and in tears, what would you do? Would you yell at them or kick them? No, you would sit there and listen to them and validate them. Even if they aren’t right in what they are saying, they just want to be heard and validated. Try to remember this when dealing with an angry customer.

So if you remember that anger is a fight or flight emotion and that fighting back will not work, you will be able to handle the angry customer in way that is not confrontational. Remember their anger is not personal, they are afraid or hurt.

When you listen, validate, and talk calmly, and once the customer has calmed down, you can resolve the problem and calm their emotional state. When you take care of their emotional need, you will form a bond to that customer that will be hard to break. Their confidence and trust in you will grow tremendously and you just may have that customer for life. All it takes is a little understanding and you can turn an angry client into a loyal customer.

- Apple and AT&T Royally Screw Loyal iPhone 3G Customers | Cult of Mac

Source: Effortless HR Software's HR Blog | Can You Make an Angry Customer Loyal?
Tags: angry, customer, dealing with angry customers

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Human Resource Management at Work

Lola Kakes — Fri, 22 May 2009 17:50:45 +0000

Human Resource management is the process a company uses to ensure the effective and efficient use of their “people” talents to accomplish organizational goals. If these resources are managed properly and effective, the organization would most likely increase profits, sell more items, produce in a more efficient manner, and be able to do all this while staying in legal compliance.

A product or service is only as good as the people that make it, design it, or sell it. This means that one of the most important assets of any organization is their human capital. If you have qualified, enthusiastic individuals, you will have a better chance of maintaining a leading edge over your competitor. If you have poor morale, low production, ineffective service, or untrained individuals – the chances are pretty high that your organization will be in the top 33% of all organizations that fail. People really do make the difference.

It is easy to see why HR is the most expensive part of doing business if you consider that studies show that the expense of having employees is about 40% of a company’s profit,. Large organizations have always seemed to have HR expertise – they have fully staffed HR or Personnel Departments with varying degrees of specialties, such as compensation, benefits, training, recruiting, etc. A fully staffed HR Department in a large organization might consist of at least three people at a cost of about $200,000 per year – just for salaries. Just imagine what you, the small company owner, could do with a staff of 5 people and an overhead budget of approximately $200,000 per year.

Well, in the first place you would not need 5 HR people. Most small companies can do quite well with a part-time HR person that is capable of giving good HR advice and counseling. Costs may vary, depending upon the expertise you are looking for, however, if you find an independent contractor with solid HR experience, an hourly rate for tasks completed would probably be very cost effective.

What can you, as a small company owner or manager do to have the leading edge and have your employees weigh in on the asset side of the ledger and not on the liability side? Talk to various human resource consultants and pick one that is right for your organization – one with experience, capabilities, and knowledge of human resource functions. Look at tools and resources that will help you develop your staff. One such tool is EffortlessHR, an Internet based “HR in a Box” program that is affordable and provides a wealth of information. Look it over and see what it can do for you or, check out other available tools and resources and find the right one for you.

Once you decide on the right combination you can get on with what you do best – run your company.

Source: Effortless HR Software's HR Blog | Human Resource Management at Work
Tags: Business, Human capital, Human resource management, Human resources, organization

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H1N1, Swine Flu, Pandemic – What does an employer do?

Aaron Queen — Fri, 01 May 2009 16:31:44 +0000

With all of the news out there involving the current world news…

Here are some reasonable steps to prepare for a pandemic:

Designate one person as the office contact

If the WHO (World Health Organization) increases the health risk level to 6 (pandemic), you should be ready to do telecommuting.

Plan to have your employee’s notify you if they are traveling to any of the high risk areas (locally or abroad).

Restrict employee travel to high risk areas.

Be sensitive to employees with children.

OSHA (The Occupational Safety and Health Act) prevents employers from retaliating against employees who refuse to work if they reasonably believe they would be in danger at work.

Have a policy or an emergency plan in place.

Source: Effortless HR Software's HR Blog | H1N1, Swine Flu, Pandemic – What does an employer do?
Tags: h1n1, health, pandemic, swine flu

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Employee Turnover — Any Idea What It’s Costing?

Cathy Baniewicz — Wed, 22 Apr 2009 22:47:59 +0000

In today’s economy it is more important than ever to avoid turnover. Turnover is extremely costly. These are the factors you need to consider when estimating what the bottom line is when it comes to calculating turnover.

First, there are separation costs. Staff time, including the departing employee, in conducting the exit interview and preparing COBRA paperwork where required. Consider payout of paid time off (vacation) due to the employee as well as possible unemployment costs.

Don’t forget interim costs until the employee is replaced such as temporary or contract workers as well as overtime for current employees who take up the workload. Morale often suffers if current employees are expected to pick up the slack for an extended period of time.

Recruitment costs really add up! Staff time to prepare advertisements or website postings. Costs of advertising. Employment agencies fees – can be up to 3% of employee’s slalary. Executive search firms are much more costly.

Your calculations should also include staff time in:

Screening resumes and conducting telephone interviews
Contacting candidates and scheduling interviews. The more people involved the more time consuming this becomes
Interview costs – don’t forget to calculate the number of people involved in the process times their hourly rate.
Making the final decision – may inlcude a second or even third round of interviews
Conducting pre-employment testing
Background checks and preparation of pre-employment paperwork.

Post employemnt costs include:

Physicals and drug screening
Orientation costs
External seminars/training to bring the employee on board successfully
Time new employee spends getting to know the basics of his/her new job. These costs are no small matter for managerial level employees or other jobs requiring highly skilled or technical employees
Time managers and supervisors spend in training and coaching

Some costs are difficult to calculate. For example, how does one put a dollar figure on what it costs the company when a long-time employee who has great rapport with the company’s best customers leaves the organization? Not so easy, is it?

Here are some tips to avoid turnover

Take the time to hire the right person.

Make sure employees are properly oriented and welcomed into your company.

Train your supervisors in all areas of employee relations:

All policies and procedures enforced fairly

Employees treated with respect without intimidation or bullying

Select supervisors for their leadership and interpersonal skills

Salaries and benefits should be competitive.

Employees should be properly trained and offered opportunities for advancement whenever possible.

You can get more information on employee selection and retention by visiting our website.

Source: Effortless HR Software's HR Blog | Employee Turnover — Any Idea What It’s Costing?
Tags: turnover costs

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EffortlessHR Introduces Online Employee Handbook Builder

Aaron Queen — Thu, 16 Apr 2009 20:29:51 +0000

EffortlessHR announces new software which allows a company to stay green by creating and storing HR policy manuals online. Many businesses are too small to have a human resource professional on staff to handle the important task of developing an employee handbook. Now they have access to an affordable online solution that allows them to develop a handbook quickly and efficiently by answering a few simple questions. Written by top human resource professionals and designed to protect against liability and lawsuits, EffortlessHR’s online software explains company policies and guidelines in understandable language. The manual incorporates state-specific laws and regulations which may be applicable to a company’s organizational size and needs.

Lola Kakes, CEO of EffortlessHR, says, “Employee handbooks help managers guide employee expectations, while assuring employees that the company will treat them fairly and objectively. Our employee handbook builder is a quick, simple solution for small businesses needing to develop and communicate policies.”

EffortlessHR.com provides small business employers affordable online access to professional HR tools. For more information about their Effortless Employee Handbook Software, go to http://www.effortlessemployeehandbook.com/ or call 520.546.3947

Source: Effortless HR Software's HR Blog | EffortlessHR Introduces Online Employee Handbook Builder
Tags: policy procedure

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COBRA Alert – New Rules & Changes from ARRA Stimulus Package

Lola Kakes — Thu, 12 Mar 2009 19:24:22 +0000

Taming the COBRA “Lion”

The old adage, “March comes in like a lion and goes out like a lamb” is proving to be too very true for companies across the country. Why? Well, effective March 1st, the American Recovery and Reinvestment Act of 2009 (ARRA) President Obama’s Stimulus package, goes into effect and includes major and significant changes to the current COBRA continuation coverage. This “Lion” is causing business owners and HR departments to scramble to understand and comply with the massive changes in a very short period of time.

As a reminder, COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal regulation that is applicable to employers of 20 or more employees who offer a regular group medical plan. If you do not have 20 or more employees or offer a group medical plan, then this new coverage is not applicable to you.

The reasoning is basic, the economy has been in a tail-spin and the President wants to make sure that the millions of individuals that have lost their jobs due to this economic crisis have the resources to continue their medical coverage. All this and still letting the employer know that they will be entitled to a subsidy to provide this coverage to their terminated employee.

The main gist of the ARRA is:

Provide a 65% federal subsidy of COBRA premiums to eligible individuals for a maximum period of 9 months;
Requires employers to pay 65% of the insurance premium upfront and then deduct the cost from their payroll taxes (Social Security and Medicare) and the terminated worker paying the remaining 35% (this occurs with the regular federal reporting of the 941 Tax form);
Allows employees who became unemployed back to 9/1/2008 (and who originally rejected COBRA) to reconsider and sign up for COBRA benefits.

What does this mean to the business owner and what must they do to be in compliance?

These new provisions to COBRA require employers and benefit administrators (i.e., HR Departments, Payroll, Benefits, etc.) to take prompt action to implement the new procedures. Some of the decisions and procedures to be made include:

Identifying eligible employees (and their covered dependents/spouses) who were covered by the group health plan and whose employment was involuntarily terminated since 9/1/2008, including their last known addresses.
Identify which terminated employees are currently receiving COBRA coverage and which are entitled to the special enrollment period. According to the DOL, Plan administrators must provide notice about the premium reduction to individuals who have a COBRA qualifying event during the period from September 1, 2008 through December 31, 2009. Plan administrators may provide notices separately or along with notices they provide following a COBRA qualifying event. This notice must go to all individuals, whether they have COBRA coverage or not, who had a qualifying event from September 1, 2008 through December 31, 2009.

Individuals eligible for the special COBRA election period described above also must receive a notice informing them of this opportunity. This notice must be provided within 60 days following February 17, 2009.

Determine the correct premium subsidy that applies to those unemployed workers who are not being required to pay the full COBRA premium.
Develop a process for applying the excess of any COBRA premiums above 35% received from a COBRA recipient for March and April 2009 to future premiums or refund the excess.
Adjust administrative procedures to reflect the maximum 9 months of available coverage.
Develop and provide the notices required by the ARRA. Where can wording be found?

We at EffortlessHR are following this issue very carefully. We are actively assembling Forms, How To’s, and providing alerts to our clients and prospective clients. We are also placing the new regulations on the Law section of the Effortless HR Software program. In addition, the Department of Labor and the IRS have extensive information available regarding this new law. Their contact information is
IRS http://www.irs.gov and Department of Labor: http://www.dol.gov/ebsa/COBRA.html. If you are using a third party COBRA administrator, they will also be able to assist you.

We would recommend that employers not react in a way that could jeopardize existing employees when reviewing the benefits currently provided. You have offered benefits as a retention tool and that same reason to continue benefits remains.

The important thing to remember is to be organized, follow the guidelines, don’t be afraid to ask questions, and hopefully you will be able to exit March as a lamb.

Lola Kakes, CEO EffortlessHR

Source:

Effortless HR Software

HR Blog

COBRA Alert – New Rules & Changes from ARRA Stimulus Package

cobra stimulus arra

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Building a Team – How to ACE it

Lola Kakes — Thu, 19 Feb 2009 17:13:08 +0000

There are many types of teams – there are sport teams, debate teams, dance teams, teams of horses, and there are of course, business teams. There are even more types of teams, which you could probably list if you wanted. Teams can be good, bad, so-so, or great.

If you look at just these few listed here, what do they have in common and what makes a great team? All teams are comprised of more than one person, and let’s face it when you get more than one person in the same room, the dynamics change. The individual is no longer dealing with one set of ideas or policies, or need. The dynamics of a group of people brings into play different ideas, comments, thoughts. The issue becomes, how to develop and build a great team.

In looking at teams and what they have in common, it becomes fairly obvious there are three underlying principles in building a team and it is how you ACE it.

ACE stands for:

A – Accountability

C – Commitment

E – Empowerment

Accountability is the first ingredient in team building. When putting a team together, make sure you set goals and establish the purpose for the team. It becomes the “job description” for the team and helps the team members understand their functions within the team. Effective leaders lead their people and inspire them by creating an environment that motivates them to ask, “What else can I do?” over and over until the results are achieved.

The daily activities that comprise people’s jobs must then be consistently in alignment with the targeted results. This can happen only if people understand the results they are supposed to achieve in the job they are to perform. Accountability is assuming responsibility for the actions and results that is the charge of your team.

Commitment, the second ingredient in team building is defined as the bond of an employee to the organization, the strength of which depends on the degree of employee involvement, employee loyalty, and belief in the values of the organization. In other words, the desire to do well, succeed, and make the team (the organization) look good is important to the team members, both individually and as a whole.

Empowerment

is the third ingredient in building a team. Empowerment is the ability for management to allow employees to make decisions. Building decision-making teams is often one of the models used in employee empowerment, because it allows for managers and workers to contribute ideas toward directing the company. When employees feel as though they can choose and can make direct decisions, they usually feel better about themselves and their jobs and the organization. Employee’s who are not constantly watched and criticized are more likely to consider work as a positive environment, rather than a negative one.

By working together for the good of the organization, teams can provide effective and efficient processes. Once the goal or purpose of the team has been reached, the team can be disbanded. The individuals can then be available for other teams to be established as needed. Team building is a fluid operation of the organization and changes with the needs and goals of the organization. In fact, some individuals may be participants in more than one team at a time. It all depends on the ability of the individuals involved and what they are tasked to accomplish.

If they establish their team structure and follow the guidelines, they will in fact, ACE it.

Source: Effortless HR Software's HR Blog | Building a Team – How to ACE it
Tags: accountability, commitment, Employee Retention, empowerment, goals, team building

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Assessments – Tools to Maximize Productivity

Cathy Baniewicz — Wed, 11 Feb 2009 16:54:06 +0000

It is critical for the success of a company for the right people to be in the right jobs. It is also important that the tools a company uses to make hiring or promotion decisions are reliable and valid.

There has been an increase in employment testing due in part to post 9-11 security, as well as concerns about workplace violence, safety and liability. Likewise, there has been an increase in discrimination claims based on background checks and other selection procedures.

The Equal Employment Opportunity Commission recognizes that assessments can be a very effective means of determining which applicants or employees are most qualified for a particular job. The use of assessment tools can violate federal anti-discrimination laws if the employer intentionally uses them to discriminate based on race, color, sex, national origin, religion, disability or age. The use of validated tests and other selection procedures can help avoid discrimination lawsuits.

EffortlessHR uses the Profiles International assessment instruments. These assessment tools are geared to all phases of employment from hiring, training, coaching and management performance. Profiles assessments are continually re-validated and updated. Their predictive reliability and validity scores are the highest in the industry.

As companies struggle to be more profitable during these tough economic times, it is important to hire, train and retain qualified individuals who are in tune with your company’s mission, objectives and values. The Profiles assessments are designed to help you make better human resources decisions.

For more information, click on the Assessments tab at www.effortlesshr.com or visit Employee Assessments

References:

Importance of an EEOC Statement (affinitycgi.com)
Punk Rock HR Secrets: Job Loss (punkrockhr.com)

Source:

Effortless HR Software

HR Blog

Assessments – Tools to Maximize Productivity

employee assessments

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Engagement, Performance, Retention – Where do Your Employees Fit?

Lola Kakes — Thu, 22 Jan 2009 20:16:39 +0000

The economic crisis of 2008/2009 has many companies looking at ways to save money and get through the hard times. What this normally means is that they look to lay off people, cut back benefits (which make good employees look at other opportunities), stop training programs, reduce marketing, and basically “hunker” down.

I feel like I am in a unique position as both a business owner and a human resource generalist to address this economic drama. Let me explain. As a business owner I am facing choices in doing business. Credit is hard to find and cash flow is tight. Clients still are there, however, and they still want and need my services. Sometimes, they just don’t know what they need. So, in my role as HR advisor, it is my obligation and the duty of my company, including my star employees, to help them understand what they need.

I don’t believe this is the time to “hunker” down. If you do, you won’t be prepared when things start moving upward. What you do need to do is spend wisely and use your people efficiently. How, you may be asking, do I do this?

Imagine what would happen if everyone of your employees were in a job that best used all their inherent talents. Imagine your company being empowered with employees who were engaged in their jobs and were interested in helping you succeed. I know that as a business owner, I would love to have that type of workforce and feel blessed that I do have this kind of workforce. I also know, as your human resource advisor how to help you have this type of workforce too.

I believe that in order to get through these rough times and keep the right people actively engaged, performing well, and keeping them on board requires business owners of all sizes to use all the tools at their disposal. This can be done with various tools but the tools I am most familiar with and which I use most effectively are the Profiles International, Inc. assessments. These assessments, along with your company standard hiring and training processes will help you develop a better understanding of the people you employ. This will help you solve many of your most critical and expensive problems.

Reliable information makes HR decisions easier to develop and you can successfully fit people to jobs in which they will excel, retain good employees, become a better manager, improve customer service, and build an effective team.

The foundation of your success is the best use of your assets. If you talk to any management expert, they will tell you that your human capital (your employees) is your most valuable asset. The problem is that only a small percentage of businesses use a pro-active, systematic, analytical process to select, manage, retain, and plan for succession for employees.

I believe if you use the available tools to see results from selection, to coaching and performance management, you will achieve greater productivity and profitability through your human talent.

Imagine the difference in your company. You may need to invest a little to gain a lot. Don’t hunker down – look forward and inspire the best in yourself and in your people.

Source: Effortless HR Software's HR Blog | Engagement, Performance, Retention – Where do Your Employees Fit?
Tags: assessments, employees, engagement, Hiring, performance, retention, value

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