The HR Cafe

Scenario: Incentives and motivation

(NOTE: Please tell us how you'd handle this scenario. Click on the "comments" link below)

Dear HR Executive:

Every HR pro or manager who's ever tried to design incentive plans knows what an ungrateful task it is. And I'm not just talking about comprehensive, enterprise-wide plans. Getting a simple $5000 bonus right can be gruelingly difficult.

Here's a scenario that highlights the challenges involved in using incentives to motivate people. In the coming year, my guess is we're going to see a lot what's described here.

Scenario
Operations Director Joe Brown was clearly frustrated when he entered HR Manager Kate Wiley's office. "Last year my warehouse manager got his full $5,000 bonus because he played a key role in overhauling our inventory system and cutting costs 10%. And the company was doing great. This year he did everything he needed to do, but costs bounced back a bit and the company's profits are down.

"Neither of those things have anything to do with him, but I could only justify giving him a third of his bonus and he's totally demoralized. He says he promised his wife a trip to the Caribbean and she's furious with him. The guy is now threatening to leave the company.

"I never saw this coming. Last year you and I talked about how incentives can motivate people by aligning their goals and behavior with those of the company. Well, it worked great last year but blew up in my face this year. I never want to use bonuses again. But if I don't use them, how am I supposed to motivate people?"

What would you say to Joe? Please click on the "comments" link below to share your thoughts.

Stephen Meyer
B21 Publisher

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Is job experience a liability?

Dear HR Executive,

You want to hire people who have vast experience in your business, right? People who pack deep knowledge and skill in their briefcases or lunch buckets and can hit the ground running.

Well, a new study published by the prestigious Wharton School points out that job experience carries a downside -- the "we did it differently at my old job" syndrome that can cancel out much of the value of a new hire's knowledge.

It's not a new idea that experienced people bring mental "baggage" along from previous employers. But the idea that sometimes this baggage may weigh them down so much that they're less effective than rookies, is new -- and sobering.

A success killer
Here's how one senior HR person, quoted in the study, put the problem: "We tried to hire from our competitors and paid a premium for the experience -- but those hires were the least successful."

Why?

The researchers found that experienced people tended to draw mental maps of the typical problems they would face on the job, along with typical solutions. Whenever they met up with a particular problem, they unconsciously went straight to their solutions map. But in their new environment, their habitual solution might well be counterproductive, or even against their new employer's policy. They were trapped by their experience.

An example
Here's how that trap worked in a specific case:

An insurance company hired a talented, veteran claims adjuster away from another insurer. The new employer thought he'd be a slam-dunk success. But he wasn't.

The trouble was that the new employer sold high-end insurance and wanted adjusters to focus on providing superior customer service to its customers, while the old one sold lower-end policies and wanted adjusters to take a hard line on controlling claim costs. When the adjuster went to work for the new company, he just couldn't break himself of habits that made customers feel they were being "nickle-and-dimed." Ultimately, the hire failed.

Old dogs, new tricks
The study isn't saying you can't teach an old dog new tricks. But it does raise a caution flag about the value of experience, all by itself.

Here's what I think the study is telling HR: Don't be romanced just by a great resume full of relevant experience. You'll also want to check how flexible candidates are -- through testing and/or job simulations -- in being able to DISCARD their experience when it gets in the way of doing the job you want them to do.

Dave Clemens
Editor-in-Chief
Human Resources 21

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Don't fear the employee/plaintiff

Dear HR Executive,

Good news. A new study shows that disgruntled employees are less likely than ever to sue you in court. And if they do, they're unlikely to win.

Wondering if you heard right? You did.

Over the past seven years, federal courts grew steadily less sympathetic to employment discrimination plaintiffs. That's according to a study just published in the distinguished Harvard Law & Policy Review.

A slim chance
The HLPR study shows that between 1999 and 2007, employment discrimination suits in the federal courts fell by 37%. That's huge.

The study's authors say this appears to be happening because employees think they'll lose. They're right: While 51% of plaintiffs in non-employment-related cases won, only 15% of employment plaintiffs did. And things don't go any better for employees on appeal -- only 9% of plaintiffs who lose at the trial court level have their suits reinstated by an appeals court.

You may be thinking: But aren't discrimination charges with the EEOC up? Yes, they are. Last year, 82,792 charges were filed with the federal agency, the most since 2002 and the second-most in the past decade.

But according to the HLPR study, fewer of those EEOC charges are making it to the next stage -- the courts -- where the stakes rise substantially in terms of time and cost.

Keeping your guard up
What does this mean for HR people? That you can relax your vigilance in preventing discrimination? No.

First, one reason successful lawsuits are down is that companies ARE more diligent about preventing them. Second, the political pendulum could easily swing back, making courts more likely to side with employees. Don't let your guard down.

Dave Clemens

Editor-in-Chief

Human Resources 21

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Exclusive B21 survey: HR communication in tough times

Dear HR Executive,

Have you been wondering whether you should say something to your employees about the bad economic news they see and hear every day? They're human, so they may well be concerned about your organization's future, and about the safety of the money they've put aside through company-sponsored pension and/or savings plans.

We thought most HR pros would be engaging in some "crisis communications" around this issue, or at least thinking about it. So we decided to ask some of you what you're doing -- and got a surprise.

According to our exclusive Business 21 Publishing survey, 62% of HR practitioners say their organizations either haven't done anything special yet, or aren't going to. Here's the survey:

Q. "In the past 30 days, have you done any 'crisis communication' to address employees' concerns about the economic downturn and/or the organization's future?

• Yes - 38.3%

• No, but we're going to - 20%

• No, and we don't plan to - 41.7%

Gloom and doom

True, recession doesn't hit every business equally, and some are even in a position to profit from it. In organizations where growth prospects remain bright, HR may not want to open the gloom-and-doom door by talking about the general malaise.

But for most organizations, it doesn't hurt to let employees know you're thinking about the future with special clarity in these troubled times.

Here are a few communications ideas plucked from the 116 responses we got to our survey:

• Reiterate the organization's long-term plan and explain how sticking with it will pull you through. (This is critically important -- nothing wrecks morale as fast as the perception that management is wavering or unsure during a crisis.)

• Ask your employee benefits provider if they have literature or presentations they could deliver to your staff to boost confidence amid a volatile economy.

• If you are taking cost-cutting steps, explain how they'll help avert more drastic moves in the future.

• Give employees suggestions on how to reduce household expenses and/or stretch their dollars. (But DON'T do what Northwest Airlines did a couple of years ago with its badly received 101 Ways to Save Money booklet, which included the now-infamous "Don't be shy about pulling something you like out of the trash.")

If you want to see all of the comments people made in response to our survey, go to this link.

Dave Clemens
Editor-in-Chief
Human Resources 21

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Intermittent FMLA leave isn't forever

Dear HR Executive,

Managing intermittent FMLA leave ranks high on the annoyance scale for HR pros. People can get doctors to vouch for the darndest things, and you never know when so-and-so is going to come down with yet another migraine and call out at the last minute -- without there being anything you can do except nod your head.

Recently, an employee in Michigan tried to raise the stakes and knock an important weapon for controlling intermittent FMLA abuse out of employers' hands.

In a lawsuit against her employer for FMLA interference, she argued that intermittent leave eligibility could carry over from one year to the next. Think about it: If she had won, employees who want to take intermittent FMLA leave would have to establish their eligibility ONLY ONCE in order to enjoy 12 weeks of leave per year ad infinitum.

In the case, Davis v. Michigan Bell Telephone Co., the employee took a number of days of intermittent leave due to depression. When the new calendar year arrived, she missed a couple more weeks of work and tried to cover them with FMLA leave. The employer refused, saying that because it calculated FMLA eligibility on a calendar-year basis, and she didn't work 1,250 hours in the 12 months preceding the new absence, she wasn't eligible. And she was fired for excessive absences.

Fortunately for employers, the court backed up the company's position.

Court didn't bite
The court said the idea of a lifetime eligibility determination went against the law and also against DOL's regs. "Congress cannot have intended this absurd result," the court said.

The truth, the court said, is that intermittent FMLA leave can't extend beyond the 12-month period in which it begins. So employers can re-evaluate at least annually whether an intermittent leave-taker has worked enough hours. (Of course, you can also run the standard certification procedures that oblige employees to get their doctor to periodically back up their need for leave.)

Of course, you may choose to run your FMLA record-keeping on either a calendar year or a rolling year. Both are legal.  But whichever way you go, don't hesitate to review employee eligibility status as often as the law allows -- whenever the employee asks for a new period of intermittent leave, and at least annually.

Remember, too, to review your company's status where appropriate. If your workforce dips below 50 and stays there for more than 32 weeks in a given 12-month period, you may be able to deny FMLA leave -- intermittent or otherwise -- to everyone on the basis that employers with fewer than 50 employees aren't covered by the law.

Dave Clemens

Editor in Chief

Human Resources 21

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Making do with what you've got

Dear HR Executive,

As I sit here writing this, the stock market has been plunging (did I just see it go below 8,000?). What better time to do an HR Cafe post about how companies can make do with less in the months to come?

Something tells me that, for example, we're not going to be able to give big salary increases anytime soon. In fact, some companies may not be able to give ANY salary increases. Which could lead to retention problems.

The other day when talking to a subscriber to Human Resources 21, the newsletter I write, he told me what he'll be doing to reward and retain his skilled staff of about 300 people.

Extra time off
This HR pro works for a heavy industrial company headquartered in Michigan. Because his company is struggling in a declining market, he has two problems: 1) people are tempted to "jump ship," as he put it, and 2) he doesn't have a lot of money to toss around to try to make them stay.

But my contact decided he'd try to do something else for people -- give them extra paid time off. His plan is to add five paid days to the vacation and sick days that exempt employees get, something that will give the average employee about a month off annually.

"The idea is to say, 'We can't give you a raise, but here's some time off, use it with your family,' " my contact told me." It'll be one time only for a year to start, while we see what the financial picture and the prospect for raises will look like in the future."

"It's a generous amount of time, but we haven't had raises in two years," he said. "We've got to do something."

What could YOU do?
If you're concerned about retaining key employees, but are constrained in the money and benefits you can offer, you might want to do like my Michigan friend: look around and inventory the resources you do have at your disposal.

Maybe you can carve out extra time off for people, or maybe you can make the conditions under which they work more agreeable through telecommuting, flex time, or other "work-life" arrangements.

It's worth a try!

Dave Clemens
Editor-in-Chief
Human Resources 21

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

Scenario: Working offsite

Dear HR Executive:

Tell us how you'd handle this tricky situation.  Please share your comments below.

SCENARIO
Maria heads up your customer service team. She's dynamite. Her direct reports are known company-wide for their upbeat attitude and loyalty. Marie hasn't lost a rep in three years. This is remarkable because the customer service role at Maria's company is very difficult. New products and services are often introduced and the reps need constant training and coaching to handle the ever-changing inquiries and demands of customers. Problem: Maria lives one hour and 15 minutes away. Soaring gas prices have cut into her earnings. She wants to work at home two days a week and insists she'll be able to do it.

Two questions:

1. Do you think she can do it, and that it'll be good for the company
2. If you think it's a bad idea, what would you do?

Scroll down to share your comments.

Stephen Meyer
B21 Publisher

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."

The awesome power of unexpected gestures

Dear HR Executive:

Are you losing good employees simply because they feel your company is indifferent to them?

I saw a really interesting survey from the American Society for Quality and the Quality Productivity Center showing that an “attitude of indifference” was the reason 68% of customers left their service providers. Customer defections were rarely about quality. Or service. Or some huge blunder. People just felt ignored.

My intuition tells me a lot of managers simply forget about their solid performers, assuming they'll stick around forever. Then one day ... they leave.

So what can you do to show employees you're not indifferent? One simple, inexpensive way is the "unexpected gesture." Here are some great examples from the sales/customer service world that, I hope, will inspire you to come up with ways to surprise your valued employees:

• A bank teller noticed that many of the customers who came through the drive-in window had dogs in the car. So she took it upon herself to keep a box of dog biscuits nearby. Customers rave about this unexpected treat. What a statement of personal appreciation!
• Lots of hospitals give new mothers flowers or a basket of goodies when they check out with the baby. But a hospital in Florida came up with a twist on that idea. It sends flowers one month after the mother gets home. Just at the point where reality has set in, a bouquet of flowers really brightens up an otherwise trying day.
• A restaurant owner learned from his staff that over-40 patrons often had trouble reading the menu. Seems they forgot their glasses. Today, every waiter carries a cheap pair of magnified reading glasses. Patrons are delighted beyond words when, after squinting to read blurred type in dim light, they can read the menu perfectly with a set of borrowed glasses. 
• A corporate information systems troubleshooter does a fine job fixing her  “customers’ ” computer problems. But no matter how busy she is, she always calls the next day to make sure everything works okay. She’s perceived company-wide as an irreplaceable resource.   
• A surgeon always makes a point of meeting with his patients’ family members both before and after every surgery. If it’s a long operation, he’ll call during the procedure just to say everything is going fine. He understands the deep anxiety family members feel when a loved one is ill, and he knows he can comfort them simply by taking a few minutes to talk to them. This surgeon has developed a near-mythic reputation in his field, and gets more referrals than he can possibly handle.
• A salesperson for a tool-and-die company called all of his contacts at a given account at least once a month and asked, “How are we doing?” The buyer wasn’t always so surprised by that. But the secondary decision-makers were delighted to be asked. And they had long memories. When they got promoted and became decision makers, who do you think they trusted with their business?

Stephen Meyer
B21 Publisher

RISK-FREE TRIAL -- ONLINE TRAINING LIBRARY FOR HR AND MANAGERS: Want to learn about an amazingly effective and affordable way to train yourself, your HR staff and your managers and supervisors? Sign up for a risk-free trial to the HR Cafe Training Center Online. It's a powerful resource that allows HR executives to deploy high-impact training modules effortlessly throughout their organizations. Want to see what it's about before you sign up for a trial? Check out just one program from the huge library of content in the HR Cafe. It's a six-minute "Quick Take" training module called "Why 95% of Training Doesn't Stick."