Employees who were/are involuntarily terminated between 9/1/2008 and 3/31/2010 are eligible for up to 15 months of COBRA subsidies now. As you know, this means your company is paying 65% of the COBRA [...]]]> The Temporary Extension Act of 2010 has been approved and signed into law. This Act, once again, extends subsidies for certain COBRA participants.

Employees who were/are involuntarily terminated between 9/1/2008 and 3/31/2010 are eligible for up to 15 months of COBRA subsidies now. As you know, this means your company is paying 65% of the COBRA premium but can receive reimbursement from the government. You’re merely having to go through the administrative nightmare, then having to wait months for reimbursement.

Given this Act, I won’t be surprised to hear that the subsidies are extended even longer given the current high unemployment rates. I guess we’ll have to wait and see!

You can check out the details of the law at http://www.dol.gov/ebsa/cobra.html.  

 

Does an employee have any right to expect you to provide condiments, coffee, [...]]]> Have you ever watched your employees when they are getting coffee in the morning, taking breaks, or having lunch? Unless they’ve been around awhile, they are probably searching through any cupboards and drawers in the area to see what the company has provided.

Does an employee have any right to expect you to provide condiments, coffee, etc.? No. Providing things for employees is a benefit offered by the company, not a right or entitlement of the employee. However, you might want to consider the advantages of providing basic kitchen supplies … even if you don’t actually have a kitchen available.

Nearly every office space has some sort of wet bar or a full-blown kitchenette. I’ve seen a lot of them in every configuration possible. The first recommendation I need to make is to keep it clean. It’s amazing how employees can ignore spills, open cupboard doors, and trash sitting around when it’s not in their own home.

Accept this as a fact of life. Pay your cleaning people to scrub it down any time they are cleaning the offices. This isn’t just for the benefit of the employees … keep in mind that you have guests walking through the building that can see this area. I don’t care how much stuff you stock that area with, if it’s filthy you’ll have lost most of the value of providing it.

So, what do you provide? The starter stock should include the following:

• Salt and pepper: Buy an actual salt and pepper shaker and the big cannisters to refill the shakers. Don’t buy those individual packets because it’s too easy for people to grab a handful to keep in their car, etc.
• Plastic forks, spoons, and knives: Buy big boxes of these and designate drawers to put them in.
• Paper dishes: You really only need paper plates. Anything else (like paper bowls) is catering to a specific employee’s need, not a general need.
• Condiments: If you have a refrigerator you should consider catsup and mustard, maybe mayonnaise. Again, full bottles rather than individual packets.
• Trays: Pick up 2-3 large, inexpensive trays that can hold sandwiches, cookies, cakes, etc. when you either have a big meeting or party at work. Check places that provide catering supplies.
• Coffee: Provide a coffee maker of a size that works for the number of coffee drinkers you have. Consider using a decent brand of coffee so it’s not a bad joke and you’re not embarassed to offer it to guests. Personally, I hate the powdered creamer but it’s easier to maintain than the dairy versions. Don’t forget both real sugar and fake sugar.
• Napkins or paper towels: Paper towels are fine until you have guests and want to have things look a little nicer.
• Styrofoam cups: Although not eco-friendly, these at least are clean. If you don’t have a dishwasher to ensure glass items are properly cleaned, the throwaway variety might be better.

Anything else you provide should be because you can afford to keep it in stock and you believe employees will be appreciative. Many companies also keep a locked cabinet filled with special supplies that are used strictly for guests or special meetings. The cabinet might include nicer dishes, doilies for the trays, napkins, sugar cubes, bottled water, sodas, etc. Anything you might want to "put on a show."

If you have a refrigerator that employees can use, make it clear that everything ends up in the trash on Friday night. This eliminates the mystery food left in the refrigerator or freezer. Don’t allow exceptions or you’ll lose control of the situation. I’ve seen refrigerators too full to add your lunch but with no one claiming ownership of anything in there.

As I said, providing these things aren’t a requirement. However, your employees will enjoy having the basics available and may end up more productive because they’re bringing their lunch rather than taking longer going out.

It should be no surprise that many people are happier when they give to others. The study found that giving to charities increases happiness. You can use this information in your business to increase the [...]]]> Have you ever wondered what you could do to make your employees happier? A recent study reported in Science provides the answer.

It should be no surprise that many people are happier when they give to others. The study found that giving to charities increases happiness. You can use this information in your business to increase the feeling of well-being of your employees as well as increasing retention.

The next time you are reviewing your benefits or employee events, consider developing a program that allows employees paid or unpaid time off work to conduct charitable work.

Perhaps a group of employees want to help out at a soup kitchen over the holidays. Or you could be the holding area for program that collects and distributes blankets, clothing, and other goods needed by those in need. Maybe they want to collect and distribute toys for local orphanages. There are unlimited possibilities out there for those really interested.

The best thing you can do is hand the whole thing over to the employees. Have a company meeting where you announce the very basics of this idea. Suggest they form a planning committee and bring you ideas.

Decide what role your company will play. Are you going to allow a certain amount of time off? Will it be paid or unpaid? Or will you commit to a specific amount of financial backing for whatever they want to do? Remember that you need someone from management to oversee the committee just to stay on top of the time and financial commitments allowed by the company.

Start small and let it grow as you see positive results. Make sure the employees know this is something you’re agreeing to … IF they want to do it. If you force participation, you’ve completely lost the value of the benefit.

Employees have become much more particular about the company they choose for their employment. If they care about the environment, they are choosing “green” companies. If they care about giving, they are choosing companies that give. What do you want to be known for … and are you leading by example?

I know for a fact that [...]]]> In my previous post I talked about the fact that a bonus plan can be bad news if insufficient thought has gone into the planning and implementation. The last part of that sentence is really the answer to creating a better bonus plan … thinking through the planning and implementation.

I know for a fact that if you are considering, or have, a bonus plan that you expect something in return for it. And you should. But, be honest, are you and your employees getting what you wanted and expected when it’s time for the bonus to be paid?

It may help to think about your employees with the same mindset that you use on your suppliers when they create a product specifically for you rather than pulling an item off the shelf. How do they know what you want? You’ve told them. You probably put together a spec sheet that has every possible measurement and a detailed description of the materials you want used. You also expect to receive exactly what the spec sheet stated … or you’ll request a replacement or withhold payment. That’s why your suppliers are also very careful about what the spec sheet says and they make sure they absolutely understand what you want.

So why does it go so wrong when you try to motivate your employees in exchange for a bonus? Most of the time I find you’re missing that spec sheet. Oh, you may think you have one but I bet if I asked your employees they’d tell me they didn’t really understand what you expected or what they were supposed to do to earn the maximum bonus amount.

Did you even tell them what the bonus had to do with your company goals? Often companies base a bonus program on the overall success or profit of the company for that year. However, your employees don’t know what role they played in that scenario because it wasn’t defined.

Good bonus plans have goals attached. Otherwise, you aren’t involving the employees in the plan … you’re just tossing them some cash that doesn’t reward them for anything other than showing up.

So, try this. (Note: Items listed may take more thought than they seem!)

1. Determine a time frame for your bonus plan. This could be quarterly, 6 months, or a year. The key to deciding on the period is to choose a time frame that is controllable while still giving you sufficient time to achieve goals. For instance, if your business is young or changing, a year is probably too long because your focus may be different in a year and the goals no longer viable or valuable. In this case, 6 months is more practical.
   
2. Determine what company goals you want to achieve in that time frame. If you know how to set goals, you already know they need to be very specific (see the spec sheet above), measurable so everyone is using the same yardstick to determine success, achievable within the time frame, relevant to what you are doing as a company, and timely (with a deadline). Write them out and review them to make sure they move the company in the desired direction.
   
3. Take those company goals and break them down into what each department needs to accomplish for their role in each company goal. Work on the department goals in the same manner as you did the company goals. Write them down. If you don’t have departments, skip to the next step.
   
4. Every employee also needs specific goals that help the company achieve the big goals. So go through this process on an individual basis. Depending upon your company, several employees may have the same basic goal list … but you still want to have something that sets them apart unless you have designated them as a team that wins or loses as a team.
   
5. Determine how your bonus amounts will be earned. I’ve seen a company use 50% toward achievement of the company goals, 25% toward department goals, and 25% for personal goals. This takes into account that a department may not hit all their goals but the missed ones didn’t delay the company goals. Whatever you decide to do with the money, just make sure it’s very, very clear to everyone how any and all bonus amounts are earned or lost.
   
6. Make a huge deal out of the bonus plan. Put up posters announcing the company and department goals, have monthly update meetings where you cross off (on the posters) any goals achieved and talk about how to ensure overall success. By the time the bonus is paid, every employee should be able to tell YOU what they earned because your plan was so clear and communicated so well that they knew exactly what to do to earn it.

I’ll admit this is an oversimplified view of creating a workable bonus plan. However, I think it’s sufficient for you to recognize what you may and may not be doing correctly. Remember, a bonus plan is supposed to be seen as a benefit so make sure it’s actually viewed that way by your employees!

A bonus plan is intended to focus your employees on your company goals. As a side benefit it’s a motivator and gives employees a reason [...]]]> You’re probably thinking that a bonus can never be bad news, but you’d be wrong. Before I go into that let me discuss briefly the whole point of a bonus plan.

A bonus plan is intended to focus your employees on your company goals. As a side benefit it’s a motivator and gives employees a reason to be more productive and work together better.

Have you heard the phrase “working ON your business rather than IN your business?” Usually this means to focus on building your business rather than getting caught up in the details of the day-to-day business that can eat up your time so you never get ahead. However, a bonus plan is another way to work ON your business because you are ensuring your employees have an eye on achieving the company’s goals for you. If they are working on the goals with you (as opposed to just showing up each day), then the achievement of those goals will also help grow your business.

So, what’s the bad news? A bonus plan is only as good as its planning and implementation. If you come up with a bonus plan that’s weak, then your employees will view it more like that carrot that is forever out of their reach. Very bad news! Suddenly the bonus becomes a demotivator for your employees and the lack of goal achievement means you aren’t growing your business.

Does your bonus plan create excitement among your employees? Do they give you a big smile when it’s mentioned or do you get that half grimace-half grin (perhaps accompanied by rolling of the eyes)? If your bonus plan isn’t the big news when your employees are talking to job candidates or among themselves, then you need to take a hard look at it and ask yourself if it’s achieving what you want.

I’ll talk more about how to create a better bonus plan in my next post. This will give you a couple of days to look honestly and your own bonus or commission plan … or to consider whether one might be a good idea.

Even taking religion out of the mix, December has become the traditional party month. Some companies throw a huge, formal party while others go the Scrooge [...]]]> I probably should have written this particular post a couple of months ago but better late than never! Especially if your company isn’t throwing a holiday bash for your employees.

Even taking religion out of the mix, December has become the traditional party month. Some companies throw a huge, formal party while others go the Scrooge route. I think you do your company and your employees a disservice by ignoring the celebrations going on all around you.

If your company is doing the big bash, then you’ve been planning this for months and don’t need my advice. But what if you’re a company that would love to do the big bash and just doesn’t have the money? Then you need an alternate plan that will be appreciated for the effort, not the cost. And if you’re not doing anything, keep reading.

Involve your employees! You’ll be surprised at the employees who love to be challenged with creating a party atmosphere on a limited budget. Give them a budget and let them be creative. Often you just need to keep an eye out for certain things (like requiring employees to chip in or participate).

Potlucks are usually popular and only need a few decorations to make it festive. You might even make it formal dress if the employees want to make it a "special" event. One of my companies did cookie swapping … each participating employee made up dozens of one type of cookie and all the participants swapped cookies so everyone had a mixed batch when done. Try a holiday costume contest. Or a cube/office decorating contest and let employees choose a small group of judges. Create a booklet with memories of employees’ favorite holiday events from their childhood. Collect toys to give to children’s homes or abuse or homeless centers.

The important thing is to allow your employees to be in the holiday spirit this month and to help this in whatever way your company can (or can afford).

While the double digit increases [...]]]> When I first started out in HR … yes, it’s been a while! … employees received double digit salary increases as the norm and the benefits for the employee-only were completely paid for by the employer. I was upset the first time I had to contribute to my own insurance premiums.

While the double digit increases are probably gone forever, I’m finding a lot of small companies paying the full premium for health insurances. I bring this up because it continues to surprise me that companies are doing this today when insurance costs are so high and there are better ways to spend your benefit dollars.

Paying the full cost of your employee’s health insurance seems like a wonderful benefit to offer. But you know what? Some of your employees have signed up for your plan only because it’s free, not because they actually need it. Are any of your employees married? Do their spouses have insurance coverage? Is your employee also on their spouse’s plan? Often the answer is yes.

What does this mean to you? Let’s say an employee is already covered under their spouse’s plan, but also signs up for your plan just because it costs nothing. What’s the advantage for you? Nothing. What’s the advantage for the employee? Very little to nothing … the first insurance plan gets named as primary and the other secondary. When a claim is made the primary plan covers it and the secondary plan comes into play only if a specific benefit is better in the secondary than the primary plan. For instance, the employee is hospitalized and their primary plan covers $300/day and their secondary covers $350/day. The primary would pay the $300 and the secondary would then kick in the extra $50 (i.e., the "better" benefit). The employes won’t have $650/day coverage because the insurance companies don’t pay out like that.

What’s the disadvantage of offering company-paid insurance? It’s likely that you aren’t offering additional benefits because your benefit dollars are already being used just for those insurance premiums. For example, if a premium is $250/month but that employee wouldn’t have signed up for it if it wasn’t free. That’s $250/month, or $3000/year, your company could be using for the administration fees for a 401(k) plan, to offer an Employee Assistance Plan, or to provide a better vacation plan.

I know you’ll find this hard to believe but by asking for as little as a $10/month co-pay from the employee for the premium will stop a few employees from signing up for your plan when they already have coverage. Lack of knowledge works against you. Whenever you have open enrollment or new hires, make sure you let employees know that being double-insured doesn’t result in double payments for claims.

Then starting researching which other benefits you can add that will improve your recruiting and retention rates with the money you’ve saved!

California’s governor and other legislators, and even presidential candidates, continue to work on plans to [...]]]> Health insurance costs play a large role in growing a business. When you offer insurance benefits, you are spending a great deal of money that may also be needed to buy new machinery, expand operations, or just pay the bills.

California’s governor and other legislators, and even presidential candidates, continue to work on plans to insure the uninsured. One plan was bill AB 8, which would have made each employer (that doesn’t offer a healthcare plan) pay a 7.5% payroll tax to help fund a healthcare program run by the government. Schwarzenegger vetoed that plan. Schwarzenegger’s pet plan appears to be dying slowly because no one can figure out how he plans to pay for it.

As a small business owner, you can read about these plans and breath a sigh of relief that you aren’t being forced to cough up money. However, don’t take too big a breath. While none of the current plans seem to be making huge headway, it is a trend that means one of these days someone will come up with a plan that will be approved and put into action.

Offering a healthcare plan doesn’t mean you need to pay for it 100%. In fact, I prefer you don’t. I have found that when you offer "100% employer paid" benefits to employees that they will sign up for them regardless of need and you’re stuck paying the premium. Even a $10 co-pay will often stop someone from signing up for your insurance if they are already covered by their spouse’s. And it’s not like they can get paid by both insurance companies anyhow. The secondary insurance will only pay if a particular benefit is better than what’s paid by the primary insurer.

When creating benefit plans, think very carefully about what you offer and why. Health insurance is often a no-brainer because most people like that security. However, if you can afford additional benefits, find out if your employees would prefer dental insurance versus a retirement plan rather than just assume you "know what’s best for them." Remember, a benefit is only a benefit if your employees really want it.

It’s true, there are no laws stating a company must be closed for the [...]]]> Labor Day seems to begin the holiday season for me. In these last few months of the year most companies observe the majority of the holidays provided for the year. However, it’s tradition, not employment laws that dictate these holidays for companies.

It’s true, there are no laws stating a company must be closed for the day or pay employees higher rates for working on a holiday. As far as the state and federal government is concerned, a holiday is just another work day if your company is open. But that’s just the legal side of holidays.

As any recruiter can tell you, the number of holidays a company provides each year is a strong enticement or deterrent for job candidates. If you offer 10 paid holidays each year, an employee perceives that as two additional weeks of vacation. Plus holidays are very special to many people. Many holidays are family events and having that time off allows your employees to satisfy one of their basic needs: reconnecting with family and friends.

The basic holidays observed by most companies include: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. Many companies often add President’s Day to help bridge the long gap between New Year’s and Memorial Day. For those companies trying to come up to a higher total number of holidays, consider adding the day before or after Independence Day, Thanksgiving, or Christmas which could result in a four-day weekend. Believe me, your employees will be excited with any extra days you choose!

The calendar changes each year and so will whatever holidays you choose. You should always publish a new holiday list each December so your employees can make plans to take advantage of the holidays your company will observe. In addition, the holiday list handout should also be clear about whether the holidays will be paid or not and under what conditions. For example, some companies won’t pay for the holiday if the employee is absent the workday prior to or after the holidays (except for pre-approved absences).

If your company stays open and employees must work on holidays, try to be as fair as possible when scheduling so your employees equally share the burden. Also create your holiday schedule as far in advance as possible so your employees can make holiday plans accordingly.

Paid holidays are a benefit. Make sure you leverage that fact when you talk about the benefits your company offers!