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The Definition of Data Collection Insanity – Friday Distraction

April 21, 2017 by Sharlyn Lauby 1 Comment

There’s an often used quote attributed to Albert Einstein, “Insanity is doing the same thing over and over again and expecting different results.”

I was reminded of the quote when I saw this Time Well Spent from our friends at Kronos. While there are some cases where we can still gain insights from old data collection methods, we have to be careful that new information doesn’t remain hidden because we’re using old techniques. In addition, organizations might have to temper their expectations where timing is concerned. We can’t expect to gain new understanding at a faster or same pace using old data collection methods.

In today’s business world, organizations need data to remain competitive – both in terms of customers and talent. But that means organizations need to invest in their technology infrastructure that will allow for proper data collection. Here are a few things to consider:

Think short- and long- term. Building a data collection infrastructure doesn’t mean buying the biggest and best right away. Think about the organization’s need over time. Using a phased-in approach can allow the organization to create buy-in, adjust to change, and allocate resources efficiently.

Get comfortable with early adoption. It’s possible that at some point, the organization will need to consider new technology. There are times when it makes sense to wait until a technology is proven and other times will benefit from earlier participation.

Assume it’s a never-ending cycle. I know we’re not supposed to “assume” in business, but I think this one is a pretty safe assumption. Technology continues to evolve and organizations need to be prepared to evolve along with it. There’s a point where clinging to old infrastructure can be detrimental to the organization.

I enjoy plenty of old-school technologies. It’s hard to move from the comfortable way of doing things. In some cases, it can be expensive. Organizations that want to continue to move forward have to think about building a data collection infrastructure. Then plan for building another one when this one becomes dated.

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Recruit Better: Employee Discount Programs and Taxes

April 16, 2017 by Sharlyn Lauby Leave a Comment

Here on HR Bartender, we’ve talked about the partnerships HR needs to have in the organization with finance, risk management, and marketing…just to name a few. One very important partnership that we haven’t spent much time covering is the partnership between human resources and payroll. Today’s reader question deals with that:

I am trying to find out if employee discount programs that companies sign up for (to offer their employees discounts) have tax consequences for the employee and/or company when the discounts are redeemed. The many discount companies I speak to say no, but I thought you might have more advice. Thank you.

To help us figure this out, I asked Kellie Jones, senior director of products, pay, and tax at Ultimate Software, if she would share her expertise. Luckily for us, she said yes. Please remember that Kellie’s comments are not a replacement for speaking to an attorney or accountant about tax laws.

Kellie, it might be helpful to start with a few definitions. What are benefits, perks, and discount programs?

[Jones] Employee benefits are typically any additional non-wage compensation provided to the employee beyond their typical salary or hourly wage. Traditional benefits include employer-offered healthcare, a 401(k) program, and vision benefits. Organizations are getting more and more creative with their benefit programs to attract and retain talent.

Perks are extras that go above and beyond traditional benefits. These can range from having a foosball table in the break room to offering employees free tickets to sporting events throughout the year. They are used to help drive employee engagement and loyalty, as well as help reduce turnover.

Employee discount programs are programs that give discounts at local shops, such as 10 percent off for tickets to the local theatre or memberships to the neighborhood gym.

Since this reader note deals specifically with discount programs, what are some common types of employee discount programs? Why would an organization offer employees a discount program?

[Jones] Employers often offer discount programs as another way to show appreciation for employees. These programs can help new employees who have recently relocated to quickly identify possible service providers of interest in the area.

Some common employee discount programs include local restaurants, gyms, dry cleaners, entertainment venues, technologies (e.g., computers, software, phones), and even travel! Some unique discount programs include flowers, boat memberships, car sales, pet daycares, and even hair salons and spas!

From a payroll perspective, are benefits, perks, and employee discount programs taxed differently?

[Jones] Like many things tax related, the answer is “it depends”. In the United States, these types of benefits are classified as fringe benefits, and there are rules about what is taxable versus what is excluded from payroll taxes.

Many perks may be classified as de minimis, which are excluded from payroll taxes. Examples of de minimis perks include occasional tickets to theatres and sporting events, as well as invitations to company-hosted parties and picnics.

The Internal Revenue Service (IRS) has an employer tax guide to fringe benefits available on its website that covers many scenarios, from achievement awards to tuition reduction and everything in between. For those companies with Canadian employees, the Canada Revenue Agency (CRA) and Revenue Quebec have similar guidelines, which dictate some smaller perks excluded from taxes.

If an organization offers employee discount programs, are there some things they should consider (in making the decision)?

[Jones] Here are five things organizations should keep in mind:

Do the perks or programs align with your organizational culture, as well as the makeup of your organization. A millennial, a baby boomer, and a family with smaller children may each value different products and services.

Is there a perk that can be offered that’s unique to your organization? That helps strengthen relationships and increase engagement with employees, and it can serve as a competitive differentiator and recruitment tool.

Does the perk/discount align with the organization’s benefits strategy? For example, offering employees discounts at local gyms and nearby healthy-eating options may supplement an existing employer’s wellness program and encourage employees to make healthier choices in their everyday lives.

How would employees redeem the discounts? Can they access offers from their mobile devices? How easy is it to redeem?

Who is the target audience? From a payroll-tax perspective, consider how you’re offering these discounts and whether they’re targeted to all employees or only to highly compensated employees. Offering to the latter has payroll-tax implications, specifically in the United States.

My thanks to Kellie and our friends at Ultimate Software for sharing their knowledge with us. If you want to learn more about payroll related matters, be sure to check out Ultimate’s resources page – it’s filled with white papers, webcasts, and case studies that can make your life easier.

At a time when recruiting, engaging, and retaining talent is a challenge, every little thing helps. That includes employee discount programs. But organizations need to choose the right ones and administer them properly.

Image captured by Sharlyn Lauby at the 34th Street Graffiti Wall in Gainesville, FL

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HR’s Role in Helping Organizations Accept Feedback

April 11, 2017 by Sharlyn Lauby 6 Comments

(Editor’s Note: Today’s post is brought to you by our friends at SilkRoad, a global leader in Talent Activation. Be sure to check out their 2017 State of Talent report, which provides an in-depth analysis of the issues that matter most to human resources.)

Feedback is about performance. The reason people give feedback is to either ask someone to improve their performance or to tell them “keep doing what you’re doing”. There’s a direct corresponding relationship between the two factors. The better the quality of input; the better the resulting performance.

So, it stands to reason that organizations need good feedback at every level. Some of the comments a company receives is from customers, and possibly, shareholders. Organizations might use outside resources to gather that feedback.

However, the third (and most important) constituent is employees. Organizational performance is driven by employees. HR plays a key role in obtaining employee feedback and communicating it to senior management.

5 Ways HR Impacts Organizational Feedback

If you think about the employee life cycle, feedback is an essential piece in each phase – from new hires to activated employees to departing employees – and every transition in between. HR plays a central role in the success of each phase. Here are some examples:

Recruiting – HR needs input about the hiring process from hiring managers and candidates. I’ve worked places where we conducted a new hire survey to get feedback from candidates about our hiring process. HR also needs to hear from management that the organization’s replacement and succession planning efforts are meeting the company’s talent needs.

Onboarding – The best way to learn is by gaining knowledge and skills when you need them. Then being able to apply those new knowledge and skills. HR and hiring managers are tasked with making sure that employees learn what they need to know at the time they need to know it. Part of the process includes following-up with employees to confirm learning is on target, on schedule, and in alignment with the organization’s needs and goals.

Performance Management – HR and department managers are responsible for setting and communicating performance standards. This takes place during the hiring process, orientation, and onboarding. Once performance standards are communicated and employees receive proper training, then employees expect regular conversations about their performance.

Employee Satisfaction – HR needs to receive feedback about compensation, benefits, rewards, and recognition. They need to know that what the company offers is internally fair and externally competitive. This has an impact on recruitment, employee engagement, and retention. Often this information is gathered during an internal employee satisfaction survey.

Offboarding – Let’s face it – employees do leave the organization and that’s not always a bad thing. Even when employees leave, HR wants to receive honest, open input about the employee experience. Departing employees can be a source of candidate and customer referrals. There’s also the possibility that they might want to boomerang back to the organization at some point.

HR touches the entire employee life cycle; therefore, they control a big piece of the company’s feedback culture. If organizations want to transform their performance to a “high-performing” culture, they will rely on HR to solicit the quality and quantity of feedback necessary to make a difference.

Developing a Feedback Culture

We all know that getting quality input isn’t as easy as it looks. We can’t simply say, “We need feedback. Let’s go get some.” The organization encourages and accepts input by building a feedback culture. And organizations that do incorporate feedback as part of their values and culture will be well positioned to maintain a competitive and sustainable business. A couple of weeks ago, SilkRoad and I presented a webinar together on “Creating a Company Culture that Embraces Feedback”. If you didn’t get a chance to hear it live, no worries – you can still listen to the recording.

There are a few things that are essential to developing a feedback culture. The obvious ones include getting buy-in from senior management and the rest of the HR team, so they will model the behavior. Plus, building a feedback model that everyone in the organization learns – hopefully during onboarding – and uses.

Feedback cultures help organizations and employees do their best workClick To Tweet

The final key piece lies with managers. They need to be prepared to reward employees for setting the example as well as coach employees who need help. They also need to be in a position to do something with the input they receive.

SilkRoad and I are taking the feedback culture conversation to the next level with a webinar next week (on April 18, 2017 at 12n Eastern) on “Coaching Managers to Welcome (and Accept) Employee Feedback”. Again, if you can’t make it – no worries – just register and you’ll receive the recording. But we hope you can join us.

I mentioned at the beginning of the year that 2017 is the “year of feedback”. Organizations and individuals need feedback to do their best work. But it must be quality feedback. HR plays a significant role in making that happen.

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Customer Service Engages Employees With Their Job

April 4, 2017 by Sharlyn Lauby 1 Comment

(Editor’s Note: Today’s post is brought to you by our friends at Kronos, a leading provider of workforce management and human capital management cloud solutions. To learn more about designing and managing a company culture that drives bottom line success, check out The Workforce Institute’s latest anthology, It’s All About Bob(bie): Strategies for Winning with Your Employees. Enjoy the post!)

The two top drivers of employee engagement are recognition (72 percent) and understanding how work contributes to the bottom-line (70 percent), according to a Harvard Business Review report titled “The Impact of Employee Engagement on Performance”. Using these two drivers, my takeaway is that engagement is the result of connection, meaning the employee feels a connection to the company and their work.

It recently occurred to me that customer service is a key factor in creating that connection (and subsequently, employee engagement). We know that businesses need customers and employees are the ones who deliver service to those customers. We also know that delivering excellent customer service improves the business and the bottom-line.

We know that, many times, the recognition employees receive is either directly from customers or because of an interaction they had with a customer. As a result, organizations have an opportunity to use customer service as a way for employees to understand and increase their connection to their work and the organization.

I came to this realization during the annual Workforce Institute board meeting where Joyce Maroney, senior director of customer marketing at Kronos, was sharing some information about the rollout of Kronos’ new customer community. “Kronos launched a new customer community on the Salesforce.com platform as part of our overall transformation as a SaaS provider. The community connects customers, partners, and Kronos employees with each other, and with the content they need to derive the maximum value from their investment in Kronos technology.”

During the conversation I had last month with Dave Almeda, chief people officer at Kronos, we talked about how they create an engaging candidate and employee experience. What really connected the dots for me was, after being a part of both conversations, I could see how customer service is an engagement driver. The principles of the customer community applied to both external as well as internal customers (i.e. employees).

4 Key Principles to Creating a Customer Community

Whether you’re focused on internal or external customers, there are core principles that apply in creating a successful community. Here are the four key principles to focus on:

1. Knowing the business. For employees to feel engaged with the company, they need to understand how the organization operates. In addition, employees need to understand the company’s customers: what are they looking for in a product or service, how do they use the product or service, and what do they like/dislike about the product or service the company offers.

2. Making connections. Employees need to work with others to get things done. That applies even to individual contributors. Joyce shared with us how members in the customer community are working together to help each other. “Members can pose and answer each other’s questions in the community. The member doing the asking can identify an answer as a ‘best answer’, making it that much easier for a future query to be resolved quickly.”

3. Leading the way. Employees want to control their work. That being said, they’re also open to hearing about proven best practices they can use or adapt to make their jobs easier. Joyce explained in the new Kronos customer community, members can do the same thing. “They can enter ideas for new functionality they’d like Kronos to develop and vote on these ideas. Members are providing Kronos product managers with insight about how popular a particular enhancement might be with the broader community.”

4. Empowering people. Employees do not necessarily need every question answered by a manager. They just want answers. Organizations can facilitate this by giving employees the tools and systems to solve their own problems. Examples includes collaborative technology and employee self-service. The same applies to customers. Many are very willing to search for their own answers provided the organization creates a system that will facilitate this level of service.

This video from Kronos is a great example of the connection between employee engagement and customer connection. Check out the quote from Todd in Indianapolis around the 1:00 minute mark:

In each of these principles, the employee and customer views are similar. To become engaged, you need to know the product, listen to how others successfully use the product, find proven strategies that work for you, and take advantage of the technology solutions available to you.

Customer Service Drives Engagement

Businesses know that customer service drives customer engagement. That philosophy applies both inside and outside the organization. The reverse is also true. According to an article in Harvard Business Review, companies with high levels of engagement realize higher levels of customer service.

Stepping up the company’s customer service game isn’t only a win for external customers. It can engage internal customers as well.

Image captured by Sharlyn Lauby after speaking at KronosWorks 2016 in Orlando, FL

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Employee Engagement: 3 Reasons You Should Be Using Survey Research

March 28, 2017 by Sharlyn Lauby 2 Comments

(Editor’s Note: Today’s post is brought to you by Readex Research, which provides expert survey services to help businesses understand their internal and external customers. Their services include employee experience surveys. Enjoy the post!)

Last month, Gallup released its State of the American Workplace report. It’s a long read – 200+ pages! But it’s important for two reasons. First, as much as we talk about the dynamics of employee engagement and disengagement, not much has changed. There’s still a significant percentage of the workforce that’s disengaged.

That’s an important thing to know. But the second point is that it doesn’t have to be that way. Organizations have an opportunity to find out how to engage employees. And it doesn’t involve a big, long, expensive process. In fact, it starts with something we do every day – communication.

Survey Research Versus Surveys

The definition of communication is “the imparting or exchanging of information or news.” So, one means of communication is to ask people what they think about a particular topic (i.e. survey). It’s a way for them to impart information.

However, according to Readex CEO Jack Semler, a survey might not give you the best information. Survey research will provide organizations with better insights. “There’s a distinct difference between surveys and survey research. Some would say it’s very subtle, but let me try and explain. Survey research is an ecosystem comprised of planning, creating, gathering, and then bringing understanding to data. You can gather information in many different ways, with a survey being one means. Other key components of survey research are asking questions the right way and then doing deep dives into data to provide as much clarity and life as possible. In other words, survey research is more than the act of asking questions. It’s a process based on a solid vision and plan, execution, and analysis.”

Semler’s definition reminds me of that old computer science acronym GIGO (garbage in, garbage out). If organizations do not take the time to properly plan and design their survey research project, then it could impact the information they receive. And when the goal is to act based on the data, having valid data is imperative.

Better Employee Engagement: 3 Reasons to Use Survey ResearchClick To Tweet

3 Advantages That Survey Research Can Bring to Employee Engagement Efforts

Clarity. First and foremost, survey research allows the organization to clearly hear the voice of the employee. There’s absolutely no reason to conduct survey research if you’re not interested in getting first-hand information.

Clarity is also the reason that employees are willing to participate in surveys. They want their voices heard but in a confidential way. Survey research allows organizations to clearly hear the voice of the employee using a process that ensures confidentiality. Hence, this encourages employees to truly speak their mind.

Consistency. One-on-one meetings are very effective and should be conducted on a regular basis. But when we’re talking about survey research, we need a way to quickly gather good data from a lot of people. That means using a process that will scale effectively.

Survey research can connect with employees all at once, saving time for managers, employees, and human resources. Let’s face it, no organization operates with an unlimited budget. Companies want to engage employees and utilize company resources in a responsible way.

Results. One of the biggest complaints I’ve experienced with surveys is turnaround time. Having feedback meetings with employees months after the survey doesn’t send the right message. Survey research offers a real-time reporting system, so organizations can share results in a timely fashion.

It also means that companies can act faster. Remember the goal is to impact employee engagement. So, the sooner companies have results, the sooner action plans can be developed.

Survey Research Creates Positive Impact

We all know that impacting employee engagement influences productivity, sales, and the bottom-line. But it can be hard to find a place to start. Survey research allows organizations to gather the data they need to make an impact.

If you want to learn more about how survey research can impact employee engagement, be sure to download Readex Research’s white paper on the “5 Questions to Ask Yourself Before Your Next Survey Research Project”. It’s a straight-forward read that you can socialize to the senior management team for initial feedback and discussion.

Image captured by Sharlyn Lauby at the Great Place to Work Conference in Dallas, TX

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10 Strategies for Recruiting In a Highly Competitive Job Market

March 21, 2017 by Sharlyn Lauby 1 Comment

(Editor’s Note: Today’s post is brought to you by Alongside, a company that bridges the communication gaps to create a better hiring experience for both employers and job seekers. Check out how they help companies like Motörleaf showcase their team dynamic to active and passive candidates. For a free trial or demo of their product, visit their website. Enjoy the post!)

We continue to hear how recruiting is a challenge. In a research report published last year by the Society for Human Resource Management (SHRM), sixty-eight percent (68%) of HR professionals are experiencing difficulty recruiting candidates. There are several reasons for the increased difficulty including skills gaps and lack of experience. However, forty-nine percent (49%) of HR pros cited competition from other employers as part of the challenge.

I feel like l’ve always worked in highly competitive environments. My thought is there are two different kinds of competition:

Industry-based is specific to a type of work, like the competition for tech talent in Silicon Valley. It could be based on a highly technical position. Or it could be the result of a geographic region becoming a hub for certain types of businesses.

General competition applies to all jobs, and is the result of low unemployment, increased voluntary quits, etc. It could also be the result of a geographic region getting a large employer and creating lots of jobs. Another reason could be a skills gap in a much-needed area like supervisory skills or critical thinking.

Organizations are not immune to competition and must be prepared to address both types. And, the answer isn’t poaching employees. It’s taking steps to make your organization rises above the competition.

10 Activities Your Organization Can Do to Recruit More Effectively Against the Competition

Build a solid employment brand. It starts with understanding what makes your organization unique. If your recruiting team doesn’t know, how will they sell candidates on the value of coming to work for the company. Make a concerted effort to find out why employees stay. Hiring managers could make this a “stay interview” question during their one-on-one meetings.
Be a great employer. Don’t hesitate to apply for a local/state/national “best places to work” award. It’s a great way to promote your organization and culture. Also, consider allowing the HR team to present at conferences. Not only is it great professional development for HR but they are sharing the company’s best practices.
Have a competitive compensation and benefits package. I realize a lot goes into the conversation about employee compensation and benefits. But the reality is, as the job market gets more competitive, so do compensation and benefits. Organizations need to ensure their packages are internally fair and externally competitive.
Have a good employee referral program. Employee referrals continue to be the most cost effective source of quality applicant flow. If the company is offering a bonus for recommending candidates, make sure it’s appropriate given your cost per hire. And consider adding alumni and contingent workers – both in terms of being referred and providing referrals. They’re a key piece to today’s recruiting strategy.
Give candidates a realistic job preview. Job seekers are doing their homework before applying with a company. Organizations should develop a career portal where active and passive job seekers can see a typical “day in the life” of an employee. This can be done with video and using employee testimonials. Also, while I know it’s an extra step, consider using more readable/relatable job descriptions (versus legalese ones.)
Make it easy to apply. HR professionals and hiring managers should try to find and apply for a job at their company to understand what applicants go through. Organizations need to distribute their job openings where candidates spend their time – one of those places being social media. And, candidates should be able to easily view and apply for jobs using their mobile devices.
Build a talent community. The days of recruiting only when there’s an open job requisition are over. Competition means recruiting all the time. If you don’t have an opening, find a way to keep job seekers engaged. And if job seekers aren’t ready to apply, find a way to keep them engaged. Create a community where future candidates can learn about the company.
Promote your brand! I know I’ve said that organizations need to build great career websites, distribute job openings on social media, and make sure your site is mobile responsive. That alone isn’t enough. Recruiters need to start taking media requests to talk about the company brand. They need to teach employees how to use social media so they can, in turn, talk about the company brand.
Train hiring managers to interview well. Organizations shouldn’t assume that everyone knows how to interview. Interviewing is harder than it looks. Recruiters should help hiring managers understand the connection between cost per hire, turnover, and the hiring process.
Consider boomerangs. This won’t apply in every situation, but giving former employees a door to return to can be a very successful strategy. Allow an employee to leave, gain new skills, and return with a fresh perspective. Just be sure to address old issues that caused them to leave in the first place.

10 Proven Strategies for Recruiting In a Highly Competitive Job MarketClick To Tweet

Good Employees Want to Work for Good Companies

If you’re a good employer, job seekers will want to work for you. Organizations need to get the word out about their culture, jobs, and benefits. Now isn’t the time to be shy about the benefits of working at your organization. Because you can bet your competition is telling candidates the benefits of working for them.

P.S. One other aspect of recruiting that organizations need to address is bias. High-performing organizations are diverse, so it’s important for organizations to deal with this issue in their recruiting process. If you want to learn more about “How to Manage Bias in a World of Social Recruiting”, sign up for a special webinar on April 19 at 1pm Eastern with Emily Brennan from Alongside and workplace leadership expert Pierre Battah.

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Employee Coaching Is a Form of Accountability

March 12, 2017 by Sharlyn Lauby Leave a Comment

I ran across this image the other day from last year’s HR Technology Conference. It reminded me of the times when an employee has said to me, “My manager is out to get me.”

In fact, I was conducting a training session with a group of managers recently and someone asked about having HR in the room when managers are coaching employees. My thought on this is “No, HR should not be in the room” when a manager is coaching an employee. Maybe if a manager is disciplining an employee. But not coaching. It sends the wrong message and can imply that the process of being performance managed out of the company has begun.

(Side note: Don’t take that last sentence as a bad thing. Sometimes, companies want to send that message. And HR plays a role in doing it. But those moments must be used strategically.)

The whole notion of having a witness during coaching implies that coaching means something bad is going to happen. Coaching isn’t punishment. Coaching is a two-way discussion that’s focused on holding people accountable.

Accountable for following organizational rules, policies, and procedures.
Accountable for delivering excellent customer service.
Accountable for creating outstanding products and services.
Accountable for being a team player and collaborator.

…and the list goes on. You get the point.

I sometimes wonder if when employees say, “My manager is out to get me.”, they really mean, “My manager is holding me accountable. And I don’t like it.” I know accountability is easy when we do something awesome and less easy when we don’t. As employees, we need to realize that accountability conversations will happen.

And as managers, we need to understand how to hold people accountable in a respectful way. Because at some point, employees are going to hold managers accountable for supporting them.

Bottom-line: If you want to hold others accountable, you have to be willing to hold yourself accountable. It’s like respect. If you want people to respect you, then you need to be respectful. Now that doesn’t mean we have to be perfect. Everyone makes mistakes. The key is to be willing to take responsibility for our actions.

Image captured by Sharlyn Lauby at the HR Technology Conference in Chicago, IL

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