Creep

The challenge of negativity isn’t new.  We fight it everyday.  When we are faced with it, what is our normal response?  Walk away?  Join in?  Yikes.

Kit, the pitcher in A League of Their Own, is negative throughout most of the movie.  Manufacturing sympathy for her is tough.  She is a whiner.  She brings down those around her.  She is frustrated with the sister who seems to have everything.  She is obnoxious to her teammates.  She is negative about her life and wants to bring others down around her.

Think about how critical the pitcher is to the team.  What does it do to the team to have someone like this at the mound?  How many of these people work with or for us?  And while you might want to fight this person, just as happens in one scene of the movie, work policy is likely to prohibit you from doing so. 

Confrontation is appropriate.  You do not need to allow this person to monopolize your time or to jeopardize the flow of the rest of the team due to such negativity.  It is not okay.

Make the business case first.  Log the hours given in support of this negative person, to try to move him/her beyond the perceived issues.  Log the hours given in support of correction of the frustrated team communication.  Log the hours given in conversation with other team members who struggle to work with that negative person.  Those hours have a cost, with very little ROI. 

Often the pattern for a manager is to have all of these conversations, but the functional team dynamic remains the same.  The cycle of engagement is not impacted and the status quo returns a day after addressing the issue.  Management does little usually to course-correct the department.  The symptom gets address – frustration, lack of communication, hurt feelings – but the cause – the negativity of a person – is left because we don’t know what to do.

Sit with Mr./Ms. Negative and share the logged hours.  Show him/her how much time has been spent because of him/her.  Let the time be a factual example that the behavior has caused.  You’re not saying the classic, “I spend so much time dealing with your stuff.”  That’s too general and will likely cause the negative employee to be remorseful for a moment but with no lasting repercussion.  When management is specific to the time, a line can be drawn in the sand to say enough.

A manager should further make the business case regarding lack of productivity.  In all of the hours spent by the manager in dealing with the situations caused by the negativity, rest assured it’s about the same for the team members involved.  They are not on task because of having to address the related issues of the negativity.  And every member of the team is valuable.  It should be very easy to show the negative employee that the team is not here to deal with these issues; it’s not part of their job description.  The cost of lost productivity is real and can be shared as an amount based upon time, hourly rate, cost of goods, and other operational & production costs.  

Giving the negative person truth and fact is the most respectful way to engage.  It will allow the conversation to move away from feeling, which is the default position, and rest purely on fact.  Management must engage on a level that moves the negative person out of his/her own perspective and into one that includes the company’s purpose.  Often, the negative individual sees his/her role as unappreciated at the company.  By sharing factual information, the negative person is offered a different (and more correct) view of how the company sees him/her.  When confronted with such information, management can be deliberate about the path of engagement moving forward.

Management will need to follow through on this.  If we’re serious that the waste of time is enough, then we must act upon that.  No more resources of time, team members and operational productivity will be wasted on such negativity.  Everything isn’t terrible, everything isn’t against you and everything isn’t about you.  Clearly act on this.

And while management may feel that the negative person is too tough to handle, a better view is to think about the team members that aren’t receiving such attention despite the great work being done.  The squeaky wheel getting the grease isn’t a long-term strategy for success.  Affirm the right behaviors more than the wrong; look at the time you’re spending on the wrong and make corrections.

Keep in mind, too, that this negative person can follow the path that Kit did.  She got traded.  Don’t wait too long to trade your Kit.

The Reason

by +Matt Bagell 

(Financial Contributor for Humareso)

As a financial planner, I run into the same question all the time when talking to a business owner, hr specialist or controller.  Which retirement plan should we set up for our company?  They always seem to be leaning towards a solution but are not sure what the full details are with regard to the various plan options.  

You just need to know one simple thing; what is "The Reason" for creating one for your company.

Let's face it.  Some business owners are extremely interested in putting a lot of money away for retirement and taking advantage of as many tax deductions as possible.   In a perfect world, a business owner could do this while receiving a tax break from the government at the same time without limitations.  Unfortunately, there are caps to what you can do and it depends on what plan you choose.  On the other hand, a business may be solely focused on enhancing the benefits they are offering to their employees.  The company may see a retirement plan as a way of keeping their employees around and also attracting new ones as well.  

I could bore you with all of the details that go along with a SEP IRA, Simple IRA, and 401k plan but if anything else you have to first realize that these plans allow contributions to increase to a level much higher than an individual IRA.  In 2015, the traditional IRA contribution limits are $5,500 and $6,500 if age 50 or older.  The limit allows for a decent contribution but a business retirement plan such as a SEP IRA allows for contributions up to $52,000 in 2015. Now that is a huge difference.  If you put that amount against a 30% tax bracket, you would receive over $15,000 in tax savings in just this year alone. If your company has many employees or is likely to grow, a 401k/ Profit sharing plan might be more suitable.  You will have the flexibility to decide if you want to invest more or less each year and can limit the benefits provided to the employees based on actuarial testing.  

There are many factors that affect how a retirement plan will work including the age of employees, the number of employees, the salaries of employees and the contribution amount of the employer(s). This is why a decision should not be rushed.  A Simple IRA plan, for example, does not allow for higher contribution limits compared to other business plans but the out of pocket cost is less for the employer to set up. 

Retirement plans are great ways to really improve your company.  The business owner(s) can really take advantage of putting money away and the employees are also set up to come along for the ride. Think about it. When else does the government hook you up with a discount on taxes for saving your own money. By the way, they also let your money grow tax free before withdrawals. Not a bad situation if you are able to contribute steadily throughout your working career.

So, first start with "The Reason" you are considering a plan. From there, it will be a lot easier to figure out what fits your company's needs.

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Ribbon in the Sky

Success stories are a standard in marketing.  In the health and wellness industry, for example, weight loss companies like Jenny Craig, Weight Watchers and NurtiSystem spend millions on celebrity testimonials.  And some of these celebrities have seen a resurgence in their careers as a result, like Marie Osmond, Kirstie Alley, Valerie Bertinelli, etc.  We love to see the dramatic difference in the before and after shots.  Those photos inspire and amaze us.  We celebrate the victory with that celebrity (like we know them or something). 

Victory is a great achievement.  It's worth celebrating.  Losing weight is a great accomplishment, but it is not the only accomplishment worth celebrating.  In our organizations, we have employees reaching and exceeding goals.  Are we celebrating?

As some of you know, I am big on expectations and measurement.  I believe that it's necessary to set clear expectations and goals and then follow up to measure how those things are being implemented, reached and if there is a need for change in approach.  We need to set our staff up for success right from the start.  I am, also, a believer of celebrating with those who meet or exceed those expectations and goals.

In ancient times, the act of erecting a monument to recognize a victory was commonplace.  Great kings and conquerors took pride in the work they were doing (however terrible it might have been now that we look back) and as such, wanted every traveler who came into the territory to know.  While building a monument out of stone and marble might not be practical or cost-efficient, we can recognize those achievements in public and lasting ways.

It's also okay to recognize types of accomplishments differently.  Someone who meets the quota they were given might not deserve a huge fanfare in comparison to the one who superseded his/her quota by 50%.  The type of recognition might vary, but the act of at least throwing a ribbon in the sky is what matters.  Motivation from the recognition is a fact.

The Maritz Institute encourages use of a BET technique.  

• B - State the Behavior.  Let employees know what's expected of them and how it will be measured.  
• E - State the Effect.  The employees can handle understanding how what they do will impact the whole.  Let them know what difference they are making by performing the desired behavior.  
• T - Thank you! Recognize what an employee does out of a spirit of gratitude.

And I know the other side of it. I know that we're inundated with gift cards and online point-earnings that can lead to fabulous trips.  I know that we're not interested in one more initiative to manage.  I know that we're promised the world by technology providers but, at some level, we've got to manage it.  I get it.  And what I, also, get is that the CBA (cost benefit analysis) around recognition is worth the time and effort.  Employees who get to raise their hands in victory by the encouragement of their managers are more likely to learn new skills, to creatively think through current work processes and to lead those around them to a higher level of output.  Those are some pretty good reasons to build a monument.

Grab a couple of employees this week or next and test it out.  Recognize goals met or exceeded.  Share it with teams and divisions.  Throw a few "atta boys" out there in public.  The time spent will be well worth it if it's done consistently and with genuine enthusiasm (not an over-the-top-obviously-not-heartfelt attitude).  

And now, I am going to take some pictures with the current monument to victory...an unopened ice cream container in the freezer that's been mocking me since it's been brought into the home.  Yeah, baby, willpower!

Price Tag

What does talent really cost?  That's a great conversation starter with a CEO or CFO.  "Too much" may be the simple answer.  But after the off-the-cuff response, how do we consider talent's worth?

One of my favorite examples is Don LaFontaine.  You know, Don.  Well, you know his voice.  He did movie trailers and some television voiceover work for years.  He famously used the opening phrase, "In a world," many, many times.  If you're not readily familiar with his work, please allow me to illuminate - http://www.funnyordie.com/videos/4781d17ca3/don-lafontaine-tribute-king-of-trailer-voiceover-from-trailermash - (I already see many of you nodding your heads, "Oh, that guy").  For the movie producers and television executives, Don was sought after as the premier talent for this type of work.  He was paid handsomely and had the ability to pick and choose the work he would do.  But don't think Don was a slacker.  There were days where he would work on 35 assignments...yes, in one day.

When Don started doing this work, I don't imagine that he thought he'd make millions doing it.  He worked because he needed to earn a living.  Those executives early in his career recognized his talent and were willing to pay more to have him voice their television openings and movie trailers.  The price tag for Don grew over the years and he understood that what he could do with his voice had value.  Don also recognized how he could use his talent for good in donating it to charitable endeavors until his death at 68 in 2008.

Don is a great example of the cost of talent.  Was Don worth the cost?  Well, since I am writing about him, I am saying yes.  He was someone who served consistently in his role and became sought after for his excellence.  Don was guided by those who saw something more than he did initially.  "Voiceover work is voiceover work" could have easily been Don's mantra, but he was able to see more by the way those around him responded, including the increase in pay.  How are we encouraging growth and optimization of talent?

One of our traps is that we fight hard to hire someone who we think will become invaluable to our organizations.  We just know it and we push for it.  When it happens, we're elated.  What often happens afterwards is the issue.  Where is the plan for growth and expectation?  Who is holding the process accountable?  How will success be determined and does everyone know that?  Watching this prospect leave after one to two years, having never really hit the mark for the organization, is a waste of money and a poor use of time and resources.  It will cause those to whom you pleaded at first to not look with favor upon your next fight for talent.  

Our job includes the initial recognition of what could be.  Like our friend, Don LaFontaine, a path has to be drawn to communicate vision for what a person could bring to the company.  Dream a bit and set the bar.  Don't apologize but rather cause someone to feel as though he/she could rise to the occasion.  And the stack of money isn't all that needs to be communicated.  Dialogue about impact and reformation.  Consider how many well-paid executives leave their jobs and why?  Often, someone is whispering in their ear a better laid plan for how he/she will bring value to another organization.  We need to offer insight into how we see someone's talents benefiting our company today.

Create those plans.  Work with management.  Met expectations will show value, to the organization and to the employee.  Even the "small" roles to the executive are pivotal to the overall success.  Consider again, Don LaFontaine.  What was it that he really brought of value?  A nice voice?  Good tone?  Yes, but one greater thing.  He could use those talents to bring anticipation.  A movie executive wants people to come and pay to see a movie.  Don could create the desire to want to see a movie.  That is pivotal.

Recognizing the worth that talent brings will require money to be spent.  But the price tag for it all is worth it when you align need to expectation.  When people work without a charted course, dissatisfaction sets in and a lack of motivation takes hold.  And senior executives get frustrated.  And HR people and recruiters have to back-peddle as to why this talent that they fought so hard for isn't working out.  Redirect those energies by putting it into a healthy plan of expectation and recognition.

Hear Don's voice in your head talking about you and your company. "In a world where talent is cheapened and left directionless, one company has the courage to take a stand."  Chills, baby, and I can't wait to see that movie.

The Boy is Mine

Fight for your love, right?  It's Valentine's season.  It's all about love.  Actually, it's been all about merchandising since January 2.  Hearts everywhere.  Love, love, love.  Sick of it, aren't you?  I mean, listen, I like to be in love like the next person.  All those jittery butterflies in your stomach.  Dry mouth, sweaty palms, empty wallet...

I have been giving great thought to what we in the HR world fight for in our companies.  What we spend our energies on is typically a sign of our passion, of our love, if you will.  What we often say we love is strategy.  We are HRBP's (you know, business partners); we have a seat at the table (I might lose it if someone uses that phrase at the National SHRM conference this year); we have employee engagement surveys.  See how strategic we are!

Roll your sleeves up.  Let's look at our organization as our "boy" or "girl."  We love it.  We live for it.  We can't bear to be apart from it.  Now think strategically.  How do we keep it?  How do we protect it?  How do we fight for it so no one else takes it?  That's the driver of strategic business thought.  So let's start with one aspect for fun - strategic cost management.

Strategic cost management is all about analyzing and managing costs so your company can have a competitive advantage.  So how do you do that?  First off, it takes time.  "Date" the CFO for a while (scary to some, I know).  Find out all you can about profit margins and what the break-even point is for the company; better yet, if you don't even know what a break-even analysis is, then ask him/her, or Google it!  Find out where the company ranks in terms of efficiency and production standards.

Another component to start asking yourself has to do with what kind of business you are in the marketplace. Are you a low-cost product distributor?  Are you a high-quality, highly individualized customer service kind of experience?  These answers are not only part of what will help you develop a strategic cost management plan, but it will influence how you hire, retain and promote.  The talent in the company from the entry-level clerk to the CEO has to know what the value proposition is for the company as it competes in the marketplace.

Think of it this way.  If WalMart decided tomorrow it was going to be like Neiman Marcus in its customer experience, it would have to forego its position as a low-cost value giver.  It would be near impossible to offer that level of customer engagement and product level and still keep costs as low as we know them to be.  If WalMart did that, it would change its business strategy and would have to re-create a cost management structure.

This "boyfriend/girlfriend" of yours can be finicky at times.  Fluctuations in the economy, in raw material prices, in the political landscape, etc. all influence the relationship.  You might wake up one morning and realize that your love is not what you once knew it to be.  Fight to get her/him back.  Don't let someone else take the place that your company has.  Look at processes and procedures.  Are they efficient and effective? Can you develop plans for sustainable advantage?  What have been the constants in the relationship?  How can they be better leveraged for growth and for stability against competition?

Let me add a dash of perspective to the mix.  I know that you may not be a financial wizard.  Some of you reading this might think, "Listen, I got into HR because I stink at math.  I like people and that's it."  I understand that and respect it.  So let me meet you in it.  If you've ever been passionate about someone, then you know the time you spend with that person is precious to you.  You will choose to do things that the object of your affection enjoys just because you want to be with him/her.  You learn new things, you think differently, you open your eyes to new views because that's where the other person is.  Why can't you put that energy into your role at your company?  You love people, okay, but love them by setting them up for success.  Love them by putting effort into developing a healthy, long-term environment.  Love them by ensuring that the company stays open.

But remember, love isn't always hearts and flowers as the next day or two might show.  Sometimes it means saying no.  Sometimes it means compromise.  Sometimes it means pruning relationships so that they can grow fuller.  When you look at processes as part of the strategic cost management plan, you might realize that money is being wasted in one area.  Profits have not been seen in quite some time and the other business units have been covering for it.  It might be time to cut it off.  Work with your CEO around these issues; it's not a bad thing to promote growth and stability, but it can be painful.  A value in strategic cost management has to do with controlling costs and their drivers.  If inefficiency or lack of profit potential is found, then it might have to go.

I understand that this might be tough to take, but that's what passion is about.  Running hard after something to attain it and cherish it.  Your company needs you to be passionate about its health, its success and its future.  Learning the process of cost management and using it to really be strategic for your company is one of the best ways you can show love.  Your role within your organization is meant to be people-focused, but that is not to the exclusion of business acumen.  That is quite needed for your role!  Fight for what you have.  Fight to beat out the competition.  Fight to keep what your company has achieved.  Fight for the future of the company's success.  We love a fighter.