Skip to main content
Monthly Archives

February 2017

Managers – Not Superheros

By Employment Resources

MP900341414Here’s a newsflash: Management is responsible to employees, but not for employees. The whole notion that we’re somehow responsible for employees came out of the control and domination era of the manufacturing age. ” Just do what we tell you to do, don’t think yourself, follow our agenda until you’re 65, and we’ll take care of your health and finances until you pass away actually at 67.”. Here are some examples of when you know you’ve been stuck in the position of being responsible for employees rather than responsible to them:

  1. You find yourself doing too much for them. When people can’t get their jobs done, do you step in and save them? Or do you let go of control and allow them to take responsibility for their results?
  2. You think that you have to bribe them to perform well. Frustrated parents will try to buy their children’s behavior. It’s a mistake when managers try to do the same thing.
  3. You’re overprotective. You won’t share an employee’s true shortcomings with them because to do so would put them at risk. As a result, you’ll start engaging in a codependency with this person, thus enabling continued poor performance.
  4. You micromanage.. Do really want to spend your time trying to control a bunch of adults, anyway? Smart managers are clear about their objectives then empower employees to reach them.
  5. Your meetings are one-way communications. You spend time lecturing employees as if they were schoolchildren, rather than empowering them to share problems, ideas, and solutions.
  6. You fail to draw a line in the sand. Many managers will never draw this line because they’re playing “savior games.” You know you should fire an employee, but you’re also aware that if you do so this person might go into a financial tailspin. As a result, you keep the employee, which harms both them and the company.

When you’re responsible to employees, you put them in a position where they become capable of success. It then becomes their responsibility to succeed. You can identify your expectations, express your limits, and provide feedback and judgment without trying to fix things yourself, and encourage but not enable them.

Finally, realize that you and anyone that you manage will make some mistakes. Don’t freak out when this happens; just ask yourself what can be done so it never happens again. In this situation, explore your responsibility and allow the employee to explore theirs.

Put Your Employees to the Test

By Employment Resources
Answers Marked on Test ca. 2001

Answers Marked on Test ca. 2001

Here’s a fact: Half of all employees test better than the other half! My question is, which half do you have?

Testing job applicants and employees is one of the favorite topics in my CEO and HR workshops. Because most companies don’t do appropriate testing, those that do enjoy a significant advantage. I like to begin the subject with a story. Years ago, as I was quitting my litigation practice, a legal secretary (we’ll call Sue) came into my office and wanted to sue the firm she had been working for. The fact that a law firm could be sued by one of its employees came as no surprise. Lawyers get sued by their employees more than just about anyone else – and we rely on lawyers’ advice so we don’t get sued! A little Catch-22 in the system, you might say.

To keep the story short, it turns out this legal secretary had a steady job at neighboring law firm, working for a partner for 15 years. At the same time, a litigation partner at another firm lost his legal secretary with only last-minute notice. He put the word out on the grapevine that he was looking for a replacement, and that’s where Sue met up with him. After meeting for a pleasant lunch, the attorney figured that she had 15 years of experience doing the very job he was hiring for, she seemed pleasant enough – and so he hired her on the spot. To Sue’s surprise, almost immediately after coming to work, he started expressing his disappointment with her productivity. This went on for three months until he fired her without any offer of severance. Sue was a single mom with two kids to raise on her own and no job; that’s what prompted her to walk into my office.

I asked her if she and the attorney discussed any performance benchmarks or requirements at their one meeting. They had not. Understand this: a legal secretary types about half of the day; and half of them type above average and half below average (this holds true for programmers and retail sales clerks as well). Personally, I’ve never hired a legal secretary who typed less than 100 words per minute. When I asked Sue how fast she typed, she told me approximately 80 words per minute. She found out by testing herself years ago. None of her employers had ever tested her. I then tracked down the previous legal secretary; according to a test she took, she typed approximately 100 words per minute. Therein lies the moral to this story – the woman in my office was a failure on the first day of her employment and nobody knew about that fact!

This begs the question, “how many people walk into your company a failure on the first day and no one knows about it?” It makes no difference who you’re hiring , including rocket scientists, What’s the range of skill sets at your company? Without testing, you’re only guessing.

Let’s take this idea one step further. According to both Dr. Edwards Deming and Peter Drucker (perhaps the two greatest management gurus of all time), nine out of ten people want to do a good job every day – and their inability to do so is generally due to a system failure rather than a lack of motivation. Let me give you an example of how this plays out: at about the same time Sue walked into my office, I was consulting with a law firm that was having turnover problems. With the economy growing at the time, the larger firms were simply throwing more money at these employees. Although this was unrelated to my assignment, it dawned on me to ask them a basic question: “Have you tested all of your legal secretaries?” Turns out they had not – so that’s exactly what we did. We tested them not only on their typing, but also on the substantive and procedural knowledge that their job required.

Here’s what we learned: In most law firms, the attorneys get no management training and generally there are two attorneys to each secretary. Let’s assume that two of those attorneys manage intuitively above average and another two happen to manage below average. Now let’s say there’s a legal secretary who types 80 wpm for an above-average manager. The other secretary types 100 wpm for a below-average manager. Who do you think is viewed as the better secretary at the end of the day? When I ask this at workshops, most people respond “the one who types 80 wpm for a good manager.” This secretary gets the better performance evaluation and the raise – which makes absolutely no sense.

You can, and should, test for every essential skillset. For example, a few years ago I helped a real estate investment firm hire a CFO. Because they were Good to Great fans and wanted to have a great company, they decided to have a great CFO. When it came to testing, we decided to address the three essential skillset categories: substantive knowledge of accounting (GAAP), QuickBooks, and finally, Excel (because they used it for their real estate deals). So I contacted SHL (who I’ll talk about in a bit) and we set up tests for qualified job applicants. These tests cost us between $17 and $30 each. Because we wanted a CFO in the top 10% of skillsets, we decided that they would have to test in the top 20% of all three categories. It took us months to find that CFO, and in the meantime we used Account Temps. That’s the type of testing discipline you must go through if you want to have great employees.

For the past ten years, I’ve recommended only one company to do skill testing because I believe that it’s the best. When I first met them they were known as BrainBench. They were then acquired by PreVisor, and finally by the largest testing company in the world, SHL. Our contact is Jason Finney (jason.finney@shl.com). He is awesome and is surrounded by a great team. You can contact Jason to set up tests for your job applicants and existing employees. Not only will this help you to hire better, it will also help explain a lot of what’s going on with performance and what training you need to improve it.

Here’s what SHL users have said about testing: http://www.shl.com/us/results/client-results/. If you think this sounds like an endorsement of SHL, you’re right. So use them!

If you’d like a certificate for a free test from SHL, contact Jason directly and he’ll get it to you. If you’re an HR That Works Member, watch the one-hour webinar I did with Ken Lahti, one of the testing experts at SHL.

I also think it’s important to use skill tests when you hire consultants. How do you really know if they’re any good without testing them? For example, when we built HR That Works on a SharePoint platform, how did I know if our project manager was an expert or not? Yes, we were using a Microsoft Certified Partner, but that didn’t mean that the individual project manager was at the top of his game. Fortunately, he took a SharePoint test and scored very high, thus justifying my faith in his skills. Don’t trust the skillsets of employees, applicants, or third parties blindly – test for them!

As a final note, the skill testing I’m talking about is separate from character assessment. Fact is, you can’t fail your personality, so they don’t call them personality tests. However, it’s true that people can have failing personalities– and these are the people to make sure you don’t hire!

Sexual Harassment Reality Check

By Employment Resources

The Westendorf v. West Coast decision by the Ninth Federal Circuit Court of Appeals offers yet another example of management’s failure to understand that sexually hostile behavior is not permitted in the workplace.

In this case, the boss and coworkers said the plaintiff was doing “girly work,” talked about the large breasts of another woman with her, made tampon jokes, joked about orgasms, and eventually started cursing at her. As mentioned in previous articles, whether she eventually ends up winning or losing isn’t the point. Either way, the employer now finds itself as a named defendant in a nationally publicized lawsuit that will cost it tens, if not hundreds, of thousands of dollars to defend what amounts to stupid and boorish conduct.

In this case, the plaintiff never reported the alleged harassment to a human resources officer. Perhaps if she had an alternative channel of complaint other than through the ranks, she would’ve received appropriate attention. Apparently the boss did admonish a manager and coworkers to quit the harassment, but when they continued it, the plaintiff just couldn’t take it anymore.

The court ruled that although the sexually hostile conduct was not severe or pervasive enough to alter the terms of her employment and support a sexual harassment claim, she might have faced retaliation for bringing the claims in the first place. It’s important to note even though this case was decided on April 1, 2013 dealing with conduct that ended in July 2008, it has yet to go to trial! I can only imagine what it could have, and should have, been settled for soon after filing, rather than slogging through the courts for the past five years. This doesn’t benefit either the plaintiff or the defendant – but it certainly helps fill counsel’s billable hour requirements.

Limit Technology Distractions

By Employment Resources

While the distractions of social media and always-on devices pile up, it’s becoming increasingly important for people to unplug and refocus. Workplaces can be circuses of nonstop meetings, endless barrages of email and social networking, and people walking around with their faces stuck in devices.

And the solution to technology overload may be mindfulness.

Many organizations are finding that mindfulness works: it decreases stress, increases productivity, and helps people form better personal connections. Companies such as Google, Procter & Gamble, Aetna, General Mills, and Target all have meditation rooms. The Seattle Seahawks have a meditation coach, as do other sports teams and entertainment figures, including 50 Cent and Katy Perry. Even the US military is teaching mindfulness techniques to members of the armed services.

If you don’t have a mindfulness coach or advocate at your company, you can still practice in the comfort of your office, home, or cubicle. It’s easy, and you can see benefits by spending only five minutes a day. Here’s how.

Mindfulness is like a workout for your brain.

Wait. It’s easy?

It is! All it takes is 5 to 10 minutes a day. Find a place in your home (or office) where you can sit comfortably and undisturbed. Leave your phone in another room on silent mode. You don’t need to cross your legs or put your hands in funny shapes. You also don’t need to say, “Ommmm.” All you have to do is sit there and concentrate on your breathing. When your mind wanders, go back to thinking about your breathing. Repeat until 5 or 10 minutes pass. That’s it.

Why can’t I have my phone?

Silly person, your phone is a distraction. It may ring or ding or vibrate, which will take you out of the moment and make you want to answer it, look at it, or silence it. You’re trying to eliminate distractions like that.

Over the years, we’ve become so addicted to taking in information, it’s become our primary mode of operation. It started with television, which people still sit in front of and do nothing except absorb whatever’s being shown on the screen. Now in recent years we’ve done the same with computers and phones. We move from one screen to another and one piece of information to another with no time to think, synthesize, or be creative.

Eventually you may want to create a space in your home with a “no technology” rule, like your bedroom, so you don’t have the temptation of picking up your phone in the middle of the night or looking at it first thing in the morning. That way you can be more aware of what you’re doing without having your attention stolen by the latest email message.

You mentioned some benefits?

Yes, many benefits. Focusing on the benefits is probably the best way to get you to set aside some mindfulness time. Here are a few backed up by data and research:

  • Increased ability to focus.
  • Physically shrinks the stress centers of your brain.
  • Increased ability to know what is happening in your head without acting on it.
  • Better self-awareness.
  • Increased sense of compassion.

Another benefit that can’t be undervalued is creativity. To be creative, you need space and time. You need to be able to be alone with your thoughts. That’s impossible when you’re surrounded by distractions that prevent you from concentrating on anything for a long period of time. Filmmaker David Lynch famously explored this idea in his book Catching the Big Fish.

In a lot of ways, mindfulness is like a workout for your brain. We already know it’s important to work out our bodies to stay healthy, so it makes sense to dedicate some time to working out our minds. You may find you’re happier, more creative, and better able to concentrate on whatever you’re doing.

Putting Your Surety Bond to Work

By Construction Insurance Bulletin

con_1301-01Although business management and performance are the major factors that will determine which contractors survive the downturn in construction, the size of the contractor also comes into play. As a rule, project owners are more likely to continue with larger developments because of their greater value, higher investment, and longer lead time. Smaller projects are easier to cancel, which makes smaller and midsize contractors (with work backlogs between $5 million and $100 million) more vulnerable to cancellation.

If you’re experiencing losses on a project, your first step should be to deal with overhead, liquidity, problems, and ongoing business concern. It’s also essential to communicate any problems to your insurance agent and surety company immediately! Because the surety has a strong financial interest in preventing you from default on your bond, it will leverage its relationship with the bond underwriter to help you work through these difficulties and reach a mutually acceptable solution that will keep you on the job.

However, a contractor withholding critical information about a problem situation from a surety would lead to a far different result. Concern about the contractor’s deteriorating financial condition – which makes it a riskier bonding candidate – might make the surety restrict its future capacity, leading it to make the contractor either bid on only smaller projects that pose less risk to the underwriter or postpone bidding on all projects until the business can clean up its balance sheet.

If you have any questions about working with your surety, please feel free to get in touch with the Bond professionals at our agency.

Be Prepared Before Buying New Equipment

By Construction Insurance Bulletin

con_1207-02If you’re planning to buy new construction equipment, do you feel the need to “kick the tires” before you make a decision? Let the Internet help save you time and money. Go to Construction Equipment Guide website to take  a virtual equipment tour that includes illustrations, pricing, and a text description of each item that you can print or download.

However, this site won’t provide informed guidance on buying the insurance you’ll need for your new equipment. Here’s where our agency comes in. Before you make a final decision, we can offer our professional opinion on how the purchase will affect your coverage and pricing options.

For example, if you’re choosing between two pieces of equipment, we can estimate the cost for insuring each (a factor you might consider in making your choice). We can also let you know in advance that it might be hard — or even impossible — to provide the right coverage on a piece of equipment at a cost you can afford.

The higher the value of your planned purchase, the more we can help by getting involved in the decision-making process in advance. Feel free to get in touch with us.

As online and other methods make your business purchasing increasingly easy, don’t let the simplicity of the process lead you to skip the steps needed to make a wise decision.

Are Contracts Insured?

By Construction Insurance Bulletin

con_1208-01To be in business means to sign contracts – and every one of those contracts requires that you agree to provide some guarantee. A common question is “will my insurance back me up on those guarantees?”

The answer can be complicated. For one thing, it’s essential to determine if the contract is one of the types that your Liability coverage specifies as an “insured contract.” Although other policy provisions can also apply (such as exclusions and limitations), if a particular contract isn’t considered an “insured contract,” look no further – your policy won’t apply.

Standard Commercial Liability policies usually define “insured contracts” to include:

  • Leases.
  • Sidetrack agreements (made with a railroad if you have tracks crossing your property).
  • Easement or license agreements.
  • Obligations required by ordinance to indemnify a municipality.
  • Elevator maintenance agreements.

Almost all Liability policies also include a broader provision that covers contracts under which your businesses assume the “tort liability” of another party for bodily injury or property damage. “Tort liability” is defined as liability that would exist in the absence of a contract or agreement. In other words, the liability you’re assuming must arise from the negligence of the other party to the contract. If the injured person can sue this other party without reference to any contract or agreement (“tort liability”), then a contract under which your business agrees to assume this liability will be considered “insured.”

Although it’s important, the definition of “insured contract” is only the starting point for determining if Liability coverage applies. Instead of assuming that your policy covers your contractual agreements, give one of our specialists a call. We can review the specific provisions of your current coverage as they might apply to your proposed contract and advise you about possible gaps.

ChaChing! Getting Discounts on Your Homeowners Policy.

By Personal Perspective

PP_1302-01You’re probably familiar with the basic discounts that most insurance companies offer on Homeowners coverages, such as bundling Home and Auto insurance, loyalty rewards, and installing smoke detectors and/or home security systems.

However, a growing number of companies offer significant premium discounts on Homeowners insurance to policyholders who are:

  • Senior citizens. If you’re 60 or older, you could lower your premium by as much as 15%.
  • Non-smokers. If you’ve given up the habit — or have never picked up a cigarette, cigar, or pipe — you might qualify for a discount.
  • Married couples or widows/widowers. Could be eligible for discounts of up to 5%.
  • New buyers who have closed a home purchase within 60 days.
  • Willing to increase coverage to reflect a rise in inflation.
  • Ready to buy coverage for the full value of a home.
  • Prepared to buy from a new carrier before the policy with your current insurance company expires.
  • New policy holders with the company (the “welcome” discount) and purchasing coverage for the entire value of your home.

You might also be eligible for a discount if you don’t have a Property damage claim for a specified period, such as three years.

Bear in mind that many insurance companies might not offer some (or any) of these discounts.

To see if you’re eligible, check with the professionals at our agency. We might be able to save you some big dollars.

Sick and Abroad!

By Life and Health
Boeing 747 Aircraft Taking Off ca. 1990s

Boeing 747 Aircraft Taking Off ca. 1990s

You’re soon to be off on an exciting trip out of the country. Your plans are made, your flight is booked, your passport is current – and now all you can do is count down to the day of your flight. Before you pack your bags and board your plane, make sure that you have insurance to cover any unforeseen medical expenses while traveling.

Bear in mind that most Health policies provide only partial, or no, coverage outside the U.S. (Neither do Medicare and Medicaid). If an accident or medical emergency struck during your trip, you’d be left far from home – and uninsured. The solution: Travel Health Insurance, which can provide a number of benefits, including:

  • Emergency medical treatment
  • Hospitalization
  • Coverage for pre-existing condition
  • Prescription drugs
  • Accidental death
  • Hazardous sports coverage (optional)
  • If necessary, medical evacuation back to the U.S. – this alone could cost $50,000

If you’re a frequent traveler, you can purchase multi-trip coverage (for up to a year) at a significant discount. People who plan to be abroad for an extended period might be able to buy a Major Medical policy that picks up the cost of prescription drugs and wellness programs.

As with most Health policies, Travel Health plans feature both in-and out-of-network coverage, deductibles, and co-payments.

You can choose from among a wide variety of plans, with differing options, and rates. For example, some policies also include such non-medical coverages as Trip Interruption and Travel Baggage.

We can advise you on selecting the Travel Health plan that’s best for you. Feel free to get in touch with us at any time.

Office Risks Reality Check

By Your Employee Matters

I just finished listening to an interesting podcast by the Freakonomics authors about the risks that gun use presents. For example, they indicated that the odds of a gun causing a person’s death are about 1 in 10,000, while the chances of a backyard swimming pool causing a death are some 100 times greater. Does this mean that we should focus on swimming pool control and forget about gun violence? Although I doubt that anyone would suggest this, it does give food for thought.

For the past dozen years, I’ve been in a catbird seat observing the incident of employment practices liability exposures and lawsuits. My conclusion: Employee Liability Practices Insurance cannot cover the major personnel practice exposures facing businesses. For example, there’s no risk mitigation for making poor hires, fostering low productivity, triggering high turnover, or failing to have workers play like a team. The frequency of such exposures, and their expense, far exceed those associated with employee lawsuits.

Let me share another statistic. In 2012 the U.S. had one of the worst years ever for mass shootings, with approximately 700 fatalities (four times the annual average toll). As you might expect, these sensational and painful cases grabbed plenty of headlines. However, in the same year, roughly 20,000 Americans committed suicide using guns, killing some 11,000 other people in the process – and garnering little, if any, media attention.

The same thing holds true for workplace risk exposures. How many articles are you going to read about the impact of bad hires or productivity left on the table every day? Where’s the drama in that? However, a, juicy lawsuit in which a sexual harassment claimant gets a multi-million dollar verdict will get plenty of press.

Likewise, more than half of the discussions at any HR conference will involve compliance exposures. Meanwhile, the greatest risk to your company’s survival has little or nothing to do with compliance litigation. In my 30 years as an attorney, I’ve seen only a handful of small businesses go under because of employee lawsuits – and hundreds of companies of all sizes go out of business because of poor management practices.

As with the gun/swimming pool example, we need to understand the relative probabilities of the various risks employers face.

None of us need the horror of mass shootings or nasty employee lawsuits. These events make for good press (as they say, “if it bleeds, it leads.”) When we run 75 mph as a society, it’s hard for us to connect without doing so through a mass pity party. The media taps into this social reality on a daily basis with sensational headlines and lead stories, making it all too easy to divert business owners and managers from focusing on significant employment risk management issues.

Food for thought…