Need help understanding the language of finance?

As you know, we work with clients to effectively manage and protect their valuable “people assets”.  Equally important is understanding a company’s financial assets, how they are reported and what it all means. Business owners, CEOs of small companies and non-profits, managers, Human Resources professionals, and self-employed professionals would benefit from an upcoming San Jose Business Journals sponsored workshop.  My very knowledgeable, practical business colleague, Elaine Orgain of Silicon Valley Accounting Solutions is presenting a valuable workshop on December 4th.  For more information, and to register, San Jose Business Journals Financial Workshop.

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Compliance Tip #3–Hiring, Social Media and Passwords–Beware!

Not surprisingly, the proliferation of employers requesting passwords to access employee social media sites has resulted in a new California law (AB 1844).  This bill prohibits employers from requesting or requiring job applicants or employees to provide user names or passwords for their personal social media accounts.   (There are some exceptions such as employer investigations.)

California became the third state to enact such a law, along with Illinois and Maryland. In addition to not being able to request or require the passwords, an employer cannot retaliate if the applicant or employee does not provide this information.

While it may be illegal for employers to ask, I strongly recommend individuals be prudent about what is posted on social media. We may be adamant about retaining our privacy, but actions and comments don’t seem to reflect that at all. So little is really private these days! I frequently see postings, which from a potential employers perspective, just aren’t smart. A good rule of thumb is just to never post anything you wouldn’t want the entire world to see.

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Compliance Tip #2–Health Spending Account Limits 2012 and 2013

For those employers and individuals with Health Spending Accounts (HSA), here are the contribution limits for 2012 and 2013.

For 2012, an individual may contribute $3,100 and the family maximum is $6,250. If you’re over 55, you can contribute an additional $1,000 per year.

For 2013, the limits go up for the individual to $3,250 and the family maximum of $6,450. And those over 55 can contribute $1,000 more.

These contributions are 100% tax deductible. For more information, check out the HSA Center.com at www.HSAcenter.com.

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2013 Compliance Tip #1—Exempt Classifications: Computer Software Employees

There are going to be many new labor laws which become effective in 2013 for employers.  This is the first in a series of tips to keep you aware of what’s happening. 

(But first, my disclaimer.  CRS is a Human Resources consulting firm, therefore this is not to be construed as legal advice, so be sure to check with your labor attorney.)

To ensure you have classified your Computer Software employees correctly as Exempt employees, they must meet all of the following requirements.

The employee:

  • Is primarily engaged in work that is intellectual or creative
  • Is primarily engaged in work that requires the exercise of discretion and independent judgment
  • Is primarily engaged in duties that consist of one or more of the following:
    • Applying systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications
    • Designing, developing, documenting, analyzing, creating, testing or modifying computer systems or programs, including prototypes, based on and related to user or system design specifications
    • Documenting, testing, creating or modifying computer programs related to the design of software or hardware for computer operating systems
  • Is highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming and software engineering
  • Has an hourly rate of pay not less than that set by law. If the employee is paid on a salaried basis, the employee earns an annual salary which is paid at least once a month and in a monthly amount of not less than 2013 rates set below.

California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption, effective January 1, 2013.

For the Computer Software employees exemption:
Minimum hourly pay rate exemption for 2013 is $39.90 from its 2012 rate of $38.89.
Minimum monthly salary will be $6,927.75 from its 2012 rate of $6,752.19
Minimum annual salary will be $83,132.93 from its 2012 rate of $81,026.25.

Hope this is useful to you…stay tuned for even more tips.

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Politics—Should they be discussed at work?

This year, I’ve noticed conversations about politics have taken on a very ugly, negative tone, even among usually thoughtful, socially conscious individuals.  In several business venues, I’ve heard comments, varying from insensitive to flat out rude. I love a healthy debate on issues and differing viewpoints. However, when it gets personally insulting and derisive, I find it very unsettling.

Companies proudly communicate that they welcome diversity and encourage a culture of inclusion.  Most employers and their managers would not tolerate negative comments if they were racial, sexual, or religious in nature. Yet they ignore and even participate in political conversations which could be deemed offensive by those with differing perspectives. Leaders of organizations have an obligation to behave as leaders and model respectful behavior. Certainly everyone is entitled to their political views and opinions, however, they do not have the right to create a hostile, difficult workplace for others. While it may not be “against the law”, inflammatory comments do nothing to enhance workplace relationships or improve productivity.

Have you seen such behaviors in corporate leaders, managers, or employees which were offensive or disrespectful to other employees with differing views? Does your company have a policy about political comments or activities at work?

As with race and religion, I believe politics should be treated with the same level of respect in the workplace. Besides, I doubt any minds will be changed at this time anyway!

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Are you doing what you say you do?

Companies want to do the right thing and often write down in great detail what that policy or process is, who’s responsible and the consequences of poor behaviors.  However, I am frequently brought in to situations where the employer looked the other way or their behaviors didn’t match what they said they do.  Then they find themselves in trouble.

A recent situation involved an employer who has a clear policy about not hiring minors under age 18, either as an employee or as casual labor (which they interpreted as an Independent Contractor, but that’s another issue entirely).  One of their employees occasionally brought in a couple of 15 year old boys to do some minor shelf stocking. The supervisor “kinda knew” but didn’t say anything to the employee.  Something happened and the employer was then sued because they knew and didn’t do anything about minors on the work site, contrary to their written policy.

The specifics are irrelevant. I often encounter situations when an employer knows what to write in their policy and then their “policy of practice” just doesn’t measure up.  I counsel my clients to either do what they say in their policies and guidelines or don’t write it down.  Not only may you end up in court, you send mixed messages to your employees.  You can also create all sorts of employee relations issues or risk severe liability issues.

Isn’t it time you dusted off your written policies, your Employee Handbook or other documents to see if they reflect what’s really happening?  You’ll be glad you did.

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Archeology and Compensation

Recently I made an offhand comment to a colleague that I can look at a company’s compensation plans and tell them about their organizational culture and what they really value.  He asked me to explain further, so I offered a few examples.  While I’ve been a compensation consultant for over 20 years,  I believe my real talent is as a Corporate Cultural Archeologist. Let’s review some sample evidence.

The artifacts of an organization’s culture include several compensation components–job descriptions, salary structures, compensation policy and procedures, and incentive plans. Each offer a glimpse of how the role of the individual is valued in that culture

Job descriptions, if very brief and/or non-existent, very often indicates a new tribe and culture with evolving roles because survival is their primary goal.  Everyone inherently knows their performance is essential to survival. Pay is individualized and less formal.  There is often heightened energy and employees are inspired to do what needs doing, sharing responsibility to the group.   (Think start-ups, energetically entrepreneurial companies, or perhaps a young solar company.)

If I find highly detailed job descriptions, this culture is generally an older tribe, with many rules, a structured hierarchy and chain of command.  There are ceremonies, artifacts and traditions woven tightly into the daily culture. I also find when salary structures are complex, they tend to reward (and seem to value most) the senior executives or leaders, while the lowest levels receive far less pay regardless of their true contributions to the success of the company. (Think larger, more bureaucratic companies with their seniority recognition gifts, holiday parties, and multi-layered approvals. )

I think you get the idea…..how a company chooses to describe the roles and pay its employees tends to be reflective of its values and the culture it has created.  What do your compensation programs say about your company?  If you’re looking for someone to help decipher those clues and what they mean to your tribal success, let me know.

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Conversational Management

I love a good conversation. Great conversations offer an interesting flow of ideas and opinions, back and forth, respectfully and honestly.  With texting, emails and voicemail, it seems we’re losing that art and skill, both in our personal lives and our work environment.  How many of us have hidden behind emails instead of speaking directly to an individual about a difficult issue?

conversation: informal interchange of thoughts, information, etc., by spoken words;

Here are 3 ways to use conversations to be more successful at work.

  1. Meet in-person (or if you have an offsite worker, then by phone) on a regular basis.  There doesn’t need to be a crisis or a lengthy agenda.  These personal frequent check-ins allow you both an opportunity to update, share and connect.  They also help build trust and familiarity. Plus, it’s less likely you’ll send a scathing confrontational email to someone you know on a more personal basis.
  2. Conversations are an excellent way to ”process” information and solve problems.  Generally, the best solution to a complex problem is found when a variety of perspectives are shared, heard and vetted by the parties involved.  Emails are good for communicating information and facts, but rarely allow for a deeper, broader perspective.   Sending a round of cc’ed emails to multiple recipients may be “efficient”, but then you receive an exponential number of varying responses in return, and it’s just not “effective”.  Pick up the phone and talk with the key individual or schedule a brief meeting if there are several key people involved.
  3. Frequent conversations build trust and familiarity and this helps makes those difficult conversations less challenging!  If the performance of either the manager or the employee is not what’s expected, either party can share examples of what’s wrong and what improvements are needed.  When issues are brought up in a conversational tone early on, it prevents the situation from festering until you’re ready to either fire your employee or quit your job!

We all can begin where we are today to create a more conversational work environment to share, connect and engage with others.  You’ll be surprised at how easy and impactful it is.

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Lighten Up!

As I begin this series of blog posts, I hope to bring a fresh, lighter perspective. Is it just me or has the world become oh so serious? Where’s the humor? The kindness? For those of us in the “business of people”, we’re often the most serious of all.  Yes, I get that compliance and minimizing legal risks are important, but isn’t also the human spirit and acts of  kindness?

I want to share those little acts in business I’ve seen which lead to happier employees, tremendous loyalty and yes, greater productivity. There is so much that is right with the world…let’s shine on that for a while.

At a client’s monthly manager meeting, they have a tradition.  Someone recognizes another in the meeting for something special they did above and beyond and then gives them the traditional goofy stuffed frog.  I don’t know the significance of the frog, but I have seen it displayed proudly on the desk of the recipient.  Being recognized and praised in front of others feels great at any age.

A small business owner friend of mine, concerned about her own sedentary job and hearing similar concerns from her employees,  went out and bought everyone a pedometer.  They love those pedometers and proudly wear them every day.  Woven into normal business conversations, they share their steps number with other employees. Nearly every afternoon around 3, a group of them walk around the business complex.  This has improved afternoon productivity,  some have lost weight and feel better.  And those employees know how much the business owner cares about them as people.

If you have a story about something interesting you’ve seen that positively affects employees, please let me know.   I am all for bringing a bit more sunshine and spirit into the workplace!

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Leadership and One Coach’s Simple Approach

I grew up in the Bay Area as a life-long 49er fan, living through their ups and downs over the years.  Seems we’re on an up trend. I know it’s the coach!  Jim Harbaugh took a group of talented athletes with a dismal losing record and in his first year, led them to a 14-3 winning season.   Monte Pool, San Jose Mercury’s Sports Columnist, wrote about Harbaugh’s simple formula for success. This could’ve been an article appropriate for business leadership, so I’ve summarized some of points he made.

Harbaugh’s simple approach is based on 5 C’s:  competence, credibility, candor, communication, and camaraderie.    And these 5 words make sense to me.  Simple, direct and they are all words that we understand.

Competence:  Harbaugh is definitely competent.  He has succeeded throughout his career, both as a 15 season NFL quarterback and as a college coach prior to coming to San Francisco.  He exudes competence and confidence in his abilities.  Strong leaders  are competent in their abilities and lifelong learners.

Credibility:  His players know that he doesn’t ask anything from them that he wouldn’t ask of himself.  Strong leaders inspire through example, not only words.   If what you do isn’t aligned with what you say, all credibility is lost. Gone, and it mars everything you’ve ever done. (Think about another coach recently in the news—Joe Paterno’s final legacy–ugh!)

Communication:  According to his players, their coach not only pays attention to details, he presents things in a way that everyone understands their role and what they have to do.  He also understands what they want and need and what they will tune out.   A great leader is succinct and gets to the point. Also, one of the players was quoted as saying, ” I have trouble remembering stuff that doesn’t make any sense, and he makes sense.”

Candor:  His team believes what he says and they believe he is honest.  He doesn’t “make nice” and he gets to the point and they all know where he stands.

Camaraderie.  Yes, that’s team spirit, esprit de corps which is the glue that makes it all come together and create magical results. It’s the enthusiasm, the fun and that invisible energetic field which transforms a group into a team.   We can’t manufacture it or even predict when it will occur.  When it does,  anyone who has every been on a team can feel it and knows it is present.

These are key traits of a strong leader and ones you should consider to ensure a winning season!  Go Niners!

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