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January 03, 2009

A number of our employees need to work; they show up and do their job. Should we expect more?

No, not since you created this work environment.  Some tasks and functions do not require high skill and are routine but are nonetheless important.   You need someone to do those tasks and perhaps this type of employee is ideal, they are comfortable and have little or no ambition.  

Not everyone can be a super star.  Respect those necessary tasks and functions as well as those that do them.  


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November 09, 2008

An employee we fired last year came in to our office and wanted to reapply again, do we have to let him reapply?

By reapply if you mean fill out an application, then the answer is yes.   By law, you must allow anyone that comes to you to apply for a job.   Even if you don't have an open position, they are allowed to apply.  You don't have to hire them and you don't have to interview them, but you must allow them to fill out an application.   It is also best to keep completed applications on file for at least a year. 

Remember, an official application form is a legal document.  A resume is not. 


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October 27, 2008

What is the biggest advantage of Paid Time Off?

Simplicity.  PTO combines vacation, sick and personal time off into one benefit making time off easier to manage.   Sick leave has become increasingly difficult to manage and many companies simply aren't sure what to do when there is a question.   PTO makes the management of benefits, accruals and payments a much easier process. 
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October 20, 2008

What Can I Assume if a Candidate Sends Me Two Different Resumes for the Same Position?

It's OK to customize cover letters and resumes; everyone does it.   But when someone sends two resumes that do not coincide then you might assume the candidate is careless as well as untruthful , which might be OK unless you are a race car driver or a heart surgeon.   Not much margin of error there...ha...

If the resumes are factually consistent then take them at their face value and understand that each is a variation on the theme of what the employer wants to hear from a competitive candidate...and not hear.    Taken as such, two such perspectives may give the recruiter more insight.  But alas mistakes do happen and you wouldn't want to disqualify a competitive candidate just for making a mistake.   

On the other hand don't forget that mistakes can be indicators of character or perceptual flaws that indicate an applicant does not match the image they are trying to project.   

As always, follow up on competitive candidates with a phone interview before a face-to-face interview.   


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October 16, 2008

Theft, Anti-Theft Form, Collecting Ideas and Suggestions

jackddeal
jackddeal hardware, software, networks, connections, services, email, photos, data, videos, text, copy are all company property...
jackddeal
jackddeal make sure your anti-theft form includes data and time...
jackddeal
jackddeal you can use a non-disclosure form but most companies really have nothing to disclose; an anti-theft form may be more appropriate...
jackddeal
jackddeal does your company have a standardized way of collecting ideas and suggestions and rewarding employees who contribute?

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Holidays, Funeral Leave and Leaves of Absence

jackddeal
jackddeal you are required to allow employees time to vote but many polls are open early and late and most states have absentee mail-in ballots...
jackddeal
jackddeal jury duty is required of the employee and the employer must cooperate; cooperate fully and pray your key person doesn't get a homicide trial
jackddeal
jackddeal give folks funeral leave, appropriate to the situation...
jackddeal
jackddeal other leaves of absence are not mandated and may be optional...
jackddeal
jackddeal certain leaves of absence are mandated by law, such as pregnancy...
jackddeal
jackddeal paid and unpaid leaves of absence are big issues; consult an HR expert or attorney before trying to interpret your company's position...
jackddeal
jackddeal required paid holidays are New Years Day, Memorial Day, July 4, Labor Day, Thanksgiving and Christmas...

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Paid Time Off PTO versus Vacation pay, Sick pay and Personal Days

 
jackddeal
jackddeal if the employee leaves your employment before using up their Paid Time Off, you should pay them for the balance at the full rate...
jackddeal
jackddeal that's not to say you would not want to reserve the right to decide for an exception...but as an exception, not the rule...
jackddeal
jackddeal it's a good idea to allow no advances on pay or benefits, such as Paid Time Off...it can create an expectation...
jackddeal
jackddeal stress is stress and the labor board won't take kindly to any policy that allows employees to work continuously...could be a liability?
jackddeal
jackddeal it's usually better to make employees take vacation time as opposed to paying them extra for unused vacation while they work regular hours
jackddeal
jackddeal large carryovers can put you in a cash flow bind or allow a key employee to take paid leave for an extended time period...
jackddeal
jackddeal be wary if you 'carryover' any accrued paid time, such as Paid Time Off, vacation, sick, personal day, etc.
jackddeal
jackddeal PTO can accrue from day one but can't be used until after the introductory period, for example, 30 days or 90 days...
jackddeal
jackddeal you can pro-rate paid time off or PTO to length of service...
jackddeal
jackddeal the concept of paid time off cleans up the messy tracking of vacation, sick and personal paid days...
jackddeal
jackddeal better ask your attorney to help you decide if arbitration is something you want to include in your employee contracts...

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August 25, 2008

Breakthrough Employees, a Simple Paycheck and Making the Transition to Being Highly Engaged

jackddeal breakthrough employees can quickly raise company standards
jackddeal A simple paycheck does not create a sense of accomplishment nor does it ease the tension of the 'fire in the belly'.
jackddeal the breakthrough employee has little sympathy with those that just do enough to get a paycheck
jackddeal Making the transition from compliant to highly engaged employees is one of the hardest steps to take in business development.
jackddeal Jealous co-workers and jealous micromanagers will also drive off a breakthrough employee by considering them a threat to the status quo.
jackddeal If breakthrough employees don't feel their skills and knowledge are appreciated this hard charging employee tends to look elsewhere...
jackddeal Breakthrough employees will tend to go toward opportunities and a good opportunity goes a long way toward keeping them...
jackddeal A breakthrough employee can also just walk in your door wanting to go to work.
jackddeal Breakthrough employees will 'jump ship' quickly if the company does not help them meet their own personal goals.
jackddeal Breakthrough employees are always looking to improve their skills sets and gain new knowledge.
jackddeal The breakthrough employee constantly speaks of improvement, opportunity and what is possible.
jackddeal These breakthrough employees have the skills to help a company make a 'quantum' leap upward perhaps reaching to the next level.
jackddeal The sheer number of hires means that on occasion someone with superior abilities will get hired.
jackddeal any human behavior can be explained simplistically; however, the devil is in the details as explainations become less plausible...

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May 07, 2008

Employee Reviews

Employee Reviews


Reply to: serv-671816517@gslist.org
Date: 2008-05-07, 12:18PM PDT


Dread the thought of doing employee reviews? Need help on how to conduct an effective employee review? Are your employees dreading their employee reviews as much as you are? It can't be that bad, can it? But if you are really suffering you can reply to this ad or contact Deal Business Consulting 831-457-8806 for relief.
  
  


  • Location: Santa Cruz
  • it's NOT ok to contact this poster with services or other commercial interests


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Exit Interviews

Exit Interviews


Reply to: serv-671826817@cslist.org
Date: 2008-05-07, 12:25PM PDT


Exit interviews by phone or in person. Let a third party flush out what your ex-employees really think about your company. Gather important information about how to improve your management and human resources departments. Gain important insights on how to retain productive employees. But be prepared; what you get might not be what you expected. Reply to this ad or contact Deal Business Consulting 831-457-8806.
  
  


  • Location: Santa Cruz
  • it's NOT ok to contact this poster with services or other commercial interests

PostingID: 671826817

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New Hire Interviews

New Hire Interviews


Reply to: serv-671850213@cr.org
Date: 2008-05-07, 12:41PM PDT


Tired of conducting the same old tired interviews? Tired of getting the same old results? Would it help for someone else to conduct the hiring interview once in a while? Does your staff need help with things like applicant profiles? Hiring is mission critical and companies that hire right succeed. If your recruiting and interviewing efforts need a boost reply to this ad or contact Deal Business Consulting 831-457-8806.
  
  


  • Location: Santa Cruz
  • it's NOT ok to contact this poster with services or other commercial interests

PostingID: 671850213
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May 06, 2008

Employee Manual, Company Manual

Employee Manual, Company Manual


Reply to: serv@craigslist.org
Date: 2008-05-06, 10:39AM PDT

If you have employees that aren't family you probably need an employee or company manual. If you are a growing company it really isn't optional as you can lose competitive advantage by not having a good employee manual. A good company manual contains dozens of areas that need special attention by your employees and managers. For more info Google my company manual article "How to Use Your Company's Employee Manual as a Business Development Tool" and contact Deal Business Consulting at 831-457-8806 or jddeal@jddeal.com.

  
  
Location: Santa Cruz

  • it's NOT ok to contact this poster with services or other commercial interests

PostingID: 67


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March 15, 2008

Breakthrough Employees or How Does Our Company Get To Where We Want To Go?

There are employees and then there are breakthrough employees. Once in a blue moon the average company hires someone that can make a dramatic difference. This is usually done by chance in the routine hiring process...someone retires, quits or is fired and someone else is hired to take their place.

The sheer number of hires means that on occasion someone with superior abilities will get hired.   These breakthrough employees have the skills to help a company make a 'quantum' leap upward perhaps reaching to the next level of the company's business plan and strategy. 

As a rule this type of challenge excites the breakthrough employee; the dull and routine has no appeal.  The breakthrough employee constantly speaks of improvement, opportunity and what is possible. This means they are always looking to improve their skills sets and gain new knowledge.
 
They will 'jump ship' quickly if the company does not help them meet their own personal goals or does not allow them to develop professionally.  They can also just walk in your door wanting to go to work.
 
Breakthrough employees will tend to go toward opportunities and a good opportunity goes a long way toward keeping them; mere compliance to standards for them is a bad joke that does not apply.

Sometimes the company will acknowledge the presence of this breakthrough employee but very often it does not.   When they don't feel their skills and knowledge are appreciated this hard charging employee tends to look for work elsewhere.
 
Jealous co-workers and jealous micromanagers will also drive off a breakthrough employee by considering them a threat to the status quo and their own narrow self-interests.  What is good for the company is not always considered to be in the best interest of all its employees.
 
Making the transition from compliant to highly engaged employees is one of the hardest steps to take in business development.  This is compounded by the fact that the breakthrough employee is not easy to manage.
 
One of the reasons for this difficulty is the breakthrough employee has little sympathy with those that just do enough to get a paycheck.   A simple paycheck does not create a sense of accomplishment nor does it ease the tension of their 'fire in the belly'. 

They feel that those that don't know don't care.
 
Because of their skills, curiosity and work ethic breakthrough employees can quickly raise company standards.  They can add freshness and zip into a dulled, compliant staff. This is another reason co-workers may resent their presence and will often try to 'sabotage' their efforts.
  
On the up side, because of their interest and curiosity the breakthrough employee brings experience and new ideas and is not afraid to share them. Their feeling is "if we can do it a better way, why not?"  They are open to innovation and see change as a way to grow.
 
The breakthrough employee knows their true value to a company and knows they should be well treated and well compensated.  On the down side they dislike anything, including micromanagers and fellow employees that get in their way. If enough obstacles are present they will perceive a lack of opportunity and leave.
 
Breakthrough employees are one of the quickest ways to get rapid improvement and growth in a company. Awareness of the breakthrough employee is the first step; the second step is keeping them so they can bring their productivity to your workplace.

Unfortunately many companies discover breakthrough employees only to let them slip through the cracks to competitors.
 
Although uncommon, the breakthrough employee is not extinct or even rare. But like the value of an uncut diamond, someone has to see the potential, make it happen and then take care of it.  Perhaps an easier way to view the breakthrough employee is one that lays golden eggs. 

All they want is some tender loving care and for everyone to step back and get out of their way.
 
If you are an owner or a manager, what's not to like about that?


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March 12, 2008

Do You Have the Right Compensation, Incentive and Bonus Plan or It's All About Me, Me, Me

Like the rat in the cage we are driven by rewards.  It's only human and also perhaps rat nature.  Suffice it to say it's nature. 

So when compensation, the reward, becomes stagnant so does productivity.   If like rats we are paid by the time we spend in the cage, then the expected level of productivity is simple compliance.  

By focusing on minimum standards employees tend to get there and stay there; a comfort zone or twilight zone or Bermuda Triangle whatever else it can be called. 

That comfort zone is not where you need nor want to be.  Did you make a conscious decision to not do what is in the best interests of your company?  Why?  Don't you ever ask what does your company need?  What is the first step?
  
If you need to make changes, be wary of copying formulas.   The best plan is the one that works best for your unique circumstances.  Look first to your industry but also take a look outside your industry when looking for the right compensation plan. 

The important thing is to first look for the concepts in compensation that drive your company's performance and productivity.
 
Sometimes combinations of plans work the best.   Simpler is better but sometimes by combining two measures, such as productivity and attendance; a compensation plan can be enhanced. 

The best approach is to identify which key performance indicators should be the foundations for the compensation plan.
 
If you are going from a 'time and space' or hourly wage rate to an incentive plan then look for ways to start that change.  There may be a great deal of reluctance on the part of your current employees but ask for their opinion.  That way, once the plan is implemented there should be no complaints.
   
Talk about the new plan in your business, group and team meetings.   You might start by using small gifts or cash rewards for top performance which helps employees get accustomed to the idea. 

The idea is to try to modify your employee's behavior little by little so it's preferable to start small and gradually gain credibility.  Actually rats do the same thing.
  
Use spreadsheets to work out the ranges of possible plans.  Be wary of straight commission as it can often create internal friction.  Don't forget to look at tying part of your bonus or incentive plan to overall company performance.
 
Once you have a plan you can test backwards to see how it would work.   Depending on your plan, you can do a trial run and see how employees react.  Make certain that poor performance is not rewarded.  

Establish a minimum performance level and make it the low end of your compensation scale.  Make sure your plan is easily track able by both you and your employees.
 
Under ideal circumstances top performers should get at least two or three times more than minimal performers.  Even if you are not able to create such a variation "skew" the better rewards should go toward top performance.
  
As with all incentives and bonuses it is important that the prize be something the employee considers of significance.  Pure praise is fine but a cash reward or dinner for the family makes it tangible and real.   To give someone a paltry bonus is the same as saying it does not matter.  If it does not matter, why do it?
  
It is better to have a low base wage/salary with a large incentive component.  If the base is too high there is little incentive to perform at higher levels. 

Expect minimal employees to whine, complain and quit after the plan is in place. Expect to see more qualified and motivated employees wanting to join your company.  Expect your better employees to become more loyal.
 
A well designed compensation plan can give your company a strong competitive advantage.   Too bad your competitors may find it impossible to compete directly with you for the best employees.


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February 25, 2008

Continuous Recruitment or Why You Should Always Be Accepting Applications

As human resources increasingly become the key to business success it is essential that ownership and management look at ways to optimize the recruiting process.

One of the most useful concepts in successful human resources is continuous recruitment.
 
Recruiting is not easy but many recruiting problems can be avoided by using continuous recruitment.  Most companies wait until they need employees before they look for them.  

Continuous recruitment makes searching for good employees part of everyday operations.
 
Continuous recruitment simply means looking for new and better employees all the time and not just when staffing needs are high.  This means that as a manager you must always know your staffing needs and give priority to your most important recruiting needs.

If you do not know what you need you may not realize it even if you find it.
 
Don't forget to look at those areas in your staffing that are 'OK' but could use improvement. The goal is to use the recruiting process to help determine and address all of your company's staffing needs.
 
Continuous recruitment is only effective when used with the other parts of your hiring process; ads, applications, the interview process, etc. All efforts are focused on the applicant and any obstacle in the process hurts your results. 

It might help to view your recruiting efforts as a "treasure hunt" that never stops.
  
Even if you find a good applicant and do not have a current position open you should recruit the applicant as if you did.  In today's volatile markets conditions can change rapidly and that includes staffing needs.
 
Usually the best time to recruit is when demand for employees is down in an industry. This means that layoffs or hour reductions are common with many businesses.

Employees, sometimes good ones, are most likely to look for employment at this time.   This means keep your recruiting confidential as always since the best applicants are often employed, quite possibly with your competitor.
  
'Accepting applications' is a good way to start. Accepting applications does not mean every applicant gets an interview; accepting applications means that every applicant gets a chance to fill out an application.  

Don't forget that resumes are not legally binding documents but a signed employment application is.
  
One goal should be to build a database of solid applicants for a 'rainy day'. Many successful businesses have 'back-ups' for every position especially if they are competitive in their industry.  Sometimes when a sudden staffing need arises several phone calls can result in a timely and appropriate hire.
 
Current employees may be worried when your company begins continuous recruitment. Tell your employees you are recruiting for anticipated growth and improvement.

If they are fearful for their own positions tell then they have the opportunity to improve their performance.  After a time they too will become accustomed to continuous recruitment and for obvious reasons may even improve their own individual performance.
  
Do not neglect any source for potential employees. These sources include current employees, colleagues, vendors, etc. Simply let them know what you are looking for on a regular basis. 

Consider using a finder's fee for those really tough hires especially for difficult to find technical and skilled positions.

Find sources that are likely to be in regular contact with the types of applicants you need and stay in touch with these contacts.   See if you can do them a favor so they will 'owe you one.'
  
If you have many applicants and do many interviews do not neglect the opportunity to find out about your competitors, industry and other important information. 

Continuous recruitment helps you stay in touch with the local job markets and many applicants can be very articulate about how they are managed and are willing to share that with you.  Continuous recruitment also gives you feedback on how competitive your company is the overall job market.
 
To get good at continuous recruitment you should practice, practice, and practice some more. Like anything recruiting is a skill that can be improved with practice.

Don't forget to follow up and analyze why a poor hire did not work out or why a good prospective employee chose another company.  Take the attitude that each interview you do will benefit your company in some manner.
 
And be patient.  Patience is a big plus when "fishing" for talent.  This is harder to do if your need is acute.

Just remember that recruiting gets easier when you improve and streamline the process. The most difficult stage of continuous recruitment is the beginning stage.
 
Recruiting can determine success or failure.  Continuous recruiting can give your company a real competitive tilt toward the success you seek.


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February 21, 2008

Are Your Employees Good Enough to Beat Your Competition?

An old saying goes 'that in good times anybody can make money; in bad times only the best can.'  In down times, even more than boom times, employees become the critical edge.  

And in good times or bad, employees determine profitability.   The question is, are yours good enough?  And if the numbers are not where they should be, what can you do?

The first step is a close examination of your business model and infrastructure.  Is it viable and how does it look in the next one to five years?   The next step is to look at your people.   Can do they do the job?  Can they provide customer value and specifically what value do they bring to your company?
 
Look at what form of company structure and organization will be necessary to meet your future needs.   Specifically focus on what will your future customer want?   What kinds of employees will be needed to service your future customer?

Make an employee list and rate each employee's value to your company.   Keep it simple.  One method is to use the ABC rating: A for keepers, B for those with 'maybe' or 'twilight zone' and C for those that clearly need to be cycled out. 

Failure to do this puts your company's equity on a spinning roulette wheel, meaning your company must rely on outside miracles -- like a rapid turnaround in the national economy -- for your profit and loss statements to improve.   Las Vegas, anyone?
 
Another key to determining an employee's value is is to rate them on measurable productivity tasks, such as how many units they produce an hour or their monthly sales total. 

It is important to remember you can measure almost anything such as customer satisfaction or number of hours of service billed.  Make certain you measure what is important to driving customer value and your company's profitability which should be the same thing.  
  
Also think about employee intangibles: are they a team player, do they help company morale, do they get along with co-workers, and are they a fit with the company culture?   If an employee is disruptive or not a team player how can they be a productive team member?  

By looking at these 'soft' skills you will get a more complete picture of your employee's true contribution.
You may be surprised at which employees may not have a spot in your future company.   That's because the employee of today may not be appropriate tomorrow.

Once you have determined you have inappropriate employees, you will have to recruit new ones.  If you are not willing to recruit and replace, how can you improve?

This isn't rocket science.  The corrective actions you take depend on your company's specific circumstances.   But from a strategic standpoint, you can either maintain the status quo including poor results, or change.    The real problem is the amount of hard work required to make positive change happen.
  
The temptation to go back to the 'bad numbers' comfort zone is so strong,  only the most driven owners will be willing to pay the price required to get the numbers to work.   That is why most businesses aren't successful.  It takes real effort to get out of the comfort zone and to get real improvement.
 
If you are not up to the challenge then it's time to look at your exit strategy and move on.   Owners that neglect their businesses or see it as something they would rather not do simply end up paying themselves with their assets or what they have already earned.

From a cash flow stand point, mediocre employees and minimal performance is just not worth the effort.   Better to get a job with someone else, no?
 
If your employees are not good enough the odds are your competition will find a way to beat you with better employees.   With most businesses today, regardless of horizontal or vertical markets, employees are the competitive edge.
 
Stay consistent and always keep asking yourself "are our people good enough"?


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January 23, 2008

'Maya Personality Honesty Tests': One Alternative to Traditional Recruiting?

One of my strangest HR projects involved kiosks and personality tests to determine if an employee had a predisposition for theft and criminal activity.   Our strategic ally was a company that had started out doing polygraphs or lie detector tests and then had to change their business model when the Supreme Court ruled lie detector tests were not reliable enough to be admissible as evidence in court. 

As a response to this Supreme Court ruling, our business partner developed a series of personality tests of which many are still used today by major corporations.  These tests could determine fairly accurately whether a prospective employee was predisposed to steal but they were very odd questions.   

My initial review showed the tests would not work as many of the questions were silly or simply did not make sense.   The CEO told me these questions worked only for criminal minds and would seem absurd to anyone else.   Go figure.  The tests had been administered millions of times so their reliability and accuracy was very high.   

Sometimes those of us that work in 'advanced business environments' such as Silicon Valley think that all discoveries and insights come from high powered big corporations.   While that may be partially true, it is also true that many great ideas and innovative methods can come from not so advanced markets and from unexpected places. 

Such is the case with what the Maya called 'pruebitas' or little tests to determine one's honesty and integrity.   Here are three gems:   

The first is from Pancho, a friend that now has a chain of furniture stores in Playa del Carmen, Merida and Chetumal.   Like most entrepreneurs Pancho wanted to start out hiring honest employees since he knew the high costs of embezzlement and theft.   

"Amigo Gringo," he laughed, "it was all too simple yet very effective...and something you advanced business people would probably never do.  Like many businesses we would run an ad in the newspaper saying we were hiring.  But when the prospective employee showed up, we would tell them that the manager was sick but we would give them an advance and they could come back in two days for their interview."

"The prospective employee signed nothing and we did not even know their name...it was if we were giving away free money.  We started out with 300 pesos which isn't much to you Gringos but to many workers in Mexico it is a lot.   Like you, many of our competitors thought we were crazy and laughed at our stupidity at giving away free money.  I'm sure many of those prospective employees thought we were crazy too and they never came back.  But it wasn't free money."

"Those that did come back were honest and we knew they wanted to work.   And almost all of them ended up being good, long term employees.   Now you Gringos are so smart with numbers, what does it cost when you hire a bad employee?"  he laughed, "and remember here in Mexico it is difficult to fire anyone and if you do you have to pay them for lost wages." 

The second test was a bit simpler and was used by my friend Octavio who has a jungle ranch next to ours.   Octavio and his wife had some fifteen kids.   Octavio insisted on leaving money and other items out in clear view in his ranch house.   Having raised his kids to be extremely honest, he knew that none of them would ever remove anything without his permission.   Many Maya are this way.   

So when their kids would bring home their friends, usually nothing would be missing.   But when it was, Octavio would immediately know and ask his kids to not have their dishonest friend back.   No real big deal except Octavio was assured that his many children would not be running around with the wrong crowd.   Not surprisingly none of his kids became criminals probably because they didn't hang out with friends that were criminals.

The third test is not so much a test as a way to ensure honesty and behavioral continuum.   Those Maya parents with means will often make their children's inheritance conditional on their children's continued good behavior.   This can continue into their fifties and sixties and beyond; sort of like Santa Claus not giving out the goodies to those that have been bad.   While not actually a business strategy this approach works on several levels.  It also means being a good boy for a very long time.

A number of my Maya friends have suggested similar strategies with my business dealings in Mexico.   Before doing business with anyone, they suggest giving someone I don't know a few small tests first.  It may sound corny but it works.  Through these tests we have been able to determine quickly and accurately a person's integrity level.  And like my friend Pancho says it's much cheaper to lose a little up front instead of losing a lot later.   

Since then other tests have popped up, such as leaving cold beer available for workers to see who will, if offered free beer, take advantage and drink on the job.   It's true; that one's really not fair. 

Fair?  But is employee dishonesty ever really fair?


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October 18, 2007

How to Use Your Company's Employee Manual as a Business Development Tool

The Employee Manual is another one of those 'groan' topics that everyone gives a sigh and throws up their hands on. Just the mention elicits a painful response. But it's not all that painful.

There are a number of templated softwares available on the Internet for building an employee manual. Pick one and look at the contents.

The first thing you notice is how the Employee Manual is a funny bird and not your normal company document. It's written in a stilted manual format. The manual's purpose is to clearly describe the relationship between your company and your employee. This is not the time to wax poetic or be goofy, even if goofy is in your company culture.

Many aspects of this employer - employee relationship are legal in nature and therefore not optional unless you are running an underground or flea market operation. Nothing against flea marketers of course.

A good employee manual builds a company's credibility in the eyes of an employee. Employees know there are rules and good employees follow company rules. Bad employees don't follow the rules. A company with no rules doesn't care. Employees expect rules and like knowing exactly what is expected of them.

The other reason to keep it neat, crisp and businesslike is that you may be showing a labor commissioner or judge what your company policies are when an employee files a labor complaint or grievance against your company.

When you go before the court or labor commission if you have no written policy you will be considered by the court or commission as not having a policy. If you have no policy the odds are 10 to 1 you lose for whatever infraction you have been charged with. Case closed.

Several of these labor commission settlements can outweigh the costs of creating a solid employee manual. You can chalk it up to the cost of doing business but a good employee manual is much cheaper in the long run.

If you or someone in your company messes up, and that is probable, you can at least show the labor commissioner a copy of your Employee Manual demonstrating that you do have a clear policy. This also demonstrates the mistake should not be a reoccurring one.

Labor commissioners are sharp and wise and they can sense immediately if a company is not serious about its employees. It is not good strategy to get them upset as there are a number of ways they can make your business life less rewarding.

It has been my experience that no matter how grievous or stupid your company's labor commission offense, if you show good faith through your employee manual and promise to not be stupid again then you may be given some leniency. I say maybe.

Most likely you will still have to pay back overtime, lunch breaks or whatever infraction you committed.  But if you act in good faith the labor commissioner will admonish but not penalize. The labor commission will realize that you are just another clown employer trying to stretch a margin. You really aren't malicious, just stupid.

What they want is some sense that you understand and will correct your problem and not do naughty things against your employees ever again.

More good news is there are literally hundreds of topics and items you must decide on or omit from your Employee Manual. By going through this exercise you and your company are forced to make the types of decisions that will allow you to grow. Or at least put your company in a position to grow.

Putting together a manual can be a nerve-wracking series of tasks. Since it is tedious it is best to break down the manual into chunks or files and work on each file until it is completed. The exception may be overview or summary type files that can be left until the end after all the other content is entered.

Make sure your good employees understand that your new book of rules is not meant to punish them. Good employees need not be afraid of the manual; it makes their company stronger and allows the company to reward high levels of productivity and deal appropriately with problems that hinder productivity.

It is important to remember that the manual is a very frank and honest discussion about the relationship between company and employee and what is expected of both. There are a number of topics that some folks would rather not discuss but these topics are not optional in a good manual. This is life in the contemporary business world. Get used to it.

Such topics could include descriptions of sexual harassment, policies on theft and embezzlement, prohibited behaviors, workplace violence warning and prevention, the progressive steps toward a firing, probation, etc.  Leave these topics in. This is the reality of the world we live in.

Don't be surprised.  Be prepared.


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September 24, 2007

Breakthrough Employees

There are employees and then there are breakthrough employees. Once in a blue moon the average company hires someone that can make a dramatic difference in the business. This is usually done in the routine hiring process – someone retires, quits or is fired and a person is hired to take their place.

 

Sometimes the company acknowledges the presence of a breakthrough employee but very often does not. Co-workers and micromanagers will drive off a breakthrough employee by considering them a threat to the status quo and their own narrow self-interests.

 

 

There is no doubt that the right kind of employee can bring huge value to a company. Highly successful companies often build their success around this type of employee. The breakthrough employee:

  1. Can help a company make a 'quantum' leap. This means that this type of employee can help a company reach the next level of its strategy.
  2. Wants to work in an environment where their skills and knowledge are appreciated and used.
  3. Constantly speaks of improvement, opportunity and what is possible. They will 'jump ship' quickly if the company does not meet their needs. Breakthrough employees will tend to go toward opportunities and a good opportunity goes a long way toward keeping them.
  4. Considers mere compliance to standards a bad joke that does not apply to them.
  5. Has little sympathy with those that just do enough to get a paycheck.
  6. Can quickly raise standards. This is another reason co-workers may resent their presence. Envious co-workers often conspire to make it difficult to co-exist.
  7. Brings experience and new ideas and are not afraid to share them. Their feeling is –"if we can do it a better way, why not?"
  8. Has ambition and thrives on a sense of accomplishment. They have the 'fire in the belly'.
  9. Looks for ways to learn new skills and gain knowledge.
  10. Can add freshness and zip into a dulled, compliant staff.
  11. Can come 'out of the blue' in search of opportunity and employment.
  12. Is generally optimistic that positive results can occur.
  13. Is open to innovation and sees change as a way to grow.
  14. Knows their true value to a company and knows they should be well treated and well compensated.
  15. Dislikes anything, including micromanagers that get in their way. If enough obstacles are present they will perceive a lack of opportunity and go elsewhere.

Breakthrough employees are one of the quickest ways to get rapid improvement and growth in a company. Awareness of the breakthrough employee is paramount. Many companies discover breakthrough employees yet let them slip through the cracks to competitors. Although uncommon, the breakthrough employee is not extinct or even rare. But like the value of an uncut diamond, someone has to see the potential!

 

Jack D. Deal


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August 31, 2007

Minimal Employees

We all know who they are.  They do too.   They are the bane of modern business and know it and simply don't care.   They can keep a growing business down and a new business from developing its potential.   

The next time you go into a successful business look at their employees.  Odds are those employees stand out.  Successful businesses are not built with minimal employees. 

Why?  Minimal employees are in it for the paycheck which they see as a time and space issue.  They love the status quo because the status quo always gives them a paycheck.    That's why they hate change and resist it so much...change brings no good to minimal employees.   That is also why they show little pride in their work.

But minimal employees just aren't hatched...they are hired and managed.  Minimal employees exist because management allows them to.   When management changes that focus, minimal employees often quit.

Be careful when categorizing an employee as minimal.    They may have potential if you can just find it...if they have the potential and care not to use it then just let it go; they have no interest. 

If you have a number of minimal employees be careful about changing them all at once.  Always have a master plan for how to carry out improvements and changes.  For middle and small sized businesses the strategy of one employee at a time is best.   

Try to replace your most minimal employee first.  This demonstrates to others that might be sitting on the minimal fence that you are indeed serious.   Your better employees will applaud your efforts. 

Minimal employees have destroyed many businesses and continue to be one of the top reasons businesses fail.  It's not their fault if minimal employees hurt your business...it's yours.

Jack D. Deal


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August 29, 2007

Perception and the Employment Interview

I recently interviewed on my radio show a high tech human resources guru from Silicon Valley. During one segment of the show we had been talking about appropriate dress for a high tech job position. At one of the commercial breaks he mentioned he had done recruiting at a high tech company that had adopted 'grunge' as its corporate identity. He had interviewees that had torn clothing, matted hair and no shoes. It was a strange set of interviews, he confided, but for better or worse the company had set the standard. A suit and tie were definitely not appropriate. Later in the show we discussed in more detail what sorts of things were appropriate.

Having been involved in thousands of interviews I thought I had seen it all – alcohol, facial tatoos, free use of obscenties, etc. But the question of an interviewer’s perception is an interesting one. So I began to jot down a few notes.

The perceptual experts tell us we have 6 seconds to make a first impression. That is the visual side of perception. Personal hygiene, with the possible exception of some high tech grungers, strikes me first. If hair is dirty, clothes unkempt and shoes soiled then the perception, mine included, is that the individual does not take care of himself or herself. If they can’t take care of themselves when going to an interview -- what will they do when hired? What does it say about an interviewee if they do not care about personal appearance?

Beyond the physical, I think we get a more personal picture in the first two minutes of an interview. These are often awkward moments – hi, how are you, thanks for coming, good to see you, etc. These initial moments are a good indicator of an individual’s behavior when dealing with the unknown and determining their level of people skills. This initial chit-chat really sets the stage for the rest of the interview.

In the United States, we shake hands, especially in a business context.  If I get a weak touch, strong grip, or vertical yanking then I will perceive the individual tends to the extreme. I may be wrong, but for the applicant the interviewer’s perception is reality.

I usually begin by asking the applicant to give me a thumbnail sketch of the their skills and abilities. Most qualified applicants can usually give a synopsis in a minute or two. This is not a difficult question but it does require a variety of skills to pull it off. If the applicant cannot state what they can do then the implication is they cannot do anything. Obviously this may be true with some applicants and not with others.

Gradually I get around to what are they looking for. Amazingly, some answer they do not know. If they appear truthful, a ‘don’t know’ response can be seen as being honest. Most of the time, it implies the applicant has no ambition or has not thought very much. What I normally want to hear is they are looking for an opportunity and challenge. This means that at some point the applicant will have 'smoke coming out of their smokestack'. This is an indicator of ambition, drive, work ethic, etc. If they are looking for security and stability I often perceive they are also looking mostly for the paycheck.

I let the applicant do the talking and I just ask a series of questions. Near the end of the interview I usually ask them if they have any questions about the company. Amazingly, many applicants say no, even when they know virtually nothing about their potential future employer! What I perceive is a good response is one or two insightful questions. Going into a long series of intricate questions is just as bad as not having any questions at all.

There are several areas that send flags up at any point in the interview. If they jump right on salary and benefits I know they are more interested in what the company can do for them then what they can do for the company. If they speak poorly about their past employers then I know they would probably do the same with my company. If they tell me secrets or confidential information about their past employers, I know they will do the same to me.

I am used to applicants being nervous but experienced interviewers can get applicants to relax. The sole purpose of the interview is to find out if the applicant will be appropriate for the company. This seems too obvious! Yet many applicants do not understand this simple concept. We have a very short period of time to determine if the applicant is appropriate to become ‘one of the family’.

Those of us that conduct interviews are people too. We have our perceptions – good, bad and ugly. The difference is we decide who gets the job.


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August 24, 2007

The Independent Vs. Dependent Employee

Conceptual extremes help us build a framework for better understanding. The two extremes in this article are human extremes -- opposites that we all have seen and experienced.

Of course the real world is not so kind as to give us neatly bound packages of understanding. There are too many gray areas, too many twilight zones and just plain holes in our limited capabilities. Trying to put something like the human mind in a framework is not only futile but also agonizingly frustrating. Employees are people and people are complex beings. As we look across various types of behaviors and attitudes it is important we try to begin to make some sense. Dependence and Independence are admittedly labels. Despite all the asterisks, here are some observations on dependent and independent employees:

  • The dependent employee feels entitled to a paycheck. The independent employee feels he earns a paycheck by bringing value to the company.
  • Dependent employees are happy with the status quo while independents are on the prowl for improvement and opportunity.
  • Dependent employees downplay their lost opportunities of the past; independents have taken advantage of opportunities many times.
  • Dependent employees come to work because they have to; independent employees are interested, driven and optimistic.
  • Dependent employees see us vs. them; independent employees see us and us.
  • Dependent employees are defensive; independent employees are interested in increased responsibilities.
  • Dependent employees feel they are constantly being exploited; independent employees know value.
  • The dependent employee is mired in the status quo; the independent employee is challenged and has suggestions and ideas.
  • The dependent employee views his work history as a series of exploitations and bad luck; the independent employee sees his planned career as the realization of personal ambition.
  • The dependent employee has years of experience; the independent employee has years of self-improvement.
  • The dependent employee's goals are vacation and retirement; the independent employee's goal is success.
  • The dependent employee allows personal problems to interfere with work performance; the independent employee takes care of his personal life so he can focus when working.
  • The dependent employee disrupts workflow when upset or unhappy; the independent employee states the problem to management and offers to help resolve it.
  • Dependent employees shun anything outside their job description; independent employees make good sound decisions that are in the company's best interest.

Perhaps the contrasts are a bit exaggerated. Yet the point still is very clear -- those employees that are mean-spirited and selfish bring the company little value. A clear thinking, motivated independent employee will constantly have the company's best interest at heart. These two extremes are worlds apart and bring very different business results!

Jack D. Deal


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August 13, 2007

Compensation: Do You Have the Right Plan?

Like the rat in the cage we are driven by rewards.  When compensation becomes stagnant so does productivity.   If like rats we are paid by the time we spend in the cage then the expected level of productivity is simple compliance.   By focusing on minimum standards employees tend to get there and stay there.   Is that where you want to be?  What does your company need?  What should you look for when reviewing your compensation plan?   Below are some important points to consider:
  • If you need to make changes, be wary of copying formulas.   The best plan is the one that works best for your unique circumstances.   
  • Don't forget to look outside your industry when looking for the right compensation plan. 
  • Sometimes combinations of plans work the best.   
  • Don't forget to include non-compensation benefits in your overall package. 
  • Look first at what your 'drivers' or key performance indicators are and make certain to base your compensation plan on those factors. 
  • Tell your employees you are developing a compensation plan with incentives and you would like their input.   That way, once the plan is in place, there should be no complaints.   
  • Talk about the new plan in your business, group and team meetings.   You could start by using small gifts or cash rewards for top performance which helps employees get accustomed to the idea.
  • Use spreadsheets to work out the ranges of possible plans.   
  • Be wary of straight commission as it can often create internal friction.
  • Once you have a plan you can test backwards to see how it would work.   
  • Depending on your plan, you can do a trial run and see how employees react.
  • Make certain that poor performance is not rewarded.   Establish a minimum performance level and make it the low end of your compensation scale. 
  • Under ideal circumstances top performers should get at least  two or three times more than minimal  performers. 
  • "Skew" the better rewards toward top performance.   
  • Avoid straight hourly or straight salary plans as they provide little incentive.   
  • Make sure your plan is easily trackable by both you and your employees. 
  • It is better to have a low base wage/salary with a large incentive component.  If the base is too high there is little incentive to perform at higher levels. 
  • Expect minimal employees to whine, complain and quit after the plan is in place.
  • Expect to see more qualified and motivated  employees wanting to join your company. 
  • Expect your better employees to become more loyal.

     A well designed compensation plan can give your company a strong competitive advantage.   Your competitors may find it impossible to compete directly with you for the best employees. 

Jack D. Deal

      


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August 11, 2007

The Recruiting Marketing Plan

Your company can grow and prosper with the right employees without spending a ton on recruiting costs. To do this, you'll need a Recruitment Plan -- just like a marketing plan--but this is marketing to potential employees! The first step in developing and using a Recruitment Plan is to target your market (applicants). Ask and record the answers (involve as many of your current employees as possible to get the best results) to the following questions:

  • What are our company/department objectives for the year? This is your mission statement or a paraphrase of it.
  • What makes us attractive to potential employees? Ask your employees the following questions to stimulate the discussion: "Why would someone want to work here?"; "Why did you come to work here?"; "Why do you stay?"
  • Who are our potential employees? Based on all you now know about the employees you need-- are they new to the workforce, retired, students, veterans, people with disabilities, teachers, salespeople, accountants? Think about what walks of life your successful employees have come from.

Once you identify who your potential employees are, ask:

  • Where would we find them?
  • What do the employees we need value and need? Ask your current employees what's important to them about their position and what is important to them about working for your company. It's likely to be the same things that'll be important to the employees you're seeking to hire.
  • What are 10 benefits to them of working with us? When your employees talk about "work" with potential employees, they should have an inventory of things to discuss beyond whether they like it or not.
  • Who is our competition for the kind of employees we need? You have competition from companies who have proactive employee recruiting programs. Because everyone should be involved in recruiting new employees, all of your existing employees should know who the competition is and what they do well to attract employees. Learn from your competition.

REMEMBER: to grow your company and be successful, you need to seek the employees you need all the time, not just when you have an opening!

Jack D. Deal


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August 03, 2007

The Male Manager and Pre-Menstrual Syndrome (PMS)

As a male it is not easy writing about PMS. There are many females, especially those local to the Bay Area, that would say 'don't even try!' There are some that would say things like 'men have their own PMS and menopause'. And so on. But just because a topic is a difficult one does not mean that it should be avoided. And over the years I have seen PMS become a workplace issue. My thoughts and observations come strictly from a business perspective and not from a personal bias. For the record, my mother, my sister and my wife are all women. If my comments are viewed as simplistic please consider that my comments are by a male for male managers. I have not personally encountered problems with female managers addressing a PMS issue with female employees although I am certain that it has occurred. Female managers, as well as female employees, are much more open to addressing PMS as a workplace issue.

It has been my experience that PMS is different for each woman -- some women feel there is no such thing, some are incapacitated and others have a 'good month and then a bad month'. PMS involves a 'cycle of life' and this cycle can be very different from woman to woman. Even the medical community is not in agreement about PMS. Is PMS a monthly form of disability? Should employers recognize PMS and plan their schedules and workflow around it? Is PMS something that is private and something that is 'no business' of the employer? I have heard many different opinions. Unfortunately for male managers, no one has developed a workable 'PMS strategy' in the workplace.

PMS in the workplace comes in three basic forms with negative implications: absenteeism, reduced productivity and disruptions. Male managers often do not consider that PMS may be an issue. When I am speaking with a male manager, and the discussion involves a female employee's absenteeism, loss of production or disruptions, one of the questions I ask is 'how often do these problems occur?' This is a question I ask about all employees -- male or female. The male manager will think, pull out statistics, scratch his head and say 'about once a month around this time.' And not even consider that PMS may be involved.

When I bring up this possibility the male manager's typical response is avoidance -- it can't be, we can't talk about it, we don't want to know about it, etc. The problem with avoidance is that it provides no rationale for absenteeism, low production or disruptions. If a female employee does have a PMS problem and management will not acknowledge that problem then the employee can be assessed as being lazy, not interested or a troublemaker. This is not fair to the female employee.

How a male manager addresses PMS is the real question. One thing is clear -- avoidance is not the solution. From the workplace perspective the avoidance of PMS is a male problem. Females tend to speak about PMS much more openly -- even to males. Males often 'don't want to talk about that.'

What is a male manager to do? As with most management issues the answer is conditional and situational. There is no formula. However, I have seen some methods to resolve the avoidance problem.

Depending on the situation, a female employee or female manager can be of great help. Having a female speak about PMS to another female employee is not so much a 'woman thing' as it is a 'man thing'. Care has to be taken here about confidentiality and other ethical management issues. When a male manager acknowledges the problem but feels helpless the first thing I ask is -- is there another female that can help?

Once the problem is acknowledged the solution is much easier. Managers can reassign workload, give time off, give compensatory time off, etc. This can also be done when teams manage themselves. Again, the real negatives occur when the problem cannot be acknowledged.

There are no easy answers. Like most difficult problems awareness is the first step -- simply creating awareness can bring improved results. For businesses trying to become more 'human organizations' it is important to consider human needs. PMS is part of the life cycle -- not just a 'female' problem. For the male manager, it is important to realize female employees deserve the consideration!

 

Jack D. Deal


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July 30, 2007

Mexico Road Trip: Mayan Dialects and the Sierras de Chiapas

The market in Ocosingo is one of the more interesting I have seen and is open everyday. The Maya dialect is the most common language and most of those that do speak Spanish speak a broken Spanish. Since there are essentially no tourists in Ocosingo, English and German are not spoken here…making Oconsingo a great place to immerse oneself in Maya and Spanish.

      There are of course the ambulatory vendors of candy, watches and cheap jewelry. Some of these sellers are independents and others come in off the ranches and get their goods from small distributors and earn a commission from what they sell. This is a way the ex-Zapatista just out of the jungle can earn a living.

      There is a section for the Tianguis de Campesino or farm producer’s market. It is a bare cement floor where the Indian farmers come and sell their goods and wares. You can see these Indians getting off the bus early in the morning and walking to the tiangus. These sell eggs, corn, beans of many types, coffee and pozol – a type of corn masa that can be mixed with water to form a gruel. There are all types of fruits and vegetables. We buy some passion fruit. There are also some handicrafts such as embroidered blouses, dresses and all the women are dressed with their native village dresses, blouses and skirts. There are also gourds and other handy items for farm life. Most of the items here are farm products or handicrafts that require very little capital investment. Needless to say these campesinos are poor – most of them are very poor.

      Then there are the street vendors with carts and they sell mainly food items. There is corn on the cob, trehelote or a type of corn, mayo, lemon and chile mix. There are also varying types of tacos and tortas or sandwiches and of course hot dogs and hamburgers. A sandwich is usually made of pan bimbo or sliced white bread and a torta is made with a French style roll. I always order tortas. These vendors must purchase their carts and supplies so there is some investment, but not much. But for the poor, it is a major step up from selling off the concrete.

      Then there are those that rent stalls in the market itself. They sell meats, durable goods such as buckets and hardware, clothes and shoes, household items and items that need to be stocked on shelves. They also sell food and usually have benches and tables for their customers. These are higher priced or volume items that bring better margins but require more capital and of course there is the rent. Also being located in a fixed location, they are required to pay more fees and taxes.

      Finally there are the merchants that rent or own nearby stores. They sell appliances, books, clothes and items that are more expensive. They benefit from the market traffic even though much of that traffic cannot afford more expensive goods. They are the top of the local merchant chain and to go higher one owns more than one store. And has employees.

      We stop at a small restaurant and have a breakfast of chiliquiles and tacos de pollo. The coffee is hot and tasty; Chiapas is well known for its coffee.

      The day is drizzly and foggy and we would like to stay but need to go – Oconsingo has been one of our favorite towns. The road to San Cristobal winds upward out of town and we can look down on the valley and even see the Tonina ruins. We keep climbing through small communities; some with Zapatista signs. The locals use the highway as a path and walkway and one has to be careful when driving. There are topes or speedbumps at every community and they can be annoying, especially when they are high and scrape the car bottom. It is said that Mexicans put up a tope wherever a pedestrian is hit…I’m not sure that is true but there are certainly many of them. Topes are the only way to slow down the fast Mexican drivers.

      We keep climbing into the Chiapas Sierras and the road is curvy and slick. Most of the time I can only go 30 or maybe 40 MPH. This is no autopista. We see signs along the highway that read ‘Those that litter will be fined 30 times the minimum wage”. Several towns also have makeshift signs saying those that litter will be punished by the local town. I’m not sure what that means and would not want to find out, ha!

      We stop in the Sierra town of Oxhuc for a break. We walk through the market and buy some ground coffee, ground chile and oranges. We also buy some helotes or corn. I hear very little Spanish spoken here. Even those that have stores speak broken Spanish. This has to be a problem for commerce and upward mobility and keep the Maya Indians more isolated. It also shows that anyone can be bilingual. People stared at me, the Gringo in Ocosingo but in Oxphul even Angelica looks out of place. There are no Germans and from what I could see, few non-locals.

      Even though the signs are in Spanish, I feel like I am in a foreign country. This is not Mexico to me, though of course it is.

      We stop by the Catholic church and are surprised at how large it is. There are also a very large array of statues that are works of art…there must have been 50 or 60 on display at various places. Many were in locked cases so they must be valuable and I would assume from area craftsmen. The statues themselves could make a museum, though the Jehovahs would call them idols. It’s all relative, no?

      School has just let out and the school kids are returning to their homes. Oddly, the girl’s uniform are ankle length dresses -- something we have seen nowhere else. It is cool and we can see our breath. On our way back to the car we buy some dos cremas queso or two cream cheese. To our surprise it is a feta type cheese and very delicious.

      We leave Oxhul and continue to climb the Sierra. We see signs it is illegal to plant on federal land – the farmers here will plant corn anywhere – even in rocky areas on the side of the road. We also notice houses and small stores selling gasoline out of plastic containers; there are no Pemex stations here and what would happen if we run out of gas? Ha… Some of them must have chainsaws because in some spots there are no trees…

      We finally hit the Sierra Norte de Chiapas crest and begin the decent to San Cristobal de Las Casas. San Cristobal is big and bustling with lots of dust and traffic. Downtown is quaint colonial and we can see the tourists but I’m really not interested in either. We buy gas and head out of town on the Libre because the Cuota is closed due to a washed out bridge from the recent flooding. I don’t really mind as the Libre is often more interesting but this Libre is one hairpin turn after another. We begin the slow descent out of the Sierra Los Altos de Chiapas. The pines and thick jungle green of the moist highlands surprisingly turns to a drier, browner chaparral. It reminds me of the eastern slopes of the Sierras in California.

      We drive into Chiapa de Corzo and are in a mild culture shock. Even though many speak a broken Spanish, we are back in civilization so to speak.

Jack D. Deal


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July 10, 2007

When Not to Rehire an Employee

It should be clear to everyone that employees make or break a business. My successes as a consultant have been directly related to building employee teams. In most businesses recruiting and keeping good employees determines the business' success. Almost all of my present and past clients have positions that require skill and experience. In the process of building a solid staff inevitably skilled employees threaten to quit or actually quit. It is these skilled employees we are examining here. The employees you fire for incompetence, bad work ethic, poor performance are not the focus here. You simply get rid of a bad employee and do not rehire them.

But skilled employees that deliver value, sometimes great value, are another issue. The correct business decision becomes more vague and difficult. Sometimes it is very appropriate to rehire an employee (for example, returning from school or from a job where they increased skills.) In the discussion that follows please remember that the topic is situational -- what you should do depends on the situation and circumstances you face. The focus here is on skilled employees that deliver value but also deliver problems. The following are some key points in considering how to approach this issue:

  1. If an employee quits, make certain you get a 'quit form'. Even if you don't have this form in your company's word processor you can get a handwritten statement. Make certain you get name, date and last day. Otherwise the employee can state they did not quit, had asked for a leave of absence, etc., and demand their old job back. You will likely get their old problems back too.
  2. Notice is not required by law unless it is stipulated in a contract. (Beware of employees that have a history of not giving notice.)
  3. After an employee leaves and you have taken care of paychecks, vacation pay, credit cards, pagers, etc., make an immediate determination if you want to rehire them again. Time often distorts perception so you will not want to make a knee-jerk decision when the time comes. Assume they will walk in the next day and want their old job back. Do not be caught off guard!
  4. If any person, including an ex-employee, wants to apply for a position with your company you cannot deny them that right. This is a constitutional right protected by every court in the land. Deny them the chance to apply and you will soon hear from their lawyer. Allowing them the chance to reapply and rehiring them are two very different things. Have an ex-employee fill out an application like anyone else. Tell them you will review the application. You must keep all applications on file for one year.
  5. Many skilled workers have 'attitudes' or in some way do not fit in with the rest of the team. You cannot deny employment solely based on attitude since attitude cannot be accurately defined. Be very careful of what you do and don't say. Assess the situation. If the value does not far outweigh the problems then do not reconsider them for rehire. Simply state that the application is on file for future consideration.
  6. Do not believe that people can make miraculous improvements. Maybe that happens in Hollywoodor the tabloids but it seldom does in the real world. If a drunken ex-employee tells you they have been sober for 6 weeks congratulate but do not believe. Humans are very slow to change -- especially the big changes. A 'rotten apple' can poison a work environment.
  7. Consider a rehire if they might be appropriate part-time or on-call. This way the business can use their skills only when needed.
  8. Consider a conditional rehire. You can set the conditions. For example, you must be here every day at 8:00 or do not bother coming in. Get them to agree to the conditions. Just make certain other equal job classifications have the same requirements or the conditions can be construed as discrimination.
  9. Pay, benefits, etc should align with the policies in your personnel manual. You are not required to bridge benefits unless you manual requires it. In my personal view employees that jump ship for greener pastures should 're-earn' their benefits. This makes other employees think twice as well. If there are no consequences for leaving and returning it is your fault.
  10. Consult your attorney if you are not sure what to do. Remember that attorneys are very good at legalities and often not so good at management.

There are obviously no set rules for an employee rehire but by focussing on the issues you can help or at least not hurt your business. I have seen employees leave and come back with great success. I have also seen a problem employee leave, be rehired and ultimately cause more damage. If you ever use your good judgement and good decision-making skills use them here!

Jack D. Deal


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The Exit Interview

The exit interview is an interview given to a departing employee. This is usually done for employees that voluntarily quit instead of those that are fired or laid off.

Exit interviews offer a fleeting opportunity to find out information that otherwise might be more difficult or impossible to obtain.

The following are some thoughts on the exit interview: 

  1. Interviews can be conducted orally or written. I much prefer the oral interview.
  2. Think carefully about the information you would like to get before the interview. This greatly increases the odds of a successful interview.
  3. Save the hardest questions for the latter part of the interview. Work up to the tough stuff!
  4. A good question to break the ice is ‘would you like for us to be a reference/recommendation for you’? Do not make this offer if you would not recommend the employee!
  5. Be prepared for some bombshells. Expect the unexpected – if it ever is to happen it will happen in an exit interview.
  6. Carefully select the interviewer. Look for someone that listens well and is open-minded. It serves no purpose for the interviewer to get into an argument with the departing employee.
  7. Throughout the interview stay focused on the employee!
  8. Look for open-ended questions that allow for plenty of expression. An example of this might be "how did you feel you were managed during your employment with us?" or "how do you feel the company is run?"
  9. Other excellent questions are ‘under what conditions would you have stayed?’ and ‘if you had had a magic wand, what would you have changed?’
  10. Good general questions are ‘what did you like most (least) about your position?’
  11. Try to find out if there were things the departing employee would suggest to improve conditions, production or morale.
  12. Try to get a good feel for how they viewed their compensation and benefits package.
  13. Leave room at the end of the interview for general comments.
  14. Take notes of the high points. Get the general idea – it is not essential to get exact quotes. It is more important to listen than write.
  15. Immediately after the interview determine if you would rehire the employee. Assume they will reapply.
  16. Make use of the information gathered. If you do not use this new information then why do an exit interview?

The exit interview provides us with a good mechanism to take a hard look at how your company is perceived. Since the employee is leaving, they will often be more open and frank in their discussions about the company.

Those companies that do not conduct exit interviews miss out on a great opportunity!


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