Using Performance Objectives to Increase Employee Engagement

When you think of companies with great culture and high engagement rates, what comes to mind? Free snacks? A relaxed dress code? Dogs in the office?

It’s true that these things can definitely help create an environment where employees are excited about coming to work. But to maintain high levels of employee satisfaction, loyalty, and engagement requires more than that.

In order to cultivate true engagement, you’ll need provide your employees with things like inspired leadership, sense of purpose, and a connection to something bigger.

Oh, and specific performance objectives.

Performance objectives? Really?

Yes, really. Without performance objectives, your team is merely showing up and completing tasks. And what’s inspiring about that?

Performance objectives can be that critical link connecting your employees not only to their work, but also to each other and, most importantly, to your organizational mission and vision. But in order for performance objectives to work their magic, they have to be designed and used properly. And this is where many businesses and managers get it wrong.

How to define them

We’re not just talking random numbers and metrics here. Performance objectives need to help employees understand why their work matters, how it affects the rest of the organization, and where it fits into the big-picture vision.

When choosing your indicators, look at each role and choose a few critical functions that must be done well in order for your employee and your business to be successful. After you’ve selected them, put them in context for each person so they understand why these things are so important, and how valuable their role is to the department, the company, and the overall vision. This is how you connect them to the work, the team, and the mission.

How to measure them

In order for performance objectives to be properly measured, there needs to be a well-defined scale, and a mutual understanding of what outcomes are reflected at each level.

When establishing your measurement scale, it is important that “satisfactory” isn’t the top category. Meeting expectations should be the midline, with room above and below to identify how individuals may be exceeding expectations or failing to meet them.

Here’s a quick example:

Measurement scale:

5 – Far exceeds expectations

4 – Exceeds expectations

3 – Meets expectations

2 – Falls short of expectations

1 – Falls critically short of expectations

This kind of scale not only measures the level of performance, it also provides room for growth, fluctuation, and improvement.

It also provides room for honesty. If you’ve got an employee who consistently gets all fives on their reviews, it means one of two things:

  1. This person has outgrown their job and needs a promotion.
  2. You’re lying.

Okay, we’ll say that in a nicer way. You’re not being entirely accurate or honest with your evaluation.

Maybe you hate confrontation. Or maybe you just really like this person. Or maybe you just don’t know how to offer constructive criticism and feedback. Either way, it’s a problem. Your performance objectives must be evaluated truthfully and correctly. If they aren’t, you’re missing out on the opportunity for valuable employee feedback and development.

You could also be setting yourself up for an HR nightmare. Need to fire someone for poor performance? It’s pretty difficult if they’ve collected a file full of great reviews.

How to use them

That said, far too many businesses use performance measurements solely to punish employees. This is one of the quickest ways to create a disengaged workforce.

Let’s review what performance objectives should and shouldn’t be.

Performance objectives should:

  • Help employees be more productive and successful
  • Help the organization meet its goals and achieve its mission
  • Empower individuals and teams to take ownership of their work
  • Create a clear and mutual understanding of roles and expectations
  • Provide a solid framework for feedback, training, recognition, and rewards

Performance objectives should not:

  • Simply be used to determine job titles and compensation structures
  • Be a punitive tool to point out where people aren’t meeting standard
  • Exist as a system for grading or ranking individual employees and teams

Using your performance management system to connect your employees to the organization, the work, and the vision will help get everybody where they want to go.

Not only will it enhance performance, communication, and trust, it will draw your employees in rather than pushing them away. And put everyone on the path toward better engagement.

 

Photo by belchonock 

5 Pillars of Employee-Related Expenses eBook

The Three Letter Word that Can Bring Down Your Business

Nothing strikes fear in the hearts of workplaces like the dreaded F-word: The Flu. Nobody wants it. And nobody wants to see it ripping through their organization.

Not only can it make you miserable, it can also make your businesses run miserably.

A case of the flu typically knocks people out for one to two weeks. That’s a lot of missed work! Estimates have put the cost of lost productivity due to flu season as high as 15 billion dollars. Yes, we’re talking BILLIONS. That’s enough to make any business owner feel sick.

Luckily, there are ways to help mitigate the damage. And with the health of your employees and your business on the line, they are definitely worth exploring.

Embrace healthy workplace habits

Exposure to the flu isn’t always obvious. People can be contagious without even knowing it. When flu season rolls around, it’s good to establish (or re-establish) healthy office habits that help prevent transmission.

Keep it clean – Encourage frequent hand washing. Keep hand sanitizer, tissues and disinfectant readily available. Remind people to cough and sneeze into the crook of their arms and not their hands.

Take time off – Offer paid sick time and make sure everyone (including you) knows it’s okay to use it. Make it clear that sick employees should stay home, especially if they have a fever or other flu symptoms. “Working through the flu” may seem admirable, but the ROI just isn’t there. Not only are sick employees less productive, they’re much more likely to spread their misfortune to other staff members. Employees who stay home can help prevent the domino effect.

Be flexible – If your employees have the ability to work from home, flu season is a great time to let them take advantage of it. If they are feeling under the weather, they don’t have to make that difficult decision about whether or not to trek into the office. And if they’ve got sick kids or other family members, remote working can offer some much needed flexibility.

Meet less often – If the flu is spreading like wildfire, throwing a bunch of employees into a room together and closing the door is the equivalent of creating an office Petri dish. Assess which meetings need to happen and which ones don’t. And consider using conference calls, video chats, or other technology to make them happen.        

Hold the handshakes – A good, solid handshake is a business staple. But if it’s contaminated with an undetected virus, you’re better off skipping it. Encourage employees to skip the shake. A smile, nod or wave will often do the trick.

Immunize yourself. And your team.

Flu shots are no guarantee that you won’t get sick, but they definitely help. Studies show that the flu vaccine reduces the risk of flu illness by about 40% to 60% among the overall population.

There are some definite upsides to getting vaccinated. Studies show that flu vaccines not only reduce the risk of influenza, they also:

  • Make your illness milder if you do get sick
  • Reduce the risk of flu-related complications and deaths
  • Protect pregnant women and reduce the risk of flu illness in their babies for several months after birth
  • Protect the people around you, including babies and children, elderly people, and individuals with certain chronic health conditions

And while it is true that you can get the flu even if you get the vaccination, this is only the case if you:

  • have a compromised immune system
  • catch a strain of the flu that isn’t covered by the shot
  • were exposed to the flu before you got vaccinated
  • are exposed to the flu after the shot but before the vaccine has time to do its job (1 – 2 weeks)

In fact, one study showed that flu vaccinations reduced deaths, ICU admissions, and overall duration of hospitalization stays for flu patients.

Stop it before it starts

If you could reduce the number of employees with the flu by 40 – 60 percent, would you do it?

As an employer, you can reduce the risk of a flu outbreak by encouraging immunizations. You may even want to go an extra step further and host a flu shot clinic, making it easy and convenient for employees to get their shot. If cost is a barrier, consider subsidizing or covering the expense.

It’s a small price to pay for a healthier workplace.

 

Photo by Kian Khoon Tan

Flexible Spending Accounts – Different Strokes for Different Plans

Guest blog content provided to Q4iNetwork Consultants by National Association of Health Underwriters (NAHU)
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Flexible spending accounts (FSAs), also called Section 125 plans after the relevant section of the Internal Revenue Code, are commonplace benefits. But, perhaps because they are common, some employers and employees don’t understand some of the regulations that apply to these plans.

IRS Publication 969 titled “Health Savings Accounts and Other Tax-Favored Health Plans” is an excellent primer for FSAs and other tax-favored benefits. The most recent version used for preparing 2017 tax returns can be found here.

Among the recent questions received at Compliance Corner was this one: If an employer offers an HSA and a FSA, and an employee elects both is that permissible? Once again with compliance questions, there is no short answer!

The difficulty arises because, according to the IRS in Revenue Ruling 2004-45, an “eligible individual” for a HSA is an individual covered under a high deductible health plan (HDHP) who does not have “coverage for any benefit which is covered under the high deductible health plan.” The FSA, as it is traditionally designed, violates this rule.

But, there is a work around as the Revenue Ruling notes. The work around is a “limited purpose FSA.” A “limited purpose FSA” allows reimbursement of dental and vision expenses. A typical FSA covers medical expenses allowed by IRS Code Section 213(d) – which is much more expansive than dental and vision services.

Another example of a “limited purpose FSA” is known as a “post-deductible FSA.” The “post-deductible FSA” is aptly named as the plan doesn’t reimburse for any medical expenses incurred before the minimum HDHP deductible has been met.

Both the “limited purpose FSA” and the “post-deductible FSA” are covered on page 4 of IRS Publication 969.

Revenue Ruling 2004-45 can be found here.

 

Photo by Ruud Morijn 

 

Are You Treating Your Employees Like Kids? Maybe You Should.

Being the boss can be as thrilling as it is frustrating. As tiring as it is rewarding. As inspiring as it is terrifying. In other words, welcome to parenthood.

Think about your own parents. What did they do to bring out the best in you? Where did they fall short? Chances are, their parenting styles shaped you into the person you are today.

When it comes to managing employees, we can definitely learn from the vast amounts of research and literature on how best to do so. But instead of hitting the business books, we’re going to take look at Psychology Today’s top 10 tips for parenting to see how they stack up.

Ready? Let’s do this thing.

Top 10 Parenting Tips (from Barton Goldsmith Ph.D.)

1.) Identify your child’s strengths. You can use these strengths to build your child’s self-esteem, helping to provide the confidence he or she needs to tackle whatever seems difficult. Children will be more willing to listen and understand how to correct adverse behaviors if their dignity is intact.

Bingo! Hopefully you’ve done a good job of this during the hiring process by carefully creating an accurate job description and asking all of the right questions. Sometimes, though, you end up with a great employee in a wrong position. If that’s the case, don’t be afraid to mix things up a bit. Putting that person in a position to succeed will make everyone happier.

2.) Punishing a child isn’t as effective as using praise and rewards. Rather than focusing on weaknesses, find ways to assist your child in developing to his or her full potential. When encouraged, children will acquire talents to compensate for any deficiencies. 

True again! If you have employees who are underperforming, don’t rush to call them out in front of their peers or put them on probation. Recognize what they’re doing well and have an honest conversation about what things might be holding them back and how you can help develop their skills and reach their goals.

3.) Avoid negative emotional reactions, such as anger, sarcasm, and ridicule. If your child has problems with control, negativity will only make him or her feel worse. Use short and mild suggestions to remind your child to focus.

This is always a good rule for workplace etiquette, especially when dealing with employees. And while short, mild suggestions may or may not work, strategic re-directing questions can get your team members back on track. Questions like, “What do you need to make this work better?” or “How can we get this project going again?” will re-focus negative energy toward problem solving solutions.

4.) Don’t compare siblings. If a child thinks his or her brother or sister is favored, it can create a rivalry that may last the rest of their lives and cause problems in your family. Make sure your kids know that they are loved equally.

Ding! Ding! Ding! If this is ringing bells for you, it’s for good reason. Comparing or ranking employees may sound like a good idea in theory, but it can definitely cause problems in your work family. You don’t need to declare unconditional love for everyone on your team, but you do need to make sure all staff members know that their work is valued and important.

5.) Get support if and when you need it. Life with children is a roller coaster ride. Understanding that there will be negative aspects to child rearing and getting some professional advice when necessary will help you maintain your sanity and enjoy the experience.

Expert advice… Take it! Even the best leaders need help sometimes. Make sure you have professional mentors and advisors you can call when things get rough. Whether it’s a fellow business owner, HR professional, legal counsel, or some other trusted advisor, surround yourself with people who care about you and the success of your business.

6.) Children need positive attention. If they do not receive positive attention from family, they may choose to seek out negative attention. This is because negative attention is still attention, and any attention is better than being ignored. Remember to communicate with your child.

Remember that guy in the basement with the red stapler? The one who was totally forgotten? Let’s just say it didn’t end well. Giving employees the freedom and autonomy to do their jobs is a good thing, but failing to check in with them, answer questions, and tell them about things that are happening in the organization will make them feel uninvolved, unsettled and unappreciated. It could also lead to negative behaviors and consequences.

7.) Monitor your child’s use of the Internet. The stuff kids can access in cyberspace can be dangerous. Get a program that will let you see the web sites they visit and monitor their chats.

Chances are your employees are old enough to know the dangers of the Internet, but that doesn’t stop some of them from putting your company at risk. Defining your social media policy and setting clear guidelines about how your brand is communicated online have become increasingly important. One bad post or tweet can do a ton of damage. Make sure your employees know what’s appropriate behavior and what’s not.

8.) Accept that life changes when you have a child. Lazy Saturday mornings in bed are replaced by soccer games and recitals. Remember, you still need to make time for each other – date nights and weekend getaways are important for your relationship.

Ah, yes. How life changes when people are depending on you. If your business isn’t successful, nobody wins. And if your leadership team is too busy in the day-to-day grind to spend quality time thinking about the vision, goals, processes, and direction of the company, it’s going to be nearly impossible to innovate and improve. Get your leadership together regularly to foster a healthy, team mentality and drive continued success.  

9.) Parent by example. Think of your kids as little bipedal copy machines who will mimic everything you do. If you behave badly, you are giving them permission to act in the same ways. Check in with yourself, and don’t lose it in front of the children.

Yes. Yes. 1,000 times yes. Gone are the days of “Do as I say, not as I do.” As a leader or manager, you set the tone for everyone in your organization. Clearly identify and articulate the company values and demonstrate them in all you say and do. When things get frustrating, remain calm and lead the team through it. The example you set will be reflected back to you. Make sure it’s a good one.

10.) Don’t give up on your child, ever! All of your child’s problems can be worked through with humor, goodwill, and perseverance. With proper parental support, even the most troublesome teens can become amazing people.

Ever? As in, never ever? While attempting to work through issues with humor and goodwill is a pretty darn good strategy, this is one area where parenting and managing are, in fact, different. If you’ve got an employee who is clearly causing problems in your organization, you can and should let them go. And you should do it without guilt. Troublesome employees aren’t necessarily bad people. Often, they’re just not a good fit. Set them free so they can find an organization that feels more like home.

It’s a huge challenge

But it can also be hugely rewarding.

You’ve taken on a great responsibility agreeing to nurture and develop your employees. There will be good days and bad days. Days where you’re brimming with pride and days where you’re intensely disappointed. Know that it’s all part of the journey. Seek out advice as needed, and do your best to keep a sense of humor.

If all else fails, try milk and cookies. It never hurts.

 

Photo by rawpixel 

How to Deal with Organizational Change

Whether it’s a new sales process, revised PTO policy, different employee benefits plan, corporate restructure, or simply a new website, to the average employee it all means the same thing: Change.

And change scares the crap out of a lot of people.

Why so scary?

All change means is that the way you’re doing things today isn’t the way you’ll be doing them tomorrow. No big deal, right?

Wrong.

This simple idea can be terrifying to employees and leadership alike. And the longer your processes have been in place, the harder it will be to get everyone onboard. Even if your plan is going to make things infinitely better for everyone in the long run, you’ll still run into plenty of folks who just want things to stay exactly the same. “Free espresso all day? Bah! I prefer my daily 9:06 coffee break. Even if I have to walk three blocks and pay five dollars.”

So what should you do if change is in the air at your company? How can you get people to be more amenable and less cantankerous?

Evaluate it

Spend some time examining your current structure and what changes will need to be made to support the new model. The more detailed you are in this process, the better. Choose several key people to weigh in so that you get a full perspective of what the needs are in various departments and areas.  

Create an action plan and select individuals who are both knowledgeable and enthusiastic to be in charge of each step of the process, not just for accountability purposes but also to be goodwill ambassadors. If Grumpy Gary is in charge of training everyone on the new database, it might not go so well. Friendly Florence? Now that’s more like it.

Anticipate it

Recognize that people are going to react to change differently. Much differently. In fact, Friendly Flo could turn into an Angry Annie in an instant. You just never know. Be prepared to encounter any and all of the following:

  • Early adopters and change embracers who can’t wait to get started! These dynamos are planning out the details before you’ve even finished explaining the goal.
  • Naysayers who sincerely believe the whole plan is doomed. These guys are already dreading implementation and plotting the resistance.
  • Non-committal fence-sitters who are somewhere in the middle. These folks aren’t quite sure what to think and could go in either direction.

Communicate it

Now it’s time to get the word out. Don’t be stingy with the details of your plan. Explain the benefits of it and the reasons behind it. Clarify what things will change. Give time frames and set expectations to make things seem less intimidating. Talk about the end goal for when everything is said and done.

After you’ve laid it all out, you’ll be faced with a couple of choices for how to handle the reactions you’ve already anticipated.

1.) Spend your time trying to convert the naysayers and convince the fence-sitters

While attempting to win over the naysayers may seem like a logical plan, trying to convince someone who doesn’t want to change that change is a good idea can be a bit like trying to explain molecular biology to the average toddler. They just don’t get it. They don’t want to and they’re not going to try. And all the time you’ve spent trying to convince them that all of this is a good thing is time that you’re not moving ahead with your new plans.

2.) Spend your time recruiting the change agents and involving them in the process

If you decide to focus your attention on your supporters, you’ll be feeding their excitement, valuing their participation, and helping them help you. These folks can and should play a more active role in the implementation. And as an added bonus, they can help you get buy-in. You’ll start moving forward immediately, and they’ll be setting a great example for the fence-sitters, who are more likely to be influenced by their peers anyway.

Roll with it

As with any change, there is likely to be some fallout, regardless of how well you manage it.

There are some people who will flat-out refuse to adjust and would rather part ways than stay and go through the process. That’s okay. Let them go. Having people onboard who don’t support the company goals and vision will eventually bring everybody down.

Celebrate it

Once you’ve made it happen, reward your early adaptors, your hardworking implementers and your former fence-sitters for jumping on board. Review how far you’ve come and then have a little fun.

Throw a party. Order a cake. If you’re feeling crazy, give everyone the afternoon off. Why not? You’ve earned it.

 

Photo by lightwise