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Improving morale: Open management is key

You have probably heard the old office threat, "The beatings will continue until morale improves". Many people smile a bit when they hear it. At the same time, there is an urge to cringe, as all too often, that destructive management practice is a bit too familiar for comfort. Is this archaic threat part of your company's management style?

Fear is not a good motivator over the long term. While many managers will point to a time when a good scare moved a lackluster employee into action, the effect was usually short lived. If fear becomes the over riding emotion in the company's culture, morale will fall to very low levels. Instead of innovation and creativity, employees will turn their attention to holding onto their jobs. In times of layoffs, fear of further cutbacks, and rumours of department and plant closures, leads to lower productivity. This staff response should be expected and not arrive with a shock to management.

The problem for a manager faced with the need to let go a number of employees is how to carry it out without irreparable morale damage. The key is to initiate and nurture a culture of open and honest management. An ethical company will not hide behind platitudes and vague denials that layoffs may be taking place. The secret will get out through that informal communications channel known as the office grapevine. The problem with the grapevine is the information may be entirely inaccurate. Staffers will expect the worst, causing a steep decline in productivity and mood. Open discussion is a better course of action.

If there are impending layoffs, make all of the cuts at once. Don't do it in steps or phases. Even if the latest round of layoffs is the final one, employees will still fear that more employees will be let go sooner or later. The possibility that it may be them tends to create fear that lowers production dramatically. A worker keeping their head down isn't doing much useful work. Bite the bullet and get the pain taken care of all at once.

When the layoffs are completed, call all of the staff together and tell them the truth. Explain why people were let go and what the plans are for the future. Be sure to spell out that the remaining workers are part of the permanent team. Leave no room for doubt. Let no new possible downsizing rumours enter the informal chat around the water cooler or lunch room. Once you give your word as an ethical business person, stick to it. If the layoffs are not over, complete the job, and then call the company wide informational meeting.

No one likes layoffs, but they are better done quickly. Demonstrate to the remaining staffers that you are an open and honest company. They will reward you with higher productivity and new ideas for products and services.

The need for any morale building beatings will never be required in an open and ethical organization.

Tags: personnel managment, layoffs, employee morale, ethical companies.

Management mistakes: Playing favourites

Few bad management practices can destroy office morale faster than a manager who plays favourites. Accompanying the disillusionment of the staff members, with the guilty employer, is much lower productivity and work output levels. Instead of creating a state of harmony, employee mistrust and resentment is the usual result of choosing the office version of the teacher's pet.

There are several ways that favourites can be selected. Some singling out of golden employees are flagrant and intentional, and easily seen and understood by the staff. Other forms of favouritism are less well known and may even be completely unintentional on the part of the manager.

Perhaps the best known relationship is the office romance. The manager will often heap benefits on the object of their affection. Those fringe benefits are very often company property and not part of the beloved's job description. Many companies have rules against office liaisons for a reason.

Attachments between peers may only cause limited damage, and are often good matches, and may even help worker morale. Of course, not all relationships end well, and any dalliance may cause severe repercussions as well. A very real problem arises when a much superior manager dates someone far below their company level. Sadly, many of these circumstances can also involve sexual harassment and other illegal and coercive activities.

Another form of picking and choosing favours involves the ubiquitous "old boys network". Often, these staff members go back many years in the current or different organizations. They are very often good friends outside of work as well; and have been that way for years. Managers in this situation are very susceptible to giving special treatment to their long time buddies. Very often, as well, the old friend may not be a very good worker. As usual, the other members of the staff are quick to notice the disparity in treatment and office morale drops like the proverbial rock. Staff productivity soon follows on that same downward spiral.

A less well known, but also frequent special treatment arrangement, occurs with an employee who was credited with some great achievement. If the award was deserved, the staff members will applaud the reward, and work harder to join the ranks of the elite. "Employee of the Month" awards can be very motivational for some employees. On the other hand, handing the award to the undeserving (in the eyes of the staff) can lower morale very quickly. They will see the award is not based on merit but on other less desirable intangibles. Lower office morale is the usual next step in the process.

A fourth, and very difficult to handle issue arises involving staff with children. Very often, a parent will be given permission to leave work to attend a sick child. On the surface, the action appears good and helpful. Beneath that glittering surface, however, lie the seeds of dissension. Non-parents may view the parents as receiving special treatment in the form of time off that is unavailable to childless or unmarried staff members. To prevent this asymmetry, a good manager will provide alternative time off, or a block of time that can be used for personal or family reasons. With the unnamed time block, all staff members receive the same treatment regarding away time.

If you are serious about being a good and fair manager, it is essential that you not play favourites among staff members. Not only does it build resentment, but it costs the company money. Poor staff relations and lowered business revenue are not good for anyone.

Play fair and your business and staff relations will prosper.

Tags: personnel management, staff relations, business, office morale.

Sales commissions: Expense or investment?

Paying out sales commissions is a situation that causes many internal company disputes. One side considers salespeople receiving commission compensation is the same as any other salary and wage expense. The other side considers those commissions well worth the money spent as they produce customers and revenue that would otherwise be left on the table.

The question arises as to which side is correct, or if there is some merit to both cases. In theory both arguments contain valid points. In reality, the issue is not that cut and dried. Commissions are vital to the production of revenue, and for the addition and maintenance of the customer base. At the same time, commissions must be paid out of the company cash flow, the same as other salaries and wages. The end point should be considered in terms of value added to the organization, and to return on investment.

One of the factors that makes commission payments controversial, from the viewpoint of staff personnel, is how high the dollar amounts can rise. Accustomed to consistent pay packets, the staff person or the business owner may feel the sales representative is getting overpaid. As sales numbers rise, even if they are meeting and exceeding agreed upon targets, so too do the payments. Along with the rising commissions, percentage rates may escalate, and bonus money may be triggered as well.

The raw commission numbers, taken in isolation, can often appear very large when removed from their revenue component. That revenue side of the equation is very frequently ignored by the business owner or manager. Without that additional revenue, the commission cheques will be much smaller. Is that really beneficial for the company?

In effect, the sales rep has created and enhanced the business cash flow, and is being paid what she is worth to the organization. Not many other jobs can make that bold claim in an objective way. Low level sales producers receive low amount pay days. Bottom producers are not worth what they are paid as they don't add much revenue or new customers for the company. Star performers earn their commissions and bonuses.

The star producers are the revenue producers of the company. Instead of falling prey to the urge to curtail or cap raw commission payouts, embrace the additional income for the business. Keep in mind that the commission is paid for production. New customers and added revenue are valuable, and the marginal sales on the extreme edges are doubly important. Without the star performers creating those extra transactions, that money would be left on the table.

Instead of counting the payments, consider what money would not be in the company account at all. Without those additional sales, the company cash flow would be much tighter and less plentiful. Extra sales mean more money for growth and reinvestment.

Think of those commissions as an investment in the company and its future growth. That wonderful thought will change your perception of commission sales once and for all.

Tags: sales management, company revenue, personnel, business growth.

Virtual companies: Long distance employees

Virtual companies are now part of the mainstream business landscape. While the vast majority of organizations take a bricks and mortar approach, businesses with no real estate beyond bits and bytes are finding their niche as well. Internet only companies also face some unique staffing and personnel problems.

Since staff members are often far from the virtual head office, cell phones and pagers become part of their working life. Along with e-mail, company wikis, and instant messengers, the employee may feel they are always on call. Respecting the employee's time, and not calling them multiple times per day, builds trust and a happier relationship. When a worker feels trusted, they are more likely to complete the assignment than if they feel micromanaged to an extreme. That sense of a staffer never having any time off the clock is a growing issue in all organizations. In virtual companies, it can be fatal to the business.

With virtual companies, partners and staff members may be located across the country, or even around the world. Simply organizing discussion times and workload schedules requires a knowledge and a feel for different time zones. The three hour difference between Eastern Time and Pacific Time can be enormous in practice. When it's 8:00 am in New York, it is still only 5:00 am in Los Angeles. Calling a west coast based staff person at that hour can cause hard feelings and resentment. Calls to more distant time zones may create even worse issues. Knowing and respecting different time zones is vital to good staff relationships.

Setting specific meeting times keeps everyone in touch and on the same page. Conference calls via telephone or virtual meeting software facilitate two way conversation as well as providing vital feedback to management. Simply sending orders by emails or terse phone calls is not enough for maintaining good long distance staff relations. Without that sense of being heard and that feedback is invited, the employee will feel isolated. The result will be lower productivity at best, and complete failure to finish assignments at worst. The staff person may even leave the company entirely. Maintaining two way conversation is vital to a good relationship.

Sometimes, there is no substitute to live meetings and personal interaction. Be sure to arrange some in person meetings with staff members. Even once a year at the head office, with everyone in attendance, can build stronger staff bonds. A policy retreat at a neutral location can also work wonders for team building.

While successful virtual companies exist, where no staff members or management have ever seen one another, those business bonds are much more powerful meeting face to face. Not everyone can function equally online. Old fashioned personal contact is essential for a successful company in the longer term.

When organizing a virtual company, it is important to realize that not everyone shares the same online personality. Some people are as happy and productive without any contact as they are in a traditional workplace environment. Other staffers require a more hands on and personal approach. All people need their personal time respected and boundaries drawn between work time and their home life.

By taking a people first approach, a virtual entrepreneur will maintain great staff relationships. The employees will be happier and more productive when treated with respect. In that way, some things never really change. People are all different, and require a personal touch.

Online or offline, good staff relations are essential to your success. Treat people with respect, and they will help you build a profitable and growing virtual company.

Tags: virtual companies, personnel management, entrepreneurship, relationship building.

Attitude change: Declare a Positive Week

Business owners and managers experience much doom and gloom in the course of a working day. Confronted by the news with tragedy of every sort, finding marketing and other business problems of all kinds, and facing the usual employee frustrations, many entrepreneurs and managers want to throw up their hands and surrender. Instead of falling into dismay, it's time to declare a company Positive Week.

Positive Week would be based on the idea of only saying, doing, and behaving in a positive and happy way. Always greet every customer with a smile, and treat all other employees as friends. The regular water cooler complaint society is declared off limits, and staff gossip is not allowed to happen. Instead of concentrating on work, create cooperative games based on teamwork, and on helping customers solve their problems.

Positive Week is all about focus upon the good things about the company. Problems will only be dealt with in a constructive manner and with creative ideas. It's well known that happy employees are more productive for the organization as they feel their contribution is appreciated and rewarded.

The first step to creating a Positive Week is to get everyone involved in the organization on board with the concept. Make the week a fun event. Announce prizes for the staff members who go the entire week without making a single negative comment. Any bad customer service or derogatory remarks about co-workers or the organization are off limits for the week. Create fun disincentives for anyone breaking the code of Positive Week.

Create badges, t-shirts, posters and other reminders that Positive Week is underway. Encourage the staff to help others keep smiling and behaving in a happy manner. Create a special Happy Party for everyone to attend. It could be potluck or some other fun way to celebrate. Every day, keep a tally of the good deeds done by everyone as a team; as well as fun individual and work group awards and prizes.

The value of Positive Week is many of the good things started under its guidance become regular habits of the employees. Once taken away from the gossip and gripe sessions, staff members have time and energy to apply to helping the organization and its customers. Instead of feeling as unimportant, participants will begin to feel like important members of the company.

A smile worn in Positive Week can easily become part of the new company culture.

Hold a Positive Week in your company and help your business become happier and more profitable.

Tags: Positive Week, staff attitude change, changing focus, customer service.

Personnel surprises: Finding hidden talent

Most companies have hidden talent resources they have yet to discover. Already on the payroll is often at least one person, who could be given more responsibility, in their job. Untapped abilities are everywhere on the business staff roster. The key is recognizing those diamonds in the rough, and polishing their skills to a lustrous sparkle.

In every business, openings arise for new hirings all of the time. The usual response is to seek the ideal candidate from outside the company. While there are times when bringing in a new person to fill a specific role is necessary, don't overlook the talent already on staff. Promotion from within the organization might be a better long term approach. In fact, in many companies, outside hirings may be best utilized for filling entry level positions. By adding quality staff members at the bottom of the organizational ladder, and helping them to rise ever upward, they learn the company culture, internal systems, and become loyal employees.

Internal training and advancement are powerful incentives for most employees. People who understand that hard work, dedicated service, and quality contributions to the company result in advancement are better employees. Office morale will be much higher, and the sense of team work will be much stronger. The bonds between the employer and staff members are on a much stronger foundation for building with the long term in mind. Knowing that higher level positions are obtainable, and expected to be filled internally, enhances productivity in every way.

For many employers, however, the employee often becomes pigeon holed in their current job description. The skill set of the worker is thought to consist of what is seen on a day to day basis. Other untapped talents are all too often overlooked entirely. When all that is required to groom a person for a more responsible job is simply some training and encouragement, it's a tragedy that many companies never take that chance. Missed talent is lost opportunity for a business.

To discover those well kept secrets, it's essential for business owners and managers to talk to their staff members on a regular basis. Schedule regular individual discussions with every employee. While most staff meetings will focus on the current job functions, make certain that at least every three months a longer term chat is in place.

At that meeting, the topics should be long term employee career plans, training opportunities, advancement possibilities, and how the company can help in achieving those goals. Creating an atmosphere of trust, combined with confidentiality, can help uncover talents that have long been missed.

The best and most productive are very often long term committed employees. Be sure your company reciprocates with a committment to promotion from within, and to ongoing training and staff development programs. Include staffers from every level in creativity and brainstorming events. You might be pleasantly surprised at the talent right under your nose.

Think about finding the hidden talent in your organization. Your bottom line will never look better.

Tags: personnel management, staff training, employee advancement, worker productivity.