Legislative Update - Tax Credits for Veterans

President Obama signed into law the Veterans Opportunity to Work to Hire Heroes Act of 2011 on Monday, November 28, 2011.

This bill provides a tax credit of up to $5,600 to companies who hire a veteran who has been unemployed for six months or longer. Also, companies who hire a veteran with service-connected disabilities that have been unemployed for six months or longer can claim up to a $9,600 tax credit.

For more information contact Todd Weyandt at todd@laihr.com.

Deliver Top Notch Customer Service by Rewarding Employees

Quality customer service can be achieved by providing some monetary incentives to employees. When customer satisfactions are tied to employee rewards the results can be very impactful. In developing an effective compensation system, the company should:
- Understand what its customers expect
- Understand how customer satisfaction affects organizational success
- Develop and implement a valid customer survey
- Assure employees that the metrics used are valid
- Consider whether additional factors should be involved in rewards
- Balance customer satisfactions with employee productivity and return on investment (ROI).

These types of programs should be balanced with a financial indicator such as profits and/or earnings. Also, a positive customer satisfaction score should not automatically mean a bonus for the individual employee because you need to take into account the financial aspect, too.

As a general rule of thumb, HR experts agree that all employees, including executives and front line service staff, should be included in a customer satisfaction compensation program. With the entire company involved in the customer service, all are actively involved in the same direction and goal.

Once a company ties customer satisfaction with employee compensation, they must be very precise to make sure that changes in measurement are not a result of a statistical fluctuation. These types of programs also require a higher level of sophistication in design and methodology than typical survey programs.

Companies using customer satisfaction compensation programs must be willing to experiment in order to see what produces the best results and environment. For more information, please contact Todd Weyandt at todd@laihr.com.

Growing Talent Divide between Small and Large Size Companies

Good news for recent college graduates, more employers are hiring from this group in 2011 than in 2010. According to a Society of Human Resource Management poll, companies with 500 or more employees are responsible for this uptick in demand.

The smaller size companies are leery of hiring recent college grads due to the lack of available resources to train these potential employees in a still stagnant economy. These smaller organizations are being forced to heavily rely on their long-term employees to be highly productive in order to survive.

Managers of larger companies are usually blessed with the ability to use projected talent requirements instead of the current demand to base some of their hiring decisions. However, if these trends continue a talent development gap could emerge between the small/mid size companies and the larger corporations.

Smaller organizations are not out of the game though. They are better able to offer different benefits that the bigger companies cannot. For example, smaller organizations can provide more informal and/or flexible environment with hours and telecommuting. Also, employees in small companies are able to use a varied of different skills and abilities to have a more direct impact on the overall company.

Employee Happiness or Results...It Doesn't Have to be One or the Other

Managers are faced with a decision, how are you going to treat your employees to use their maximum potential. Too often, managers set up a dichotomy between getting results and being liked. The truth is these two things are not mutually exclusive. In fact, they can often go hand-in-hand.

When poor performances are ignored for the sake of maintain good relationships, the long term ramifications can be costly and adverse. This type of environment can lead to employees taking advantage of the situation and their bosses. Also, morale eventually suffers due to the lack of drive and performance which can lead to resignations or unengaged employees.

Instead managers should actively try to engage employees by getting results. When results are achieved in a company and/or team pride and confidence starts to build up. Then the employees will develop more of vested interest in the fundamentals with a desire to do better.

Developing results centered reward programs are a great way to get employees actively involved in the company. There are four fundamental areas for results: Growing Revenue, Attracting Customers, Retaining Clients, and Cutting Costs. Managers should take an active approach in leading programs that provide an incentive for employees to help improve these four fundamentals.

With a focus on engaging employees with results, managers will likely start to have a more productive, loyal and happy team over the long-term.

For more information on reward programs to engage employees, contact Todd Weyandt at todd@laihr.com.