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Joe Mayer
Joe Mayer Ph.D.
 (216) 408 6324  
 
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Greetings!
 
Many of our clients are interrested to hear more about current HR challenges. To accomodate this request we will start publishing articles from our associate consultants.
Please read below. 
 
Last month I reported that we have established a new service to connect Business Leaders through "Leader Roundtables". The roundtables meet once every month for three hours discussing business goals, pressing issues and to introduce new tools and approaches.
Interested? Want to join a group and see if this will enhance your business? Give us a call at (216) 408 6324.
Joe
Are your teams performing?
 
Teams, teamwork, high performance teams seem to be some of the most used words when reading about what makes successful companies tick.  And most business owners will confirm that this is the case in their companies, too. When I look at the financial results however, it becomes clear that, in fact, the bottom line performance of the companies are average and gross margins and profit margins have not dramatically changed in years.
Where is the disconnect? Most team leaders are only focusing on results and not the accountability of the team members. I define accountability of team members the willingness to:
 
  • Put the success of the team ahead of one's own interests (as member of a department or group within the company) and
  • The willingness to remind other team members about their responsibilities when they are not living up to the standards (performance, attendance etc) of the team
 
From analyzing team failures I know that the second issue is the most difficult to address. It is easy to hold somebody accountable for results. However, it is exceedingly difficult for most leaders to hold somebody accountable for their behavior and behavioral problems are always early warning signs that the team will not achieve set goals.
Calling on somebody for a behavioral issue forces an issue and is uncomfortable. It easily can be seen as a personal assault and the person called on might respond with hostility and will in turn question the other person's fitness to be a team member. Not an easy but crucial test for teams.
Addressing behavioral problems is a learned skill. Team members will pick up on the way the team leader handles situations and will start policing themselves mirroring the team leader's behavior. In most cases this ends in avoidance instead of utilizing the opportunity to strengthen a team by forcing an open conversation about a behavioral issue and strengthening the trust and coherence of a team by letting everybody off the hook. Again, the results are below average results.  Not addressing behavioral issues is nothing else than letting a team member down and wasting everybody's time. So how to get back on track?
We recommend a one day team retreat where the focus needs to be on:
 
  •  Assessing the team's trust level
  • Assessing how conflicts are resolved
  • Teaching skills for keeping emotions out of            conflicts and, lastly,
  • Developing and agreeing on a model for future conflict resolution

Without trust there can be no effective team; without team members putting the team's interests above their personal interests we cannot achieve stretch goals or breakthrough outcomes.
 
Give us a call if we can help setting your team up for success.
Are your employees correctly classified? By Mark Ernst
 
There is growing litigation for misclassified employees and many employers are finding honest mistakes can cost them plenty. Under the Fair Labor Standards Act ("FLSA") and many state laws, employees are classified as exempt or non-exempt: they are either exempt from overtime pay or not exempt from overtime pay and therefore must receive overtime pay for hours worked over 40 in a week.

We find many employers mistakenly believe that if they classify an employee as "salaried" they don't have to be paid overtime. That mistake can make employers liable for damages in several areas: back overtime, penalties for failure to keep time sheets and related records, legal fees, disruptions to the work force, and more. Unfortunately, many employers find out about this mistake after an employee quits or is terminated and the claim is filed for back overtime pay.
For most non-retail businesses, the FLSA defines five exemptions from the act that most typically apply to your business. They are: the executive, administrative, professional, outside sales, and IT. Whether your employees meet the requirements of a particular exemption is not a matter of agreement between you and the employee, their compensation level, or your desire to classify an employee in a particular way. The classification of an employee is based upon their actual duties and the percentage of time doing particular work. A good-faith mistake won't excuse you from the liability of misclassifying an employee. Your back pay liability may extend back for several years and you may have the burden of proving past overtime claims made by employees are not accurate---a tough burden indeed.
 
The only way to protect yourself is to know if your employees are properly classified and the only way to know if they are properly classified is to have a professional review conducted of your employees and their current classifications.
Some telltale warning signs that should alert you to potential
problems include:
 
  • More than 50% of your employees are classified as exempt or "salaried"
  • Some of the employees who perform the same job are classified as exempt or "salaried"
  • Employees who perform inside telephone sales are classified as exempt or "salaried"
  • Employees complain about working overtime and not being paid
  • Employees in other companies who do similar work get paid overtime
  • Computer help-desk support employees are classified as exempt or "salaried"
  • Some people who perform the same work are classified as employees and others are contractors
 
Want to learn more; Mark is available to audit your HR policies!