December 2011 Newsletter

Avoid Management Mistakes

Managing employees is a difficult task and not many are trained in the skills required to be an effective manager. With a staff made up of different personalities, work styles, and responsibilities it can be difficult to develop a management style that is suitable for all. Effective leaders, however, tend to exhibit these characteristics:

  • They value people
  • They believe in two-way, frequent, effective communication
  • They are expert listeners
  • They seek to create an environment where employees are empowered to take charge of their job responsibilities
  • They can hold people accountable and responsible without punitive measures
  • They demonstrate leadership and clear direction
  • They believe in and encourage teamwork
  • They place the customer at the center of all decision making

With these proactive characteristics in mind, it is also essential for managers to do what they can to prevent missteps. Try to notice, prevent, and avoid the:

  • Failure to build relationships with staff: Developing a relationship with reporting employees is a key factor in managing.
  • Failure to provide clear direction: Managers must create standards and provide clear expectations so staff knows what is expected of them.
  • Failure to trust: Managers must trust people to do their jobs to avoid micromanaging and to encourage individual growth.
  • Failure to listen to value the opinions of others: Active listening is a critical management skill.
  • Failure to involve staff in decision-making: Be sure to invite participation at the beginning of the process and explain why you did or did not utilize the feedback in the final decision.
  • Failure to react to problems and issues in a timely way: Issues, when ignored, do not resolve themselves and can often escalate.
  • Failure to maintain appropriate boundaries: Don’t try and be friends with employees who report to you. You can develop warm and supportive relationships with employees who report to you, but don’t cross the line.
  • Failure to communicate effectively and to share important information: The best communication is transparent communication.
    Failure to treat all employees equally: You don’t necessarily have to treat every employee the same, but they must feel as if they receive equal treatment.
  • Failure to take responsibility: Don’t blame. Model good behavior by taking responsibility for mistakes when appropriate.

Smart Phones in the Workplace

In today’s technology-driven society, mobile devices are now the ‘norm’ for communication, surfing the Web, and checking e-mail.  Should employers be on alert in any way because of the growing popularity of smart phones? Are you aware of what your employees are actually capable of doing and what changes are being made by outside sources such as the Department of Labor regarding smart phones?  Employers could face wage and hour issues and new incidents seem to be arising every day.  The best way to avoid future problems is to stay informed and to constantly be mindful of any changes occurring in the smart phone industry. 

If you look around your office, I’m sure you will notice that most employees own some sort of cell phone.  There are many different types available but most people now own smart phones that allow easy access to the Internet and e-mail. Many companies even distribute smart phones to managers so they can conduct business while on the road or after hours. 

Even though this form of communication can be advantageous to an employee and employer regarding their efficiency in the workplace, companies need to be wary of the legal problems that could arise.  Let’s say you have a non-exempt (eligible for overtime) employee who uses his own smart phone on the job during his normal work hours of nine to five.  But, sometimes this employee also has to respond to client phone calls or e-mails that come to their personal cell phone after they leave work.  Does this time run that employee into overtime and are these hours being accounted for when the employee gets paid?  Should they even be considered in time worked according to wage and hour laws?  These are the types of questions that should be answered before the employee engages in this activity outside of the normal workday.

Recently, the Department of Labor announced the launch of a new app for smart phones that allows employees to track their regular hours, overtime, breaks and wages owed.  In addition, they can email work hours and gross salary as an attachment. Applications such as this can be harmful to employers as it allows employees to manipulate their time or make various mistakes.

If applicable, companies can be proactive by creating a time sheet for non-exempt employees that can be used with their smart phones to track time worked.  Train, train and train again on how to input their time so that all hours are accounted for each day and there are no questions as to whether or not they are being correctly compensated.  Employers should constantly stay abreast of changes to smart phone apps where the workplace is concerned and any wage-hour disputes that occurred as a result of use of these applications.

Are You Ready for the 2012 Tax Season

The 2012 tax season is coming. Tax season can be stressful even if you are properly prepared, so keep the following tax preparation tips in mind:

  1. Contact a tax professional or accountant.
    One of the best ways to ensure you are prepared is to hire a quality accountant or tax professional to assist with your tax preparation and filing needs. If you pay someone to prepare your tax return, choose that preparer wisely. Taxpayers are legally responsible for what is on their tax return even if they don’t prepare the return themselves. Regulations require all paid tax return preparers to obtain a Preparer Tax Identification Number (PTIN). Preparers must renew their PTIN each year by December 31.
  2. Collect all of your expense records.
    Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. When tracking your expenses through an Excel spreadsheet, QuickBooks program, or your accountant, look over your numbers and make sure all the business expenses are accounted for and organized.
  3. Be aware of certain beneficial tax provisions are still available in 2011.
    Consider taking advantage of some of the following provisions that are still available for 2011, but potentially no later unless Congress extends them:

    • 100% bonus depreciation deduction on qualifying assets acquired and placed in service before January 1, 2012
    • Enhanced Section 179 write-offs of business asset purchases placed in service in tax years beginning before January 1, 2012

Life Without COBRA

As of September 1, 2011, unemployed workers laid off between September 2008 and May 2010 are no longer eligible for the COBRA subsidy program that was passed under the American Recovery Act. The subsidies covered 65% of the COBRA premiums for 15 months and were paid by the unemployed workers former employer. Although the unemployment eligibility initiated under the same program was extended to 18 months, many were surprised to learn that the COBRA subsidy was not. With political posturing and the state of the economy in poor shape, many assumed that it would be extended.

The unemployed individual has the option to continue paying the COBRA payment for the remainder of their extended unemployment benefits. The concern is that they will be unable to afford to keep their coverage when they are already in a very tough financial situation and that dropping their COBRA coverage will leave many Americans uninsured.

For those with a pre-existing condition, the choice is further complicated. Should they pay the entire COBRA payment and commit to adjusting their other expenses? Should they look into less expensive insurance that may not give them all the coverage they had but fits more into their budget? Although a pre-existing condition may present challenges, it does not automatically mean a denial of coverage and there may be partial coverage available. That partial coverage may, after a period of time, open the door to full coverage.

With rising unemployment and only slight improvement in the economy, the COBRA subsidy may return. In the meantime, employers and employees should be advised of the changes and their options.

Holiday Season Workplace Safety

The holidays are quickly approaching and this is a busy time of the year. During the holiday season, the risk for accidents and injuries increases mainly due to stress, distractions, activities outside the workplace and reduced sleep. What can your company do to ensure that your employees and your company make it through the holidays safely?

Office Holiday Decorations
When decorating your office for the holiday season, be aware of potential safety hazards. Holiday decorations can create greater hazards and potential for accidents and injuries. According to the U.S. Consumer Product Safety Commission, over 12,000 people nationally are treated for falls, cuts, shocks, and burns due to incidents involving faulty holiday lights, dried-out Christmas trees, and other holiday decorations.

Fire Safety
Before you start decorating your office for the holidays, you should verify that all of your fire safety equipment is in proper working order including your fire extinguishers, smoke detectors and sprinkler system. Do not place any decorative items on the sprinklers. Choose artificial greenery made of fire retardant materials for office decorating. All decorations should be either noncombustible, inherently flame retardant (the label will say so), or have been treated with a flame retardant solution. The product label will state if the product is noncombustible or made with fire retardant materials. Candles are a common holiday decoration and contribute to 10,000 fires per year and are not safe to use in the workplace.

Electric Safety
It is important to make sure that you use holiday lights properly. Never place staples or nails through strings of lights, power cords, or extension cords. Do not connect more than three strands of lights together. Don’t overload extension cords, which could cause the cord to overheat and start a fire. If extension cords are used they should not be laid across a walkway or run under the carpet. Make sure that all illuminated items are turned off when the office is closed and designate a staff member to handle this task so that there is no confusion at the end of each day.

Holiday Celebrations
You already know that your company can be held liable for injuries that occur on your property or at your functions. The company can also be liable if an employee causes harm to another employee or anyone else while engaged in company business. If you’ll be holding an office holiday party where alcohol will be served, it’s essential to make transportation arrangements for guests who should not drive. Keep in mind that employees will drink more at an open bar than when they have to pay for drinks, so having a cash bar at your party may be an option to help reduce your liability. Your company is obligated to keep coworkers and other guests protected from drinking and driving, and to mitigate potential legal liability to your business. Your company might consider designating members of management to watch for party guests who should not drive. Your company should use a taxi service to drive employees and other guest home after a holiday party, if there is any question as to weather they should be driving or not.

For more safety tips, please contact our Risk Management Department.

Relief for Office Workers

Julie Wilkins OTR – www.TherapySolutionsNetwork.com

As technology advances, so does the length of time workers are sitting at desks and working on their computers.  The incidence of carpal tunnel syndrome, tendonitis, and back/neck pain is increasing as our physical activity levels are decreasing.  Ergonomics, the science of fitting workplace conditions and job demands for optimum safety and production of the worker, has lessons to teach us to improve our workstations:

  • Make sure you have a good quality chair that that allows you to sit to the back of the seat so shoulders and hips are aligned.  Your feet should be well supported on the floor. 
  • If your chair does not provide lumbar support, place a small pillow behind the lower back to support the spine in its optimum alignment.
  • Adjust the seat of the chair so the desk or worktable is elbow height.
  • The top of the computer screen should be at eye level and centered with the body so you are not looking up, down, or to the side when working.
  • Work materials should be placed at a 45- (or greater) degree angle on your desk.  If copying materials from paper to computer, consider a clip to hang materials upright from computer screen. 
  • Make sure you have good quality lighting.
  • While typing, support forearms on the arms of the chair so that wrists are aligned with forearms.  Consider using a wrist support for your keyboard.
  • Make sure to take frequent breaks from sitting to stand, walk, and stretch your arms and legs.  Pace yourself if you have extensive typing or deskwork to give the body positioning breaks.

For our Clients: Payroll Corner

  • Four Point HR will be closed Monday, December 26, 2011, for the Christmas Holiday and Monday January 2, 2012 in celebration of the New Year.  Additional payroll information will be distributed mid December. Our family at Four Point HR wishes you and your family a very happy holiday season.
  • The end of the year is approaching quickly. This is the perfect time to have your employees check their personal information, including addresses, to ensure their information is updated in the system for the delivery of their W-2’s. There will be a fee of $5.00 assessed for each W-2 reprint.

Blog Corner: The Changing Business World

Today’s times are not for timid leaders. The business world, as we know it, has changed dramatically.  Two decades of prosperity have given way to an extended period of uncertainty. Those of you who have created strategic plans must be wondering what portion of these plans still applies. Those who have not must certainly feel the need to chart a course for the future.  We want to know what you think about these issues. What are out talent needs going forward?  Are changes necessary for the basic structure of your operations to ensure you success in the future?  If so, what are these changes? How will you go about conducting the planning process to include your key people?