July 2012 Newsletter

Coaching Employees to Success

In its most basic form, coaching is taking the time to give feedback to employees.  And if it sounds simple – it is!   Coaching can be positive (and constructive) or corrective in nature, and both of these efforts can reinforce the best way to complete a process, work with a client, or tackle a problem.

Coaching can be as easy as you want to make it.  Just taking the time to ask your employee how it’s going, then really listening to the response, and offering some feedback, is a great way to get started.

For those of you who would really like to see coaching at it’s best, it is important to note that for effective coaching to take place—- (for the employee to actively hear your advice or constructive feedback) —— you must coach 4 to 1.  This means that you are giving 4 compliments (or praises) to the employee, for every 1 piece of corrective feedback.

Although it may seem overwhelming, the more you praise, the easier it becomes.  The other important point is that the more you praise, the closer the employee listens, so lots of praise means their ears are wide open to hear when you need to offer corrective feedback as well.

Taking the time to walk through the business and talk to employees as they complete their daily tasks is one of the most important things a manager can do.  When employees see you coming and they are excited you are taking the time to stop and talk, then you are coaching effectively.  In other words, they do not just see you when there is a problem!  Once these visits become second nature, they get used to seeing you everyday, become good listeners in the process, and want to learn what they can do more effectively.  Additionally, when you make talking to your employees a part of your everyday activities, they know that you appreciate what they do.

I can still remember the first time I took the opportunity to get out of my office!  The first thing that happened is I learned a lot about what was going on “behind the scenes” and, I also learned that I had some excellent customer service representatives.  Some were bending over backward trying to please exceptionally difficult customers, but I didn’t know it because some customers never take the time to give feedback on a job well done. We owe it to ourselves to “know what’s going on” and we owe it to our employees to understand who is going above and beyond.

When employees regularly see their manager (or team coach) approach them, and they know they are either going to be praised, or learn something new, it is an exciting thing to watch.  Their enthusiasm for the business and for their job is contagious as other employees hear the words of praise, and want to try a little harder as well.

If 4 praises to every 1 piece of corrective feedback is too difficult, then start by trying 2 praises to 1, as I will do in this example:

Mary is a customer service representative and you just overheard her last phone call with Mr. Smith.  She was clearly “going above and beyond” to satisfy the customer, but it took a while for Mary to get her point across. As a manager you might try saying:  Mary, great job with Mr. Smith!  I know he can be difficult and that makes your job even harder. I fully appreciate the effort you just made and wanted you to know that.  I am going to ask you to try one other thing with customers like Mr. Smith. Since you know it’s going to be difficult, the minute you hear his voice, try putting a smile on your face.  I think he will hear how hard you are trying to meet his needs.  Since he calls at least once a week, let me know how that goes, and if the suggestion helps with other “hard to please customers”.  I know you can do this, and I will be curious to see if it works.  Thanks again for all that you do for us!

Give coaching a try and you will be surprised what you can accomplish by taking a few extra minutes to listen, share ideas and give praise.

Workers’ Comp Claims Heat Up In The Summer

Data collected by the insurance industry show the number of workers’ compensation claims at small businesses increase during the summer from June to September. Claims data from insurers indicated slips, trips and falls are the most commonly reported injuries and that almost one-third of on-the-job injuries are reported by workers 30 years or younger. There are many theories as to why employers see the jump in claims during this time of year including:

  • Employers hire summer help
  • Lack of new hire training
  • Lack of health insurance coverage
  • Longer day light hours make employees more active at home.
  • Employees get hurt while not at work and report it as a work related injury the next day
  • Family members are out of work or school and they want to be home with them

Employers can reduce workers’ compensation claims with a number of key steps:

Sound Hiring Practices

Employers need to evaluate current hiring and recruitment practices. Employees in their first 90 days of employment have the highest incident rates. Employees in their first year on the job have the next highest incident rates. Making workplace safety part of the screening process is a critical part of the screening process. Most states do not allow an employer to ask a prospective employee about their past claims history. However, employers can inquire about a prospective employee’s attitude toward safety rules and issues.

Orientation and Training

It is critical that employers conduct orientation and safety training for all new hires, no matter how much experience the employee has. The training must include safe work practices and procedures, emergency procedures, personal protective equipment, safe operation of all equipment, and claims reporting.

Active Supervision

Reinforcing safe work practices is part of a supervisor’s job duties. Active supervision is a key component of decreasing workers’ comp risks and claims.

Accident Response

Employers and Supervisors need to ensure that employees understand that there is a process in place should they get injured on the job. This process allows employees to get the care needed to treat their injury. It will also help the employer control the cost of the claim by having the employee treated within the network provided by the insurance carrier.

Risks of Sharing Company Passwords

In today’s corporate world, companies strive to protect their sensitive information and property from not only hackers, but from unauthorized internal employees as well.  Even though companies spend time and resources instituting strict security protocols, it can be compromised by actions as seemingly harmless as sharing passwords or computers. Many I/T professionals believe the unauthorized use of company programs resulted in as many as half of reported data losses.

Unauthorized use can be easily obtained. Employees will often share their work computers with others, without their supervision, not realizing they are giving access to possible sensitive information that only they are privileged to. Sharing of passwords is common practice as among as much as 18 percent of the workforce. This is coupled with the likelihood that employees “hide” their passwords under their keyboards or in their desk drawers where others have access to it. It is also common for employees to leave their computers on, when they have stepped away from their desks, giving full access to protected data. So, even though companies institute security policies, and train their employees about the risk of data loss, the effectiveness can be compromised.

In order to reduce this risk, companies need to understand how employees’ behavior increases risk, take the steps to adopt a security conscious culture, and hold employees accountable for adhering to the their security policies.

Employees who understand that security programs are important and impactful are more likely to follow specific procedures. To assist the learning curve, consider training on the different levels of confidentiality, the importance of preventing internal and client information breaches, how to report a security breach, and how to think ahead to proactively keep information secure in files, on computers, and during conversations.

Collect Outstanding Balances and Keep Your Customers Onboard

Is your business having problems collecting from your customers?  Are the customers, who normally pay within the predetermined terms, having difficulty staying current?

If this is happening within your business, the number one collection strategy should always be Communication!  Whether the business owner or an employee of the business work on collections, pick up the phone and call the customer.  State the purpose of the call clearly and ask when you can expect the payment to be made.  Usually, a phone call placed to a past-due customer will lead to that payment being made sooner.

If you realize that the customer cannot pay in full, offer a payment plan.  Since the economic recovery has been slow, this can be a mutually beneficial strategy. The business receives payment and the customer gets a bit more time to pay. When establishing the payment plan with the customer:

  • Discuss what a reasonable time frame is for the payments and make sure that it is realistic and beneficial for your business and for the customer.
  • Establish when the payments must be submitted and if there will be an interest rate associated with the payment plan.
  • Confirm what will happen if the payment plan is broken and the consequences if the customer cannot make the payments.
  • Always let the customer know that if they cannot make a payment as agreed, that you expect a prompt phone call.

You should always keep the lines of communication open with the customer, because the customer is more likely to remain your customer far after the balance is paid off if the dialogue is one of respect and care.  Once a payment plan is in place, follow up with a letter, which spells out the agreed terms of the agreement and states:

  • Amount owed (customer balance) that will be covered under the payment plan
  • Expected due dates of the payments – weekly, bi-weekly, monthly
  • Terms of the payment plan
  • Any associated interest charge with the payment plan
  • Amount of the payments
  • If the customer can continue to purchase from your company while making payments under the terms of this agreement
  • If will be credit extended during the term of the payment agreement or if the customer will have to pay cash for any purchases made during the payment agreement term
  • Consequences of breaching the payment agreement.
  • If collateral will be accepted if the payment agreement is not satisfied
  • Make sure that the customer signs the payment plan agreement.

Hopefully, this results in full payment and a retained customer.  The key to getting customers to pay their outstanding balances is good communication and having the flexibility and ability to negotiate a payment plan that satisfies both parties.

If, however, the customer defaults on the payment plan, then consider turning the account over to a reputable collection agency or law firm that specializes in collections.

Affordable Care Act Benefit Provisions

With the U.S. Supreme Court set to rule on its constitutionality of the individual mandate provision of the Affordable Care Act this week, the debate on the merits of healthcare reform has heated up again. No matter if you are for or against the reform, listed below are a few provisions that will go into effect. Other provisions not listed below would come into law in 2014 if the Supreme Court upholds the law.

  • Young adult children can remain on their parent’s group medical policy until age 26
  • No lifetime limits can be imposed by insurers on the dollar value of benefits associated with serious medical conditions
  • Preventive healthcare benefits such as mammograms and birth control will be covered
  • Insurance carriers will be required to explain large premium increases
  • Insurers will be restricted from denying coverage to children because of pre-existing medical conditions
  • Adults with pre-existing medical conditions who have no insurance for the past six months will be issued temporary insurance coverage
  • Small companies (classified as 25 employees or less with annual wages less than $50,000) that provide health insurance to their employees will receive tax credits
  • Medicare programs associated with prescription drug benefits

Many feel that some or all of the healthcare reform measures will be adopted at some point, as the healthcare industry prepares for it, employers push for it, and the traditional model of healthcare delivery continues to change.

Payroll Corner

Four Point HR will be closed Wednesday, July 4th, in observance of Independence Day. Clients whose payroll processing will be affected will be notified for alternative processing and check dates. We, at Four Point HR, wish you a safe and happy holiday.