In the book “Good to Great” author Jim Collins makes a very intriguing analogy of a business and a bus. The overall goal of any company according to Collins is not to figure out where to drive the bus but to put the right people (employees) on the bus and then figure out where to drive it. Jim Collins states that a business may not know exactly where they are going in the future but there is one certainty: if a business has the right people on the bus then management can figure out how to take the bus somewhere great.

I was amazed when I first read Jim Collins’ book, “Good to Great” because it reduced to writing the principles that I’ve used for quite some time in the running of my own businesses. But into everyone’s life, rain must fall! I also subscribe to the author’s theory that we must also get the wrong people off the bus before we can move forward. A huge part of the success of my business can be attributed to taking the discipline in choosing the right people. Throughout the years, honing our abilities in choosing the best of the best and to retain the brightest talent has enabled us to grow our company. But more importantly, we have found mechanisms to either a) improve those employees that are not productive or b) slow the bus down and throw them off.

The only way to allow your fantastic employees to perform at their highest level is to make sure they are not slowed down by their fellow employees who are not engaged. I’ve seen time after time the detrimental effects an employee who is not pulling their weight has had on hardworking employees.

The moment that management feels as if they have to tighten the reins on a worker or ensure that a weaker employee is not back to their bad habits, then that means you have made a hiring mistake. My company is not burdened with most of the petty issues that plague most businesses. If you come to work late or you are consistently on personal phone calls, or we catch you playing on the internet, then as Donald Trump says, “You’re fired!”

A good company must expend its energies into developing the right people and growing its business. If a company must spend their time on petty personnel issues, then they don’t have the resources to grow their business.

Now I realize it may sound callous and you may fear you will be perceived as being insensitive to your workers. And perhaps many larger corporations have the resources to invest time and energy into employees who don’t seem to care. It may be that these larger corporations buoyed by continued investments or stock price increases can survive with employees that just don’t work. But in my small, medical business as well as those of many of my clients, I cannot take the risk of allowing ineffective employees to slow down my business. My time and money are too valuable to spend on the wrong employees, who just don’t care. Our management’s time would be better spent taking care of the business and nurturing the employees that are stellar performers.

In my business, if one sheep can’t cut it, my greater responsibility is to the flock. I simply cannot risk the health and well being of the entire flock to try to salvage the weaker, straying sheep. The good of the flock comes first and one rampant sheep could bring down the entire herd. Letting the wrong people hang around and bring down the right people just isn’t good business. While this policy may seem cold and callous to some, it is necessary.

I started my own business to; 1) earn profit 2) help my customers and patients, and 3) provide an income for my employees. Those are my three highest goals. My goals are not to nurture lazy employees that just won’t or can’t work. Let’s face it; if a business is dealing with a problem employee oftentimes this employee is not happy with the business to begin with. Letting problem workers go is the right, humane thing to do.

Such a unique style of management in no way means that employers cannot take care of their employees or not be sensitive to their needs. It simply means that their time and energies are directed and focused on great employees. A company that can fully appreciate and reward their employees can do so much to improve the lives of their staff. Imagine if you no longer had to spend time on problem employees and you now had all of that time to spend on engaging and rewarding everyone else. In the long run following such a direction creates a fantastic, fun environment for all employees.

If you want proof, click the following link to see who was voted The Best Place to Work in Houston in 2008 by the Houston Business Journal.

http://myamputee.com/content/view/177/

Like many business owners one of my chief complaints is that my management team and I spend too much time mired down in the paperwork aspect of running a business rather than actually growing the business. When that age old problem became coupled with outrageous increases in healthcare insurance premiums, needed help. I couldn’t continue paying the outrageous increase in healthcare insurance and knew I would lose employees if I was forced to increase their portion. My salvation came as a knight in shining armor in the form of Gevity, a nationwide leader in the PEO market.

What is a PEO?

When first approached about Gevity by my HR manager I was a little suspicious about utilizing the services of a PEO (Professional Employer Organization) A PEO is an organization that works with an employer in outsourcing various aspects of the HR Department such as Employee Benefits, Payroll Administration, Worker’s Compensation, Health Care Insurance, etc.

Having overseen the Human Resources department for many years and working as a consultant and speaker in the industry, I’ve always thought that there was no need for a PEO for my company. While a PEO may be a good fit for smaller business without HR expertise, I didn’t see the need for any of my businesses. After all I had an excellent Human Resource department, I enjoyed extremely high employee retention rates and my company was named on the “Best Places to Work in Houston” list in 2007 and #1 in 2008. Why would I need HR assistance?

The answer to why I needed Gevity came in unexpected areas. Like many small to mid-size employers, I was faced with the ever-increasing cost of health care coverage and workman’s’ compensation for my employee’s. The problem is I had only about 100 employees on the health insurance and if even a few of them had serious health conditions, my premiums increased dramatically.

Gevity to the Rescue

In the past, periodically my HR manager would meet with several different PEO’s who always offered a plethora of HR assistance and benefits but their value and promises fell far too short of their high price tag. That’s when we were introduced to Gevity. Gevity is a PEO that specializes in offering services to businesses like mine. Their program allowed me to reduce my healthcare premiums by almost 40%! They were worth looking into. But what made Gevity stand out amongst all others is that their program enabled me to continue to use my HR department and retain our HR functions without having to turn everything over to Gevity. In turn, what I received from Gevity was an incredible amount of savings in regards to my health care insurance, workman’s’ compensation, etc.

I don’t really need a PEO

So I agreed to give this PEO thing a chance, not because I needed their assistance with my HR functions but because they offered considerable savings in my healthcare premiums. But later, I was dumbfounded at all of the services and programs Gevity offered my company and the value they brought to me and my employees. As I see it there are many advantages to working with a PEO. The following are benefits I have received from working with Gevity:

1. Benefit and Insurance Options – Businesses have the ability to choose from a larger selection of benefit plans that include: medical, dental, vision, life insurance, accidental death and dismemberment, short- and long- term disability, flexible spending accounts, health savings accounts and COBRA. And as in my situation your employees become part of a larger pool and could dramatically reduce your premiums.
2. Workers’ Compensation Options – helps businesses protect their bottom line while still being cost effective.
3. Employee Assistance Program – a confidential third party counseling service that assists employees and their family members with personal, emotional, occupational and substance abuse problems. This program can reduce absenteeism, tardiness and turnover.
4. 24-7 online access to payroll processing, management reports along with the ability to track and manage your employee’s time off. Tracking PTO has always been a major time consuming duty for my staff and employees.Gevity automated this for our company, saving countless hours.
5. Your employee’s will have 24-7 online access to their personal and benefits information; they will have the ability to manage W-4’s, direct deposit and more.
6. Candidate background screening and candidate pre-employment drug testing.
7. Progressive Counseling Procedures
8. Employee Reward/Recognition Program
9. Performance Evaluation Tool(s)
10. Harassment Prevention Program and Training

Loss of Control

My immediate concern when switching over to Gevity was that I would lose control of my business. The good news was that instead of losing control, I actually gained more control of my company. By utilizing the services of a PEO my HR Department’s time was now freed up to work on more productive aspects of the business and enhancing our business rather than completing administrative duties. In just a few short months our company has relied on Gevity to assist in so many different areas that it is hard for me to imagine not having them to fall back on.

Just one example?

When Hurricane Ike recently struck Houston, we were faced with several issues in regards to paying employees for the time they missed due to the Hurricane. We were plagued with uncertainties. What are the laws? Am I required to pay employees for their missed work? Is their a difference between the requirements for salaried vs. hourly employees? Can I deduct PTO if I pay my employees? Desperate for help we reached out to our Gevity representative. Even though neither of our offices had power, Gevity was there for us. That same day they were able to help us with the legal issues regarding the payment of our employees, leave time, etc. and then later they offered assistance to our employees in dealing with the aftermath of the hurricane. For a small business like mine, the ability to have someone to fall back on without having to pay high attorney’s fees is invaluable.

For more specifics on PEO’s and how they work, please visit: http://gevity.com/about_gevity/what-is-a-peo.html

Mr. Sansone can be reached at: http://www.myamputee.com

Conducting Productive Performance Evaluations

Managers and supervisors cite performance evaluations and annual reviews as one of their most dreaded managerial duties. However, everyone agrees that performance evaluations play an integral role in the success of any business. Let’s begin by clarifying the purpose of performance evaluations.

A successful performance evaluation:

Many small business owners and managers seem to miss the point of a performance evaluation. The ultimate goal of performance evaluation is not to tell an employee what they are doing wrong. An evaluation’s goal is also not to improve the employee’s performance. Rather performance evaluations are to motivate the employee to improve their performance. An evaluation, whether good or bad, that does not motivate an employee to improve their performance has missed its mark completely.

The following are the guidelines for providing successful employee evaluations:

1. Frequency of evaluations

Ideally, initial evaluations should be given after 30, 60 and 90 days of employment and thereafter at the 6 month and annual anniversary of the workers hire date. To many the 30, 60 and 90 day evaluations may seem like overkill, but I have found that these reviews early in the employment process oftentimes prevents a employer from tolerating unacceptable behavior or even allows the employer catch bad habits early on – before it is too late.

Another advantage of frequent evaluation is that an employee is never surprised with managements opinion of his or her performance. If an employee that thought he was doing a great job and expected a big raise on his evaluation is told he is underperforming and receives a modest raise, that employee may be lost forever. Routine evaluations are an integral part of the employer-employee relationship. Employees should never be surprised by the results of an evaluation because evaluations should be part of a routine ongoing performance improvement plan.

2. Seek feedback from other supervisors and management.

The direct supervisor should fill out the evaluation and conduct the performance evaluation. However, feedback from valued managers and supervisors throughout the company should be solicited. I’ve been astounded at some of the feedback I’ve received from management in the past. I had one employee I thought was a superstar due to my limited exposure with that employee, I soon discovered that I had serious challenges that needed to be addressed with this employee.

3. Length of the evaluation

Semi-annual and annual evaluations should never be less than 30 minutes and an evaluation that lasts longer than an hour may be overkill. 30, 60, and 90 day evaluations should last less than 20 minutes or so. While managers often dislike these evaluations and rush through them, we should be cognizant of the fact that evaluations are very important to the employee and are often the culmination of a years work. When employees see their supervisor rushing through the meeting in 10 or 15 minutes, they feel devalued.

4. Never postpone an evaluation

The golden rule of performance evaluations is to never delay performance evaluations for an extended period of time. No matter what excuse is given to the employee, delays send a very clear message to the employee that they are not a priority. After conducting thousands of interviews, I have made a study of why many tenured and seemingly productive and happy employees have left their jobs. All too often they resent the fact that their evaluations are constantly delayed. Surprisingly, it’s the valued, long term employees that continually have their evaluations delayed. It is not uncommon for me to interview an applicant that says, “I love my job, my pay is great, but they have delayed my evaluation and raise for over three months now. I think that is inappropriate, and that’s why I am looking for a job.”

5. What is the employee thinking?

The best way to know what an employee is thinking is to ask them. And the easiest way to write an evaluation is to ask the employee to write it. Kill two birds with one stone and make your job easy. Self appraisals are a major component to any successful performance evaluation. Managers may be hesitant to bring up a particular weakness to an employee, because he feels as if they will be sensitive or non-receptive to the corrective feedback. But most employees know about their weaknesses and if they are addressed in the self appraisal, the manager’s job is much easier.

Also, it is not uncommon for managers to be unaware of some of the strengths of their employees and a proper performance evaluation will afford the employee the opportunity to highlight his strengths and accomplishments.

Look at the big picture

I have worked with managers that have given a very positive evaluation to poor performers while writing a lukewarm, critical evaluation for a valued employee. Personally I have a tendency to be hard on my “favorite” most valued employees. Pay attention to the overall mood of the evaluation. If the employee is a valued employee, let them know this. Conversely, if the employee needs improvement then this is your opportunity to let them know- don’t beat around the bush.

The most important aspect of a performance evaluation

If the main goal of performance evaluations is to motivate an employee to improve, then the employee must have goals to strive for. These goals are closely connected to the areas of improvement that should be given in all evaluations.

Be specific

Comments such as ‘The employee is a good team worker” or “Employee exhibits a high degree of dedication” do not properly identify the positive traits the employee is exhibiting. For instance, managers should say, “Employee exhibited being a team player by jumping in and helping the sales rep complete a proposal for ABC company.” or “Employee has a tendency to delay simple routine tasks such as the daily inventory reports and PO logs.”

For more information about Joe Sansone and TMC Orthopedic please visit us at
www.myamputee.com or www.tmcconsulting.org

In the aftermath of Hurricane Ike, employers and employees alike are scrambling to determine their financial futures. Both parties are looking for help. Neither the employers or employees asked for the hurricane to come to Houston and both parties feel as if they should somehow be compensated - but this money must come from somewhere.

The most prevalent issue is whether or not employers are required to pay employees for the time that they are unable to work. Employees feel like they should not be punished for a situation they had no control over. But employers are facing tough financial times as well. While it may be easy for larger corporations with a small percentage of their workforce in Houston to compensate workers for missed work, many small business owners simply do not have the luxury of paying their employees for missed work.

Many companies are not only saddled with damaged buildings and their contents but they also have no revenue coming in the door while monthly expenses such as rent, insurance premiums, and loan payments continue to mount. Local businesses are not only challenged with a loss of profit but also face substantial losses. Taking in consideration a payroll which could be 20-50% of a company’s revenue, these businesses could experience dire consequences. It may be that forcing these employers to pay their employees for missed work could well be a death blow to a once thriving business.

So what exactly are the requirements for paying employees during a natural disaster? To simplify the answer, lets divide employees into exempt (salaried) and non-exempt (hourly) status. We must also make the distinction between whether or not the business was closed by the employer or if the employees simply could not make it to work.

EXEMPT (SALARIED) EMPLOYEES

Workplace Closed Due to Inclement Weather for Less Than a Work Week.

If an employer closes an office due to inclement weather or other disasters for less than a full workweek, the FSLA requires the employer to pay the employees full salary. The next question begs; can an employer force the employee to use their PTO (paid time off)? Oh if it were so simple. I am currently receiving contrary advice from two prominent employment law firms. One states absolutely you can deduct from an employees bank of PTO or vacation hours, another attorneys office is equally adamant that exempt employees must be paid and no deductions from a PTO bank can be made. My advice? Err on the safe side, pay your employees, do not deduct from their PTO bank and hope that the goodwill fostered will pay off in the long run. It is not unheard of for employers to ask their salaried employees for a little extra time in these precarious times.

Workplace Not Closed Due to Inclement Weather

The Department of Labor considers an absence caused by transportation problems during weather emergences (if the business remains open) as an absence for personal reasons. Therefore an employer may place an exempt employee on leave without pay for missed work. An employer can also deduct from an employees PTO bank and/ or allow employees to “go negative” in regards to their PTO accrual.

NON-EXEMPT (HOURLY) EMPLOYEES

Regardless of whether a business was closed due to inclement weather the FSLA requires employers to pay non-exempt employees only for the hours that the employees actually worked. An employer is not required to pay employees if the employer is unable to provide work for those employees.

Employees returning to work

Chapter 22 of the Texas Labor Code prevents an employer from discriminating against an employee for participating in an emergency evacuation whether the evacuation is mandatory or voluntary. This statute ensures that an employee’s job will be protected for the duration of the evacuation period. Chapter 22 applies to all employees with the exception of those who are considered emergency service personnel. Emergency service personnel include emergency medical technicians, firefighters, police officers and “other individuals who are required, in the course and scope of their employment, to provide services for the benefit of the general public during emergency situations.”

On-call Pay

When an employer places employees on-call and they remain at the business premises, the employer must pay them for their time regardless of whether they do any actual work. If however an employee is placed on-call while at home and is not working while on call then the employee is owed no pay.

Waiting Time

There is a question as to whether waiting time is time worked under the FSLA. The answer lies in the particular circumstances. If the employee was engaged to wait then they are considered “working.” For example, if the employee was required to be at work to wait for the power to be restored they would be considered working and pay would be due. Although work may not be getting done, they are still considered “on the clock.”

Volunteer Time

Another situation employers must be wary of is volunteer time. When employees volunteer their time to assist during times of disaster, employers must be careful especially when they are performing duties similar to or the same as their routine tasks. If employees are performing their typical duties, they must be compensated for their time.

Employee Lay-offs

If an employer is unable to reopen their business due to extensive damage or loss during a natural disaster, affected employees must be given as much notice as possible. According to the WARN Act, employers with 100 or more employees must give notice of layoffs. If employees receive less than 60 days notice, the employer must be able to prove that the lay off is a direct result of a natural disaster with no other contributing factors. This does not apply to businesses with less than 100 employees.

Hurricanes and other natural disasters have posed varied and unusual challenges for human resource professionals. While many employers and their management are working around the clock on recovery efforts they are also saddled with important legal considerations. The information provided herein is merely opinion. The author is not an attorney and offers no advice or claim of legal expertise. Please consult with an attorney before making any decisions on the aforementioned issues.

As mentioned on my September 23rd radio show, employees may file for time lost wages.  The Texas Work Force website explains disaster unemployment assistance benefit rights as well as the requirements you must meet to file a claim at:

 http://www.twc.state.tx.us/ui/bnfts/dua.html

If you find you do meet these requirements, visit:

http://www.twc.state.tx.us/news/ikeinfo.html

to apply for unemployment insurance (UI) or Disaster Unemployment Assistance (UDA).  It will only take a few minutes of your time and will be well worth it!

The Internal Revenue Service has extended the filing deadline for all taxes returns and ES payments of taxpayers in the effected counties which were due after Sept. 7th (EXCEPT PAYROLL TAX REPORTS AND DEPOSITS) to January 5^{th, 2009.  Payroll tax deposits that were due after September 7th are due today, September 22nd.  All future payroll tax deposits (bank deposits and EFTPS payments) are due on time.  Please see below if you would like to read more detailed information regarding the IRS ruling.}

Being your own boss, coming and going as you please, enjoy seeing the growth of their employees, and being your own man and answering to no one. These perceived perks are soon replaced with staying saddled behind your desk long after your employees have gone home, and trips to the office every weekend. But for many small business owners, one of the most intimidating tasks that they face is the dreaded payroll. Employers find themselves saddled with keeping their records complete, accounting for the correct amount of taxes and withdrawals, dispensing checks, managing direct deposits, and all the other frustrations associated with payroll. As a matter of fact, a recent study by the national federation of independent business (NFIB) found that 64% of small businesses handle payroll in house. It is not surprising that this survey discovered/found that greater than 50% of the business that prepared their own payroll, it was the owner who performed this duty.

While cost is generally the cause for employers to do their own payroll, business owners should consider the opportunity cost and the future risk upon their business from doing payroll directly themselves. While a small business owner may spend 5-10 hours per week compiling payroll records and tabulating figures for a business with up to 10 employees, outsourcing such a service to a payroll firms would cost $100 or less per pay period. A further bonus, is when that payroll is outsourced business owners are able to take advantage of payroll firms expertise in preparing other documents, such as W2s and 1099s. What is seemingly a easy task for a business owner with 4-5 employees as a business grows soon becomes a major diversion from what should be the duties of a company owner. Give some thought not only to the amount of time you spend on your payroll, but also what does the opportunity cost. In other words, do you forgo dinner with a client once every two weeks because you are forced to sit in front of mounds of paperwork to save yourself just $100, and are business meetings set aside so that you can tackle your payroll duties?

Another consideration is why did you start your business to begin with? Was it for the joy of providing your company’s products and services? Or was it for the joy of being shackled to your desk facing payroll and accounting issues every two weeks? Is it possible that the part of owning a business you dislike the most, payroll? Give yourself a gift, spend the extra $100 - $200 per month and have someone else do your payroll, and spend the amount of time you use to waste on payroll growing your business. If the time savings do not allow you to grow your business enough to generate the amount of profit,   then something else is wrong.
How to choose a payroll company?

The following steps will help you make a decision on a payroll company:
Make sure that the firm you choose has an established presence, not only across the country, but in your local market.
Ask for references, keep in mind we all give out references of our best customers, and we expect these references to be glowing. But, a savvy business owner can dig deep and ask references what the biggest obstacle is that they have had to overcome with their payroll company. What it is they would like to see the payroll company change, and truly how easy is this company to deal with.

The dreaded sales representative. While many business owners do not take kindly to those “pesky” sales representatives, in this situation it is the sales representative that receives some sort of commission from your business. So insure that you have a sales representative who is willing to meet with you and address all of your concerns regarding the payroll service.

Find your own references. Ask other business owners and HR Managers about their experiences with payroll companies. The results may surprise you, and finally, make sure that the payroll company that you choose is a right fit for you. A company that handles the payroll for companies of 500-1000 employees will not necessarily be the best fit for a smaller company with less than 20 employees.

Like many employers I have been forced to take a look at the high cost of gas prices and its effect on my employees.The problem hit me like a 2 x 4 between the eyes just last month. During a routine annual evaluation of an employee, this employee received a standard raise of 3-4% and the disappointed worker looked at their boss and politely told him they love their job, and they really wanted to work here, but they couldn’t continue to work here unless they received a larger raise.Gas prices had simply eaten away at her finances and she needed help.

On first glance, this seems as if the employee is would survive better in a communist state if she is expecting her employer to cushion the blow due to the oil crisis.  But more compassionate management realizes that this financial issue is indeed a problem for their workforce that just won’t go away. And it is highly possible that employers will face increased turnover if they can’t find a way to ease their worker’s burden.  A recent study by Jim Hochwarter at Florida State University’s College of Business, indicated that about 33% of employees said that they would quit their job for a comparable one nearer to home.  Wow, how is that for a kick in the teeth!

So while it may not be incumbent upon employers to solve the oil crisis, a savy company will be required to offer some assistance or solutions if they want to retain their top talent. It is a growing problem that must be addressed.  Otherwise Jobing.com Monster.com will appreciate your business. 

8 Opportunities to Help Offset the High Cost of Gas For Your Employees 

1. Offer compressed work weeks. If employees work four 10 hour days, their commute cost will be cut by 20%.
2. Allow employees to telecommute. Studies have indicated that 40% of us have jobs that could be done remotely, yet only 4% actually work from home on a regular basis.
3. Offer company cars as opposed to mileage reimbursements. An analysis of my employees’ auto expenses have surprisingly shown that it would be less expensive for my company to offer company cars to some employees as opposed to offering mileage reimbursements.
4. Some companies such as Jobing.com, will wrap their employees’ vehicles in advertisements to make their vehicles rolling billboards and reimburse gas expenses.
5. Many employers are offering carpooling to their employee. Initiating a forum for employees to ride together may be as simple as posting areas of town on a bulletin board.
6. Some companies are subsidizing the costs of public transportation for their employees.
7. A company with multiple locations can offer transfers to select personnel.  Recently moving a corporate employee to one of our retail locations has saved that employee an estimated $2,100 per year in gas alone - not including wear and tear on her car. She will also be spending two less hours on the road each day. Than transposes to…are you ready for this…..520 less hours each year spent driving to work.
8. The most interesting… Healthcare giant Humana, has a bike sharing program, called Freewheelin whereby employees register and sign out bicycles to use at their discretion, and return it within 24 hours, at which point they can sign out another bike.Many employees now take the company’s bikes home each day as opposed to driving to and from work.

Kevin Price, Host of the Houston Business Show (M-F at 11 AM on CNN 650) announced that Joe Sansone has joined the program as a Business Show Advisor.  Kevin Price noted that “Sansone is a true leader in the Human Resource arena.  His companies are always ranked among the best businesses to work for in Houston by the Houston Business Journal.  Now he will bring that vast knowledge to help others in the Houston business arena.”

About Joe Sansone

Joe Sansone of TMC Consulting (Human Resource) and the founder and CEO of and the Amputee and Prosthetic Center and TMC Orthopedic, Joe Sansone is recognized as an expert in the healthcare industry, while having authored numerous articles, and lecturing frequently throughout the country. 

Sansone has led his companies to be named an Inc. 500 Company, has been named three times as a finalist for the Ernest and Young Entrepreneur of the Year, and has received the US Small Business Association’s top award as Small Business Person of the Year.  TMC Orthopedic has been named on the Houston 100 an unprecedented six times and in 2008 both The Amputee & Prosthetic Center and TMC Orthopedic were named #1 and #4 on the Best Places to Work in Houston.  In addition, Sansone received the Texas Businessman of the Year award in 2004 and in April of 2008 the Congressional Medal of Distinction for his work within the community.

Sansone attended Rhodes College and received a Bachelor of Science degree in microbiology from the University of Memphis.  Capitalizing on his unique opportunity as a medical provider and an employer, Sansone has made a lasting impact on furthering the cause of promoting awareness of amputees and advocating for his patients.  In fact, almost one third of the employees that work for the Amputee and Prosthetic Center are amputees. Sansone is also the founder of Limbs of Love, a charitable organization which helps provide limbs for those amputees who could not otherwise afford limbs.