THE REPORT BLOG

Kick Your Employees Out!

Like most smaller businesses, some members of our team have strategic and tactical responsibilities. Also like most smaller businesses, everyone has plenty to do so it is hard to find uninterrupted time to just think. This week I encouraged Daria, our editor, to spend a couple of hours out of the office (James, marketing and events manager is next). She came back with a list of seven ideas after spending time at the magazine rack at a Barnes and Nobles.

One of the ideas, putting page numbers on the "cover lines" on the magazine covers, is really very simple. (Our readers are busy so let's help them find stuff faster). Yet, we hadn't thought of it sitting in brainstorming sessions in the office.

As the list of dual responsibilities includes me (to a large extent), I schedule think sessions out of the office myself. In fact, I have been doing this for years. The idea for the Small Business Awards came from one of these sessions. It is now a marquis program for the tri-state area. I don't think I would have developed the idea in the office with the phone ringing, email and other distractions.

One more thing - I have found that these sessions are far more productive without a laptop (or at least without Internet).

Best Practices in Hiring

In yesterday’s post, I talked about the worst hiring practices that, unfortunately, many of us (including me) are guilty of. In his talk, Barry Deutsch did more than point out common mistakes – he provided suggested best practices. Now, here are a few of the best practices from Barry:

• Include the results you are looking for from the position in the posted job description.
• Define the problems, obstacles, actions and results, before even thinking about beginning a search.
• Remember that the best candidates are seriously checking you out. Sell to them like you would sell to your top client. Be prepared, don't take calls or check email during the interview, and CHALLENGE the candidates.
• Ask for examples of previous results related to the results you want the candidate to achieve. Do not let candidates off the hook here.

Barry also said that the process for high level candidates will often be five rounds. The best candidates will understand and appreciate this. 
 

I am not doing Barry justice, and I don’t want to steal his thunder. Check out his website for more. I can tell you that his presentation made me totally rethink our hiring (and management) process. See what NY Report expert Al Siebert says the top “Seven Tips to Hiring Resilient Employees” are.

Bill Russell, Red Auerbach and Us

With Red Auerbach as the coach and Bill Russell leading the team, the Boston Celtics won 11 championships over 13 seasons. Bill Russell recently wrote a book about his friendship with his mentor, titled Red and Me. According to a review of the book in the Wall Street Journal, Russell described how Auerbach didn't try to change his playing style to the Celtic’s style when he joined the team in 1956. Instead, Auerbach focused on making Russell a better player through his own strengths.

This is a great lesson for any leader or manager, although certainly not a new one: play to people's strengths. I do think this is easier said than done, as many of us often want our people to conform. And I am not saying that this means that people don't have to be managed. But, if the employee and manager want the same end result, the employee is talented and there is mutual respect, better results will often come when the employee can focus on maximizing his or her strengths, as opposed to conforming to existing systems within the company. NY Report contributor Adrian Miller applied these principles to training sales staff in the article “How to Get Your Sales Staff to Love Training.”

One caveat to all of this: I have seen times where a company needed different strengths from those of a very talented employee. In cases like these, the fit and timing just isn't right and it was best for the company to encourage the employee to look for a new opportunity.

Why You Should Hire from the Midwest

On Monday, I had the pleasure of having lunch with Zane Tankel,who was on NY Report's September 2007 cover. We spoke about a lot of business issues, including a call Zane had with a landlord that resulted in his landlord wanting to meet somewhere for a fight. While the proposed ass-kicking didn’t surprise me (after all, who hasn’t almost come to blows with their landlord at one time or another), another topic of conversation did. Since Zane was on the cover, his company, Apple Metro, which owns the NYC Applebee's franchises, has grown significantly, despite a dismal year for the restaurant industry.

Zane hired a new COO who came from the Applebee's corporate franchiser. Since then, the company has been hiring restaurant and district managers from all over the country. In fact, 50% of new management positions are filled by out-of-towners (at a significant expense to Apple Metro). The other half are promoted from inside the company. When I asked why, he had a few reasons including that the company needed a new perspective and that he found that people from the Midwest are hard workers.

 

What Employers Need to Know about the new COBRA Law

Individuals covered by the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides continued health coverage to individuals who have lost their jobs (either due to job loss, relocation, etc), will get a big helping hand from the government in the form of a federal subsidy.

Effective February 17th, 2009, certain individuals eligible for continued medical coverage under COBRA or similar state laws will now receive a federal subsidy of 65% of their premiums. Only those who have lost their medical coverage due to involuntary termination from employment (other than for gross misconduct) between September 1st 2008 and December 31st 2009 are eligible for the subsidy.

For employers, the federal subsidy will cover only the costs actually payable by the employee and does not affect the employer’s contribution to the premium.  However, employers might need to contact employees who might be eligible for this program.

For more information on the subsidy, check out this great FAQ page set up by Klein Zelman Rothermel, LLP.

Give 'Em a Break

Even though our staff at NY Report has doubled in the past year we still run very lean. So my team works very hard and many wear several hats. Given the pace at which we work, and the fact that this pace will continue or get more frenetic, not to mention the effect of all the bad news in the media these days, it is a legitimate concern that we might get a little nuts.

Last week I got the team together for a quick impromptu meeting and encouraged them to take many breaks throughout the day. Preferably out of the office. I think this helps everyone "take a breath" and keeps us sane, which should result in happier and more productive workers.

The next thing I need to figure out is how to make sure they do take breaks without making it mandatory. Any suggestions?

Employees Late Today?

They're voting. Really! Check out this picture from upper Manhattan at 6 in the morning, taken by our art director Laura Sutcliffe.

Employee Voting Leave

Here’s a quick reminder from Deborah Shapiro, of Deborah A. Shapiro, LLC, regarding employee voting leave. Thanks to Deborah for this great piece of info, and Stacy Robin of The Degania Group for passing it along.

“As Election Day approaches, please be aware that New York State law requires you to provide your employees with sufficient time to vote.

Employees are entitled to “voting leave” if:

-they are registered voters; and
-they do not have at least 4 consecutive hours in which to vote, either between the time the polls open and the start of their work day or between the end of their work day and the time the polls close.

These employees are entitled to take up to 2 hours of paid leave. They also may take an additional 2 hours of unpaid leave, if necessary, to have 4 consecutive hours off while the polls are open (but employees who are exempt from the overtime laws must not be docked for this time).

If employees wish to take voting leave, they must provide you with notice at least 2 days, but not more than 10 days, before Election Day.  You are permitted to designate whether an employee takes his/her voting leave at the start or the end of the work day.”

Instill Passion in Your Workforce

Our editorial assistant Mike, who attends all NY Report photo shoots, had a lot of great things to say about this month’s cover subject Stuart Weitzman. But what left the biggest impression on him, besides his down-to-earth personality and sense of humor, was the passion Stuart’s staff had for his brand. The ladies that assisted him during the session were eager to share with the NY Report staff production stills from movies featuring Stuart’s products, stories behind some of their most publicized shoes, and why Stuart’s shoes are so high in demand (for the fashion-clueless like Mike).

It seems like Stuart has surrounded himself with people who share his passion for shoes. While I’m sure it wasn’t too difficult for Stuart to find people with a passion for high-end shoes, it’s something we all can learn from as business owners. So, how can you get your staff to share some of the same passion you have for your business?

Music Soothes the Savage Employee

Misery loves company. I just hope it doesn’t love my company. So, I asked my staff for ideas on how we can make the workplace a, dare I say it, fun place to be.

While it may seem magnanimous for a boss to want employees to have fun at work, this approach is not without bottom line motivation. People who want to be at work, more often, will be at work. They are less likely to be clockwatching and therefore more productive.

While I was expecting requests for an air hockey table, a tequila bar and a Wii set up in the conference room, the most requested addition to our office was music. Music, I can do.

Since the musical tastes of my employees range from Top 40 pop to hard core punk to reggae, we had to set some guidelines. My only stipulation was that the music could not have vocals, because singing can be distracting. The group voted for jazz. We set up an iPod and speakers and loaded a playlist with jazz greats. Before The Dave Brubeck Quartet finished Take Five, the mood in the room was significantly lighter. As I looked around people were working and smiling.

While I’m on vacation this week, I can relax knowing our newest office mates - Mr. Brubeck and Mr. Coltrane – are keeping my employees smiling and misery in someone else’s office. 

Minimum Wage Raise Effective Today

Barbara Weltman’s site has a great “Small Business Ideas of the Day” section and today’s post deals with the raise in the federal minimum wage rate to $6.55 per hour. Here’s the full text from today’s post (since it will be gone tomorrow).

“The federal minimum wage rate rises today to $6.55 per hour (it will go up again next July 24 to $7.25 per hour). If your state has a higher minimum wage, you must observe the state's hourly wage rate. Action: Update your employment poster to reflect the new minimum wage. Note: An employer is still only required to pay $2.13 per hour in wages if the amount, plus the tips received, equal at least the federal minimum wage. To rely on this lower rate, the employer must inform the employee of the tip credit being taken, the employee retains all tips (other than those in a tip pooling arrangement), and the employee customarily receives more than $30 a month in tips.”

Of course, the above are federal rates and many state’s minimum wage rates override federal rates (if it is higher). For example, New York State’s minimum wage is currently $7.15 an hour but will match up to the federal rate of $7.25 by the 2009 update.

For more info on minimum wage rates by state, visit www.dol.gov/esa/minwage/america.htm. Be sure to check out barbaraweltman.com for more great tips on running small businesses.

Get Ready for the Millennial Workers

This time of year, a new crop of Generation Y college graduates are showing up at our office doors looking for their first jobs. And as the baby boomers advance toward retirement, business owners need these new recruits. The problem is there is often a disconnect between what we as business owners are looking for and what they as entry-level employees expect. They aren't called the Entitlement Generation for nothing. The typical Gen Y worker expects to fill the following position after graduation:

Job title: Director of Ideas and General Office Critic
Salary: $70,000
Hours: 9ish to 5ish
Benefits: 1.5 hours lunch, summer Fridays off, an office and an iPhone
Responsibilities: Surf the internet, keep constant track of "what's up" via IM, offer solutions to antiquated company policies, roll eyes when given constructive criticism. Director of Ideas will NOT be required to send FedEx packages, take notes at meetings or make photocopies for anyone.
Qualifications: Brilliant and all-knowing. No experience necessary.

Unfortunately, this job description doesn't match any open positions I've heard of. But that doesn't mean this new generation won't be a great fit for our companies. For example, while they have high expectations of their employer, they also put high expectations on themselves. Their boldness may be aggravating to managers, but it is also a necessary quality in an entrepreneurial organization. Let's not overlook the fact that these kids are more educated than any other generation past. And most of all, this new workforce is by far the most technology-savvy. While their style may be different from the button-down attitude we're used to, maybe we should give them a fair shot at being successful at our companies.

Business owners have a management issue at hand. How do we usher in the new generation of workers and capitalize on their potential? I don't know the answer, but let me know if you've got some suggestions.

I myself am a Generation X worker. Our generation entered the workforce with an equally low set of expectations. The popular belief in the early 90's was that I would come to work unshaven, wearing a flannel shirt; half brain dead from watching too much MTV. That couldn't have been further from the truth. Well, maybe I did watch too much MTV.

If you'd like to read more on this generational divide, check out this article from The Wall Street Journal.

Candidates Don't Wait For You

No, not the 3 running for President, I mean candidates for employment within your company.  As you might know from reading this blog (or my letters) we are always looking for salespeople (but don't hire many because we are very selective).  Over the past few weeks, 3 candidates have not "showed up" for interviews (mostly over the phone).  In 2 of the 3 instances it was because they took another job.  Of course, they should have let us known in advance, but the bigger issue for all of us to learn from is that we are in a hyper-competitive market for talent.  So when you have some interested candidates, don't waste time to interview them.  Sure, most won't be a fit for your company and that screening process takes a lot of time.  However, by being aggressive with scheduling, you can make it your decision and not theirs.

Travel Essential for Any Business Owner. . . Trust

It's the day before I leave for the New Orleans Jazz & Heritage Festival, something I look forward to every year,  but  my main focus isn’t on packing or on the multitude of meetings I have scheduled. It’s on making sure everyone on my staff is prepared for the three days I’ll be away. Not only will I delegate tasks and make sure everyone knows what I expect will get done while I'm gone, I also need to be available to hear updates and project reports from my employees, all before I leave. Of course, no one can predict the little things that will inevitably pop up here and there, but that’s why it’s important to have a staff you can trust to handle it all. And this year I’m taking a firm stance on one thing - no phone calls (unless it’s absolutely crucial, of course).

If you’re into the New Orleans music scene but can’t make it to this year’s festival, check out the webcast. 

A New Recruiting Tactic That I am Trying

Over the past year, we have been recruiting for salespeople.  While we have recently made a great hire, we need more.  Besides, I believe you should always be on the lookout for talent.  So we recently posted an ad for a salesperson.  Ideally, we would like someone with a couple of years of experience because it is important that someone is still "trainable".  However, a few years ago someone (I wish I remembered who it was) suggested that, when reviewing resumes, interview a few people that may not seem like a great fit, but still have something compelling about them.  Easier said than done since my time is the most precious resource I have.

So this round, I am trying something new and setting up calls (our first round is always over the phone) and in-person interviews with a few candidates that "grab" me but I really would not have considered in the past.  Examples: someone without media sales experience (I have been much more open to that) and someone straight out of college.

Check back in a few months to see if any of these candidates become diamonds in the rough.

Learn From Google- Feed Your Employees

I was fortunate enough to be given a tour of Google's New York office as part of a program run by EO.  We toured one of their floors, which I believe runs an entire city block.  Every 100 feet or so they have a food station of some sort full of things like nuts, M&Ms, cereal, enegery bars and drinks.  They also have a few cafeteria's on each floor with occasional appearances by well-known guest chefs. Oh, I almost forgot about the game room that was bigger than my office.

As I was talking with Infinity Info System's Yacov Wrocherninsky about all of this, he commented "you know food is cheap, that is the easy part.  But look how much real estate they are devoting to providing food for their staff."  During the tour several other EO members commented "I hope my employees never see this place."

Google puts their money where there mouth is when it comes to taking care of their employees.  While most of us can't afford to go to the extremes that Google does, we probably can do a few little things like keep a constant flow of snacks around.

Would You Want Robert Moses as your COO?

I am in the middle of reading The Power Broker - a bio on Robert Moses. If you don't know much about Moses, he was the guy responsible for building much of NYC and NYS park and highway system (not to mention the Tri-Bourough Bridge, Jones Beach and a lot more). He did so with incredible speed and his works were incredible feats of the times (and probably would be considered incredible today). Simply put, he had an incredible ability to get incredible things done.

However, in many respects he was a bad man. He chased many people out of public office. He blackmailed. He lied. He stole (although never for his own benefit). He forced people out of their homes without giving them viable alternatives. With his manupulation of the press he, in some respects, was more powerful then the President.

My question to you is: would you hire Robert Moses?  On the one hand, he could have the ability to make things happen for your business that otherwise would seem impossible. On the other hand, he was mean and would destroy everything in his way. While some mayors and governors hated him, they never dared to fire him.

Employee Performance Review Helper

We know how important performance reviews are when running a business, but who has the time for them? Success Factors is one company that touts itself as a remedy for this dilemma by offering an automated employee review system specifically for small to mid-sized businesses. The online service makes it easy to write a review by centralizing the process online- allowing annonymous reviews and feedbacks, and giving you real-time graphical feedback of your company's performance. Another great feature is their legal monitoring service, which scans your reviews for any legally sensitive words (like ethnicity and age). If this sounds like something your company could benefit from, check out their free e-guide “The Secret to Effective No-Hassle Performance Reviews” (although it is a little bit of a sales pitch).

How is Your Customer Service? Take This Test

I just read a newsletter from The DiJulius Group regarding their Company Service Aptitude Test- a test to determine your company’s level of customer service. The great thing about this test is that you can have different departments take the test independently, giving you feedback from which you can determine strong and weak points in your service culture. The results get e-mailed to you as soon as you finish the 15-minute test. If you’d like, you can take the test here (registration is required).

Your Office: Home Away from Home

I recently read an article in New York Magazine about the little touches you could add to your office to make the environment “better” and it got me thinking- most of us spend the majority of our work days in an office setting and yet we rarely take time to “decorate” it as we would our homes. How much would productivity and office morale increase with just a little decorative touch here and there? I, for one, think the staff here at NY Report could use a few plants in the office. 

And if you’re interested in what kind of message the colors in your office may convey to others (like clients) check out our upcoming Feb issue, where Steven Papadatos of Papadatos Partnership, LLP discusses colors in the work place.