The Astron Road Show: October 15, 2013

The Astron Road Show draws to a close with the arrival of October.  We have a few remaining events before putting away our suitcases until next spring, however!

First, Mike Maciekowich will exhibit at the annual Nonprofit Human Resources Conference.  This year’s event, slated for October 20^th – 22^nd, will be held in National Harbor, MD.

Rounding out our Road Show activities for the year, Jennifer Loftus will present at the GNOSHHRA monthly chapter meeting, slated for October 24^th in New Orleans, LA.  The chapter’s annual salary survey, administered by Astron Solutions, is the topic of the meeting.

These two events will close out our 2013 Road Show.  We look forward to seeing you again in 2014, in cities including and not limited to Orlando and Nashville!  If you have a conference that you think would be a good fit for Astron Solutions, please let us know!  We love to hear your recommendations.

Changing The Bonus Structure

We talk a lot here at the Astron World of HR blog about rewards and compensation--and a lot of times we try to bring up something other than a straight monetary reward. Sure, cash is great but it's not always in great abundance (especially in this economic environment) and even it if is, it's not always the best tool to motivate for future performance. So what else is there? Well Harvard Business School's blog (and one of the researchers is a former classmate of mine) takes a look at the bonus they say that employees really want--even if they don't know it yet.

Instead of just giving a nice paycheck to employees when they do well, the article suggests, instead that you take that money, give it to the employee, but give the sole caveat that they spend it on prosocial actions towards charities and co-workers. It sounds a little out there (especially since the money is obviously there and the employees may find it strange they have to use it on others if they "earned" it), but there is case evidence to back it up and the article concludes:

Nowadays, people spend more and more time at work, yet less than half of working Americans report being happy with their jobs. Maybe it is time to be creative with the rewards and switch from a self-centered to an altruistic paradigm. Rather than spending a significant amount of time wondering about the big holiday bonus, what if your employees spent some time figuring out how their donations can impact the world, or what kind of gift will make their co-workers happy? 

Maybe then money can be a path to spreading happiness and productivity in the workplace.

Think about it in your organization. If you're not getting the results you desire from a purely traditional bonus compensation standpoint, maybe it's time to look outside the box and see if an altruistic approach to bonuses may be a way to change the culture and the mindset of your employees

Making E-Learning Work for You

As technology advances, e-learning continues to be a topic of discussion with respect to developing employees.  Have you and your organization considered including e-learning tools in your training and development mix?  This issue of Astronology considers e-learning and whether it’s worth the investment by your organization.

                
Elearn magazine conducted a survey in 2005 on the future of workplace e-learning.  At that time, they noted the following:

• ·    “25% of respondents to this survey indicated that in 2004 e-learning was already the dominant form of training in their organization, while another 50% predicted that e-learning would become the dominant form of training within their organization by 2010."
•      “30% of respondents felt that their organization would primarily focus on the delivery of e-learning.” 
•       “80% of those surveyed responded that they were using e-learning or blended learning (face to face training combined with e-learning) to train their employees.” 
•      “60% of those surveyed responded that their organization had a strategic plan for e-learning."

Fast forward almost 10 years, and it seems that these predictions haven’t quite come to fruition. E-learning is still growing in popularity.

With the promise e-learning holds, does this mean no more intimidating ice breakers and uncomfortable training rooms for face to face training? Are we approaching an era where training will be strictly done at your office desk or computer lab? Perhaps not. Note that, even almost a decade ago, the survey found that 80% respondents used a combined effort of e-learning and face to face training. Why this blend? There are some aspects to face to face training, crucial to the learner’s development, that e-learning simply cannot replicate. For instance, face to face training allows room for socializing, as well as trains employees to learn from each other, creating a team building environment.  While not insurmountable, these goals are more challenging to achieve in a strictly on-line environment.

              
E-Learning has its benefits and disadvantages. E-learning tools can track an employee’s progress, allowing management to see areas of weakness and to provide in-time feedback to foster growth.  In addition, e-learning can be quite cost effective as employees will not have to travel.  E-learning is usually flexible, to accommodate changes in workflow.

             

Some disadvantages of e-learning include motivation issues with learners who are conditioned to be more passive with online learning. Feelings of isolation during training can also result in lowered motivation. In addition, technology is a growing field, and as a result, when using e-learning tools, one runs the risk of dealing with technology issues. Poor internet connections, lost flash drives & forgotten data, and long software updates are but some of the issues you may experience with e-learning.  While some of these problems can be avoided, there’s always room for something odd to occur when using technology.

In addition, one most also consider the impact on the instructor when using e-learning tools.  For a prepackaged course, the “instructor” keeps track of course completions and pass rates.  If using social networking and educational tools in a synchronous or asynchronous environment, however, the class dynamics change.  As National Director Jennifer Loftus explains, “when using a tool such as BlackBoard or ZohoNotebook, it’s critical that the instructor read all the student posts or contributions, and engage the learners in on-line discussion.  Sometimes this can be more work than managing face to face class interactions.  To ensure the best learning environment for our course enrollees, however, instructors cannot use e-learning as an excuse for passivity.”

So what are some things you may have to consider if you’re thinking about including e-learning in your training? Trainingzone offers these suggestions:

• ·     Equipment: How many employees do you plan to train simultaneously?  Do you have sufficient computers and internet bandwidth to support them? 
•      Staff Computer Skills: Will employees need to spend time learning how to use the e-learning software? How long will this take? 
•      Organization: When scheduling time for training, it’s important to include the time to set up the system, the running time of the e-learning, and then system shut down. This will leave room to make sure adequate resources are available.

E-learning is an exciting and growing human resources tool.  We here at Astronology would love to hear your success stories – or not so successful experiences – with e-learning!  Please share your stories with us!  And for those new to the e-learning world, why not consider mixing up both face to face training with e-learning to reap the benefits of both!

Astron Road Show: October

The Astron Road Show draws to a close with the arrival of October.  It will be a busy month, however!  Where will our team be over the next few weeks?

On October 3, National Director Jennifer Loftus will partner with Elizabeth Moore, PHR of the Holmes Corporation, to lead a webcast entitled How to Prep for the PHR/SPHR Exam with the SHRM Learning System.  Attendees will receive tips on preparing for the HR Certification Institute’s PHR and SPHR exams, as well as find out how the SHRM Learning System can boost test preparation efforts. Note: This webcast does not qualify for recertification credit. To register for the webinar, which is free to SHRM members, visit this website.

October signals the Astron team’s return to upstate New York, for the New York State SHRM Diversity Conference.  Astron Solutions will be exhibiting at and sponsoring the event October 6^th and 7^th in Verona, NY.  Be sure to stop by and say hello to National Director Mike Maciekowich!

If it’s October, it must be time for the Wisconsin State SHRM conference!  Mike Maciekowich will be exhibiting again this year.  The conference will be held October 9^th – 11^th in LaCrosse.

Later this month, Mike Maciekowich will exhibit at the annual Nonprofit Human Resources Conference.  This year’s event, slated for October 20^th – 22^nd, will be held in National Harbor, MD.

Rounding out our Road Show activities for the year, Jennifer Loftus will present at the GNOSHHRA monthly chapter meeting, slated for October 24^th in New Orleans, LA.  The chapter’s annual salary survey, administered by Astron Solutions, is the topic of the meeting.

These events will close out our 2013 Road Show.  We look forward to seeing you again in 2014, in cities including and not limited to Orlando and Nashville!  If you have a conference that you think would be a good fit for Astron Solutions, please let us know!  We love to hear your recommendations.

Talking to Your Boss (and how to awesomely say "I Quit")

There's a way to speak to your friends and family. Then there's a way to speak to your co-workers. And then there's a way to speak to your boss. And there are things that you should never say to your boss. Well Dave Kerpen writes for LinkedIn about 17 of them with some help from the Young Entrepreneur Council. Some are gems (like "That Takes Too Much Time" or "I Don't Have an Opinion") but the sad part is that most of them are not ones that you haven't heard around the office--some that have even been said to the boss.

The best feeling in speaking to your boss sometimes is on the way out. Well one young woman did just that in an awesome way, posted below, courtesy of Jezebel (H/T Melissa):

Giving Constructive Criticism

It’s a fact of life we can’t avoid. Whether it’s working in a professional environment, learning in the educational realm, or interacting with friends or family, at some point in time we all have to face criticism.  How we may perceive that criticism depends on whether we are on the giving or receiving end.  When done right, constructive criticism is not meant to hurt or humiliate a person.  Rather, constructive criticism is meant to build a person and push them to reach the next level of success. Learning how to give constructive criticism makes a difference in regards to how others view an individual and also how he or she demonstrates leadership.  This issue of Astronology takes a deeper look into how to give constructive criticism in the workplace.

The Fundamentals of Giving Effective Constructive Criticism

If someone needs to give constructive criticism to an individual, it is highly important to find an instrumental time to share this feedback. Changing Minds.org, a web site dedicated to the book, Changing Minds in Detail by David Straker, advises, “When criticism is needed, do not avoid it, although you should pick your moment.”  Other tips include the following:

• Do not criticize in public

There’s nothing worse than being publicly embarrassed, even if the mistake is small.   It is better to give the recipient his or her dignity and due privacy.

• Be specific

Explain exactly where the person can improve.  Specifics can help the person receiving the constructive criticism to understand that he or she is not incompetent, and can make some adjustments in a specific area to become better.

• Check for understanding

Ensure that the criticism is understood clearly to help erase any doubts the person may have that he or she is being singled out as a target.  Rather the feedback is for his or her benefit.

• Check that the individual knows the positive future change focus

Part of making sure that the criticism is understood includes checking to make certain that the individual perceives the feedback is for positive future change.

• Discuss what happens next…support the person in moving forward

Make the discussion a positive dialogue by addressing what happens next. This includes creating goals or steps to move forward.  This step also allows the individual to feel confident he or she has the support needed, and to view the criticism positively.

Psychotherapist Dr. Barton Goldsmith Ph. D. also noted that tone of voice and eye contact are also essential when giving criticism.  Both communicate sincerity, which demonstrates to the recipient that he or she is receiving positive council. 

The Top Three Ways to Give Bad Constructive Criticism

Usnews.com published an article entitled, “7 Mistakes Bosses Make When Giving Criticism.”  Three of these critical mistakes include the following:

o   Not Putting The Criticism in Context

By not putting the criticism in context, the individual can become confused as to how the criticism fits with his or her goals within the organization. This may also lead to the person to ignore the feedback.

o   Not Explaining Consequences

By not explaining the consequences for not taking action as a result of the constructive criticism, the person provided the feedback leaves himself open to misunderstanding and unnecessary “office drama” between workers who did not understand the possible consequences sooner.

o   Not Having Consequences

Just as bad as not explaining consequences is not having them at all. The goal is not to “scare” employees into changing.  Rather, it’s imperative to communicate that change is necessary in order to help motivate.  Having some consequences helps to remind employees that they play important roles in the success of their organizations…and that they must continue to make progress in order to help build their organizations.

Criticism, even when it’s constructive, can sometimes hurt. In the workplace, it is highly important that the person tasked with giving constructive criticism do so in such a manner that gives the receiver of the feedback due respect and dignity. Sharing feedback privately, making sure the information is clear and helpful, and provided in a positive and supportive manner are all important steps in making a potentially challenging conversation a positive one.

Astron Road Show

The Astron Road Show continues strong as we move into October!  Where will our team be over the next few weeks?

October signals the Astron team’s return to upstate New York, for the New York State SHRM Diversity Conference.  Astron Solutions will be exhibiting at and sponsoring the event October 6^th and 7^th in Verona, NY.  Be sure to stop by and say hello to National Director Mike Maciekowich!

If it’s October, it must be time for the Wisconsin State SHRM conference!  Mike Maciekowich will be exhibiting again this year.  The conference will be held October 9^th – 11^th in LaCrosse.

               

We’ll see you on the road!

The Astron Road Show

With fall knocking on the door, it’s time for the next stop on the Astron Road Show!  National Director Mike Maciekowich and Statistical Analyst Mike Canterino will be on hand to meet with current and new clients and friends of the firm at the New York State SHRM Conference, September 15 – 17 in Buffalo, NY.  Our games of chance were a hit at the national SHRM conference earlier this year.  Will you be our next winner?  Please stop by our booth in Buffalo to see!  Let us know you’ll be attending the conference and we’ll have a special gift waiting for you!

Redefinition of Leadership

Ralph Stogdill noted, “There are almost as many definitions of leadership as there are persons who have attempted to define the concept.” How true he is! The word “Leader” has been defined and redefined so many times, it can be hard to keep track with, let alone demonstrate in our respective places of work. In previous years leadership has been described as a process as well as a property. In process, leadership is being able to indirectly or directly influence and coordinate an organization’s attempt to fulfill a group goal. As a property, leadership is described as possessing the qualities and characteristics needed to help an organization to succeed.

In this day and age, good leadership is needed in organizations across the globe in order to grow, and to be successful. Why? Simply because as the world changes, organizations in various capacities are in the need to adapt to the changes. When organizations don’t perform well, one of the #1 comments that are stated in reference to its failure is: “They had bad leadership”

However, to place a company’s failures on one individual is somewhat erroneous. An organization is made up of people and so it is the organization as a whole, or its, people, that determine whether all will succeed.

Understanding this key issue leads to the discussion of leadership not just from individuals, but from the entire organization. This “broad-based leadership” means in every nook and cranny of an organization, a leader can be found. It is up to every individual to decide for themselves whether they will go beyond just minimal work…and be a leader.

Traditionally, within organizations, the word “leader” sparks the position: “Management”, or “Supervisor”. However, are these words really related? In examination, the very answer may be no. One article in the Australian newspaper, The Age noted, “Managers feel comfortable with hierarchies and a command-and-control type of environment where orders come from above and those who receive those orders get paid for executing them.”

In comparison supervisors, typically influence an organization’s sub-group through formal rewards (perhaps promotion) and punishment (write-up) under contractual agreement. Both positions seem very structured, and leave no room for growth ---which is a dire need in today’s organizations.

Leaders, however, according to the same article are comfortable in horizontal (“pancake”) organizational structures. They are not “a person in charge,” but, rather, a coach…part of the network in the organization in order to support everyone.

Are organizations really trying to cultivate leaders within their organizations? Yes. Another article from The Age entitled, “First It Was Teamwork,--Now it’s the leadership industry; Just Managing” reported that in the year 2000, 50 billion dollars were spent in leadership development within organizations. Yet, not all companies seem to be reaping the benefits from the investment.

Ranked #5 on Business Week’s list of the World’s Top 10 Management Gurus,  Leadership expert Jay Conger noted in The Age that some organizations sabotage their own efforts to gain leadership. He noted that many corporations have an internal culture of “conservatism and risk-aversion.” This causes an organization to look great face-wise, but internally, there isn’t any growth, or internal success. He states that traditionally, “You could argue that organizations, although they say they want leadership, actually they don’t want too much leadership. They want the leadership of the CEO, not the leadership from the ranks below.”

So how do organizations get past this traditional internal culture? First the organization must realize that they need two kinds of leadership. The first kind deals with the entrepreneurial aspect of an organization. The second kind involves crisis and/or turnaround situations. If members in an organization learn how to cultivate both types of leadership capabilities, success is sure to follow.

Organizations also need to be able to focus on building a leadership culture. Some attributes include the following: 

• Learning 
• Coaching 
• Team Building 
• Regular Appraisal

Leadership from all levels has to be promoted not as an executive position, but as a privilege and an obligation to the organization. Former CEO of Telstra Corporation Limited, and current CEO of JI Ventures, Inc., Frank Blount once highlighted five "ingredients" that any CEO can use to generate the right environment for leadership. Here are three main ingredients: 

• Public knowledge that status quo behavior is dissatisfactory 
• Creating a widespread shared vision across the organization 
• Leaving room for growth due to changes externally and internally

Leadership development is a worthy investment for any organization. It is important, however, that we make sure the organization is properly prepared for and anticipating the changes due to the organization’s new leadership culture. It is not up to just a handful of people to make an organization successful. It takeseveryone to make it successful.

How Not To Apply and How To Deal With a Meltdown

Here at the Astron blog we like to go with one positive and one negative to balance out the coverage. So when we talk about a boneheaded thing that one person or company does, we talk about a good way that people or a company handle a situation. Today we'll do the same as we look at one job candidate who makes a name for himself...in the wrong way. And then we'll talk about one company who took an internet meltdown...and turned it into some good PR.

The first is from Above the Law which talks about a class of 2009 graduate who begs for a job via mass e-mail. Well "beg" may be generous here--this job "candidate" mass e-mails every practicing attorney that he can find to try to find a job. I know that the job market isn't great and the lawyer job market is even worse, but this is not the way to go about it. Furthermore, the two pictures that Above the Law could find of him are showing off his biceps and, well, trying to convince us he doesn't want to be an escort. If you want to show someone the way NOT to get hired, this is a good start.

On the other hand, if you want to see a company take a "bad" situation and make it positive, Social Media Today looks at Shake Shack which took a look at its fans' displeasure over a change to its fries and decided to respond in the best way possible. Some companies (like Netflix, as the article points out), take fan outrage and just continue to fuel it. Others, like Shake Shack, take the fans displeasure and take it as a chance to get some good public relations around the new fries.

Social Media Today gives us the great final thoughts: "So what does that mean for all the community managers and brands out there that have new introductions coming up in the pipeline? No need to take notes, this one is easy to remember. Maintain your messaging and stand by your decision, because in the end, that will aid in dictating how consumers receive your change."

No You Can't Log Into That

There are certain laws that are passed that you say to yourself: "wait...that was legal before?" Today that happened to me. Washington state joined ten other states in banning employers from asking and gaining access to their employees’ private social media accounts. Amazingly, this is a practice that not only has gone on, but wasn't outlawed already. And, maybe even more amazingly, this isn't illegal in anyplace in the Northeast north of Maryland. From Melissa Agnes Crisis Management, an employer cannot:

• Ask for usernames and passwords of their employees’ social media accounts 
• Make their employees go through their personal accounts in front of them 
• Obligate their employees to add their employers as “friends” on social media 
• Require employees to change their personal privacy settings in order to make their accounts information visible to the public (and thus them) 

The punishment for such a crime in Washington is up to a measly $500 in statutory damages that the employee may be able to attain in civil court. Whoopee...

Let's put aside how this idea of hijacking your employee's social media accounts may be illegal and focus on this: this cannot be good for your company morale or reputation. There is a fine line behind wanting to check up on your employees and making sure that they're handling themselves well in public and forcing them to allow you to spy on them. Even if you're in a state that still allows this practice, be smart and don't do it--it's not going to do anything good for your business in the end and if your state decides to make it illegal too, you may be in trouble for doing so.

Some Things Are Better Left Unsaid (in an Interview)

It always comes up in an interview: "so tell me about yourself." Now if this was a date, you would answer that question one way. If it was a shrink's office, maybe another way. And if it was a new friend, you would answer it yet another way. But in the job interview, there are some things that you really, really don't want to say. CommPRO made a list of some of those not to say (H/T Sarah)--here are a few out of the top 10 with my opinion afterwards:

2. Medical issues. If you can do your job without an issue, there isn’t any reason to discuss these. If you have issues that will affect your working, then you should not be looking for a new job. If you have a job and have issues that will impact your job, be positive and have a plan on how your work can be handled while you are out. This is an important one an important distinction to make. If the medical condition doesn't change anything about your day-to-day job life, then it's about as much anyone's business as what you ate for breakfast. But if the condition is going to require you to miss work or if you may get sick at work, you're going to want someone to know that up front.

5. You have a second job. Don’t let anyone second guess your work habits. Will you be too tired to do the work, is the second job keeping your from doing more at your current job? This is one of the list that I disagree with. I let every potential employer know about my second job (doing this blog). I don't think that most employers are going to care and if they do, it's probably not the position for me. Plus, if they find out about it later, they may feel that I was trying to lie to them or keep it from them and that would be much worse down the line.

10. Something serious happened outside of the workplace. What happened in Vegas, stays in Vegas. If it doesn’t involve the workplace, don’t talk about it. I agree and disagree with this one. If something serious can explain why you have a big blank spot in your resume or why you left a city or a job, then it could definitely be relevant. But if it's about anything that doesn't help give the interviewer a better idea of who you are, then let it stay in Vegas.

There are many things that you want to bring up in interviews but here are a few that you should probably keep to yourself. So the next time you're going for a new job and they say "so tell me about yourself...", well, leave some things out of it.

Human Resource Data

Gordon Gekko said in Wall Street that "the most valuable commodity I know of is information." Well that's as true today as it was 26 years ago when that movie came out. But one place that isn't always true is in Human Resources where data is not always the priority for those that make the decisions. But Josh Bersin of Forbes says that mentality needs to change and that Human Resources should embrace datafication:

Companies are starting to analyze payroll leakage (people who may be on-call for certain duties but are not needed), loss (theft patterns in banking), accident and medical claims patterns (liability insurance rates), sales productivity, and even global leadership and talent mobility patterns. Unfortunately too few HR organizations are doing this, but more and more are talking about it every day.

Bersin says right now that less than 8% of companies actually are mining this data and using it to their advantage. The key going forward for companies that are looking for ways to cut costs and increase productivity is to use this data to make their organizations run more effectively. And it's important to get ahead of the curve as companies start to take up that task.

Saluting Your All-Stars

Today in New York is the All-Star Game so I figured it was an appropriate time to go over some ways that you can recognize the All Stars in your organization. Now the easiest answer is "a raise", "a bonus" or "a promotion" but here are 3 other ways that you can make sure that your All Stars are feeling like they're getting their due:

1. Pregame Introductions. It seems simple but sometimes the best way to recognize your All Stars is just to introduce them to the crowd. Call them out on what they've done awesome, but make sure there are other people listening. The best way to sometimes recognize your All Stars is just to make sure it's done publicly--and done only enough to make it extra special for those who get the nod.

2. More Playing Time. If someone is doing something right, sometimes it's time to give them more responsibility and more time to shine. Let them loose and give them more chances to shine. It doesn't have to be a title promotion but sometimes the best thing you can do for an All Star is just let them do more things to show how awesome they can perform.

3. Give Them The Game Ball. The problem with some organizations is that when you get the win, it doesn't actually feel like you've won. As soon as you get that big sale, they want to know what's next. As soon as you finish the big project, you have another one right after. The last key to making sure your All Stars feel like All Stars is to make them feel like they're winning when they're winning. It may sound simple but some companies do not make people who are succeeding feel as good as they should about doing so. Make them feel like they got the win and they'll keep on performing.

The Astron Road Show

The next stop on the Astron Road Show brings us to Atlanta! National Directors Mike Maciekowich and Jennifer Loftus will be in booth #623 for the ASAE Annual Meeting and Exposition.  Mike and Jennifer look forward to meeting with current clients and friends of the firm, and new friends, too.  Stop by to try your luck with our games of chance, and provide your thoughts on our research whiteboard!

Now We Have Goals......So?

By Guest Author Richard L. Virgilio, SPHR

Our June 10, 2013, issue of Astronology featured an article about Developing Meaningful Performance Goals.  Our article was effective in starting conversations!  In today’s issue of Astronology, we present a feature written by guest author Richard Virgilio, SPHR.  In the article, Richard explores an essential aspect of goals -- not just reaching for them but also knowing when they have been achieved. 

One aspect of the performance goals discussion often missing is the selection of appropriate metrics to see if they really have been achieved.  W. Edwards Deming, the “Father of Total Quality Management,” postulated, “If you can't measure it, you can't improve it.”  While some measures may be easy to apply – “Attain 97% satisfaction on customer surveys,” for example –  others which are less quantifiable may be appropriate, and even necessary, but difficult to articulate and thus measure.  “Be more of a proactive member of the team” is a goal that seems to be typical of the non-quantified ones.

This step in the assessment process needs to be addressed squarely and directly--no hand-waving.  The ability to meaningfully apply and evaluate the metrics selected must be appreciated and understood.  Like the determination of the goals originally, it must be an interactive process between supervisor and employee.

HR professionals need to have skills and tools to help supervisors have effective discussions with employees to develop meaningful measures for abstract or intuitive goals.  To not offer this kind of assistance could restrict the organization into setting only goals that are too easily quantifiable, too easily measured, and perhaps completely miss the point of improving an employee’s contribution to the success of the organization.

One trick that analysts and mathematicians use in performance and effectiveness studies is to establish indirect measures, or “scoring.”  For example, it’s difficult to directly measure “cooperation” among team members.  If cooperation is identified as a performance goal that relates to organizational efficiency, then the following indirect measures might be used to assess goal achievement:

·         Team members often seek others (me) for input, opinion, and validation

·         Team members often strongly disagree (with me) on elements of a project

·         The team is often late / early in completing projects

·         Project reports often fail to identify conflicts in the proposed execution

·         Absenteeism increases while the team is working on a project

Some of these indirect metrics should be scored by a supervisor; others by team members themselves, in a process similar to a 360.  Scores, especially of individuals assessing another, must be kept confidential, but still identified as to author so that anomalies can indicate particularly strong or poor individual contributions.  An inherent risk that’s characteristic of this example is to determine whether internal team conflict is a result of a small / singular dominant personality, whether the results are beneficial for the organization, and whether the anomalous individual(s) is / are a positive or negative factor in overall performance.  A team of five losers and one top performer may have terrible cooperation but great results if dominated by the high performer.  Interpreting the results is an art, not a science.

When direct measures of performance and goal achievement are difficult to quantify, quantifiable indirect measures are most helpful.  This permits the supervisor to take the indirect measures, integrate them, and use them in assessment.  Consider the following situation: “Bob, looking at the past year, the teams you were on were generally late in reporting out results compared to those without you.  Do you have difficulty working with others?”  In the next assessment cycle, the supervisor can compare the metrics year-to-year and draw some conclusion regarding the employee’s efforts to contribute better.  “Bob, it seems that this year, the projects you worked on were generally not late, as the year before.  Tell me what you’re doing differently so we can set you up better for success.”

Employee assessment will always be more art than science, but with good measurements of performance, even if indirect, supervisors can better identify improving results, underperforming employees, and better show their unit’s contribution to the organization’s success.

Rich Virgilio is an owner/partner of Apexx Behavioral Solutions Group.  He has developed a number of behavioral assessments for use in the financial field.  Rich can be reached at 706-860-2490 or at rich@myapexx.com.

Executive Pay

An October 2012 SHRM article mentioned that in the 1970s management theorist Peter Drucker suggested that top executive compensation should be 20 times the amount of the average worker pay. Yet according to a May 2012 Economist online article, the Economic Institute calculated that chief executives at America’s 350 biggest companies were paid 231 times as much as the average private sector worker in 2011. The media have shared developments about the array of “Occupy” movements that have taken place recently, as well as the various explanations as to why they have occurred.  One primary factor cited for these Occupy movements was executive pay.

One thing is certain, executive compensation is a concern to many individuals, and has been for some time. How large of a concern executive compensation is, and why it is such a concern, is our topic for this issue of Astronology.

Eleanor Bloxham, founder and CEO of the Value Alliance, mentioned to SHRM that a large pay disparity between executives and employees results in low morale and a negative impact on CEO effectiveness. “People feel disconnected from the CEO. They are not willing to share with management what could be fixed or improved. The people on the ground don’t feel that top management understands them.” CEOs have “become disconnected, not understanding what their employees have to deal with or what their customers are going through. They’re in a protective bubble.” Clearly such attitudes negatively impact an organization. Especially in the times we live in, the economy has gotten better, but it still rocky in various sectors and industries. Can you imagine the frustration of the employees who haven’t received a substantial wage increase while their executive counterpart continuously receives such increases or large bonuses? Or perhaps, the feelings of employees who perceive those executive compensation packages to be reality, even if they are not the truth?

SHRM also highlighted the opinion of Donald Delves, founder and President of The Delves Group, regarding the matter of executive compensation. He feels that executive compensation is not really out of control. “It’s just high, and there’s a difference,” according to Delves. He highlights that the Sarbanes-Oxley Act, the Dodd-Frank Act, and the 2006 Financial Accounting Standards Board requirement that granted stock options be recorded as an expense have all contributed to CEO pay not accelerating since 2001 as it did in the 90s. “CEO pay went down during the recession, and as corporate profits came back up, CEO pay went back up.” He does admit that despite this fluctuation the pay disparity between executives and staff is still a “very serious societal problem.”

The Economist article mentioned that disgruntled shareholders are vocalizing their displeasure. For example, in March of this year, the Ontario Teachers Plan (Toronto), shareholders of Hewlett Packard Co. (HP), let their intentions be known by voting against the re-election of two directors on HP’s board, and opposing the company’s executive compensation packages. In May 2012, the head of British multinational insurance company Aviva stepped down after more than half of the investors voted down proposed executive pay packages. But is that enough? What else can be done to alleviate the pressure surrounding this problem?

In November 2012, Towers Watson revealed results of a poll of 253 U.S. companies which highlighted that 45% either made or will make changes to their executive pay programs in favor of strengthening the link between pay for performance. Half plan to or have changed the performance measurements which determine incentive payouts. Andy Goldstein, leader of Towers Watson’s executive compensation consulting practice for the central U.S., says of the survey, “The bottom line is that each company is different, and there is no single approach that is right for all companies.”  Astron Solutions concurs with this assessment.  As National Director Mike Maciekowich notes, “cookie cutter compensation packages – whether for staff or executives – often fail to meet an organization’s unique employee attraction and retention needs.  While a compensation offering should reflect each organization’s unique reality, all employers must ensure effective stewardship of limited financial resources.”

Astronology wants your input. Please write us, and let us know the following:

• Has your organized tackled the great executive pay debate?
• What is the approach your organization has taken in handling executive pay?
• Do you think it this current approach is effective?
• If not, what improvements would you like to see?

We truly do appreciate your input.  All responses will be kept in strict confidence.  Summary trend data may be highlighted in a future Astronology article, to continue the great executive pay debate!

The Astron Road Show

Next week is the SHRM Annual Conference and Exhibition in Chicago!  National Directors Mike Maciekowich and Jennifer Loftus, and Directors John Sazaklis and Brendan Williams, will be in booth #1854 to meet with current clients and friends of the firm, and new friends, too!  Stop by to see a real-time demo of Flare™, try your luck with our games of chance, and provide your thoughts on our research whiteboard’s next stop!  Need a free pass to enter the exhibit hall?  Please let us know!

Developing Meaningful Performance Goals

An essential part of a successful performance review is developing meaningful performance goals for employees to achieve in the following year.  This positive approach to performance development cannot be applied universally, however.  Rather, one must tailor performance review goals to take into consideration the size of an organization, the variety of departments / specialties, the personality of the staff, and the organization’s culture. In this issue of Astronology, we provide helpful tips for how to develop performance goals that will be meaningful for your organization and, more importantly, your employees. 

Know your System

As mentioned in our previous issue of Astronology, the most effective approach to the performance appraisal process is one that facilitates communication and professional growth.  One size does not fit all.  Rather, each organization’s performance review system must give consideration to the size of the organization, varying work specialties and departments, and the organization’s culture and staff.  The facilitator / supervisor of an employee’s performance review must be able to comprehend how the appraisal system works, and explain it clearly to each employee.  Through that process, the employee comprehends how he / she is being measured. Clear communication helps open the door for open assessment and a more productive review.

Be Prepared

Employees expect honest feedback on their work efforts. BEFORE the performance review, review the employee’s record of employment, which should include both achievements and moments of misjudgments.  Managers should reflect on their own interactions with the employees.  Select the areas to highlight for the employee based on his / her strengths and noticed weaknesses, and integrate into potential performance goals for the coming year.

Recognize that Goal Developing is an Interactive Process

Although the employee expects to receive feedback both positive and negative, he /she should never feel like the performance review is one-sided. Be prepared to hear where the employee thinks she has succeeded and perhaps fallen short. Ask the employee open ended questions to get his opinions if an employee may be hesitant to share his viewpoints. When establishing future goals, allow the employee to voice where he / she would like to improve and how he / she sees that improvement coming to fruition.  Managers must be willing to find areas where they can help employees become better.

Make Sure the Goals Align with Both the Organization and the Employee

Developing meaningful performance goals requires keeping in mind not only the employee’s work pace and personal goals, but also areas where the organization would like to grow within the next year.  Are there areas within the organization that management would like to see further explored or developed?  These organizational opportunities should be presented to the employee to determine interest in participating, and associated developmental goals.

In addition, perhaps the employee sees other areas within the organization where he / she could provide value and insights during the upcoming year, for both organizational and personal growth and success.  If so, these areas are another opportunity for mutually beneficial performance goals.   

Make Sure to Schedule a Follow-Up

Depending on the type of goals that are set, and the organization’s frequency for performance reviews, follow-ups need to be scheduled throughout the relevant time period.  Managers must ensure they schedule follow-ups when establishing new performance goals, so that employees stay on track, unanticipated resources can be allocated, and goals can be adjusted in light of previously unknown information.  During the following quarter, the manager and the employee might see that goals need to be adjusted.  Be flexible for success!

Developing performance goals can be an enjoyable experience for both the employee and the supervisor / reviewer.  To make the most of the process, ensure that open communication permeates all discussions, and be prepared to offer insightful highlights, constructive criticism, and actionable suggestions.  Through this process, both individual managers and the organization at large will surely watch the employees and the organization grow and enjoy mutually beneficial success.

ASHHRA Region 1 Conference - Special Attendee Info & Prizes

Attending the ASHHRA Region 1 Conference in Bretton Woods, NH this June?  Great, because Astron Solutions will be there as well!

Let us know you’re coming (Sign up for conference giveaways here!) and please stop by our booth, to learn more about Flare™, our cloud-based talent management suite! With Flare™ you can create a custom consolidated framework for your organization’s HR needs. Modules include:

• Performance Appraisal
• Job Descriptions
• Incentive Tracking
• Salary Forecasting
• Exit Interviews

Not in the market for an HR system?  No worries – you can also learn more about Astron’s Total Rewards Consulting (Compensation Design/Incentives) and Employee Retention Strategies (Exit Analysis/Employee Engagement Surveys)!

Please be sure to stop by our booth for giveaways, and an opportunity to provide your feedback on what in HR keeps you up at night!