The way a boss or leader within an organization acts has changed drastically in the past decade. Management styles have shifted from command-driven to explanation- driven. This shift has facilitated more open communication between leader and subordinate, an increased sense of teamwork and has produced higher productivity levels than ever before. Today we at Global Human Resources Outsourcing (GHRO) share with you a few ways you can revamp your leadership style.

Stop Commanding, Start Explaining

As we mentioned before, there is a shift in leadership styles from command to explanation. When giving instructions to employees, stress the importance of how this task will enhance the company instead of simply assigning tasks. This creates a dialogue in which the employee can ask any questions he/she may have about the task.

Don’t Punish Mistakes

Office culture used to have a strict no mistake policy – one where employees were frightened to show an unsuccessful product to a superior. Instead, let employees learn from mistakes. This will enhance quality of products once you can see what does and does not work moving forward.

Foster Self-Initiative

The days of forever employment are gone. In today’s economic times leaders should not mislead employees by telling them they are safe if their performance reads like their job description. Encourage employees to take their work to the next level. This creates not only more driven employees but also an increased sense of value in the company for employees.

The Global Human Resources Outsourcing (GHRO) team is sharing some hard-won business insights directly from the source.

 ”A Practical Guide to Human Resources Management” is a 266-page guidebook to the intricacies of the world of employment from Jeff Stinson, founder and president of Global Human Resources Outsourcing (GHRO).

Chapter 11 – How to Deal with the Unions

Unions today make up a very small part of the workforce.  In the 1950s, union membership stood at around 35 percent of the working population.  Today, the number is less than 12 percent, with most of these in the public sector.  Why the fall?

I would like to say it is because you have all ready my book and are using excellent HR practices that keep people from wanting to join unions.  Wishful thinking.  In fact, there are a number of reasons, including these:

• Many of the issues that originally brought unions to the workplace, such as minimum wages, child labor and workplace safety, have all been legislated both federally and located.
• A number of industries where unions once dominated, such as textiles and steel, have moved offshore.
• The old concept of “personnel” evolved into the practice of human resources (HR), and companies made a much greater effort to meet the needs of their employees, thus giving them much less reason to organize.

Given the above, I would suggest that in the 21^st century, if you wake up one morning to find a union at your door, it will constitute a failure of management…not of the employees.

Unfortunately, if you do wake up that morning with this new problem, your work is really cut out for you.

Labor Relations Management

Like most things in HR, labor-relations management is a process consisting of three steps:

1. Union organizing
2. Collective bargaining
3. Contract administration

Union Organizing

The union organizing process is the attempt by the union to convince a sufficient number (30 percent) of employees to sign authorization cards allowing for an election.  The election campaign will be a lively one, and there are a number of things you should remember regarding your conduct – the dos and don’ts.  These include:

• You can give your opinion, telling them why you think the union is NOT good for them, and why.
• You can tell them if they strike, they may be replaced.
• You can tell employees that they don’t have to talk to union representatives if they don’t want to.

There are also a number of things you cannot do, including:

• You cannot question employees about the union.
• You cannot spy on their meetings.
• You cannot visit them at their homes to discuss union issues.

Collective Bargaining

This is the phase where you must negotiate in good faith toward the goal of reaching a collective-bargaining agreement or union contract.  Generally, you must negotiate things like rates of pay, overtime, grievance procedures, etc.

I would suggest that you always hire a professional to assist you in this process.  The union will certainly be using one, and you should as well.

Contract Administration

Administering the contract once it has been negotiated is by far the most time-consuming element of the union relationship.  Most of this effort will involve interpretation of the contract.  There will likely be issues that come up that were not anticipated at the time of the negotiation.  When this occurs, there is typically a grievance and arbitration procedure, which I discuss in detail in the book.

At the end of the day, the best policy is to pay attention to your employees’ needs, provide a safe workplace for them, and pay them competitively.

Next: Chapter 12 – How to Manage Them Internationally.

The Global Human Resources Outsourcing (GHRO) team is sharing some hard-won business insights directly from the source.

 ”A Practical Guide to Human Resources Management” is a 266-page guidebook to the intricacies of the world of employment from Jeff Stinson, founder and president of Global Human Resources Outsourcing (GHRO).

Over the course of the next two months we will be excerpting chapters of Jeff Stinson’s guidebook in this blog.

A Practical Guide to Human Resources Management

Leading people in today’s complex world is a challenging activity.  There are regulations, unions, lawyers and more to deal with on a daily basis.

“A Practical Guide to Human Resources Management” is written by a longtime human resources consultant.  This guidebook helps you develop your leadership skills so that you can:

• Recruit qualified applicants.
• Interview candidates with confidence.
• Hire the right people.
• Train new employees and keep the best performers.
• Deal with unions.
• Stay out of court.

In addition to the basics, you’ll learn how to respond to employment situations that could catch you off guard.

For instance, what do you do if your best employee tells you that he or she is leaving to join a competitor?

What if one of your employees takes a public stand against one of your policies?

What if someone you fire for theft hires a lawyer who sends you a nasty letter?

Other textbooks on human resources management focus on theories and statistics, but “A Practical Guide to Human Resources Management” provides real-life examples to help you handle any situation with leadership that inspires confidence.

Jeff Stinson, SPHR, GPHR, CCP, GRP, CBP

Jeff has been involved in the management and development of human capital for more than three decades. Before founding GHRO, he ran a successful human resources consulting practice (JDS Consulting).

Prior to JDS, Jeff functioned as a senior human resources executive for several companies where he led HR teams on three continents in the manufacturing, telecommunication and software and entertainment industries.  Jeff earned a Bachelor of Arts and Master of Arts degree in Public Administration from California State University, Fullerton.

In addition to his university education, Jeff also holds designations as a Senior Professional in Human Resources (SPHR); Global Professional in Human Resources (GPHR); Certified Compensation Professional (CCP); Global Remuneration Professional (GRP); and Certified Benefits Professional (CBP). He has also been an instructor at the Universities of Redlands, Phoenix and Chapman for the past 24 years.  Happily married for 32 years, Jeff and his spouse Diane reside in Mission Viejo, Calif., where they enjoy travel, sports and the theater.

Is your small business reasonably accommodating the needs of its new and expectant mothers?  You may have heard the horror story of a new mom who returned from maternity leave, only to have her employer criticize everything from the frequency she pumped her breast milk to the number of weeks she pumped.  When the employer decreed the new mom had to stop pumping when her baby turned a year old, the new mom refused and was fired.  How can you prevent this unfortunate—and avoidable—dilemma from happening in your workplace?

The answer may lie in the health care reform law.  One revision to the Fair Labor Standards Act requires employers to provide unpaid, “reasonable break time” and a place, other than a restroom, that is “shielded from view and free from intrusion” to allow new moms to pump breast milk.  This provision covers all workers subject to overtime-pay requirements and lasts up to one year after the baby is born.  It also provides reasonable workplace policies beyond maternity leave to help new mothers balance career and family.

Remember, except for the 12 weeks of unpaid maternity leave mandated by federal law, many new mothers either can’t afford to take more time off or aren’t permitted to by their employers. Reasonably accommodating nursing mothers meets them in the middle by allowing them to work without giving up breastfeeding.  Not to mention, mom-friendly HR policies are sure to increase employee morale and retention after maternity leave!

The recent settlement in the National Labor Relations Board’s wrongful termination complaint against American Medical Response of Connecticut heralds positive news for employee free speech on Facebook. The news is decidedly less positive for employers trying to enforce social-networking and computer-use policies.

Higher health insurance costs, new 1099 regulations, and now increased payroll taxes?

That’s the latest expectation from President Obama’s proposed budget, set for unveiling next week.  The big news for small businesses: the budget is expected to replenish states’ dwindling unemployment funds by increasing payroll taxes.  This will happen by raising the amount of unemployment-taxable wages to $15,000—more than double the $7,000 which has held steady since 1983.  This plan, which would take effect with other new tax laws in 2014, stands to increase payroll taxes by over $100 billion over the next decade.

But is this plan merely borrowing from Peter to pay Paul, at a time when the Obama administration is trying to improve relations with business groups?  Keep in mind, unemployment insurance is a joint federal-state program.  State governments must pay the first 26 weeks of unemployment benefits and have had to borrow heavily from the feds to meet this requirement.  To bridge last year’s gap, more than 40 states had to increase their unemployment-insurance payroll taxes.  What will happen to the tax rates under the new plan is up to the individual states and is anyone’s guess.  One thing is for certain—it appears rebuilding the unemployment fund will fall squarely on the backs of businesses.

As a small business owner, how much do you enjoy thinking about payroll management?  Let’s face it—getting payroll just right requires time and effort.  Upcoming federal health care reform is about to create more payroll work while you’ll already be worried about W-2 distribution and year-end figures.  That leaves less time to stay on top of other changing regulations and to make sure your numbers are accurate.  Whether you think payroll isn’t so bad or whether you call it the dreaded P word, wouldn’t you rather concentrate on your already busy schedule and let GHRO take care of your payroll needs?

Here’s a look at the many ways your small business can benefit from outsourcing payroll management.

Cost Reduction

Does your small business pay a premium for an in-house payroll service?  Perhaps you have one employee saddled with all your business’ payroll operations.  However you manage your payroll, is that method the most efficient and cost-effective choice?  If your business has fewer than 20 employees, outsourcing your payroll operations could likely save you money.  Crunch the numbers for yourself.  Calculate the wages dedicated to payroll-related activities and be sure to include time and money spent on paycheck printing, paycheck distribution, and tax document preparation.  Compare your business’ numbers to the payroll service packages offered by GHRO.  You might be surprised!

Accuracy

Payroll errors can wreak havoc on your books, anger your employees, or worse—cause you to receive a certified letter from the government.  With over one hundred years of combined HR experience, GHRO’s experts will keep your payroll error free and will help your business avoid costly IRS penalties caused by late or incorrect filings.

Consistency

Government forms, regulations, and withholding rates are changing at a pace that makes it tough to keep up!  Something as simple as using outdated tax tables can mean hefty penalties for your business.  GHRO’s staff works to stay on top of the latest federal, state, and local requirements.  You can feel confident the latest knowledge will always be at hand; it won’t rotate out with your business’ bookkeeper or payroll officer.

Cost reduction, accuracy, and consistency are just a few ways that outsourcing can improve your business’ payroll management.  Most important, outsourcing with GHRO provides peace of mind that your payroll services are in good hands.  If you’re ready to spend less time worrying about the dreaded P word, contact GHRO today.

The economy is a constant topic of discussion and any growth is considered a good sign.  Recently, statistics have shown a spike in small business employment.

Small Businesses See Growth in September

Intuit Inc., a Mountain View, California-based company, reported that small-business employment grew 0.14 percent in September which meant a 1.6 percent annual growth rate. 27,000 news jobs were created nationwide in September, which is great news for those looking for employment from a small company; opportunity is there and employees have room to grow with a small business.

Positive Economic Outlook

While small-business jobs increased at a slow, but steady pace, monthly pay for small-business employees did not see an increase in September; there was a decrease in average monthly pay by $4. Thankfully, losing $4 per paycheck is a minimal loss when compared to the pay lost by having hours cut back or losing a job altogether.

Opportunities Abound

Small-business are an ideal workplace for some job seekers. You have the advantage of working with a small, close knit team and the opportunity for promotion and added responsibility as the company expands. Employees are typically happier because of the potential for growth, friendly atmosphere, and lack of corporate red tape.

Even in an economy that is struggling to get back on its feet, small businesses provide a financial opportunity for job seekers. Employment is increasing at a steady pace and employees will have a chance to stretch themselves and see what’s they’re made of.

Our society is becoming so inundated with tasks and work-related duties that unhappiness at the office is encroaching on employee health. We all know that having happy workers limits turn-over and the higher the job satisfaction, the more likely employees are to put forth their best effort. By creating a fun and home-like working atmosphere, you’ll make work fun, enjoyable, and ease stress at the same time!

Google was voted the number one company to work for in 2007. It’s no surprise considering life at the search engine giant is very relaxed and stress free; employee benefits abound. While some companies stress time lines and attire, Google emphasizes recreating the home experience at work. Employees can do laundry, work out at the gym, receive a massage and learn a new language. Feeling a little under the weather? Visit Google’s on-site doctor. Buying a hybrid? Google will give you $5,000 towards the purchase price. Expecting a child? They’ll reimburse you up to $500 in take-out food. If you ask any employee what they do at Google they’ll typically respond a personal embodiment of the company’s mission statement- “to organize the world’s information and make it universally accessible and useful.” This kind of motivation by employees is rarely seen, but envied by most.

Google’s goal, as often recited by employees, is ambitious (to say the least). Thankfully, Google just happened to find the right people to take it on. By creating a comfortable work environment, employees are not burdened with stress. Instead, employees are motivated to collectively achieve a similar goal; indexing information and making it useful. Google wouldn’t be the tech giant it is today without its bevy of happy employees. The appeal of a work environment that mimics their homes stimulates productivity and increases employee moral, making Google one of the most sought-after employers in the world.

Even if you don’t have the resources of a Silicon Valley titan, you can easily follow Google’s ideology, making your employees happy too. The first step may just be rethinking how you see your company. Simply making the mission statement more accessible and personal will help employees insert more of themselves in to their work and ease stress levels. Extend the home experience to work and rethink the office; would you want to live in it? If you wouldn’t mind spending an evening or weekend at the office because it’s hospitable and welcoming, you’re on the right track. Make the office a place your employees love to be, rather than the place they dread to go.

Employees need to come first in a company, as they are the heart and soul of your business. Creating a comfortable work environment that mimics a home eases stress, raises morale and increases productivity. Even simple changes can greatly affect employee health and happiness in a positive way, which will certainly lead to long-term growth for your business.

It is not Wall Street, the large multi-national corporations or even the vast banking institutions that are the driving force behind the American economy. Small businesses remain the dominating factor that figure into the continuing success of the U.S. Economy. Small businesses with less than 500 employees support more than half of the private sector American workforce. By hiring a Professional Employer Organization (PEO) to help stay profitable in turbulent financial times, small businesses are able to reduce their operating costs, raise the efficiency of their management and stay competitive in the marketplace, thus keeping them playing a successful role in U.S. economy.

Small businesses do the following:

• Employ over half of America’s private sector workforce.
• Are responsible for hiring at least 40 percent of workers in the technological fields such as science, engineering and computer programming.
• Include over 50 percent of home-based businesses.
• Make up nearly all of the firms dedicated to employment.
• Generate the majority of new inventions and innovative breakthroughs in science and technology.

Despite the fact that banks and other lending institutions are currently creating more barriers than providing assistance to small businesses relying on loans to establish credit lines for commercial mortgages, vehicles, equipment and leases; as well as the fact that government regulations are making it increasingly difficult and more expensive per employee to stay in compliance, it has never been more crucial for small businesses to survive in the down economy.

Your PEO to the Rescue

For the reasons above, Professional Employer Organizations are coming to the aid of small business and providing hope for the future to many small business owners.

Why use a PEO? To help small businesses survive in a down economy,­­ a PEO will offer the following solutions:

• Establish an employer relationship by contractually assuming many employer risks by becoming the employer of record for government compliance, safety and worker’s compensation and employee/labor relations.
• Incorporate optional health benefits, 401k administration, general liability coverage, background checks, recruitment services and payroll services.
• Provide relief from the burden of HR management, employee benefits, employee leasing and HR audits.
• Improve employment practices, compliance and risk management in order to reduce a business’s liabilities.
• Allow access to a comprehensive administrative service, employee benefits and HR Consulting.