By Jim Annis
From the breakroom to the boardroom, you have admired them from afar. They are magnetic personalities who truly take care of themselves physically. They are committed mentally to lifelong learning — including developing their career through certifications or college degrees. At a cocktail party they may be fascinating with a ring of people hanging on their every word. In the HR department, we can spot them before they come into the interview. It may not be fair to judge them based on that fact; however, it is an observation proven repeatedly. On the flip side, during our company's official casual days, we have observed that employees who consistently wear jeans, t-shirts and ponytails seem to be the same ones that have no real interest in personal or professional growth. We desire to see everyone strive to be the former.
By Jim Annis
This is a cautionary tale of The Project Manager (external) and The Sponsor (internal). Imagine for a moment both taking the Shakespearean stage, then bowing, encouraging audience members who are cheering, while holding their noses at those who relentlessly "boo." Neither role is an easy one. Each requires a range of management skills and talents not often possessed at once in a single person. Alas, we need them both. Here is some guidance to prevent a comedic tragedy at your workplace.
By Jim Annis, CEO
From the break room to the boardroom, you have admired them from afar. They are magnetic personalities who truly take care of themselves physically. They are committed mentally to lifelong learning — including developing their career through certifications or college degrees. At a cocktail party they may be fascinating with a ring of people hanging on their every word. In the HR department, we can spot them before they come into the interview. It may not be fair to judge them based on that fact; however, it is an observation proven repeatedly. On the flip side, during our company's official casual days, we have observed that employees who consistently wear jeans, t-shirts and ponytails seem to be the same ones that have no real interest in personal or professional growth. We desire to see everyone strive to be the former.
By Jim Annis, CEO
Traditional performance reviews can be a source of conflict. A slightly negative review can break an employee's morale and be a precursor for their exit. If they are a "keeper," taking a risk is not an option, especially in this competitive market for talent.
According to the Society for Human Resource Management (SHRM) article entitled, “Is It Time to Put the Performance Review on a PIP (Performance Improvement Plan)?”, the number of employers that are either ditching the numerical ranking of employees or tossing out the entire performance review process has grown from 4 percent in 2012 to 12 percent in 2014, as referenced in a CEB survey of Fortune 1000 companies. Does ditching the traditional 1-5 performance ranking and "expected" raises work for your company or against it? We believe it encourages avoidance and is uncomfortable for everyone, and most people don't leave feeling empowered or positive.
By Jim Annis
Ah, Valentine's Day is in the air. Romance, proposals, new flirtations and sometimes ... the inevitable big breakup. Well, nothing lasts forever, so that's why it's good to have some guidance on how to manage situations when they go south. Aside from a longtime personal love, breaking up with a long-term business vendor is often of the most painful and uncomfortable breakups you can experience. There are many "types" of vendor relationships: love at first sight, those you trust enough to "marry," and the ones you divorce; and then there are the ones who are "married" to your business family so you would feel horribly guilty about letting them go. So why is breaking up so hard to do?
The "how do we work with each other?" phase is over, things are easy ... maybe too easy. Perhaps you have been lax about keeping track of your vendor performance and accountability. Remember, any long-term relationship takes work. Comfortable is OK, but there is a slippery slope that occurs when complacency takes the guise of comfort. Each year my wife makes me meatloaf with ketchup and mashed potatoes for Valentine's Day. She has done this for each year together for 35 years. It is her way of saying "I love you," and I simply adore it and her for the effort. How has your vendor pool said "I love you" lately? Do they provide great operational performance? Do they anticipate your needs? Do they listen to your concerns? Do they approach your relationship as a true partnership? If they have not, it might be time to look for someone new with stars in their eyes and common values.
Reno, NV from Rancho San Rafael Regional Park
Caution: This is a tough love article.
We live this every day. What does it mean? There is a lot of lip service out there about how local companies are paying good, competitive wages but we do not see it in action. We challenge every business owner in Northern Nevada to read this, share it with their colleagues and then immediately create a revised human resources strategy for 2016 that reflects the importance of this fact: $10 per hour as a wage will not keep your business alive much longer. Keeping cash versus investing in the workforce trades short-term security for long-term certain death. A real HR strategy should encompass two proactive components: 1) Know the marketplace to begin with; and 2) Anticipate and stay head of the curve. At minimum, the wage should be $14 per hour for your least-skilled jobs. If you have not reached this level of pay, you're already behind the curve.
Federal minimum wage is $7.25 per hour if insurance is offered, and if not, then it's $8.25. Neither number is a relevant wage for our community: 1) The cost of doing business is higher; 2) the cost of living is higher; and 3) therefore, we have to increase wages. This is not in any way intended to open up a political discussion. This is pure economics – huge demand and less supply. If you want to do business here in the near future, and cannot get your mind about why this is true, then go play ostrich somewhere else. Here's why:
COLA is irrelevant: Gone are the days of no pay raises or minimal cost-of-living adjustments. In 2016 you should plan for a 3 to 6 percent pay increase across the board – maybe even higher for key employees. You do not want to lose your employees to the new companies moving to town … and a lot are coming, and your employees are being recruited.
Ignoring the herald: EDAWN (I am on the board) has been talking about this for years, recommending that the companies should pay at minimum $12 per hour (too late for that! It's now $14!). When companies pay employees $10.50 per hour they will get marginal employees who will not stay long-term. In the past, paying 50 cents less per hour than a competitor may have worked, but at a $3 difference, people will leave in droves because even Amazon pays between $14 to start and construction is paying $16 per hour to hammer nails. That adds up to $6,000 to $8,000 in more pay annually – too much money to leave on the table.
At The Applied Companies, we made a non-budgetary wage adjustment earlier this year to make sure we are paying certain percentiles, beginning at the 75th percentile, no matter what the position or level. This is a proactive strategy to prevent migration for the "grass is greener over there" employees who would move for a $3-per-hour difference. We have been ahead of the curve all along.
As CEO, I can truly say that we have not lost anyone over a money issue. How can you guarantee that you've planned well enough to say the same at the end of next year? Will you decide not to be a dinosaur that paid $10 per hour in 2016 and then became extinct in 2017? Only the fossil record will show the truth.
Jim Annis is president/CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, and Kerri O'Neill, staffing manager, contributed to this article.
By Jim Annis
It's January and every business salesperson is champing at the bit to get over the holiday slowdown (unless you're retail) and get new customers. Make way! Here they come!
As a CEO, it is important to give some coaching reminders to your sales team before you release them. To increase your company's productivity, get training started early in January. David Sandler, John Maxwell, Zig Zigler, and Dale Carnegie are all successful sales coaches and have their own methods of teaching. Originally, I wanted to give you their overarching philosophies in this article so that you could share them. I changed my mind.
The one thing that I want you to coach is how to be authentic and to listen. Back in 1975, I trained as a salesperson with Mutual of Omaha. The basis of that training was sincere interest. Anyone can learn other sales skills, like product knowledge and client education. The goal is to get behind the person's forehead, and to do that you must listen.
The Ick Factor: If you posses this, most likely you are selling to someone for your benefit, versus determining if you can — together — solve their problem. Remove the “Ick” Factor. When you help by listening, then responding appropriately, it means the difference between “selling" ("Ick, I've been slimed by that salesperson") versus a mutually beneficial relationship resulting in “I can’t wait to start working with you!” The Ick might be coming from within you and your attitude towards sales. Flip it. People are used to commerce. It happens every day, globally: a buyer; a seller; and a sale. You don’t have to be “salesy” to sell. Sell in a way that’s just as heart-centered and morally responsible as you are personally, while representing the values of your company. If your ick comes from poor business ethics (e.g., promising something during the sales negotiation that you cannot fulfill) there is no long-term place for you in sales. The best coaching I can give to you is find another profession.
The X Factor - If you have this, sales comes easy and it makes sense. Dollars flow naturally to you, resulting from the relationships you have now and will develop over time. Willie Mays was never a manager or a coach for a reason. He would just go and hit the ball. How can you teach someone to do that? How do you teach someone to be genuinely interested in people? That is just who you are. X Factor people, rejoice in your good fortune and use the talent responsibly.
My biggest sales coaching gripe is that people make selling so difficult. If you are the right person, it is easy. If you find sales hard, then choose to do something else. The bottom line is that people buy from people they like and trust. You can have everything you want in life with sales as a career if you fit that profile.
Jim Annis is president and CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Read article in the Reno Gazette-Journal here.
By Jim Annis, CEO
When we think about how Santa accomplishes all that he needs to, there is only one true answer: It's his wife. Somebody has to run the place while he's gallivanting around the world. Therefore, we decided to have some fun and create a parable in the form of a poem about how Santa – the CEO of the North Pole – is like today's CEO in business. Enjoy as this takes the rhythm of "T'was the Night Before Christmas":
T'was the Night Before Christmas and the CEO said,
"I can't get these bright shiny objects out of my head.
"I know my task for tonight is terribly clear,
"But I've jumped ahead visioning about next year!"
Mrs. Claus jumped right in and said, "Now focus, Santa.
"You've presents to deliver from Shanghai to Atlanta.
"Work on those new initiatives when you return,
"Because we've got your back here and we're willing to learn."
Said Santa, “I am so happy with everyone in one central space,
“All working hard to provide a wonderful, fun-filled workplace.
“Now that the North Pole operation is back under one roof
“I’m giddy listening to elf feet and each tender reindeer hoof.”
She said, "Our new management structure's reliable and strong.
"Your delegation's a must and the team's come so far along,
"They've implemented LEAN programs - like Six Sigma but better,
"We're efficient following ‘The Eight Reindeer’ process to the letter."
"It's true," said Santa. "We've all done very good work.
"From the elves to the reindeer, no one is a shirk.
"Let's reward everyone with a great bonus plan,
"And recognize success all year 'cuz we can."
Mrs. Claus said, "Let's add health insurance for the whole bunch.
"The Affordable Healthcare Act has packed quite a punch!
"It's like the holiday fruitcake that no one ever eats,
"The recipe keeps changing and keeping up's quite a feat!"
"Dear, your pack is heavy from high-tech, tweets, posts and blogs,
"Last year it was Tweety, Pokemon and Lincoln Logs!
"Times they are a changing, social media this and that,
"Tradition is important but Santa must be a cool cat!"
"Dear wife," said Santa, "those sweet sleigh bells are ringing.
"Like the Polar Express book when I hear them dinging.
"Saddens me kids grow up, can't hear, stop believing,
"I lead by example, giving not receiving.
"Beliefs drive behaviors, my inner strategist screams.
"To do the right thing daily and not just in dreams.
"So I'll shout from the rooftop, on each house I alight,
"Believe, hear the bells, and to all a good night!!
Jim Annis is president/CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Read the article in the RGJ here.
By Jim Annis
So, you've been thinking about giving yourself a "gift" this year and going virtual. Perhaps you've made a list of assumptions about going virtual — in whole or in part — that might need to be checked twice. Here are some things to think about.
This is not a big deal: This can be a game-changer, positive or negative. Your productivity might increase. It might decrease. Your customers might love it. They might hate it, too. This is one of those decisions that cannot be made quickly or lightly or without the analysis from your core team as to whether it is the right thing for you to do.
Everything is in the cloud anyway: That's not 100 percent true, but yes, we are leaning that way. The biggest questions to ask yourself are "What does my customer base require?" and "Is there a need for bricks and mortar?" For a great example, think about if Santa's workshop were considering going virtual. Probably not possible, if they want to keep the mystique about the Santa's Workshop alive and well.
Staff communication: How well does staff communicate now, and how? Going virtual requires a firm commitment to a communication plan which outlines very specific ways of communication (text, email, shared documents/calendars, video, in person, phone conference), dependent upon the purpose, as well as frequency and guidelines as to how to keep everyone engaged (no cellphone use during virtual meetings, etc.). Getting together in a virtual setting may take more pre-planning as you cannot physically get everyone together around a desk in two minutes.
Leadership adaptation: Communicating is not the same as leading! Leadership will need to evolve with a virtual setting to be effective in modeling the way, inspiring shared vision, challenging the process, enabling others to act and encouraging the heart. Try patting someone on the back from miles away!
Dipping your big toe in first: Allowing everyone to work a day a week at home rather than create some radically new establishment first is a great litmus test. In this way you will be able to observe who is effective at this type of work arrangement, who is not and then make decisions from there. Do they need software? Better time management? What are best practices? Then if it works for you, great! You may not have to go "full throttle" virtual in order to reap some of the benefits.
Office holiday parties: Going virtual could simplify things, reducing your liability and HR headaches the next day. Everyone would meet online in a video chat setting. Drinks are not a budget item because everyone would BYOB from home (or just open the cabinet). Driving home intoxicated and that liability goes away. No worries about food allergies or annoying social media photos showing up embarrassingly after the fact. You can institute a virtual whiteboard where everyone shares their holiday traditions and a live chat allowing everyone to comment. Each person could buy a gift for the Rotary Holiday Toy Drive or other nonprofit gift program, then virtually "gift" it to another employee and explain why he or she chose that item for that person.
There is a lot to "virtually" love about this idea. Just like any important decision, due diligence and open communication based on your particular business, culture and employees will point you in the right direction.
Jim Annis is president/CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Read the article in the RGJ here.
By Jim Annis, CEO
This year on America's Got Talent, a young competitor named Drew had a pronounced stutter due to a life-changing, devastating sports injury. Once the "cool kid" at school, he learned humility that he had never known which made him a better person. His comedy routine demonstrated talent and bravery in the face of adversity and earned a standing ovation and the hashtag #TheGoldenBuzzer, catapulting the young comedian directly to the live shows at Radio City Music Hall. Howie Mandel told Drew that "comedy usually comes from a dark place ... you looked for the light at the end of the darkness."
This Thanksgiving, like Drew, we are thankful for the things that give us growth — those things that seem horrible at the time, then help us make us better workers and better people overall. While developing this topic, we all went around the table, sharing our sentiments below. (P.S. We are not being funny.)
We are thankful for the Affordable Care Act (ACA). The burden has forced us to learn how to be more efficient. It has required us to know the law and demonstrated that we (well, everyone) cannot be complacent. It is always a learning day with the ACA. We must look at least 18 months down the road. We now have job security and industry security.
We are thankful for the client who calls and screams at us. They challenge us to be better at answering questions and developing new systems, services and solutions. Also, they magnify the positive attributes of the "nicer" client who calls us next.
We are thankful when an employee leaves unexpectedly. Not right away … but soon, the remaining employees step up and say, "Don't worry, it will be fine, we will divvy up the responsibilities and make it happen." They demonstrate leadership skills that might have been hidden for years.
We are thankful for our leaky roof. It reminds us that we have a work environment that shelters us, houses a great place to work and makes us realize that bringing all the employees into one building was a great decision. We are all in it together, leaks and all.
We are thankful for the sales deals that do not go through. Sometimes, the more we know about the one that "got away," the more we know we dodged a bullet. Whew! (And we typically learn a little something too).
We are thankful for the commerce tax (we will pay taxes in the amount of 15 basis points for anything we make over $4 million in sales in our industry). We will make less money, forcing creativity and better decisions, while believing in the vision of our great state of Nevada and keeping revenue here.
We are thankful for the Great Recession. It revealed our true grit and our passion. It reinforced our belief in the saying, "The pig gets fat but the hog gets butchered." We did better than survive. We thrived and lived to tell about it. It is a gift to be able to run through the hallways and thank everyone that works here in an off-the-cuff fashion and for no particular reason.
Jim Annis is president/CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Read the article in the RGJ here.
By Jim Annis, CEO
Imagine a support group with the following characters: an 11-month old baby, an 11-month old "puppy" and an 11-month old aquarium with several fish, some dead and some alive. They all sit in a back storage room, abandoned by their human "parents." The conversation goes something like this:
Baby (to the puppy): "When was the last time you were fed?"
Puppy: "It has been so long that the fish are looking pretty tasty."
Baby (to fish): "What about you guys?"
Fish (in unison): "You know how we are. We can survive a long time ... but the truth is there were 10 of us last month ... only 5 left. I'll leave the rest to your imagination."
Baby (to the group as he sighs): All of us were Bright Shiny Objects (BSOs) at one time. I was an only child. Life was pretty good until my "surprise" little sister came along. I wish she would go away, at least for a little while. I remember being happy and loved ... don't you?
BSOs come in many forms. Employees – much like babies, puppies and aquariums – are fun when they are new; then ... something happens. Babies become lifelong connections with lots of ups and downs, joys and heartaches. They give and receive love and can enrich your lives. Puppies are companions for over a dozen years and need lots of care, especially in the early months. They are loyal, stand by your side and give you unconditional love whether you deserve it or not. Aquariums are pretty to look at but require work from day one. You cannot take them with you and you cannot leave them alone.
Admit it: Employees possess many of these same qualities. Let's say you have an employee who has been doing the same job for 15 years. Is that person really doing the job they should? Have you appreciated/ignored their full potential? Who will look at their role with fresh eyes if they don't know how? Worse yet, maybe they can but you've abandoned them for another BSO? How can we teach them to embrace change on all kinds of levels so that they can remain relevant long-term?
As you get a few more gray hairs, you know how much work a BSO project entails and then declare, "I am not willing to do that." It's just like having an aquarium. You did it. You learned. It was great because of "this" and sucked eggs because of "that." You know for sure that you do not want to repeat "that."
The CEO/BSO Relationship
Innovation is one of my six roles as CEO. BSOs spur positive change. They advance things like thought, commitment and action. Developing a BSO litmus test is crucial. Is it your strategic plan? An innovation committee?
As an employer, you have a responsibility to know what you are taking on before you commit. Sometimes things are bigger, more time-intensive and costly than they first appear. Sometimes the rewards are greater than expected. Employees require a level of your continued devotion.
Do you have a BSO support group happening behind the scenes in your workplace?
Jim Annis is president/CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Find the article in the Reno Gazette-Journal here.
By Jim Annis
Got an extra $3 million in the bank? If not, pay attention. Even if you do have $3 million, pay attention. This is huge.
The biggest news: In 2015, most companies with less than 100 full-time employees or full-time equivalents did not have to make a decision regarding the “pay or play” portion of the Affordable Care Act. Those companies did not have to decide if they wanted to “play” (provide health benefits for employees working at least 30 hours per week) or “pay” (incur a penalty for not doing so). In 2016, the ACA lowers that threshold from 100 to 50 full-time employees or full-time equivalents. So, in 2016, if a company has more than 50 full-time employees or full-time equivalents, that company needs to decide to “pay or play.”
Insurance plans, programs, and cost increases: Conversely, in the health insurance world, the definition of "small group" is in Nevada is moving from 50 full time employees or full time equivalents to 100 full time employees or full time equivalents. This is important because it is the “small groups” who need to deal with “community rating”. HeathCare.gov defines community rating as “a rule that prevents health insurers from varying premiums within a geographic area based on age, gender, health status or other factors”.
UPDATE: President Obama signed the PACE Act (Protecting Affordable Care for Employees Act) into law on Oct. 7, 2015 – which now keeps “small group” at 50 full-time employees or full-time equivalents. So why is the above paragraph crossed out? We wrote it on Oct. 6, a day before the PACE Act was brought into law. The ACA is constantly changing, and must be kept up with in order to stay compliant.
Realizing the aggregate financial impact: In 2016, employers with more than 50 full-time employees or full-time equivalents have to decide to face a $2,000 penalty per full-time employee if not offering minimum essential coverage to 95 percent of full-time employees; or $3,000 per full-time employee if the coverage offered by the company is not affordable and does not meet minimum value standards and if the employee gets a subsidy from the State Health Exchange. It is a crapshoot trying to figure out the company’s actual financial exposure.
Also, there is a new “army” to enforce these penalties. The ACA is managed by three government agencies: the Department of Health and Human Services, the Internal Revenue Service and the Department of Labor. The IRS alone is hiring thousands of new agents to administer the law. The IRS has also just recently released unofficial updated penalties for both 2015 and 2016. That $2,000 for 2015 could now be $2,080 per employee and in 2016 could be $2,160 per employee. Under Section 4980H (b) the $3,000 (or $250 per month) could now be increased to $3,120 for 2015, and in 2016 could be $3,240. Under the ACA there will be inflationary adjustments. This is assuming the recommendations are accepted. The point is, those penalty amounts are not static and will only go up.
Compliance, penalties, fines and reporting requirements: Finally, you never saw this coming. It's going to hit you between the eyes if you don't follow it closely. Reporting penalties are here. IRS now has the forms ready. Kicking the can down the road is over. Now, if you have more than 50 100 full-time employees or full-time equivalents, if you do not comply one way or another and do not properly file, it will cost you. The penalty for failing to file required information returns with the IRS is $250, plus an additional $250 for not providing the information to impacted full-time employees as well. Depending on the size of your company, this particular penalty alone could reach up to $3,000,000.
The bottom line is if you want to keep your $3 million – whether you have it or not – see your ACA trio (your CPA, your insurance broker or PEO and your attorney) to help you navigate this minefield. Premiums and fines are going up, and so it the administrative burden. If you have not paid attention to ACA yet, it may whack you on the side of the head sooner than you expect.
Jim Annis is president and CEO of The Applied Companies, which provide HR solutions for today’s workplace. Celeste Johnson, Applied's COO, contributed to this article.
Read article in the RGJ here.
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