$14 is the new $10

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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.

 

Read article in the RGJ here.

X Factor or 'Ick' Factor: What's your sales personality?

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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.

There are two categories of salespeople – those with the “X Factor” and those with the “Ick Factor.” The former will be naturally successful. The latter may have short-term success, but will eventually show their true colors and move on.

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.

EDAWN: The New Nevada

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The Economic Development Authority of Western Nevada (EDAWN) put together a great video on new companies and economic and job growth in Nevada.

 

Take a look:

Visit EDAWN here.

How does Santa do it?

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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.

Switching to a virtual office? 6 things to consider

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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.

Take the challenge

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By Anastasia Warren

 

It’s that time of year again. Time to set the table, baste the turkey, take the pumpkin pie out of the oven, and eat… probably a little too much.

It is a couple of days off from work, a time to see family and friends, and a time to prepare for the approaching end of the year.

It can often seem more stressful than not, trying to get together with loved ones, making sure things are in order, ensuring you don’t miss the Macy’s Thanksgiving Day Parade on TV. Not to mention, leaving work can be hectic and the thought of returning after the holiday can sometimes seem daunting.

This is all true, yes. And most of the time, these logistical and detailed items are what our minds focus on during the holiday season.

What I challenge you to do this year, is focus on the word itself. Thanks-giving.

This holiday, take the time to give thanks. Take the time to appreciate what you have. Take the time to practice gratitude.

Take the time – give thanks this holiday.

I have recently noticed an increase in appreciation at our company. Employees and management both extending gratitude “just because.” Whether it’s thanking the company for being an exceptional place to work, or thanking employees for creating such a cohesive and fun environment – appreciation has been apparent as of late.

Giving thanks often gets lost amid the everyday grind of emails, personal life, and obligations.

And so again, this holiday, I challenge you to not only give thanks and practice gratitude internally, but also to let others know you are thankful for them. Let them know they are valued.

Don’t burn the turkey, but don’t forget about the important stuff as well. And maybe, this mentality can carry on past the holiday of thanks. Maybe, it can be a new way of thinking for the end of the year and beyond.

Take the challenge – give thanks.

Be thankful for the negative that leads to the positive

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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.

6 Steps to a Smooth Re-Entry from Vacation

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By Anastasia Warren

 

You just spent the last few days soaking up the sun with your toes in the sand. Or maybe, you took a week to relax at home and get caught up around the house.

Whatever you did, it was vacation – time off while your workplace continued to do business. Getting ready to take time off proved to be busy, and at times even stressful, but you finally made it to your cherished days away from the office.

But now, it’s time to re-enter the workplace. To walk through the doors, say hello to your co-workers, and yes, open your email inbox (if you haven’t been peeping throughout your vacation already).

Time off from work is an essential part to your growth, both personally and professionally. It shouldn’t be an overly stressful event. In fact, it should leave you feeling refreshed and rejuvenated to begin working again.

So how do you re-enter the work grind, in order to maximize the benefits of your time off and minimize your stress? By following these six simple steps.

  1. Have a calm morning.

Set your alarm a tad early on the day of your return. Make a good cup of coffee. Eat a healthy breakfast. Take your time and maintain a sense of calm. Go over the things you are grateful for and start your day off right.

  1. Get an early start.

After you’ve spent your morning calmly preparing for your day, make sure you leave a little early. Get to the office a few minutes earlier than normal – you can spend this time getting ready to face the reality of your workload and get a jump start on the catch up game.

  1. Take time for yourself.

At the beginning of your day, take an hour or so to go through your emails, go through pending projects, and create a prioritized to-do list for the day. A “catch up” plan is now in place, and you can proceed with less stress knowing that you are not missing anything.

  1. Let others know that it is on your list.

Depending on your position, when you return to the office you may be in high demand. Everyone will want to talk to you about pending projects or needed decisions that they were waiting on until you returned. It’s OK to tell co-workers that it is in on your radar, that it is a priority, but that you are working on numerous things at the moment as you re-acclimate and that you will get to it in due time. Prioritize, prioritize, prioritize. It’s OK.

  1. Get your workout or other “me time” in.

Just because it’s your first crazy day back, doesn’t mean you should skimp on your routine. In fact, it is essential to re-entering with as little stress as possible. Normally workout on your lunch break? Workout on your lunch break. Normally take two walks around the block a day to clear your head? Take two walks around the block to clear your head. You’ll thank yourself for it.

Let me guess, no ball was dropped, no account was lost – everything is OK, even though you took some time away. Yes, your to-do list seems daunting. Yes, everyone has a new project for you. Take a deep breath and remember that you deserved your vacation, and everything will be back to normal in a few short and busy days.

Good Ol' Suggestion Box

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By Anastasia Warren, Marketing Manager

 

Sometimes, the best solution is something simple, old-fashioned, and proven to work.

The issue of employees feeling comfortable enough to bring light to issues in the workplace is apparent at most companies.

No matter how open your management team or leadership is, some employees will always find it difficult to bring light to their different concerns.

There are multiple ways to solve this issue, but the one that we have found the most useful, is the good ol’ suggestion box.

Having suggestion boxes placed around the office makes it easy for employees to drop an anonymous note regarding a concern they may have. Make sure they are labeled, well-known amongst your employees, and fully stocked with blank paper and pens.

The most important thing here, is to address the concerns. If employees make the effort to express their different issues, it is important to follow-up and take them seriously in order to show employees that you not only care, but that you can be trusted.

Whether that is through a company-wide email or your next all-staff meeting, make sure to address the issues and reiterate that they are all valid.

Welcome to your new, happier office, where open communication is made easy for all personalities.

Babies, puppies and other Bright Shiny Objects

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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?

 The Employee Connection

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?

 Life Lessons

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.