Business Essentials > October 2007

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A Monthly Update on Day-to-Day Management Issues for Optical ECPs and Retailers

October 2007

Made possible by an unrestricted grant from Santinelli and Jobson Optical Group

Hedley Lawson Human resource management will become increasingly challenging in the next five to 10 years, according to Global Human Resource—"The 20 Worst Mistakes that Companies Make," a report published by the Economist Intelligence Unit. The report highlights the need to increase the time and effort dedicated to human resources in order to be successful in an increasingly competitive market.

The report cites the shortage of talent as one key area which will become more difficult as time goes on. This applies directly to eyecare professionals who seek highly qualified, experienced, talented and customer-focused team players.

As business organizations and eyecare practices struggle to meet the demands of customers, the real competitive advantage will stem from human resources.

The report further cites several key issues which it states "tend to be the same everywhere:"

Recruitment

Retention

Declining quality of candidates—or not enough qualified candidates for a growing number of opportunities

Salary increases

Compensation package benefits

Leadership development

Finding staff, keeping them and rewarding them appropriately are identified as three major problems in human resource management. "If you can get the best 1-2-3 staff members for your eyecare practice, then this will generate the crucial competitive advantage," according to the report.

We hope that you continue to find Business Essentials as one of the important resources that will enable you to stay abreast of changing and challenging business demands, including the area of greatest competitive edge for your practice—people management.

As always, we appreciate your thoughts on future topics as well as feedback on subjects covered in this and previous editions. Your feedback is important, so do take a moment and let us know your ideas on articles and subjects of interest to you and your colleagues.

Hedley Lawson, Jr. is the managing partner of Aligned Growth Partners, LLC, a strategic, operational and organizational consulting and executive search firm. Lawson also serves as consulting editor for Jobson's Business Essentials monthly e-newsletter.

At-Will Policies

Q: Our handbook states we follow an introductory period of 90 days for new employees. We say we are "at-will" employers. Is this good?

A: Yes, but you must ensure that your at-will policy states that an employee may be terminated under your policy at any time during the employment relationship, including during and after the introductory period. Furthermore, it is always advisable to have good, written documentation as to the reason for the termination, in case the former employee alleges harassment, discrimination or retaliation subsequent to the termination.

Submit your questions to one of our experts.

—Hedley Lawson, Jr.

Easy-reference to web resources about human resource policies and rules

Department of Homeland Security

Social Security Administration

U.S. Chamber of Commerce

Fair Labor Standards Act (FLSA)

Small Businesses Reeling from Minimum Wage Hike

According to a new survey, nearly 70 percent of small businesses say that they might have to raise their prices because of costs associated with the recent increase in the federal minimum wage, and 60 percent of small business owners predict they won't be able to offset the cost of the wage increase.

The survey, conducted by the U.S. Chamber of Commerce, also found that more than 20 percent of small employers said they expect to scale back hiring plans due to anticipated costs from the higher minimum wage. And, about one-third of small businesses reported experiencing other, non-wage related cost increases as a result of the new rate.

The federal minimum wage received a boost from $5.15 per hour to $5.85 per hour on July 24, 2007, and it is slated to go up two more times by 2009. Some states are not directly affected by the change because California's minimum wage remains higher.

FLSA Poster Compliance Is Free

With the recent federal minimum wage increase, employers were required to post the newly-revised Fair Labor Standards Act (FLSA) Poster. As with similar changes in federal or state law, employers have been unnecessarily confused by sales pitches and official-looking letters that threatened serious consequences unless a purchase of their poster is made.

"These are just companies looking to use one's ignorance of the laws, when you can get this poster for free," observed Frank Whitney of the MidCal Better Business Bureau in Stockton, Calif.

Recently, the New Hampshire Department of Labor issued an "employer alert" warning of poster pushers. "We have been notified that again some companies have sent solicitation letters to businesses and are visiting business locations indicating the need to purchase up-to-date labor law posters or risk being fined for noncompliance. The State of New Hampshire Department of Labor does mandate certain posting and these postings are available free of charge," according to the alert.

Similarly, Kentucky's Attorney General Greg Stumbo cautioned employers "to be on the lookout for misleading labor law notices sold by private companies."

"These notices use scare tactics and official-looking seals and language to mislead businesses into thinking the government is contacting them and threatening a fine if they don't purchase these posters," noted Stumbo. For example, Stumbo pointed out that some Kentucky businesses had received sales materials with threatening labels such as "Second" and "Final Notice."

"Employers need to know that these posters may be obtained free of charge from governmental agencies," said Stumbo.

The FLSA Minimum Wage Poster is available as a free download from the U.S. Department of Labor in English, Spanish, and Chinese.

Back to Top

Tips for Long Distance Managing

Business Man on Cell Phone

It is not uncommon for business owners or managers to have multiple locations, some that may be in different cities. If your practice fits into this category and are providing long distance leadership to employees, the following tips will help manage expectations, people and communications.

Set clear goals.

Be certain the tasks are understood.

Establish responsibility for completing tasks, including dates when things should be submitted, reviewed and completed.

Set up a process for regular communication with one another.

Do not abuse email. Most people get more than they want, so be sure you use it wisely. Be brief and to the point.

Consider creating a blog or Web-based groups of employees.

Make appointments to call employees from time to time and build a personal relationship. In-person conversations help two people not only learn facts about one another, but also shows how to relate to one another.

Send regular, consistent updates and keep employees informed of overall happening in the organization. Share information about new employees, new products or services, pricing or training information, and important events. Help employees feel connected.

Follow up. Send a notice before something is due as a gentle reminder.

Send an annual summary of work performed, patients served, outcomes reached.

Share achievements among employees.

Send each employee a handwritten card at least once a year. Email is convenient, but a personal note is still a nice touch.

Be personal and make an effort to combine high tech with high touch.

Back to Top

DHS Finalizes New Rule on No-Match Letters

On Aug. 10, 2007, U.S. Department of Homeland Security Secretary Michael Chertoff and Commerce Secretary Carlos Gutierrez announced several procedural changes to strengthen enforcement of existing federal immigration laws.

As part of the enhanced enforcement effort, DHS finalized a set of regulations that employers must follow when they receive “no-match” letters from the Social Security Administration (SSA).

The SSA routinely sends “no-match” letters to employers with employees whose Social Security numbers do not match government records. The new “no-match” rule took effect in September 2007, 30 days after appearing in the Federal Register.

Under the new rules, employers will be in violation of federal immigration laws if they ignore the "no-match" letters and fail to take corrective steps within 90 days.

Corrective steps will include checking employment records for clerical errors and confirming that employee information matches government records. Employers that make "good faith" efforts to solve any problems will not be held liable, according to DHS officials.

However, the new rules will require employers to fire any workers whose “no-match” problems with Social Security numbers cannot be resolved in 90 days.

“Persons and businesses that do their best in good faith to comply with the rules have nothing to fear from these changes and new initiatives,” Chertoff said during the Aug. 10 press conference.

As part of the increased enforcement effort, Chertoff announced that DHS would boost fines for employers that knowingly hire illegal immigrants by 25 percent.

Chertoff also said, "DHS will use its existing authority to update civil fines for inflation in order to boost fines by about 25 percent or what is allowed under current law."

During the press briefing, Chertoff outlined DHS plans to issue proposed rule changes that would reduce the number of identity documents employers can accept in confirming the work eligibility for employees and that would require federal contractors to use the federal government's electronic employment verification system.

Efforts were underway, Chertoff said, to expand and improve the electronic verification program, called E-Verify, by increasing the system’s number of data sources. The verification system would remain voluntary for employers since there is no new law mandating its use, he said.

In This Edition...

It's Your Business

From the Top
Small Businesses Reeling from Minimum Wage Hike

FLSA Poster Compliance Is Free

Ask the Experts
At-Will Policies

People Management
Tips for Long Distance Managing

Office Space
Are You a Leader?

Rules and Regulations
DHS Finalizes New Rule on No-Match Letters

Resource Corner
Links to Important Resources

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Are You a Leader?

Leaders make sure five conditions exist, according to Noel M. Tichey, author of The Leadership Engine and co-author of Control Your Destiny or Someone Else Will.

1. A sense of urgency.
Leaders help people focus on the fact that there is a real problem and that it isn't going to go away unless they do something.

2. A mission worth achieving.
Change can be frightening, so it's not enough for people to understand that they can't keep doing things the old way. Leaders have to help them envision a specific future that looks a lot better.

3. Goals that stretch people's abilities.
Goals must be set high enough to inspire extraordinary effort, but they can't appear so unreasonable that they discourage people from reaching them.

4. A spirit of teamwork.
People need to feel that "We're all in this together." The risks are less risky and goals seem more achievable when you are part of a team. Leaders make sure that people know that the leader is on the team with them.

5. A realistic expectation that the team can succeed.
Leaders build people’s confidence by making sure that all parts of a problem are addressed, so that if people do their part, the solution will work.

Business Essentials, a Vision Monday® newsletter, and
VisionMonday® are published by Jobson Medical Information LLC,
100 Avenue of the Americas, New York, New York 10013.