IntegrityHR Louisville Human Resources Blog

Beating Bad Bosses Blog - Our Top 7 (Legal) Tips on How to Deal With Poor Management

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The Start of a New Series

Today marks the start of another IntegrityHR blog series.  This will be an ongoing four part blog series coming to you over the next two weeks that gets down into the details of how to deal with poor management.  Don't miss this one.  It might save your job, or even your company!

There's a saying in corporate America that people don't leave jobs, they leave their managers.  Promotions and pay increases notwithstanding, this is the case more often than not.  The people you work with every day can make or break your experience on a job, and it's the manager of an organization that sets the tone and culture.  A great boss can make you want to stay a job that may not pay as much as another down the street, while a bad boss makes the 20% raise you took seem like the devil's ransom.

What makes a manager a "bad boss"?  There are any number of things that contribute to poor management, but we've dug down to the deepest depths of your daily dose of doom in this beating bad bosses blog (ok, we'll stop with the redundant letters) and have isolated the top seven categories of and how to deal with poor management

The Know It All Managers got where they are by knowing their jobs and doing them well.  They climbed the ladder quickly and resolutely and never looked back.  They are the experts in their fields.  And they know it.  And they will be absolutely certain that you know it.  The problem is that new talent can't emerge under a "my way or the highway" mentality.

While these managers have a wealth of knowledge to share, they often fail to recognize the importance of new ideas. When they feel threatened by the new ideas, they turn to micro-managing, refusing to delegate, and demanding that their stamp of approval be placed on everything - leading to the development of an entirely unapproachable manager and a company that won't develop.

2) The Know Nothing Manager:

The Know Nothing Managers, on the other hand, don't want to leave their stamp, or their fingerprints, on anything.  They may claim that they are working on the "big picture", but the real problem is that they don't know the jobs they oversee well enough to dive in and do them themselves. The problem here is that they can't engage their employees, their talent, their projects, or their tools if they don't understand them.

Next thing you know, everyone is scrambling last minute to complete projects and meet deadlines due to their poor preparation and planning.  Because they don't understand the jobs in their departments, they can't build upon the skills within them, and therefore can't build up their employees or develop them.  These managers recognize that their staff have skills that surpass their own and feel threatened by them, creating animosity and distance, and alienating the team that they are supposed to be leading.

This leads to disgruntled employees because its easy for them to see that their manager (who makes a lot more money than they do and does much less) doesn't know the jobs that they get paid way less to do on a daily basis - needless to say a motivational killer.

Next Time:
In the next installment we will reveal the next two bad bosses, along with how they can lead to turmoil in your organization.  Keep reading folks.  This series may save your company.

Death by Numbers: How Financial Intelligence Can Prevent the Slow, Painful Death of a Human Resources Career

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When I was in college, I was under the illusion that I would make it as an accounting major.  Then it happened.  Late one night, under the light of the desk lamp in my dorm room, I was at a crossroads.  Should I continue on my misguided attempt as an accounting major and spend another agonizing hour trying to find the $0.56 that I was off on my worksheet, or should I come to the realization that I am not cut out for this and declare another major?

The next day, I went as fast as my legs could carry me to the advising office and promptly declared as an Economics major, and as Robert Frost has so eloquently written, "...that has made all the difference."  After graduation, I chose Human Resources as my career of choice, and all was well, until...

I never thought I would be back in the painful throes of the accounting nightmare.  Yet here I am, making HR decisions based on budgets, capital expenditures, and staffing models.  As HR Professionals, if we don't make an attempt to understand the numbers, no matter how painful, we are at the mercy of those who do understand them and make decisions based on them every day.

In the book, "Financial Intelligence for HR Professionals," Karen Berman and Joe Knight identify four skills that form the basis for financial intelligence.  Competency in each of these will enable you to achieve greater success in your Human Resources career.

1.  Understanding the foundation - HR professionals should at a minimum be able to read and make sense of a balance sheet, an income statement, and a cash flow statement.  Knowing how these work and what they mean will give you greater insight into the financial position of your company and why decisions are made (or not made).

2.  Understanding the art - Just like many things, sometimes even accounting is more art than science.  Sometimes assumptions and estimates need to be made and reflected in a company's financial statements.  The HR professional needs to identify when art has been applied to the numbers and how applying numbers differently can lead to different results.  Don't just take the numbers at face value - challenge and question them when appropriate.

3.  Understanding analysis - After you have taken the time to learn the basics and understand the art of finance you can begin to use analysis to obtain depth and meaning from the numbers.  Use ratios such as debt to income and return on investment to help you make better decisions when faced with challenges such as staffing, training, and the like.

4.  Understanding the big picture - Contrary to popular belief, numbers don't always tell the whole story.  By understanding the numbers and putting them into their proper context, such as taking into account economic forces and the competitive market, you will be well equipped to decide what decisions need to be made and when.

You are probably thinking that you would rather sit in a dentist's chair and get a root canal than try to become financially intelligent.  However, by learning, practicing and applying the above steps, you will be able to position yourself as a strategic partner and have a greater impact on your company's performance.

The Importance of Policy Development | Part 2

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In last week's blog post about the Importance of Policy Development we discussed that a lot of organizations simply don't put their policies down on paper, and end up getting in trouble because of it.  The bottom line is, get it on paper, and it's that much easier to defend yourself and control your business.  This post further discusses the importance of having your policies down on paper. 

I'd Rather Not Write It All Down 

Even if your intentions are good, unwritten policies lead to trouble because they do not provide clear guidance for managers.  Workplace morale and productivity depend on how effectively managers, employees, and colleagues communicate expectations about what is expected, how it will be accomplished, and who is going to do it.

In absence of written policy, a company will often face conflicting messages from managers or supervisors. That is, on some occasions the manager says or does things that convey one message about what's expected of the employee, and on other occasions the boss says or does things that convey a contradictory message.  Or, you have two different managers in two different departments applying two different rules.

So How Do You Avoid This? 

By having a written policy, you have the "final say", as written policy will trump spoken directive in most situations.  This may mean that the manager giving the inaccurate information be disciplined and counseled to read more and talk less (keep an eye on our blog for more on that topic, soon).

Without a written policy for reference, it's difficult to determine who is right or follow standards (because standards aren't clearly defined).  Without a written policy for reference, it's difficult to establish expectations for employees.

Eliminating - or at the very least reducing - confusion is the ultimate goal, and putting expectations, policies, procedures, and consequences in writing, is a highly useful tool for accomplishing that goal.

Need help in turning your unwritten practices into sound written policies?  IntegrityHR is hosting a free workshop outlining how to create an employee handbook. Click the calendar graphic to download the events schedule.

Why You Need to Write Down Those Unwritten Policies | The Importance of Policy Development

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Today marks the start of a two part blog series full of information that has saved countless companies an extraordinary amount of time, money, and legal hassle. This series is all about those "unwritten policies" that are important and should be documented, but no one ever takes the time to write them down.  Part 1 of "The Importance of Policy Development" starts now.

As you know, we at IntegrityHR are HR consultants.  This means that we come into your business, do an assessment, perhaps a full compliance audit, and make recommendations that will reduce your risk of liability, make your organization more productive, and generally make your life easier and your workplace a more pleasant place to be.  But don't take our word for it.

As we work with more and more organizations on their policy development, we are neither naïve, nor are we inflexible.  We understand that some things in your organization are the way they are because, well, that's "just the way they are".    Most often this comes into play when we are assessing your employee handbookand reviewing the policies within.  Policies may be unclear, or nonexistent, and you explain that you "prefer to be flexible" or would "just rather not go there".  This is usually accompanied with a wink and a nod, or a dismissive wave of hand, or occasionally a sheepish shrug.  We get that.

However, understand that when it comes time to defend this unofficial policy in court (happens more often than you think), judges don't take too kindly to winks and nods or dismissive waves, and they don't carry much sympathy for sheepish shrugs.  This is because they understand that the reason employers don't perform policy development is because they truly don't want to follow one, and the reasons that they don't want to follow one usually don't jive with terms such as "fair and just and equitable".

Management often likes to maintain "flexibility", but often this flexibility is just a veiled attempt to be able to maintain two different policies at the same time, or at attempt to avoid having to take a difficult action in some matter. 

Other managers default to "employment at will" as evidence that they don't need policies, because they can terminate for no reason and don't need to provide policy to back it up.  Not only is there a lot more to it than that (see our three part employment at will blog series starting here), but not all policies concern issues that lead to termination.  There are a number of things that need to be communicated to your employees, and they need to be communicated well.  Also, you can forget about fighting unemployment insurance benefits if you can not provide a clear written policy to show that an employee was aware of an infraction that would lead to termination.

We'll discuss these policies and their development in more detail on Friday.  Be sure to come back and read that post.  It may help to keep you out of the courtroom. 

Employment At Will Part 3 - So Why Have Employment At Will at All?

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In our last blog posting we discussed just what exactly employment at will means to your company.  Now that you are aware of the terms of at will employment, we will discuss why businesses have it and follow it, and how to manage the terms and provisions of at will employment in your organization.

So Why Have At Will Employment at All?

Although exceptions to the rules of Employment At Will exist, it is nonetheless a very important part of the American employee-employer relationship.  It provides a certain amount of structure or an organization, which makes it clear that there is no master/servant relationship and the days of indentured servitude are long behind us.  It creates a respect for the freedom of the worker and the power of the employer and the balance that must be maintained so that each can be of service and mutual benefit to the other.

The balance is the key.

"Of all the things I've done, the most vital is coordinating those who work with me and aiming their efforts at a certain goal." - Walt Disney

Employers must always respect this power from the aspect of employee morale:  If you as an employer are perceived as taking for granted and treating your employees as disposable assets at the will of your whims, your employees will turn on you.  And when they turn on you, they may very well turn to unions, government agencies, or litigation attorneys for protection of their rights.

A successful organization should see its employees as a vital asset and treat them as such.  It should not operate with an employer vs. employee mindset.  If this is the case, people will only work hard enough not to get fired, and I don't have to tell you that's not very good for productivity.  

"Most people work just hard enough not to get fired and get paid just enough money not to quit." - George Carlin

Employees must always respect this freedom from the aspect of job security:  If you as an employee are perceived as taking for granted the benefits and stability provided to you and treat your employer as a machine held in bondage by its need for your skills and assets regardless of your behavior, your employer will turn on you.  And when it turns on you, it will turn you out, and turn to the next person in line who needs a job.

What have we learned from all of this?  Well, if you take nothing else away from this blog series, take at least this point.  Even though Employment At Will does exist and you can technically terminate "at will", it is in the best interest of employers and employees to operate under an agreement of good faith and fair dealing.  If you can't imagine yourself sitting in front of jury using "at will" as a defense, you had better have good cause for termination of the relationship.  That one tip could save you a lot of hassle and a lot of money.

Now what?  Well we suggest you review the previous two articles to be sure you're up to speed.  Then if you have other questions, we suggest that you Contact Us.

Employment At Will Part 1
Employment At Will Part 2 

Employment At Will Series - Part 2

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In our last post, we introduced the problems that many organizations have with understanding employment at will.  This post will serve to clarify what exactly employment at will is, and some of the major exceptions to its provisions.  Don't miss out on this compliance issue!

What Exactly Does Employment At Will Mean?

Employment At Will:  Both the employer and the employee are entering the relationship by mutual agreement, but that either can end the relationship at either time without mutual consent.  The employer can terminate the employee at any time for any reason, except an illegal one, or for no reason, without incurring legal liability.  Similarly, an employee can leave a job at any time for any or no reason without adverse legal consequences. 

However, like with anything else, there are caveats and exceptions to this rule.

1) The number one exception is contracts.  Union contracts typically come to mind, however, contracts may exist between employers and employees in any environment.

There are also what are considered common law exceptions to at will employment.  They are public policy, implied contract, and implied covenant of good faith.  The interpretation of theset in real life situations will usually fall under the "illegal reasons" why you can't terminate someone, but often in a shady area of gray.  Also, while it is important to be aware of these exceptions, it is also important to be aware that they are not all recognized in every state. (See chart -- http://www.ncsl.org/default.aspx?tabid=13339).  Of course, since so much is left up to interpretation, much depends on how well a good attorney can swing a jury.

Here are the common law exceptions:

2) Public Policy:  This exception assumes that employees should be protected against termination for actions that are in the best interests of the public.  For instance:

            a) Refusing to perform an illegal act for the employer.

            b) Reporting an illegal act by the employer.

c) Engaging in acts that are in the public interest (such as serving on jury duty or enlisting in the military.)

            d) Exercising a statutory right (such as filing for workers' compensation benefits.)

3)  Implied Contract:  An implied contract of employment is one that is not written and not specific between the employer and the employee.  An example would be a supervisor telling an employee "As long as you keep up the good work, you've got a job here for life", or even an employee handbook that guaranteed progressive discipline in every circumstance.   Even in states where an implied contract is recognized, courts are slow to honor them during termination in absence of an actual written contract.  However, the fact that there is the common understanding that an "implied contract" exception exists should be enough to motivate you to caution your managers to be diligent in what they express to employees.  Likewise, your employee discipline policy should state that progressive discipline is not guaranteed and that, depending on the nature and severity of the incident, discipline may be escalated accordingly.

4) Implied Covenant of Good Faith and Fair Dealing:  There are a few states that recognize an implied covenant of good faith and fair dealing.  An exact definition is difficult as interpretations of bad faith have depended upon judicial interpretations.  Examples of bad faith would include: firing an older employee prior to retirement to avoid paying retirement benefits, firing an employee right after relocating them to a new state, or firing a sales person just before a large commission payment or bonus was to be paid. 

5) Finally, let's remember one of our number one rules for everything when it comes to dealing with employees:  Let's not do it or say it if we couldn't defend it.  If  you can't imagine yourself sitting in front of a jury and sticking with the "at will" defense to see how long it held against accusations of wrongful termination, discrimination, and other crimes against employees, then it's best to follow Montana's lead and terminate only for good cause.

Now you know some of the finer points about employment at will, make sure you are up to date on all of your policy and compliance documentation until the next post.  Next week we will bring you the exciting conclusion titled, "So Why Have Employment At Will At All?"  I don't have to tell you what that's about.  Don't miss it!

Until then, make sure you are subscribed to our RSS feed or subscribed to blog announcements via email so you don't miss out.  You can do both in the margin to the left. 

Yes, There is an Employment At Will Clause | Do You Know How Employment At Will Affects Your Company?

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February 2010

Today begins an educational and exciting three part blog series that will cover at will employment at will.  This three part series will serve to education your organization on the ups and downs of employment at will, and will also make several recommendations as to how you can protect yourself from potential bad situations if the provisions of employment at will are not followed properly.

This is a series you don't want to miss so make sure to subscribe to our blog to the left for email delivery, or add us to your favorite RSS reader with the buttons to the left.  Here is the IntegrityHR Blog RSS link.

While employee-employer relationships are considered to be "at will" throughout the United States, with the exception of Montana, the concept of employment at will remains one of the most misunderstood terms in employment law today. 

I recently had a conversation with an employer who wished to terminate one of their employees who had a long history of poor performance and problematic behavior.  However the problem in this particular case (as is the problem in many cases) is that nothing had been documented and she had never been formally addressed about the issues.  In fact, her performance reviews ranged from fair to good.

As we discussed how to move forward with this employee in the absence of any and all documentation to substantiate her termination, the manager asked "Can't we just fire her?  Our handbook says we operate under employment at will.  Let's just fire her and not get into the details."  Technically, yes, this is true.  However, employment at will rarely makes a good termination defense. 

While it's simple in theory, it's just not that simple in practice.  Precaution must still prevail.  Many managers feel that since their employees are under at will employment they may fire them whenever they feel like it.  There is more to it than that, and this misunderstanding is where many employers get in trouble.

The next post in the series comes out in just a few days and will discuss the legal caveats and exceptions to employment at will.  Until then, if you are struggling with a difficult employee termination or even if you think you might be, don't hesitate to contact IntegrityHR.  We'll keep you out of the courtroom!

Check Yes or No: Love - Corporate America Style

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The Workplace Romance - Part 2

In a recent blog entry titled Check Yes or No, Workplace Romances and Love Contracts, we addressed several ways companies can face the problems that come along with a workplace romance.  We suggested that the best way is not to ignore and not to prohibit, but rather to manage the relationships with boundaries.  We also promised our suggestions on how to do this.  As promised, here are those suggestions.

1. Prohibit relationships between supervisors and their staff.    Do draw the line here.  While you may not be able to stand in the way of true love, you can remove the supervisory relationship.  At no time do you want a situation - real or perceived - in which a person has decision making responsibility regarding the terms and conditions of employment of an employee with whom they are in a romantic relationship.  Your workplace romance policy should be explicit on this, as well as to the fact that the company reserves the right to determine which party will have a change in responsibilities or reporting structure depending upon the needs of the organization. 

2. Acknowledge the relationship.  I'm not talking about throwing a party or putting it in the company newsletter - in fact, couples who come forward should rest assured that their disclosure will remain confidential unless they choose otherwise.    Rather, HR should address the couple in order to make sure they understand the same expectations for professional behavior within the workplace still exist regardless of the nature of their relationship, and that the are expected to be discreet and respectful of the workplace.  Even though we would expect everyone to behave as adults in the workplace, sometimes we have to remind employees that simply because we permit romantic relationships in the workplace does not mean we permit romantic displays in the workplace. 

3. Which, in turn, means you may have to acknowledge the breakup.  If there is a breakup and behavior gets sophomoric, it will be time to address the couple again regarding professional expectations.  How they behave will affect how the rest of their coworkers behave - we don't want to set up a great divide in the office over who did who wrong. 

4. Consider a consensual agreement form.  There is a lot of debate about whether or not couples should be asked to sign forms to acknowledge that their relationship is consensual, forms also knows as "love contracts".  Some feel that it is going too far into the lives of their employees and makes the company a third party in the relationship, while others insist that it is a protection for the company and the employees both by having written affirmation that neither employee is being unduly pressured into the relationship, therefore preventing cries of sexual harassment.  If you do decide to have a love contract you should be certain to have each individual separately acknowledge:
1. That the relationship is consensual,
2. That they understand and have received a copy of the company's sexual harassment policy,
3. That they understand that they cannot be in a direct report/supervisor role of the other individual,
4. That if the relationship should end, they will not do anything work related to retaliate against the other nor will they continue to pursue the relationship while at work. 

Whatever your policy is, have it in writing.  Don't wait until the first relationship causes a problem to take action.  That said, however, don't rely only on your policy to keep your workplace free from romantic woes.  People are people no matter where there are, and human nature will prevail.  The best way to keep a reign on potential problems is simply good management.  Educate your managers and know your employees.  Keep your finger on the pulse of what is going on in your organization, and you won't find yourself heartbroken when Cupid comes calling.

Check Yes or No: Workplace Romance and Love Contracts

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Where's the number one spot to meet singles in your area? Chances are, it's work. And with Valentine's Day just around the corner, there are probably plenty of cases of workplace romance brewing.

While one can say that alls well that ends well for Pam and Jim in that fictional Scranton office, real life scenarios for dating and romantic relationships at work bring far more drama to the office than situational comedy. It is important that companies develop a policy and response to these situations before they arise, less they let the particular circumstances or their feelings toward employees in a particular situation develop the policy for them. Typical responses toward workplace romance relationships in the office include:

1. Prohibiting Workplace Romance: Many companies simply forbid romantic relationships among employees. However, while that works on paper, it's not a realistic solution. For one, the relationships will go on with or without company approval - all this approach will do is keep management out of the loop, and therefore are unable to manage any portion of the relationship as it relates to the work environment. Second, employees often feel that their personal lives are being dictated by management with this approach, which does not lend itself to a positive and productive work environment.

2. Ignoring the Workplace Romance: Many employers either don't want to encourage the drama, or they really don't care who is dating whom. These companies choose to remain silent on the subject, perhaps even hoping that if there is no policy at all, they can't be held responsible for anything that happens in regard to the workplace romance. However, workplace romances can cause a lot of grief for organizations. They can be distractions during the work day, whether because of the couple fawning over own another or the gossip involved. Conservative customers may not share your casual attitude and may choose to go elsewhere. An atmosphere that encourages interoffice dating must take the interoffice flirting that goes along, and some employees may not want to be a part of it - sexual harassment and sex discrimination charges will flourish without boundaries. Last but not least, when the relationships end, the tension in the office can become so severe that you risk not only losing one of the people involved in the breakup, but other employees who simply don't want to deal with the drama anymore.

3. Allowing the WorkPlace Romance, With Clear Boundaries: Obviously, neither of the first two options are the way to go. This only leaves us with a third option: Moderation. There is no doubt that workplace romances will develop - in fact, many people do meet their significant others at work. The key is not to stop what will happen naturally, but to manage workplace romance within the boundaries of your culture.

So, what rules do you establish? We'll have some suggestions in our next blog entry.  Meanwhile sign up for email delivery of our blog to the left, and please, leave us a comment with your suggestions.  How would you address workplace romance?

Keep an eye out for Part 2!

Workplace Nanny 101: When Employees Act Like Children - 3 Steps From a Certified HR Professional to Correcting Unruly Employees

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A client was venting to me the other day about the irresponsibility of his office staff.  Twice in the past week he had to remind them to make sure the doors were locked and the equipment was turned off before they left the office for the day.  Imagine his surprise when he came into the office over the weekend and found the UPS overhead door unlocked and open for anyone to gain access to the facility!  His words to me were, "My ten year old is more responsible!  Why do they continually have to be told what to do?"

This brings up an important dilemma.  What do you do when employees act like children?  I am reminded of my son's preschool class and am still amazed at how two women can get a class of 15 two-year-olds to lay down for a nap at the same time, yet in workplace, managers are constantly struggling to get grown up employees to cooperate and follow simple directions.  If this is happening in your workplace, it may be time for Workplace Nanny 101.  Here are some of Nanny Mitzi's rules for handling "children" in the workplace:

1.  Set clear boundaries - As children need clear boundaries of what is and is not acceptable behavior, so do adults in the workplace.  Policies, work rules, etc. need to be clear, specific and unambiguous.  But beware - once you set boundaries, expect those boundaries to be tested.  Make sure that you are following your policies consistently and fairly at all times, no matter who the employee is.

2.  Set clear expectations - Make sure employees receive a copy of their job descriptions on the first day of their employment and review it with them often.  Employees, like children, need to know what good performance looks like.   Provide consistent, specific performance feedback on a regular basis.

3.  Set clear (and consistent) consequences - Use the Dr. Phil rule:  "children (employees) need to predict with 100% accuracy what the consequences of their actions will be."  Corrective action needs to be administered fairly and consistently, and the consequences need to fit the infraction.

Follow these three guidelines and your organization will be well on its way to developing a controlled and effective workplace.

Mitzi Root, PHR
Senior Consultant

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