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WHAT’S YOUR COMPETITIVE ADVANTAGE, PART 3

Posted on April 2, 2018 by Trinity HR

Hopefully, Parts 1 & 2 have caused you to consider the value of creating & maintaining ORGANIZATIONAL HEALTH within your company. So here in the 3rd & final part of this series, we’ll:

  • Identify the 4 disciplines that constitute Organizational Health
  • Provide several sample questions that are critical in assessing your organization’s health

The Four Disciplines

DISCIPLINE #1: BUILD A COHESIVE LEADERSHIP TEAM

Team members:

  • Trust one another enough to be genuinely vulnerable
  • Engage regularly in candid, open discussions (including with healthy differences of viewpoints) on important issues
  • Conclude with specific, actionable agreements related to decisions
  • Hold one another accountable to commitments and behaviors
  • Place the team in front of themselves or their functional areas, & therefore are fully committed to its goals

DISCIPLINE #2: CREATE CLARITY

The Leadership Team:

  • Knows & agrees on why the organization exists
  • Has defined & embraced specific behaviors expected & values to be practiced
  • Has agreed on strategies, action plans & metrics to assess success for which it takes collective ownership
  • Understands each other’s roles & responsibilities
  • Communicates consistently & frequently to ensure organization-wide clarity exists

DISCIPLINE #3: OVER COMMUNICATE CLARITY

The Leadership Team Members communicates by utilizing:

  • Repetition
  • Simplicity
  • Multiple mediums

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  • Cascading of messages

DISCIPLINE #4: REINFORCE CLARITY

The Leadership Team ensures continuity of clarity by:

  • As part of the hiring process, candidates compatibility with the organization’s values & overall culture is taken in consideration
  • New employees undergo an orientation program
  • The existence of a comprehensive performance management system
  • Rewards & recognition being built around the achievement of results by use of the organization’s values

SAMPLE QUESTIONS TO ASSESS ORGANIZATIONAL HEALTH

  1. We have a clear, written Vision Statement that has been effectively communicated to everyone within our organization.
  2. Our Leadership Team is open & honest, & demonstrates a high level of trust.
  3. A Scorecard for metrics is in place & is carefully reviewed on a pre-determined basis, & actual vs performance measurements are communicated

CONCLUDING REMARKS

Can a healthy organization fail?  Of course—for a variety of reasons.  But the likelihood of success is greatly enhanced when:

  • Politics, ambiguity, dysfunction and confusion are reduced to a minimum
  • People feel valued & empowered to solve problems & help one another in ways that unhealthy organizations can only dream about

For more information:

You have HR opportunities…Trinity has paths forward!

Posted in Organizational & People Development

WHAT’S YOUR COMPETITIVE ADVANTAGE?, PART 2

Posted on March 5, 2018 by Trinity HR

In Part 1, we:

  • introduced the concept of ORGANIZATIONAL HEALTH as a key competitive advantage
  • illustrated it & a health human body are alike
  • identified multiple advantages of a healthy organization

In Part 2, we’ll look into the foundation of Organizational Health, which is trust.  Employee trust:

1.   Is based on what you DO on a consistent, ongoing  basis

  • Not what you say (although your words are important)
  • Their knowing that you’ll always “do what’s right”

2.   Involves their feeling genuinely cared for by your organization

  • As individuals—not only as the people who provide your services to clients or customers or  who make your products
  • That your care extends to their family

3.   Intensely & intentionally listening to them

  • Their issues, aspirations & ideas

4.   Instilling confidence that they’ll be treated fairly & respected

  • Regardless of their race, religion, national origin, gender or other individual differences
  • Regardless of their position or status level within the organization

5.   Implementing compensation practices & benefit packages that are:

  • In line with your industry, organizational size, financial situation & other factors

I’ve found that team sports & business have much in common.  I recently watched a documentary about Rollie Massimino, the late Hall of Fame basketball coach.

  • He’s probably most remembered for leading the Villanova University Wildcats to the 1985 NCAA championship against overwhelming favorite Georgetown.

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  • It has been described as the biggest championship upset in the history of the “March Madness” tournament.

My main takeaway from this documentary was that throughout his career his players knew how much he cared for them as individuals–not just as basketball players. He showed them that by such actions as:

Having them to his home for dinners
Stressing the importance of graduation for their long-term success in life
Listening to them as what was going in their personal lives, such as in their families
Helping maximize their potential as players & people
Praising them for exceptional performance

The results of these actions by “Coach Mass“ (as his players affectionately called him) included:

His teams having a close knit, family feel that enabled them to overcome great odds to achieve remarkable success

  • Not only at Villanova, but many years later when he came out of retirement at age 71 to start the basketball program at virtually unheard of Keiser University & led them to 6 Sun Conference championships

His players having a much higher graduation rate in comparison to other schools

Years later his players still remaining close to him, & saying “I love Coach Mass. He changed my life. He’s like a father to me.”

I trust that you see how ‘Coach Mass’s’ approach to creating Organizational Health led to an elevated desire for a group of individuals to do whatever it took to excel applies not only to basketball, but also to your business.

Imagine the increase in morale, productivity, customer service & profitability if your “team” had this level of Organizational Health.

For more information about Organizational Health:

Look for upcoming Part 3, which will conclude this series.

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

 

Posted in Organizational & People Development

WHAT’S YOUR COMPETITIVE ADVANTAGE?

Posted on February 12, 2018 by Trinity HR

CEOs and business owners have long known that success involves having a competitive advantage. Regardless of your industry or size, your organization needs to have a competitive advantage.

  • What’s your competitive advantage?

Historically, a competitive advantage has meant that an organization has sought to be better at something or somethings than its competitors.  Most often, this has been attributed to one or more of the following aspects of business as leading to a competitive edge:

1)     Strategy
2)     Finance
3)     Marketing
4)     Technology
5)     Customer Service

Clearly, being better at several of these can provide a competitive advantage that is significant.  Being better at all five of them can put you in an elite status in terms of success.

However, organizations are finding it more difficult to be better than their top competitors in these five aspects. That has given rise to a new business attribute that can serve as a great differentiator.  What is that attribute?

  • ORGANIZATIONAL HEALTH!

Organizations are essentially living, breathing entities. Therefore, Organizational Health is best understood as a metaphor comparing it to the human body.

Both the human body and a business entity:

  • Consist of many parts, each of which has a specific purpose to fulfill
  • Malfunction when one part functions outside its purpose
  • Need all of the different parts to work together in harmony & in unison

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  • Require a degree of stability (the scientific term for this is homeostasis)
  • May outwardly appear to be healthy, but inwardly are not

Organizational Health is about making an organization function effectively by:

1)     Building a cohesive leadership team
2)     Establishing real clarity among those leaders
3)     Communicating that clarity to everyone within the organization
and
4)     Putting in place just enough structure to reinforce that clarity going forward.

WHAT ARE SOME ADVANTAGES OF ORGANIZATIONAL HEALTH?

 Getting more time in less time
 Identifying problems and obstacles earlier and addressing them faster
Seeing opportunities sooner and taking advantage of them ahead of the competition
Increasing the motivation and retention of your best people

In Part 2, we’ll look further into ORGANIZATIONAL HEALTH.

For more information on this subject:

YOU HAVE HR QUESTIONS…TRINITY HAS ANSWERS!

Posted in Organizational & People Development

YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 5

Posted on January 15, 2018 by Trinity HR

IS YOUR ORGANIZATION’S BASE PAY ON TARGET?

In this final article in this five-part series, let’s go back to a fundamental at the initial compensation question.  Is your base pay on target?  If not, everything discussed in Parts 1 through 4 will have reduced effectiveness.

The only way to answer this basic but critically important question with a high degree of accuracy is for your organization to periodically conduct a thorough market compensation analysis.

Without such an analysis you could be either underpaying or overpaying – both of  which have unintended consequences.
A consequence example is your losing valuable talent because of their being  underpaid.

Here is what a good compensation analysis consists of:

1)   Comparing your organization’s positions to comparable positions in other organizations:

  • In your industry
  • Of similar size (as measured by revenue and/or number of employees)
  • In the geographical area in which you would recruit for a position – be that locally, regionally or nationally

2)   Not merely look at a position’s title, but more importantly taking into account its:

  • Duties and responsibilities
  • Education and experience requirements
  • Skills and competencies

3)   Factoring in the incumbent’s:

  • Qualifications in comparison to the position’s requirements

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  • Performance
  • Other relevant factors

4)   Analyzing non-base pay salary

5)   Providing position-by-position, person-by-person compensation recommendations based on the analysis

HOW TRINITY CAN HELP:

  • Trinity’s Team has years of experience in doing compensation analysis.
  • We utilize an up-to-date, reliable data base of market compensation to expertly and economically perform a customized market analysis for your organization.

For more information:

E-mail Trinity at info@TrintyHR.net
Visit our website at www.TrinityHR.net
Call us at 856.905.1762 or toll free at 877.228.6310

You have HR challenges…Trinity Has solutions!

 

Posted in Compensation & Performance Management

YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 4

Posted on January 10, 2018 by Trinity HR

In Part 4 of this 5 part series, let’s take a quick look at the final 3 of these important questions.

3)     Should we also have a long‐term incentive plan (LTIP), and if for which employee groups?

  • We believe that if your company that has a plan for long-term growth it should have a long term incentive plan (LTIP).  Your LTIP strategically communicates that goal to employees, along with “What Is In This For Me” — at Trinity, we believe WIIT-FM is a radio station every employee will listen to.
  • An LTIP should be encompass the behaviors and results needed to be achieved if your company vision of the future is to become a reality.
  • When properly structured, an LTIP  can be funded from the added value it creates — rather than being an additional expense line item.

4)     What type of long‐term plan is best?

  • There are multiple forms of LTIPs, including types that enable privately-owned companies not to give up any portion of their ownership.
  • Each option has its own advantages and disadvantages — depending on the objectives the organization wants to achieve. There is no one plan that is best for all companies.
    The best option for your company will be the plan type that most helps you to accomplish what you desire to.

5)     If I implement a plan, how will I know it’s been successful?

  • The overarching purpose of incentive plans is to frame an organization’s financial partnership with its employees in the context of its value creation and value sharing philosophy.
    Did I hear someone say, I thought the purpose was to enhance our company’s  ability to attract top talent and motivate them so as to retain.
    Of course you want your incentive plan to do those two things—and they will as natural byproducts of incentive compensation plans are properly:

    • Designed
    • Communicated
    • Managed

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So the best way to determine the success of incentive plans is to assess if they are achieving your objectives and the accompanying byproducts.

CONCLUDING COMMENT

On the basis of what’s been written in this series of articles, the answer to the question of “do incentive plans work?” is yes – if  your properly designed, communicated and managed plans:

1) Define value creation – Effective plans reflect the company’s philosophy about what it means to create value and that incentives should be “self‐financed”; they should be paid out of the company’s increased productivity and profits.

2)     Define value sharing – Effective plans present the opportunity for employees to share in the value that they help create, through a reliable mechanism.

3)     Reinforce instead of force behavior – Effective plans don’t try to change the behavior of an employee through compensation manipulation. They are designed to reward the achievement of well‐defined outcomes within the framework of a clearly defined financial partnership.

For more information:

E-mail us at info@TrintyHR.net
Visit our website at www.TrinityHR.net
Call us at 856.905.1762 or toll free at 877.228.6310
HOW TRINITY CAN HELP:

Trinity’s Team has extensive experience in custom designing highly effective incentive compensation plans, along with a relevant, results-driven performance management system.
 

You have HR QUESTIONS…Trinity HAS ANSWERS!

Posted in Compensation & Performance Management

YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 3

Posted on January 3, 2018 by Trinity HR

In any organization’s discussion of it, there are inevitably questions that arise about incentive compensation:

  1. Do incentive plans impact employee behavior in a positive manner?
  2. If so, what are the essentials of a short-term incentive plan (STIP)?
  3. Should we also have a long‐term incentive plan (LTIP), and if for which employee groups?
  4. What type of long‐term plan is best?
  5. If I implement a plan, how will I know it’s been successful?

Let’s take a quick look at the 1st two of these important questions

1) Do incentive plans impact employee behavior in a positive manner?

  • A 2017 study reported in the Human Resources Management Journal states:
    Incentive pay and variable pay has become increasingly important for  motivating employees to perform productively at work. It represents one of the key elements of HRM systems aimed at achieving sustainable competitive success for an organization.”
  • Additional research shows that a key factor in determining how impactful incentive pay is depends on whether the incentive plan is utilized to force changes in behavior or to reinforce behavior.

2) If so, what are the essentials of a short-term incentive plan (STIP)?

  • They include the following:
    1. Identify the performance objectives you want to achieve, including a financial objective but also 2 to 3 non-financial ones
    2. Translate the objectives into Key Performance Indicators (KPIs) that are measurable & achievable, but yet stretch employees in order for achievement
    3. Establish the rewards associated with various levels of achievement
      The rewards must result in meaningful dollars.
      A common mistake is to fail to include rewards for achievement level above 100% or to undervalue the rewards for extraordinary performance.

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    4. Ensure KPIs are ones that employees can impact (called “line of sight”)
    5. Clearly communicate the plan
    6. Regularly update all participants on the status of actual performance in comparison to objectives, reinforcing the related rewards
  1. Determine the right balance between guaranteed compensation (base pay) & variable compensation (incentive/bonus/commission compensation), including answering such questions as:
    If not all employees, which employee groups’ compensation should include a variable portion?
    Which employees/groups who are part of a short-term incentive plan should also participate in a long-term incentive plan?
  2. Identify certain performance objectives it wants to achieve & the outcomes that will result if the objectives are attained.
  3. Translate those objectives into Key Performance Indicators (KPIs)
  4. Establish its rewards for KPI achievement at varying degrees of success

For more information:

HOW TRINITY CAN HELP:

Trinity’s Team has extensive experience in custom designing highly effective incentive compensation plans, along with a relevant, results-driven performance management system.

You have OPPORTUNITIES…Trinity HAS PATHS FORWARD!

Posted in Compensation & Performance Management

YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 2

Posted on December 18, 2017 by Trinity HR

In part 1, we identified the objectives of performance-based pay. In this article, we’ll discuss the concept of a compensation philosophy.

An organization’s compensation philosophy refers to the set of guiding principles that drive decision making about compensation.  This philosophy differs from business to business, but every company seeks to hire and retain the best talent, and it will express that sentiment with the objectives section of its compensation philosophy statement.

  • In Trinity’s executive and management search consulting practice, we find that candidates are often interesting in understanding a prospective employer’s compensation philosophy.

In adopting the pay part of its philosophy, every organization has to:

  1. Determine the right balance between guaranteed compensation (base pay) & variable compensation (incentive/bonus/commission compensation), including answering such questions as:
    If not all employees, which employee groups’ compensation should include a variable portion?
    Which employees/groups who are part of a short-term incentive plan should also participate in a long-term incentive plan?
  2. Identify certain performance objectives it wants to achieve & the outcomes that will result if the objectives are attained.
  3. Translate those objectives into Key Performance Indicators (KPIs)
  4. Establish its rewards for KPI achievement at varying degrees of success

SAMPLE COMPENSATION PHILOSOPHY STATEMENT

In order for ABC Company to achieve the objectives of its compensation philosophy, we provide compensation in the following forms:

  1. Base pay
  2. Incentive pay
  3. Benefits

As part of this, ABC strives to:

BASE PAY

  1. Provide base pay that is:
    • In line with the market place for like positions
    • Fair in comparison to other employees in the same or comparable role
    • Tied to performance results in comparison to goals
  2. Review pay on an annual basis during its performance management process, as well as at other times when deemed appropriate
    • Target overall increases to approximate the percentage which is generally given by other employers, but creating a range of increases on an individual basis
    • In doing so, take into account appropriate financial consideration.

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  3. Increase pay upon achieving of a promotion

INCENTIVE PAY (for designated positions/groups)

  1. Award performance bonuses to eligible employees annually through its short-term incentive plan (STIP)
  2. Provide a long-term incentive plan (LTIP) that rewards eligible employees for organizational performance over a multi-year period of time

BENEFITS

  1. Offer competitive and comprehensive benefits package, consisting of:
    • Paid Time Off
    • Healthcare Benefits
    • Life Insurance & Disability Benefits
    • Retirement Benefits
  2. Seek to provide employees with choices so as to enable them to select the benefits best for them based upon their personal factors
  3. Absorb the vast majority of the total cost of the benefits package
    • Taking into consideration the Company’s financial capability

For more information:

HOW TRINITY CAN HELP:

  • Trinity’s Team has extensive experience in helping organizations to design highly effective compensation programs (including incentive compensation plans) and to develop a relevant, results-deiven performance management system.

You have HR questions…Trinity HAS answers!

Posted in Compensation & Performance Management

YEAR-END: REVIEW YOUR COMPENSATION PRACTICES, PART 1

Posted on November 27, 2017 by Trinity HR

This is the time of the year that organizations start preparing for their year-end performance evaluations and compensation.  Most organizations (small, mid-sized & large) already use a performance-based approach to compensation.

  • That’s because performance-based pay has proven to be the most effective basis for rewarding employees.
  • It is also an area that candidates want to know about, especially those who are part of your executive and management recruting.

If your organization is:

  1. Already doing so, it’s smart to review the specifics of your approach
  2. Not using this approach, it’s wise to re-evaluate why not

In this multipart series of articles, we’ll cover topics such as the following:

  1. Objectives of pay for performance
  2. Developing a rewards philosophy
  3. Essentials of Performance-Based Pay

Objectives of Performance Based Pay

Developing a Performance Based Pay (also called Pay for Performance—Trinity prefers Pay for Results) philosophy starts with an organization clearly identifying what it wants to achieve with it.  We believe the following objectives pretty much describe the objectives of the vast majority of organizations—perhaps worded somewhat differently:

  1. Recruit and retain the highest quality employees
  2. Communicate and reinforce the values of the organization
  3. Engage employees in the organization’s success in achieving (better yet, exceeding) its objectives related to financial and non-financial objectives

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  4. Reward contributors for successful achievements
  5. Differentiate rewards provided based on the importance of the contributions at three inter-related levels:
    • Individual
    • Team/Department/Division
    • Organization-wide

Your Performance Based Pay objectives should be a sub-set of your overall compensation philosophy.
MORE ON THIS SUBJECT IN PART 2.

For more information:

HOW TRINITY CAN HELP:

  • Trinity’s Team has extensive experience in helping organizations to create highly effective compensation programs, including incentive compensation plans.

You have HR CHALLENGES…Trinity HAS SOLUTIONS!

Posted in Compensation & Performance Management

ARE SALARY NONDISCLOSURE POLICIES OR AGREEMENTS LAWFUL?

Posted on October 2, 2017 by Trinity HR

Trinity recently was asked if an employer could lawfully issue a policy stating or have employees sign a document saying that they will not discuss their pay with fellow employees.

  • The short answer is “NO”.

BASIS FOR ANSWER

Section 7 of the federal National Labor Relations Act (NLRA), which is enforced by the National Labor Relations Board (NLRB), specifically provides that employees (even those not protected by unions) cannot be prohibited from discussing their compensation and other working conditions.

The Act refers to such discussions as “protected concerted activity”.

  • “Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all such activities.”

  Sec. 7, NLRA

SECTION 7 APPLIES NOT JUST TO EMPLOYEES REPRESENTED BY A UNION, BUT ALSO TO NON-UNION EMPLOYEES.

PROTECTED CONCERTED ACTIVITY

Under the NLRA, employers cannot interfere with, restrain or coerce employees in exercising these rights. Consequently, employers are prohibited from creating policies or rules that prevent or limit employees’ rights to talk about their wages, benefits and working conditions.

Enforced by the National Labor Relations Board (NLRB), this law gives employees the right to act together to try to improve their pay and working conditions, with or without a union.  If employees are fired, suspended or otherwise penalized for taking part in protected group activity, the National Labor Relations Board will intervene to restore what was unlawfully taken away.

  • These rights were written into the original National Labor Relations Act of 1935. Appellate courts and the U.S. Supreme Court have been upheld in numerous decisions.

Whether or not concerted activity is protected depends on the facts of the case. Typically, the determination will focus on three questions:

  1. Is the activity concerted?
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    Generally, this requires two or more employees acting together to improve wages or working conditions, but the action of a single employee may be considered concerted if he or she involves co-workers before acting, or acts on behalf of others.
  2. Does it seek to benefit other employees?
    Will the improvements sought – whether in pay, hours, safety, workload, or other terms of employment – benefit more than just the employee taking action?  Or is the action more along the lines of a personal gripe, which is not protected?
  3. How is the activity carried out in a way that causes it to lose protection?
    Activity carried out in a reckless or malicious behavior (such as sabotaging equipment, threatening violence, spreading lies about a product or revealing trade secrets) may cause concerted activity to lose its protection.

EMPLOYER ACTION

Since you cannot prohibit employees talking about their compensation, the wisest actions an employer can take are to:

  1. Have a compensation philosophy statement & communicate it.
    • Starting at the time of new employee onboarding/orientation & regularly re-enforcing it to all employees
  2. Ensure your pay is internally equitable in addition to being in line with the market place
    • The former involves an objective assessment as to differences in pay between groups & individuals within groups
    • The latter entails doing periodic analysis as to what the market place is paying comparable positions
  3. Create an environment in which employees are comfortable to come forward to raise questions
    • Including the really tough ones without any concern about negative consequences

For more information, including how trinity’s team of experts can assist you:

You have HR questions…Trinity has answers!

Posted in HR Legal & Compliance

SERVANT LEADERSHIP, PART 3

Posted on August 14, 2017 by Trinity HR

servant-leadership

In prior Parts of this series, we defined the leadership model referred to as SERVANT LEADERSHIP as:

arrow-bullet“Servant Leadership seeks to involve others in decision making, is strongly based in ethical and caring behavior, and it enhances the personal growth of those around them while improving the caring and quality of organizational life.”

We also described the first 5 attributes of a Servant Leader as being: 1) LISTENING; 2) EMPATHY;  3) HEALING; 4) AWARENESS &
5) PERSUASION

In this final part of the series, we’ll identify 5 more of the characteristics of a Servant Leader (SL for short).

6.  Conceptualization:

  • The traditional leader is consumed by the need to achieve short-term operational goals.  The leader who wishes to also be an SL must stretch her/his thinking to encompass broader-based conceptual thinking.
  • SLs are able to create a delicate balance between conceptual thinking and a day-to-day operational approach.

7.  Foresight: 

  • Closely related to conceptualization is the ability to foresee obstacles, opportunities & outcomes. Foresight enables the SL to grow from the past, grasp the realities of the present, and gravitate to the future, which involves advanced intellect, keen insight & sound intuition.

8.  Stewardship: 

  • Stewardship is holding something in trust for another rather than owning that something.
  • Servant Leadership stewardship entails a commitment to serving the needs of others, & emphasizes the use of openness and persuasion, rather than control.

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9.  Commitment to the growth of people: 

  • SLs believe that people have an intrinsic value that goes far beyond their tangible contributions as workers.  Therefore, SLs are deeply committed to the development & growth (both professionally & personally) of those with their organization.
  • SLs recognize this is a vitally important role & responsibility.

10. Building community: 

  • The SL recognizes that as a result of the shift from small local communities to large, often global organizations much of the sense of community has been lost.  Consequently, the SL seeks to identify approaches & methods for building community among those who work within her/his organization.
  • Although varying means are used, the result is the same—individuals feel a connection with one another.

As was pointed out previously, this model has been adopted by many of America’s most successful companies, including 50% of the companies on Fortune’s list of “100 Best Companies to Work For”.

  • Regardless of whether your organization is a giant-sized multi-national corporation or a small family business, the adoption of Servant Leadership as your leadership model has the potential to impact it in multiple positive ways.

For more information about Servant Leadership or other Organizational & People Development matters:

You have HR opportunities…Trinity has paths forward!

Posted in Strategy, Management & Leadership