Thinking about Salary Increases in 2011

Hard to believe it but here we are again thinking about salary budgets for 2011. With the crazy year we had in 2010 it is hard to guess what companies will do with their merit increase budget. What impact if any should the improvement in the stock market, the change in the makeup of Washington, uncertainty with health care reform or the craziness happening in Asia have on business expectations for 2011. Don't we all wish we had a crystal ball.

My best advice is to make the decision that is right for your business but be sure you do some research on what other companies in your industry are doing. A potential source for salary information are surveys conducted by consulting firms, chamber of commerce's, and industry associations. One such survey was done recently by The Economic Research Institute and can be found at www.eerier.com

Lastly, no matter what your merit increase budget will be in 2011 be sure to communicate your plans to all employees. It is important that your employees understand what is taking place in the business.

How can I be sure the right person is promoted to a supervisor/manager role in my company?

Today more than ever before organizations regardless of their industry seem to be struggling with this issue. This struggle has come about because of a variety of reasons; the workforce is shrinking, the pool of qualified candidates is limited, and the training dollars to prepare this highly successful technician for their new role are non-existence. All this being said in fairness to the person being promoted, and the employees they will manage we must find a way to guarantee their success.

The following are some ideas that I have found helpful in improving the odds of success:

1. Spend time upfront fine tuning the selection process.
2. Set clear expectations in the first 6, 12 and 18 months.
3. Conduct a formal on-boarding process within the first 2 months after appointment.
4. Meet on a bi-weekly basis to develop a communications channel.
5. Select a mentor/coach to assist with the transition.
6. Implement a 360 evaluation process after 12 months on the job.
7. Communicate openly and honestly.
8. Structure a team effectiveness workshop.
9. Evaluate the person's "fit" in the organization and team culture.

The bottom line is you must select the right person. In business today we have no choice but to select the "right supervisor/manager." The key is to put in place the right support mechanism that will work for your organization both in the short and long term.

Communication and the Important Role in Plays in Driving Success

Common sense tells us that communication is an important tool for all organizations. However, how often do we really think about the communication process that needs to occur before we try to make significant change in our organizations.

Many times we get so caught up in accomplishing the goal that we loose track of the importance of getting those "team" members who are driving this change all on the same page. One way to ensure the team  understands is to conduct a teambuilding exercise prior to implementating any significant change. This exercise will allow team members to not only understand the rationale for the change but at the same time will give each person an opportunity to understand each others styles, how they take in information and how best to use each others style in accomplishing the goal.

Once we learn about the makeup or styles of the team we need to continue to build on our learnings. These learnings become the foundation for our success and will enable us to attain success both in the short and long term.

Step 2 on How to Ensure You Have the Right People to Compete in the New Economy

In our last blog, we began a discussion on the importance of having the right people in your organization to compete in your marketplace. We all know that we must have the right people resources to get business to the next level. It is clear that regardless of industry, revenue size, products or services, or number of employees, organizations constantly worry about the talent that is required to compete in this economy.

One of our clients mentioned in earlier blog said:

"When I joined we had six employees and $5 million in revenue; today we have 300 employees and over $500 million in revenue. In the beginning, I controlled all the people decisions. How do I ensure we hire and promote the right people because today we need a different type of skill and competency to compete in the marketplace?"

To help ensure you Have the Right People to Compete, Human Capital Consulting Partners recommends a multi-step plan. In this blog, we'll review Step 2.


STEP 2     Define the culture of your organization.

1. Develop a vision, mission, destination, or set of values that will become your foundation.
2. Communicate your "culture" to all stakeholders (e.g., your customers, shareholders, employees, vendors, and the community at large).
3. Hire, develop, and promote employees who "fit" into your defined culture.
4. Measure the progress against your "culture" on a regular basis through focus groups, employee surveys, and customer input.
5. Hold employees accountable through a formal performance management system.
6. Be sure senior management "walks the talk."

Stayed tuned for additional steps to help you WIN in your business.

Step 1 on How You Ensure You Have the Right People to Compete in the New Economy

How often do you think about whether or not you have the right people resources to get your business to the next level? It is clear that regardless of industry, revenue size, products or services, or number of employees, organizations constantly worry about the talent that is required to compete in this new economy.

Over the past year we have heard the following comments from some of our clients:

• CEO of a small-cap manufacturing company said, "When I joined we had six employees and $5 million in revenue; today we have 300 employees and over $500 million in revenue.In the beginning, I controlled all the people decisions.How do I ensure we hire and promote the right people because today we need a different type of skill and competency to compete in the marketplace?
• VP of sales for a professional services company said, "We are adding new products that will double revenue in the next two years. This means I will need to hire my first sales force. How can I make sure we source, screen, interview, and hire the best?"
• CFO of a biotech company said, "We made a strategic decision to expand our business globally. This means for the first time we must partner with others to deliver product in Europe. Do our employees have the experience to work internationally and hold their own in planning, customer meetings, and board presentations?"

Sound familiar?

To help ensure you Have the Right People in Your Organization to Compete in the New Economy, Human Capital Consulting Partners recommends a multi-step plan. 

STEP 1     Define upfront your organizational needs.

1. Review annually your business strategy to ensure it is aligned with your overall vision and mission.
2. Identify the organizational structure that is required to support your business.
3. Outline the jobs/positions/roles that should be part of the organization structure in the short-, mid-, and long-term.
4. Define for each job/position/role the needed duties, responsibilities, competencies, capabilities, and experience.
5. Describe "fit" for your organization.
6. Determine the tools, metrics, or processes you will use to hire or promote the right people.

Stayed tuned for additional steps to help you WIN in this new economy.

An Eight-Step Process for Ensuring Your Acquisition and the Integration are a Success

How many times have you read about the perfect marriage of two companies? Analysts, bankers, and competitors all talk about how the merger of Company X and Company Y will be a boom for the market place. Whether they are shareholders, customers, or employees, the buzz in the industry is they will all prosper significantly one way or another and within 12 months.

Twelve months later the headlines read: “Why did the merger of Company X and Y fail so badly when it appeared they had everything going for them?”

And the answer is simple: the companies did not focus on the people side of the transaction. But seasoned professionals know that successful integration requires a sharp focus on human capital and culture.

Far too many companies make the mistake of acquiring another organization, only to attempt immediately to assimilate the new company into the original company’s existing processes, programs, and culture. That is why acquisition integration is often extremely painful and unsuccessful.

With more than 25 years of experience in executive human resources positions and consulting, I have advised dozens of company presidents, CEOs, and board members on strategies and processes that help ensure a successful acquisition or merger. With that experience and research, I have honed an eight-step process that provides proven strategies for successful integration of two disparate organizations.

Step 1: Understand the impact of the acquisition on your business strategy.

Step 2: Determine the cultural fit of the new company.

Step 3: Appoint an integration team.

Step 4: Develop a communications strategy.

Step 5: Assess the people.

Step 6: Select and retain the right people.

Step 7: Design and implement the right human capital programs and processes.

Step 8: Meet you business and financial objectives.

Good luck and more detail regarding these steps can be found on our website.

Jim Geier
President and Founder
Human Capital Consulting Partners
www.hccpartners.com

How to Conduct Your Annual Performance Review Process

At this time of year many organizations are beginning their annual performance review process. As you start this process you might find the following information to be useful.

• Send a note out to all your managers giving them a specific timeline, i.e. as to due dates when payroll needs the salary increase information, when salary increases will be effective, when the forms must be returned.
• If you developed a salary increase matrix be sure you explain to your managers how it works and any specific guidelines you want them to follow.
• Notify all employees they need to complete a self appraisal regarding their performance during the last 12 months. This self appraisal should include how they performed against their job description and goals/objectives plus their views on their development needs. Once this is completed they should give a copy to their manager. Managers should review this document prior to completing the employee's review.
• Ask your managers to be sure they get input from other departments if the employee was involved in other projects outside their own department.
• Managers should be sure the setting is right when they conduct the actual performance review. Here are a few things to consider;
• Schedule the meeting in advance and set aside at least 1 hour.
• Conduct the review in a place other than your office. Use a conference room, go out to breakfast or lunch.
• During the meeting, don't allow phone calls, emails, etc., this time is for communication without interruptions.
• During the meeting be sure to review the employee's self appraisal, other managers input, and your input regarding the last 12 months of performance. Give examples where you can.
• Once the meeting is over the manager should complete the actual performance review form noting the appropriate comments that came up during the one to one meeting.
• After the review form is completed ask the employee to sign the performance review form and make any comments and return it to you. Before sending the final form back to human resources give the employee a copy of the form.

Just remember the important outcome from a performance review is "communication." You want to be sure all parties leave this process with an understanding of what was done well, the areas needed for improvement, what development is needed and what both parties will do to drive success in the future.

Jim Geier
President and Founder
Human Capital Consulting Partners