Some employee-related topics are more difficult to discuss than others, and certainly the death of an employee can be one of those. And, as described in my previous HRTools.com Insight, handling this responsibility is one of the toughest jobs any business owner or manager faces. 

In the previous post, I touched on more of the emotional elements or aspects related to handling an employee’s death; some of which are less obvious than others, so you may want to add it to your reading list, as well.   

This Insight touches on more of the practical or mechanical considerations when a business experiences the death of an employee. 

First of all, as they say, and not to sound cold, business must go on. After the death of an employee, an employer or manager will have to start reassigning the late employee’s work to other staff members, or perhaps a temporary employee can be brought in until a permanent replacement can be found. 

This is where a succession plan comes in, especially to replace executive positions. Even if a formal plan has not been created, smart business owners should have a contingent plan in place, even if only for an interim period. 

Another necessary duty in the event of a death is to provide records of beneficiary designations and work with insurance companies or third-party administrators to locate the deceased employee’s beneficiary designees for all the benefits. 

A business may also be required to process and handle any final payouts; and to do so according to the respective state’s laws and regulations. In addition, you will need to follow the normal termination procedures for terminating health insurance coverage and addressing areas such as returning company property, which may include a car, credit cards, cell phones, etc. 

In some respects, you can follow the same basic procedures for almost every situation. 

In closing out this topic, I’ll share the following experience to help illustrate how planning ahead will help in most instances; and in other instances, you simply have to know how to remain professional, calm and flexible. 

Previously I worked with an organization, and I was involved with the employee death notification process, as well as handling the life insurance administration and retirement plans benefits areas. 

During that period, one of the long-term employees, who had worked with the organization for almost 30 years, suddenly died. Everyone within the organization knew this employee, and many had even worked for this individual. 

Because of my role in HR, I stepped in and assisted with notifying the deceased manager’s department personnel, as well as other managers of other departments. Employees were given time off to attend the funeral. 

We also made sure the employee assistance program (EAP) resources were offered to all the employees, and we brought in onsite counselors, as well. Many employees took advantage of these supportive measures and resources. 

The company executives also met with and spoke to the employees, and they were reassured of their job security. All in all, this company and its people responded to this employee’s death in ways that set the tone for showing respect and sympathy. 

But sometimes you could run into situations where you must demonstrate flexibility and be ready to handle them at your professional best. 

In this case, we found that the most difficult part was handling the process related to the deceased employee’s beneficiaries. The employee had listed three children as equally entitled to life insurance and retirement benefits. 

This process was made more difficult, because the children’s relationships with one another were obviously strained and almost hostile. In fact, they wouldn’t even speak with one another, so after the initial meeting, we had to bring them in separately to sign the documents, as well as when they came back for their beneficiary checks. It was, to say the least, an awkward time, because it was difficult to ignore the extreme tension when they were all together. 

My point in describing the above is this: Even though some may never face this situation, businesses must be prepared to deal with these matters, and in as professional and sensitive a manner as possible. 

This example also serves to help point out how having a plan in place can help a business better cope and manage the stressful times and uncertainties that you can count on to happen after the death of an employee.

Some of life’s realities can be harsh, especially for an employer or manager who has to handle the death of an employee. In fact, I think dealing with the death of an employee can be one of the toughest jobs anyone can face. 

In preparing for this Insight, I was reminded of the time when the late CEO of McDonald’s, Jim Cantalupo, died suddenly in April of 2004. Such sudden and shocking occurrences serve to remind us how important it is that businesses have succession plans in place. 

Prepare for the unexpected: Obviously, McDonald’s board of directors strongly believed in this practice, as they named Cantalupo’s successor shortly after his death became known. If interested, you can read more of the Associated Press (AP) details at www.msnbc.msn.com. 

Even so, we do not regularly have that many organizations that approach this level of awareness and planning. And regardless of the employee position, status or level, every employee has responsibilities and obligations that organizations must properly manage in the event something unexpected happens. 

Here are some practical tips that may help employers prepare for this emotional event: 

1. Plan to be prepared. One of the most common mistakes that organizations make is a lack of preparation. Obviously no one wants to face the unexpected death of an employee. But, at least if you have an outline of what steps to take, you can help minimize the effects of handling a shock at a time when emotions are running high.
2. Realize the importance of family considerations and the importance of their privacy, including matters of confidentiality. Respect the family’s wishes—for instance, be very cautious about releasing any personal information, especially anything confidential. Even though people try to do the right things and they try to be sensitive and helpful, they may inadvertently do hurtful things or even do things that border on being illegal. This is why it’s important to be careful about what information is released. In addition, in our diverse society, an employer has to be aware and respectful of various cultural beliefs and differences, etc. that often exist in today’s workforce.
3. Avoid making assumptions about the employee’s survivors. Some family survivors want to keep all details private, while other families might appreciate the organization paying its respects in a more public way. You just never know, so do not assume that everyone wants either a very private or a public type of response.
4. Exercise caution in the area of beneficiary designation for any benefits, including life insurance or retirement plans. And since the law does not specify designations of life insurance beneficiaries, they can be named at the employee’s choice, So strictly adhere to whatever procedures are in place where it concerns notification of beneficiaries. Generally, I recommend that these matters be handled by the life insurance company or by the policy administrator, instead of trying to get in the middle of that.
5. Plan to handle both the emotional and the practical issues that naturally come up. An employee death causes very high levels of stress. When the death of an employee occurs, you will need to inform executives, HR and other managers or employees who need to know. Next, and of course in a very sensitive manner, contact the family and ask who might be serving as the contact person. This person can help communicate any kind of funeral arrangements or wishes—including those of the family. If you have an employee assistance program (EAP), you might offer that assistance to employees who may want to seek counseling. You might also offer onsite grief counseling for co-workers. 

These issues, as described above, relate to the more emotionally related concerns. On the practical side, you will also want to reassure employees—particularly if it’s the death of an officer of the company—that business will go on. Sometimes employees might worry or think: “If something happened to the CEO, will they close the doors?” Fears like that can spread internally and externally. So it’s always a good practice to have procedures in place; for instance, who will contact the media, if that applies. Or who will contact clients and customers—or those people who had a working relationship with the now-deceased employee? You will also need to figure out how you will manage employees attending funeral or memorial services while, at the same time, managing to meet business or customer needs. 

My next HRTools.com Insight will cover how the death of an employee also affects other practical and mechanical or operational aspects of a business, and how the process of making those related decisions can be managed.

The word downsizing: it doesn’t have a very positive ring to it, does it? 

There is a lot of negative talk going around these days. And when we talk about downsizing and employee layoffs, I have been stressing how important it is for employers to remain upfront, honest and clear in their communications. 

During these times, we don’t want to overlook a very important employee group - the survivors. It is imperative that organizational leaders remain clear in their communications with them, as well. 

In discussions about this group of employees, they are often referred to as the layoff survivors or layoff refugees—again, these labels have quite the negative connotation. 

Surviving employees of a downsizing can find themselves feeling uneasy because: 

1. They are told they are the lucky ones because they are the ones who made the cut; but
2. They may naturally feel as though they’re just waiting for the other shoe to drop. 

At the same time, managers are dealing with the aftermath of a downsizing. They face the tasks of boosting employee morale and maintaining productivity, so they too have their hands full. 

So, I see these times as a kind of ‘wake-up call.’ I’ve seen a number of studies that point to as many as three-fourths of these employees (layoff survivors) reporting that their productivity has declined and their customer service experiences have also deteriorated. Other studies show that more than 50 percent of those remaining workers (after a downsizing) believe that the quality of the company’s products or services has declined since the event, and that their company’s future prospects are worsening. 

Of course, I understand that any employer reading this analysis may wonder, “What should we do if we have no choice about downsizing?” 

While I don’t have all the perfect answers to that question, here are a few suggestions: 

1. Understand some of the human emotions that are involved. We’re hearing more and more about a myth that surviving employees will be so grateful to still have a job that they will work even harder and be more productive. But some studies are showing that’s not always true. While it seems that most human conditions nowadays are tagged as a “syndrome,” this one is really happening. We can see that it is not only distressing to be let go, but it’s also distressing to those employees left remaining in their jobs. I’ve heard employees say something similar to this: “After the layoffs, it felt as though as I’m the last man standing, because I’m surrounded by empty cubicles and it’s just a strange feeling.”
2. Consider acquiring or using an employee assistance program (EAP) or request the services of onsite counselors. These professionals are trained to help employees understand what is and what is not in their control, so they don’t just feel totally helpless.
3. Invest time and energy into those remaining employees. Pay attention to them and you will be doing a lot to boost morale and improve productivity. Most importantly, work to rebuild any trust that may have been lost due to damages caused by the layoffs, even though unintentional. Work to be reassuring and forthcoming in order to repair trust that may now be in a fragile state.
4. Face the realities stemming from the employees’ feelings, and give managers the tools to handle issues and questions that might arise. Managers must learn or know how to demonstrate that they value each employee’s service and how to acknowledge the ways that each employee contributes to the organization.
5. Reassure employees about the security of their jobs, as much as possible. Obviously employers cannot make promises, but employees will be looking for some reassurances.
6. Move surviving employees closer together, physically speaking. An employee coming to work every day and surrounded only by empty desks or cubicles can grow to feel very lonely or isolated.
7. Discourage employees from working excessive overtime and encourage them to take care of themselves. How much would it cost to put a basket of fresh fruit out every once in awhile?  Some employers are implementing exercise breaks, if even for five minutes. Such simple activities can help refresh, invigorate and relax employees. 

What is the bottom line? Employers will want to keep their surviving employees engaged and productive, if they want to successfully recover from these devastating downsizing events. 

It is also good to remember, especially now with all the various online social media sites, that laid off and surviving employees have various ways to spread negative or hurtful information about organizations. 

For example, as previously reported by this HRTools.com Insight titled, “What Would Your Ex-Employees Say About You? New Internet Site Allows Workers to Rate Former Employers,” employees can blast companies anonymously.   

So keep your communications open, honest and clear, and consistently work to maintain those trusting relationships.

This is probably not news to anyone: The downsizing and layoff reports are still coming across the wires. 

Here is some other news, though. Some companies and employees are getting creative and brainstorming about alternatives to downsizing, as reviewed in my previous HRTools.com Insight.  

I know of a business that experienced a devastating and drastic downturn, which also had to do with their financing. They lost their financing, and we all know what’s been going on with that lately. 

The business owners felt forced to make some drastic decisions, possibly even job cuts. So first of all, they announced a meeting for their employees to attend. 

When the employees heard about the meeting, of course, they anticipated that they would immediately learn of a downsizing, and imagined themselves walking out of the meeting and having no jobs. 

Instead, after everyone gathered together, they all started brainstorming for ideas. Many employees had already heard of layoff events, downsizing, etc. happening to their friends and relatives. So, after the shock wore off, and upon learning about the company’s financial position, all the employees started throwing out their ideas. 

For example: 

1. Some volunteered to take temporary layoff roles or early retirement. 
2. One employee had been considering some elective surgery, so after making sure that his benefits would remain in place, he decided to take personal time off to have the surgery. 
3. A team of five employees asked if they could go to a four-day work week; this team further assured management that they would figure out ways to meet their normal production requirements. 

All in all, the employees were committed and motivated to help this business get through this rough patch. They got creative and figured out ways to meet production deadlines, etc., while keeping their benefits intact.  

So instead of management handing out decrees, which would have effectively come across as, “Here is what we have to do, and here is what we have to take away from you,” the employees came up with their own ideas for solutions. And the employees held onto their jobs and benefits. 

It wasn’t just employees who made the sacrifices either. Employees also suggested that the executives cut back on their expenses, such as for traveling or other perks. One brave employee even asked if someone from management could step in and help fill the roles of those individuals who volunteered to take temporary layoff roles.  

Because of their creative and collective efforts, this business did not go out of business. They are still operating, and it was refreshing to see a ‘we’re all in this together,’ kind of attitude take hold. 

My final thoughts about the ‘alternatives to downsizing’ topic are these: 

• Even though you will find many employees in shock over hearing financially distressing news, it helps when employers are forthcoming. While hardly anyone comes out of these experiences unscathed, I see value in people coming together to work through these times. 
• Also, when employees gain an understanding of what is going on, they will better understand and accept the business decisions that may be necessary in order to survive. When employees can go away feeling like that, no matter what the situation is, I think that is probably as about as positive an outcome as it can be.

It seems that we hear, almost every day, about U.S. employers making decisions to do whatever is necessary to keep their doors open and remain in business. Whether the pressures include economic declines, business losses, mergers or acquisitions, or even natural disasters, employers are taking all kinds of actions in order to cut costs. 

And we often see businesses carry out staff reductions as one immediate solution for relieving budgetary concerns. But we need to remember that employee layoffs affect two bottom lines: (1) the employer’s and (2) the employees’.   

Even when staff reductions are considered a necessary bottom-line business decision, employers might find that employees can provide essential input when looking for alternatives to downsizing. 

Admittedly, not all organizations are positioned to consider downsizing alternatives, because not every business situation affords such options. But, when possible, it is important to consider all options and evaluate the alternatives - and it all begins with communication. 

Management can encourage open communication and exchange of ideas. First of all, you can include your employees in the cost-cutting, decision-making steps, and then effectively communicate the decisions to the employees. For example, employers can ask employees for brainstorming ideas. Then, ask them to come up with alternative solutions—even those short-term ideas can help a business get past some rough times. In fact, some short-term solutions can actually ‘counterpunch’ the dreaded options—sacrificing jobs or shutting the doors.

Step forward. Ask for your employees’ frank opinions and receive them openly. But, here is the ‘biggie’ -  employers must make it clear that they have the final word, and this understanding must come from both sides: management and the employees. 

Interestingly enough, when employees are given the opportunity to voice their opinions, you might find that they are more likely to accept the final decision. For example, if employee cutbacks become necessary, you may find that the surviving employees are more likely to be onboard with the final decisions if their opinions have been heard. 

Another important point: Even before a business gets to the point of having to take cost-cutting actions such as reducing staff, it is imperative that employers keep those lines of communication open with their employees. 

Even when times are tough, you will have your water cooler gossip—the old-fashioned term for social networking. And just because times are tough, it doesn’t mean that people stop communicating. 

So it becomes a matter of how an employer wants to be a part of the conversation. For this reason, employers should recognize the importance of making sure that they get the correct information out. Because, as we all know, gossip and rumors spread faster when times are unsure or when something obscure is going on. In the absence of information, employees will tend to make up their own stories, so management is well served when they put forth an honest, deceptive-free and, if possible, hopeful dialogue. 

In contrast, it is unproductive for employers to cover up and gloss over the truth. We see this happen all the time, particularly on the nightly news. Employees can see right through these half-truths and deceptions, and as a result, the covering up does significantly more harm than good by undermining trust in management. 

Again, effective communication plays a critical part in delivering any news to employees. Employers should take steps to show respect to employees affected by a downsizing or layoff. Even though the negative actions are necessary, the first steps include fully explaining the reasons behind management’s decisions. Next steps might include providing important information needed by the affected employee, including information on COBRA and filing for unemployment benefits, and other exit assistance when needed.

When employers are faced with employee attitude problems, they know how contaminating those related behaviors can be to a workplace environment. When faced with employee counseling issues, which relate to problematic workplace attitudes, we run smack into those ‘difficult to measure’ areas. Although we hear this term a lot, it’s challenging to define it. 

I’ll share one workplace attitude experience that some employers or managers might find not all that uncommon. 

An Example

I worked with an employer who was suffering employee morale issues because one employee was creating a very unpleasant work environment. For example, co-workers reported that they did not want to approach this difficult employee, because she would “bite their head off.” Understandably no one wanted to deal with her and, as a result, her co-workers were not getting the necessary information in order to perform their jobs.  

Not only that, they noticed that this employee was spending much of the workday engaging in personal phone calls, which also led to her working overtime in order to get her work done. The co-workers were upset because they were getting their work done during regular business hours, and this employee ended up earning overtime pay. The co-workers were very resentful, and this situation was contaminating the workplace atmosphere. 

When the manager approached this difficult employee, the employee’s tone reportedly bordered on insubordination and, as it turned out, she became so emotional that the meeting had to be delayed. I was asked to work with the manager, and I recommended that we back off from using the word ‘attitude’ for every situation. I suggested that we instead get more specific by addressing the actual work performance issues, which could be more easily measured: 

1. How is the quality of her work?
2. Is she getting her work done and meeting deadlines?
3. How is she handling this task and this responsibility?
4. Is she following procedures and policies? 

In other words, we broke it all down so that the manager could be very specific with the employee in terms of her work performance. Come to find out, the difficult employee was dealing with a lot of personal issues, and she conceded that the personal matters were mounting and affecting her attitude at work. 

The manager documented the meeting as a verbal counseling session, and the manager also outlined specific areas for improvement. Those specific areas were also ones that we could measure, such as: She needed to get her work done during regular business hours so she did not have to work overtime; and she was limited to the number and duration of personal phone calls, etc. Essentially, the manager set very clear expectations and timeframes. The manager also provided the employee with an employee assistance program (EAP) brochure.  

Eventually this employee ended up being productive and she resolved many of her personal issues. Her co-workers even started to talk to her again without expressing fears or anxieties. As a result of applying this approach, the employee showed marked improvements in both her work performance and her attitude. In a way, it also helped the employee to know that the manager cared enough to give her a second chance. 

It’s important to keep such situations from getting worse, as ignoring the situation can seriously affect worker productivity and lower morale. Also, it helps to focus on the problem employee’s specific work tasks and responsibilities in a constructive way, and refrain from using phrases such as ‘bad attitude,’ etc. while counseling the employee. 

It was rewarding to see a negative situation turn out so positively for everyone involved. And these types of endings are similarly possible in situations where an employee might be contaminating the work environment in any company.

Did you ever hear a parent or someone in authority say, “Don’t do as I do, but do as I say?” 

That statement is an example of someone sending a mixed message. In a perfect world, employers and business leaders should always avoid sending out mixed messages to their employees. And for many employees, if not all, company leadership plays a critical role—despite the challenges—in setting the tone for credible and trustworthy workplace communications. 

Here is an example to help make my point. 

Some years back, a CEO stood in front of his employees at the holiday lunch and told them that the state of the company was fine. He further explained that results were strong for that year and then he wished them happy holidays. 

Guess what happened about a month later? After the holidays were over, this CEO ended up reducing the workforce by 40 percent, and those employees who remained were forced to take a salary reduction.

So in order to avoid upsetting all the employees right before the holidays, this CEO still had to face the inevitable, which was made even worse because the employees were unprepared to learn the truth. 

After all this happened, I asked him, “What message do you think these employees got?” After recovering from the shock of this event, these employees—the ones who were laid off and the ones remaining—realized that their CEO did not tell them the whole story. 

Moving on: As it turns out, business improved for this employer so, in the summer, he tried to recall about 90 percent of the laid off employees. Most of them refused the job offers; some had already accepted other job offers, but others refused them, saying that they couldn’t work for someone whom they could not trust. 

The employer was actually surprised at their responses because, in his mind, he thought they would be thrilled to get called back. Their responses really opened his eyes, and he saw the folly of sending out mixed messages. Most employees don’t want to put themselves in situations where they might have to go through something like that again. 

So it’s a matter of trust and good will. This story describes not only a poor communications strategy for an employer’s relationship with its employees, but also one that describes how this type of behavior can damage an employer’s reputation with the public. When word of this type of employee relations gets around, it can hurt the company’s image with the public, too. 

Important lessons: I share this story as an example of a poor workplace communication strategy, and how bad news can be made even worse for everyone. For practical tips on developing and prioritizing an effective workplace communications strategy, read my previous Insight on www.hrtools.com.

Most of us have heard the saying, “Attitude, even more than aptitude, determines altitude.” 

In other words, regardless of the timeline between hiring and advancing-our-career paths, I believe that attitude is the critical factor in reaching career or business goals. Ultimately, attitude sets the tone for creating those first impressions and enjoying successful jobs and careers. 

A perfect example: If an employee possesses a high degree of knowledge and skills, but also has a poor or negative attitude that affects the work environment or inhibits production, unfortunately those undesirable effects can cancel out the advantages that he or she brings to the table. Consequently, all those skills and that knowledge can be essentially wasted. 

Good employee relations practices influence employee attitudes.

That said, employers can also convey certain attitudes of their own and develop ways that, in turn, help bring out the best in their employees. These practices form the basis for good employee relations. 

Therefore, for the sake of a healthy workplace, it is important and imperative that employers and business leaders regularly ‘take the temperature’ of the work environment. Employers and managers should do this by physically going out to the production floor, to the store or to the office—wherever that might be. Then the employer can take action based on the ‘temperature’ reflected in the environment. Again, employers play a major role in affecting employee attitudes by ensuring that the basics of good employee relations are practiced. 

Business leaders can affect employee attitude and employee morale in numerous ways. Here are some additional pointers for carrying out good employee relations practices to help improve attitudes in the workplace: 

1. Make sure you treat employees fairly and consistently. When employees sense or see that they are not being treated fairly, the organizational environment can suffer. Typical employee responses might be work slowdowns or a negative work environment caused by discontent.
2. Be sensitive to how employees might perceive it when management takes something away, such as when benefits or pay are reduced. It is important that management is trained to understand how employees tend to receive such information, and managers need to know how to adequately prepare for their reactions.
3. Figure out ways during times of great uncertainties to help soften the blow—such as this recent economic downturn when employees are seeing rounds of layoffs and cutbacks. Understandably, there is just so much that management can say or do to communicate bad news in a positive way. An example might be that employers can refer affected employees to an outplacement service. Or, they might follow a policy of recalling laid-off employees when business improves.  The important thing to remember is to consider employees’ feelings and anticipate how they will receive news of this kind.
4. Develop ways to recognize and show appreciation for work well done or for deadlines that are met. Celebrations can be put together very inexpensively. We are not even talking about divvying out huge bonuses. I’ve seen celebrations which, at minimal expense, can recognize those employees who meet certain goals, such as those for safety or sales. Employers can make arrangements to reward employees with paid time off, perhaps even an hour. Or, employers could host an ice cream social, for no reason at all, and these types of events can do a lot to raise employees’ spirits. 

Again, this is the bottom line for ensuring that your employee relations initiatives are successful: Make sure that all employees are treated fairly, and that all are included in whatever events or activities that take place. 

In my next HRTools.com Insight, I will discuss the importance of staying on top of certain employee relations issues that can affect the workplace attitude. 

When you hear someone described has having “good communication skills,” what comes to mind? If you ask 50 people this question, you might get that many different answers. 

To some people, that phrase identifies someone who listens well and pays attention. To others, it might indicate that someone knows how to get to the point or is adept at not making things sound overly complicated. Or others might say that “good communications skills” typify someone who uses body language effectively and/or someone who does not have distracting or off-putting body language. And so on. 

Most successful workplace leaders I know strive to make communications a high priority. Obviously, as exemplified above, there are many ways to assess communication skills. 

So what should a business consider when prioritizing effective workplace communications for its employees? 

First of all, good workplace communications start with the business leaders of an organization, as they are responsible for creating and maintaining a respectful cultural environment. So a respectful attitude starts from the top and works its way down. Top management sets the tone and everyone looks to them for practicing respectful communications. 

Next, I think it’s hugely important that managers and supervisors are trained in effective communication methods. Not only that, but they should also be encouraged to use them all the time when dealing with both employees and upper management. 

Say what? It’s not what is said, but it is also important how it’s said.

In my experience, face-to-face communication is the ideal. When we talk with others in their presence, say in workplace meetings, we often communicate without words ever being spoken. We express how we feel through nonverbal expressions (i.e., body language). We’re all familiar with some of these: 

• Facial expressions, such as rolling the eyes
• Body posturing, such as turning toward or away from someone
• Eye contact, including little or no eye contact
• Listening, including refusing to listen to someone
• Acknowledging, or even disregarding, authority (sometimes we see people pushing those boundaries, for instance, by how they dress or wear their hair) 

Then, again, face-to-face communication opportunities are not always possible today. 

Many workplaces have employees who telecommute and/or employees who work from various locations, etc. So I think employers should stress the importance of paying attention to the other communication venues that we have in place. For example, how employers and employees communicate via e-mail these days is a major concern. 

To that end, here are 10 practical tips that businesses can consider when developing methods for good workplace communications: 

1. Establish an ‘open-door’ policy; sometimes this can mean that employees are allowed to bypass the chain of command, if necessary.
2. Implement a suggestion or employee feedback system.
3. Develop a policy for complaint resolution and encourage employees to utilize it.
4. Demonstrate a timely, responsible and responsive approach to employee feedback.
5. Avoid appearing to punish employees for participating in a feedback process.
6. Value opportunities for interacting with employees.
7. Show an interest in what employees are expressing either verbally or nonverbally.
8. Consider an employee’s feelings before communicating to him or her.
9. Refrain from communicating mixed messages; for example, a manager should not say to an employee, “Although you are supposed to be doing ‘x,’ and I have to write you up, I don’t agree.”
10. Re-evaluate or retool your workplace communications strategy from time to time. 

Remember, too, and studies point this out: Organizations with effective workplace communications are more likely to have increased employee productivity, higher customer satisfaction ratings and lower employee turnover rates.

With telecommuting, work is something you do; it’s not a place you go.

Telecommuting: With all the perks and benefits that top-tier talent want and expect, this is one employee privilege that some employers can provide—and one that is often accomplished at minimal or no cost. Human Resource professionals can tell you that some valued employees have been known to leave jobs simply because another employer offers telecommuting arrangements. 

In addition to attracting and retaining valuable employees, other issues are also weighing-in and pressuring businesses to consider telecommuting as a viable alternative. We hear government officials, business consultants and those from the academic communities urging employers to evaluate the societal benefits of telecommuting. Today’s energy, environmental and economic concerns are driving this movement. When more people telecommute, we can see significant savings in energy and other valuable resources. In addition, consumers nowadays are expecting companies to “go green,” and they are fairly vocal about it. 

As it goes with any ‘up and coming’ workplace trend, we’d all like to know ahead of time what can trip us up. So when you examine this alternative to the traditional setting and how it may benefit your organization and employees, here are some mistakes you can avoid when adopting a telecommuting policy: 

1. Making telecommuting policies too general and vague. When developing telecommuting policies and guidelines, it’s very important to be clear and specific about arrangement requirements. For example, if you expect employees to be available by phone during certain hours, it’s important to specify that and make sure employees understand those expectations. On the other hand, if accountants are responsible for providing tax report documents by a certain date, it shouldn’t matter what hours they choose to work. In that case, the date is the specific requirement or deadline that you want employees to meet.
2. Micro-managing or making unreasonable demands of remote employees. Instead, managers should allow for as much flexibility as possible. I know of some employers who try and control irrelevant details such as applying an employee dress code for remote employees. Also, whenever possible, it’s better to remain flexible when employees need to take personal time for handling family matters such as taking a child to daycare. While it’s advisable to be specific about certain performance-related expectations, it is also true that higher levels of employee productivity are normally better achieved in the absence of rigid or unreasonable controls. Remember what your goals are.
3. Forgetting about telecommuting employees. It’s important that supervisors constantly monitor and maintain regular communication with employees. You want to make sure they are kept in the loop so they don’t feel isolated or disconnected with the organization. Make sure they have access to training and developmental opportunities, as well. 

Basically employers still want to continue developing and maintaining that one-on-one relationship, which is even more important when the employee is working remotely. To help illustrate my point, I’ll share an experience. 

An employee contacted me and she was very upset because the telecommuting arrangement had been discontinued. After meeting with the business owner, it was determined that a telecommuting agreement was not in place. All they had was an  informal arrangement, and expectations were not planned out or clearly communicated. 

While the business owners had the best of intentions in making the telecommuting program work, by this time, frustrations had gone from bad to “no turning back.”  So we went back to “ground zero” and discussed all the finer points such as: 

• What did they hope to accomplish?
• How do they see this arrangement working?
• What expectations are there for employee performance? 

So employers want to make sure to plan ahead and clearly communicate expectations and requirements. It’s much better to get it right from the beginning than to have the experience fail due to lack of planning, preparation and communication. 

If you want to learn more about telecommuting, its benefits and advantages, read my other Insights at www.hrtools.com: 

Reasons for Telecommuting: Employer and Employee Benefits 

Are You Dusting off Your Business Contingency Plans (includes 10 Steps for developing a telecommuting policy)

Here are 10 steps to help employers prepare for a telecommuting program.

Every business owner today can feel it. The grounds of business are shaking. It’s almost impossible these days for employers to get their footing. 

On top of a global economic crisis, now business owners must contend with and prepare for a potential influenza pandemic. Schools are cancelling classes. If businesses close their offices, what then happens to their customer service operations, revenues, etc.? And on a grander scale, what happens to an already drowning economy? 

One possible solution to these questions is: telecommuting for employees. In a previous HRTools.com Insight, I described numerous business reasons for telecommuting and how employers can benefit. These benefits can include significantly reducing costs, such as overhead and office space expenses—and enjoying increased employee productivity, because employees are not spending time commuting or stuck in traffic. 

Now as the world faces a potential influenza pandemic, governmental officials, and other professionals specializing in employment law, are encouraging businesses to consider other practical remedies. 

In an April 29, 2009, article published at www.reuters.com titled, "WHO warns flu pandemic imminent," U.S. Secretary Homeland Security Secretary Janet Napolitano is quoted as saying:

"We are preparing for the worst; hoping for the best," Napolitano said. "All of us should be dusting off our business contingency plans, looking at things like telecommuting and the like so that things keep operating."

And in the April 30, 2009, issue of the Houston Chronicle, an Outlook article titled, "Are employers prepared for outbreak of swine flu?," Houston attorney, Kevin Troutman, who specializes in labor and employment law, states:

“A telecommuting program could prove invaluable during an outbreak. This could therefore be the time to invest in the necessary hardware and software. Telecommuting employees could mean the difference between keeping a company going and having it shut down for a prolonged period during an epidemic.”

Obviously, not every American business can adopt a telecommuting program. However, some businesses can successfully keep operating during a pandemic, or another similar crisis scenario, by having its employees work remotely. As you prepare to develop telecommuting policies for an employee handbook, here are 10 preliminary steps you may want to consider: 

1. Make sure upper management is on board with the concept of a telecommuting program.
2. Determine your objectives and make sure you can specify what you expect to gain by changing the working arrangements.
3. Determine what jobs lend themselves to telecommuting. Can these positions be well-managed and successfully performed from a remote location? You want to make sure that even more problems don’t surface because employees are working remotely.
4. Define the remote working standards and production requirements. Define these expectations and requirements very clearly.
5. Determine equipment needs.
6. Specify how equipment should be cared for and repaired, if necessary, and how any expenses will be handled.
7. Stress how company information, data and assets should be kept secure and protected.
8. Be very careful and explicit about how client information is to be kept secure and protected.
9. Prepare to have remote site inspections for safety and regulatory compliance reasons. Employers will want to make sure there are no safety hazards where the employees are working.
10. Develop work schedules. And employers should state requirements for proper recording of hours, attendance, sickness and things like that. Whatever the reporting procedure, it should be laid out very clearly.  

Finally, employers may want to consider developing a telecommuting program that allows for a trial period. When developing this policy, employers will want to clearly define remote working expectations and production standards, and what can happen if those obligations are not met. Employers also will want to make employees aware that they have the right to reverse the telecommuting arrangements whenever necessary. It is always advisable to have an agreement that the employee acknowledges and signs. Make sure you give the employee a signed copy for their records, as well. 

The above is intended for general use. Employers are encouraged to seek legal counsel when making employee policy-related decisions. 

Other related articles and information: 

Swine Flu: Agencies Scramble to Update Telecommuting Policies 

Telework Key to Swine Flu Response

“You get what you reward. Be clear about what you want to get and systematically reward it.”

                                                                               ----Bob Nelson, Best Selling Author 

Are you looking for a way to potentially boost company revenues and employee performance levels at the same time? In a previous HRTools.com Insight, I described how incentive pay is a strategy employers can use in order to reinforce employee behaviors that can ultimately impact their bottom lines. 

Developing an incentive pay program is not as simple as it sounds, however.                                                                                      Basically, you want such a program to work for you and not against you. In order to develop an effective and comprehensive program, you will want to keep in mind the following precautions: 

• Avoid using a subjective approach or developing a program that is really only a reward geared toward a select group of employees. Rewards are fine, but they should not be considered as part of a comprehensive incentive pay program.
• Remember your program goal should include all employee groups and for an entire time period. For instance, an annual incentive pay program might start on Jan. 1 and end the same year on Dec. 31. Or a quarterly program might run from Jan. 1 through March 31.
• Your incentive pay programs should not encourage individual employees to do nothing but highlight their individual accomplishments, at the expense of the team. In other words, you want incentive pay used as a light to shine on the collective performance of the entire organization. Otherwise, you might be faced with unintended consequences and your organization could suffer as a result. 

Consider these seven basic steps when developing your program.                                                                                                               Now that you’ve considered the above precautions, the following steps may help you develop your program so you and your employees can achieve the results you need and want to see: 

1. Set the goal(s) – what do you want to achieve and how should you prioritize those aims?
2. Decide tactics – how will you reach those goals? Through performance? Through production or sales?  Are the goals dependent on investments or the markets? Can they be measured and rewarded?
3. Develop targets – what specific targets are you going to set for each goal?
4. Figure payout amounts – how will you determine the incentive pay program budget? What is it worth, and what can you realistically stand to spend on it? What can you invest in it? If only partial goals are met, will the payments be paid in increments? Or if goals are met to a certain level, are you going to pay part of the bonus?
5. Select participating employees – who is eligible to participate? As mentioned above, you run the risk of alienating other employee groups if incentive pay is only offered to one group or to certain select groups of employees. This approach can end up hurting morale and your organization in the long run.
6. Communicate the plan – how will you announce the plan and communicate all the details?
7. Train managers and supervisors – how will you provide training to those managers who will have input and directly affect the pay that employees potentially receive? How will these managers and supervisors know how to measure the results and handle this step in an equitable and fair manner? 

A well-developed and thought-through incentive pay program can help motivate your employees to perform at higher levels. If you let employees know what you expect and communicate those goals and the corresponding payouts, I completely agree with Bob Nelson: “You get what you reward…” 

Incentives don’t always have to be centered on monetary awards. In a future HRTools.com Insight, I will provide information about effective nonmonetary incentive programs.

Helping a Company Survive

In a previous Insight on HRTools.com, I described and detailed the business costs and benefits of implementing employee performance appraisals. As mentioned, employers want and need their employees to succeed. By effectively using this tool, you can help your employees better understand your expectations, and maybe even love their jobs, so they can help you succeed.

What should you do if you want to develop and implement an employee appraisal program?  Sometimes it helps to share real life stories that employers or supervisors can relate to. Here is one of mine that may be both encouraging and relevant.  

Out with the Old and In with a Change
I previously worked with a company that had a system where the salary increases, promotions, etc. were all based on seniority. With that criterion, all one had to do is survive and show up to work. Employees were then eligible for pay raises based on a pay-matrix system. Effectively there were no set standards and pay raises were based on and solely determined by seniority status.

To improve upon this system, I worked with the company managers and supervisors to replace it with a higher performing tool. We began the gradual process of creating a performance-driven system that was based on establishing evaluation criteria and meeting production standards. This was an especially significant time, because for several years the company could not afford across-the-board pay increases. So, in order for the company to survive, some things had to change.

We then encouraged the supervisors to sit down with the employees and review their performances and, if possible, develop individual training plans. For instance, supervisors and employees discussed career growth or advancement interests. This type of personal interest, when taken by supervisors, can be very motivating to employees.

It wasn’t all lollipops and roses, though. As they say, change is difficult for many to accept, and this change became a really hard sell. Most of the supervisors came up through the former system—through the ranks themselves—and, they were used to being paid the old way.

However, I could see that the old way did not inspire any sense of employee ownership in the company’s business objectives or goals; so we worked on that. Also, after years of no pay raises, we worked to find other ways to reward and recognize employee performance. We also tried to find other benefits that the company could provide to employees that would also have some tax advantages.

How This Story Ended
It was a slowly adopted change, and it was also slowly accepted. At the end of the hard-sell journey, I am pleased to say that everyone considered it a success. They realized that it was more expensive not to have this higher-performing tool—the performance appraisal system. Also, implementation did not hurt the bottom line, so they finally saw it as a win-win.

Here are a few final tips that employers might find worthwhile: 

1. Educate employees about how their individual performances affect a team environment.
2. Provide structure and guidance, particularly when tying individual performances to the business goals; at the same time, try and keep some flexibility. By adeptly managing this balance, you will help set the stage for more freedom of expression, including individual creativity and strength.
3. Evaluate what training or continuing education the employees need in order to regularly contribute to the company’s successes.
4. Be prepared to provide feedback on a continuing basis. Strive for open, fair and honest communication on a regular basis.

As the former head of Intel, Andy Grove, said, “There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance.”

I don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages. 
                                                                    -------Robert Bosch, German industrialist, engineer and inventor

What is important to you and your business? If you’re like most employers or executives—productivity and results are very important. Your employees are also extremely important, and you may be looking for ways to reinforce employee behaviors that will also impact your bottom line. If you are considering incentive pay programs as a way to do that, you may want to consider the following: 

1. Incentive pay is a way for you and your employees to achieve desired results. For instance, a commonly known type of incentive pay, commissions, are used in organizations which allow sales people to constantly anticipate another payout as they look beyond the horizon.
2. Generally, if an incentive pay program is done right, it will help drive performance and meet efficiencies. You might establish this program as a “pay for production,” or “pay for performance over and above the normal job responsibilities,” which is how we see it used in most cases.
3. Incentive pay programs are valuable because employees’ performances have a direct impact on business results. These programs allow for individual employees to feel a sense of personal ownership—so they in turn approach their work like a shareholder—and they see themselves as major players contributing to the successful results of the business.
4. Incentive pay programs can also be applied to a group of employees. For example, you can set sales or production goals and apply your incentive program to a select group of employees. This type of payout program can also be developed to incentivize other business objectives, such as reducing costs or showing appreciation for a successful year.
5. These programs allow management the flexibility to reward for certain priorities that they consider important for running a business. So in these cases, you wouldn’t see incentive pay used for an overall ‘blanket effect.’ For example, you might want to encourage a certain group of employees to pull together so you use incentive pay as that extra push to meet a goal. Also, you can develop your program so you can aim employees toward specific targets, such as continuous improvement goals.
6. To be effective, an incentive pay program should be designed and carried through so that employees are motivated by it, rather than demoralized because of it.

In a future HRTools Insight, I will review some potential pitfalls to avoid, as well as unintended consequences that can occur, when developing an incentive pay program for your business and employees.

In my last HRTools.com Insight, I addressed common mistakes that I see companies make in developing and maintaining employee handbooks. For instance, employers sometimes make the mistake of not auditing content to make sure it is in compliance or otherwise up-to-date. If employee-handbook content is not regularly audited and updated, employers can face some unintended and costly consequences.

To help illustrate, here is a business situation—one that is not all that uncommon: I worked with a company that had a seriously outdated policy and procedures manual. I was also helping this organization develop an employee handbook. At the same time, they had two sister organizations merging into one entity. Prior to the merger, one of the companies—a smaller one—was tucked away in a remote location. As can typically happen, the remotely located company took advantage of the situation by allowing itself more leeway in interpreting company policies. In other words, they ran things their own way.

As a result, I ran into a lot of resistance while helping these two organizations combine their policies. In a merger scenario, both organizations should end up following the same policies, practices and guidelines. In this case, many of the managers had never even read the policies, and they were accustomed to ‘winging it.’  Prior to the merger, when confronted with a problem or issue, they figured it out on their own and they didn’t want to give up those liberties.

On top of that, the smaller company enjoyed a richer benefit plan so those employees viewed related changes as losses. Effectively they perceived the merger as taking away certain privileges and benefits, and we know that never sets well. They liked things the way they were, and they relied on a 13-year old, outdated employee handbook. Not only that, when they wanted to make changes, they simply revised it in ways that suited them. So the situation was serious.

Where did I start?
First, I researched all the updated laws and worked with all levels of management to ensure the accuracy of the actual procedures. We then collaborated to determine what was actually being done before it was documented and put in writing. For every procedure, I asked the question: “Is this how you really do it?”

We wrote the policy and procedures manual and, then after completing it, we created the employee handbook. Our next step was to provide managers and supervisors with training so they understood how to apply policies and procedures fairly and consistently.

A critically important point I stressed was that all the old employee handbooks must be destroyed. Although the temptation was great, I emphasized that they must not look back at those old handbooks because their use was risky and could lead to serious and costly problems. This step was a difficult one, and one similar to the grieving process, in that they were losing part of their past. But they needed to let go of the old and familiar ways that could lead to noncompliance issues or even unlawful practices.

Eventually, it all worked out and both companies successfully merged. The organization assured me that they would keep their new employee handbooks updated, and hopefully they are!

As the saying goes, “What you don’t know can hurt you.”  This certainly applies to the formation and maintenance of the employee handbook.

Basically, employers want their employee handbook to communicate useful and relevant information to their employees. What can be the danger in that?

Common Mistakes: Lessons Learned from the Field

There are some common mistakes that small businesses want to avoid when they develop an employee handbook. For example, according to the Society for Human Resource Management (SHRM), some smaller organizations revise and distribute “borrowed” information from another organization’s employee handbook. This practice can prove to be a costly mistake especially if the information is out of date or does not apply to the organization; for instance, if information is out of compliance with current laws or regulations.

If you are considering the development of an employee handbook, you might want to take these other commonly made mistakes into account:

Mistake 1: including too much information. The employee handbook is not a policies and procedures manual. Businesses should avoid making a handbook too comprehensive since the policies and procedures manual typically explains the procedures for following the policies. Such a manual is much more detailed and serves as either a reference or enforcement tool for managers and supervisors.

Mistake 2: allowing the employee handbook to get out of date. Once you have developed your handbook, it is critical to regularly audit and update it. An outdated handbook can result in causing more damage than good because employment laws and your business practices can change often. If you state that you are going to do something and you put that in writing—and then have the employee sign off as an acknowledgement of receipt—that opens the door for filing complaints, if the organization does not follow through.

Mistake 3: not providing managers and supervisors with training about how to apply the handbook information. When managers and supervisors distribute the handbooks, they need to be trained in communicating that information in consistent and positive ways. For example, if you state that your organization supports a team environment, you will want to train your managers and supervisors so that their everyday language and behaviors reflect that philosophy.  It is also important that managers and supervisors know how to administer the pay and vacation policies, since those are some of the most important to employees, and since those would likely be the first to cause employee complaints.

Mistake 4: stating information in an emphatic fashion or using inflexible-sounding language. Employers should give themselves some “wiggle room” when developing their employee handbook content. Think twice about the language you use before putting promises in writing. In other words, don’t box yourself in, especially in areas where laws or HR practices can change. You could have an outdated handbook before you even get started. 

Note: This Insight is intended for informational purposes only and is not a substitute for legal counsel. Employers may want to consult with an employment attorney to make sure they are in compliance with federal and state laws.

Don’t Confuse Activity with Performance

The Wall Street Journal recently published an article, “Get Rid of the Performance Review!” The author, Samuel A. Culbert, a University of California, Los Angeles (UCLA) professor of management, says that the performance review, “…destroys morale, kills teamwork and hurts the bottom line. And that's just for starters.”

Some business management experts believe that a company can save costs by eliminating employee performance appraisals or reviews and not even miss any of the benefits. I decided to get in on this discussion and, based on my experience, review the costs versus the cost benefits of employee appraisal programs. You can then be the judge.

Especially now during this economic crisis, businesses are analyzing programs and scrutinizing what is important and what is not. Employee performance management is one area worth evaluating. Today, more than ever, it is important that employers and employees stay on the same page as far as organizational goals and priorities go.

Employers may want to consider the following real and potential costs for employee performance appraisal systems or programs: 

• Costs for subscription or canned employee appraisal programs such as online software programs.
• Costs of performing administrative duties such as preparation time, physical and mental energies, meeting times, etc.
• Costs of salary increases, bonuses, etc. that are tied to the employee performance appraisal program.
• Costs of potential litigation. For instance, if employees are given inconsistent ratings, discrimination lawsuit doors could be opened.
• Costs of possible negative psychological or morale consequences especially if performance appraisals are not handled properly.
• Costs of ‘stars’ leaving your company.  If you don’t have managers or supervisors trained in managing performance, especially when it concerns your high achievers and the highly talented, employers run the risk of losing their star performers. Losing star employees can be a major blow to an organization’s bottom line.

Add to that, some employees believe that their input does not count for much. In a previous job, I had employees tell me they felt like targets rather than equal participants in the process. In my book, employee feelings need to be considered, and management needs to do all that it can to avoid giving that kind of impression.

Likewise, employers want to consider the cost benefits of employee performance appraisal systems or programs. It’s important to note that when performance appraisals are done correctly—meaning fairly and consistently and for the right reasons—the following benefits can be well worth the efforts. 

• Identifies problem areas and, hopefully, in a timely manner.
• Orients management to focus on company goals and to track employee progress. Planning and communication between the manager and the employee is essential.
• Provides opportunities for two-way feedback, placing an emphasis on coaching or counseling in order to inspire improvements.
• Sheds a light on or gives insights for further training or educational needs.
• Provides documentation for further employment action, which can be either positive or negative.

Help Them Love Their Job and You Will Enjoy Greater Success

Finally, in order to evaluate and weigh the benefits against the costs of your own performance management system, you can look at trends. Here is where your HR department can help. For example, look at your past terminations, promotions, complaints, etc. See how you can make improvements or changes to your present system.  Perhaps your supervisors and managers need additional training. Do the managers have their own agenda which often can be different than the company’s? When that happens, the appraisal process gets way off the track. Are you seeing a good fit between employees and the positions they’re in?

As with any business management issue—especially when we’re dealing with people—employers need to first figure out what they want to know and measure. Then, they need to determine how their people can contribute to meeting their goals and objectives. Communicating this information to your people is all part of the performance appraisal process.

The bottom line is that you want to set up the employees to succeed. When they succeed and perform according to communicated expectations, then you and your company will also succeed. 

My first HRTools Insight “Reasons for Telecommuting” discusses why this business trend makes sense and why it is quickly becoming a cost-effective way to do business.  With good communication skills, a plan and a solid track record for being available, I find that many professionals can perform exceptionally well from a remote location.

What Industries and Positions Adapt Well to Telecommuting Arrangements?

Many employers and employees wonder what types of businesses or jobs are particularly suited for telecommuting work arrangements. Obviously some professions, like dentistry or surgical, would not apply to telecommuting arrangements. However, dentists’ or physicians’ accountants could, in many cases, perform their duties working as a telecommuter. On the other hand, receptionists serving dentists or physicians will need to remain onsite in order to greet patients, file records and answer telephones.

Thanks to technological advances and tools, we are seeing more employees working from a remote location. Some industries and positions, especially information processing positions, naturally lend themselves to telecommuting such as:

• Customer Service
• Creative (writers, graphic designers, etc.)
• Data Processing
• HR (selected areas such as recruiting, compensation analyst, etc.)
• IT
• Payroll Processing
• Research (surveys, records, accounts, etc.)
• Tech Support
• Telemarketing 

To illustrate how a business can realize efficiencies and cost benefits by considering telecommuting as an HR solution, I’ll share this recent experience. 

I consulted with a client running a sales organization that includes customer service support. Due to a steep rate increase on their lease, they decided to eliminate one of their customer-service locations.

After stepping through their processes and options, I suggested that they consider letting the customer service associates work from home. We discussed the employees’ operating needs such as technical equipment, online connectivity, repair and replacement issues, etc.

As discussions continued, I could tell that they were concerned about management and supervisory issues such as the reporting of employees’ hours. After further discussions, it was apparent that some managers were uneasy about relinquishing control of their employees. They expressed a need to control the way their employees spent their time. They also didn’t want to lose that face-to-face supervisory approach.

We discussed policy development for this new working arrangement. They wanted to add statements for the employee’s agreement.  For instance, “the employee could not be the primary caregiver for children during their working hours.” They also wanted to include monitoring conditions such as wearing beepers at all times.

Change is difficult for almost everyone, and it was a “hard sell” to persuade these managers to let go of their existing control methods. So we worked through a lot of those previously held beliefs, and they finally came to the realization that the employees would choose to perform their work during the core hours.

The telecommuting arrangement proved successful, and in unplanned ways.

Everyone agreed that the employees had to be available by phone and they would work offsite three of the five work-week days. The other two days would be rotated in, at a remote sales office.  We established standards and performance expectations. The employees were also required to attend a mandatory weekly meeting.

Ultimately, the managers compromised by giving up some control and giving some freedoms to the employees. They also realized that the employees would be evaluated based on the work they turned in, not simply in terms of the hours they clocked in.

It turned out to be a very successful transition and, as a result of the new working arrangement, their employee turnover rate has been significantly reduced. Moreover, the employees are so excited about this working arrangement that they started spreading the word. Now, their applicant pool has increased because this working arrangement appeals to so many people.

While telecommuting is not practical for all businesses, many employers are evaluating its value and worth. Flexible working arrangements such as telecommuting can result in many cost-saving and performance-enhancing benefits for both the employer and the employees. 

It is a Win-Win!

Telecommuting is more than working from home in your jammies! There are reasons for telecommuting that benefit both the employer and the employees.

Telecommuting is an alternative to working from a central location. For instance, employees working from home—or any other remote location—use electronic media and other technology to maintain contact and interact with managers, co-workers, clients and customers.

Why would an employer offer telecommuting to their employees? In other words, how can this working arrangement benefit an employer? All reasons for telecommuting should add up to one purpose: helping an employer aim for and achieve their business objectives.

1. Provides opportunities to "Go Green:" Many businesses are looking for ways to join the growing new wave of improving the environment. By allowing employees to work from home, employers can do their part in reducing energy costs by helping to conserve fuel. Also, fewer cars on the road mean less congestion and pollution.
2. Increases recruiting pool for hiring and retaining diversified, skilled and talented employees: By adopting telecommuting (and other flexible scheduling), employers have a wider and diverse pool of skilled and talented workers. If you have qualified candidates scattered in distant directions, you aren’t limiting yourself to the immediate area. Telecommuting can also help retain your experienced employees; recent surveys indicate that some employees say they must look for work closer to home because they cannot afford the increasing commuting costs. 
3. Saves on overhead (facilities and office space) costs and increases productivity. Employers can significantly save on expensive furniture, premium office space and energy-related expenses. Distractions and interruptions are minimized and commuting time is eliminated; telecommuting employees also report a much higher productivity rate.

What makes telecommuting attractive to employees? What are the advantages and benefits?

1. Greater autonomy: Today’s workforce highly values a flexible workplace. Employees appreciate having more control and freedom over their schedules. They are also happier when they have more say about balancing their work and life commitments. Happier employees are more productive and loyal.
2. Promotes family consciousness: By rearranging their work schedules, some two-income families figure out ways to reduce or eliminate expensive child care costs. For instance, I know several parents who home-school their children. They jointly handle their children’s lessons; one parent teaches certain lessons and the other parent teaches other subjects. Many employees are also balancing work and caring for elderly parents.
3. Reduces stress and promotes higher productivity: When employees spend less time commuting and overcoming interruptions and other cubicle distractions, they will also enjoy greater productivity. According to a work/life balance article published in April 2007 by the Society for Human Resource Management (SHRM), nearly 90 percent of telecommuting employees reported that their productivity had improved.

To find that competitive edge, employers today need to find innovative and effective ways for attracting and retaining top talent. By evaluating the reasons for telecommuting and providing alternative work arrangements, you can gain competitive advantages over other employers who are trying to (1) recruit the same employees you need and (2) woo away your experienced and valued employees.