Tag Archives: employment

3 Tips for Managing Office Relationships

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Office romances. What’s an employer to do?

Valentine’s Day is this week and quite fittingly, we turn our thoughts to the ever sensitive subject of office romance. And whether or not it’s company culture to frown on personal relationships in the workplace or to look the other way, they do happen.  Strong bonds develop when employees work long hours together— and nowhere is that more true than in the intense environment of a small business or start-up. Couple that with social media platforms that keep us connected to our co-workers 24 hours a day, seven days a week, and you have the ingredients for office romance.

So the question is, how should you handle it?  Look the other way in the hopes that either the relationship will be short-lived and others won’t notice or that one of the employees in the relationship will leave the company and/or department?  Or wait until the relationship turns sour and either you are dealing with a sexual harassment complaint or other employee relations issues as employees “take sides” or claim “unfair advantage”?  And what about employees losing focus on work projects as they deal with their relationship issues that have spilled over from their personal lives into their work lives?

ThinkHR recommends that employers consider the following practical tips in managing office romances:

  1. Recognize the fact that office romances can blossom in your organization, and alert your employees regarding your expectations for managing their personal issues outside of work.
  2. Review your company policies regarding office relationships.  Most companies have written policies that discourage or prohibit managers from dating subordinates embedded in their sexual harassment or ethics/conflict of interest policies, but most are silent on issues of co-workers dating.  Consider your company culture and the likelihood that you might be faced with an office romance that could lead to consequences where the employer loses the most at the end.  If you determine that the risks of this happening are low, then we recommend that you ensure, at a minimum, that you have a policy in place discouraging supervisor-subordinate relationships.  It can help to have it “on record” that you do not encourage romantic office relationships.
  3. While this might not protect you from liability in the event of a relationship ending badly where one of your employees claims that the end of the relationship includes on-the-job harassment or retaliation, some employment lawyers recommend creating a “relationship contract” or “love contract” between the two parties in an office romance.  While we do not necessarily recommend this “contract” because it is probably not binding in the true legal sense of offering the employer protection from harassment or retaliation claims in the workplace, it may provide the following advantages:
    1. It documents the fact that the two employees are agreeing that their romantic relationship has been entered into freely and without coercion.
    2. It reinforces the company position that the company has not approved or encouraged the office romance.
    3. It can also reinforce both employees’ awareness of the company policies regarding conduct in the workplace, sexual harassment and conflicts of interest.

The bottom line is that you know your employees and the type of company culture you want to nurture.  We recommend that you think through how you would want your employees and managers to handle the types of issues that arise with office romances in advance of actually be faced with the situation so that you are prepared and ready.

Laura Kerekes is the Chief Knowledge Officer for ThinkHR Corporation, a national hotline and online resource for small businesses seeking help in navigating the complex waters of workforce management.  Follow ThinkHR on Twitter and Facebook for daily tips or give them a call for live support: 925-225-1100. 

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Guest Post: Could MBAs Be Your Business’ Secret Weapons?

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When a small business owner looks at hiring a new manager, the hiring cost can seem discouraging when the prospective employee has an MBA. There is a strong assumption that MBA students are trained too generally and that they lack decision making skills from a lack of real world experience. Can they be trusted when left unattended with helping to run your business? These are undeserved and unfounded assumptions as MBAs bring real value to small businesses.

The EMBA Advantage

If you’re willing to hire from within your company, you can pay for your employees’ MBA program.
EMBA programs allow your employee to work while attending school. The most apparent downside to this is that you may end up paying for their training and there is no guarantee that they will stick around after graduating. If you create a “golden handcuffs” arrangement, by requiring the employee to sign an employment agreement that stipulates that he must complete a certain number of years of service to the company after attaining his MBA; you’ll be guaranteed an employee with improved performance and existing experience in your industry. An incentive could be tied into this agreement, such as a profit share for example. The advantages of training an existing employee as opposed to a new employee are that you will have had time to establish trust and procedures. By using proper judgment when deciding on sending your employee for training, you could end up with a loyal worker that becomes core to your operations long term

Better Communication

A popular connotation is that MBA graduates have a lot of “book smarts,” but lack any real-world experience and communication skills. Contrary to this belief, many MBA programs now include extensive training in interpersonal skills. Better communication reduces mistakes and improves employee morale overall, making your workforce more productive. Good communicators have to be able to convey ideas effectively as well as have excellent listening skills under their belt.

Good Strategic Planning Skills

MBA programs often emphasize the lifelong learning process as part of this process involves training the employee to think long-term. MBA grads bring to small businesses exceptional problem solving and strategic planning skills. Rather than being focused on a single aspect of the business, MBA grads often possess varied skill sets in the fields of marketing, sales, accounting and loss prevention. Many small businesses that have grown organically do not typically have someone that is trained in all these areas.

Experience and Practical Training

MBA programs force students to address real-life business problems and require them to work through multiple case studies. Regardless of whether you hire from within or externally, you’re getting an employee that already has experience in solving complex business problems. For example, small business owners often face a cash flow problem at some point. You might have unpaid invoices that need to be collected upon before you can make payroll or expand your operations. What should you do? An MBA would help in navigating through your options, including whether to factor those invoices, obtain a short-term loan, or tap into the company’s other equity to pay for necessary expenses.

Another bonus is that MBA students are also well versed with the online networking sites like LinkedIn. What does this mean for your business? Your MBA graduate could already have established relationships with established employees in other businesses that have advanced their training. These friendly relationships could be fostered into working relationships much easier than cold calling for new business.

Therefore your new manager could possess the negotiation and networking skills necessary to cut you a deal that you otherwise might not get. Sometimes in business, it’s not what you know but rather who you know. In this sense, you’re getting more than just a manager. You’re getting access to a network that could significantly improve your company’s bottom line.

Author Bio:
Guest post contributed by Sarah Rawson. She is a freelance writer and is currently studying for an Executive MBA Degree. Her articles appear on various higher education blogs.

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Open Up Your Own "Lemonade Stand" This Summer

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The joy, the pleasure, the inexplainable rapture of the lemonade stand. We all had one when we were a kid, or some venture that was close to one. Subsidized by the kindness, patience, and hard cash of our parents, most of us know the sheer bliss of making a few bucks selling glasses of lemonade for a nickel a pop. Then, as we grew up, selling lemonade transformed into mowing grass or washing cars. Every summer meant a bit more money for clothes or movies or, if you were more responsible, college.

The work ethic of millions has been built on experiences gained during summer employment. And I feel like it shouldn’t stop when we grow up. We become content – content with our jobs, our lives, our little ruts – and we forget about that entrepreneurial spirit that had us up at 6 AM to wake our parents and build a stand out of old plywood.

This summer, think about opening up a side business. A little space to get some extra cash and that you can make the hours for – something you’ve had a passion about but no real opportunity to pursue. Side businesses are great because they don’t require as much dedication, or money, and let you test out the waters. While you still have a bit of time left in spring, think about:

What kind of business you’d like to run

There is no shame in starting a business to make a little extra money, and there are plenty of entrepreneurial pursuits that will help you do just that. ‘Turnkey businesses,’ things like fast-food franchises and car washes, are always an option. But they require a bit more capital, and if you don’t have much passion for the project you will quickly jump back into your rut and be plenty happy for it.

But if you have a passion for something – business consulting, webpage design, tutoring, selling knives door-to-door…(maybe not that last one) – the best time to pursue it is right now. Most of these businesses can be run as a sole-venture, making you the one and only employee you have to worry about. Plus it is pretty cheap to start a business out of your own home and register it with the state. Heck, some states only require that you file a ‘doing business as’ name and file your taxes on time. So figure out what you’d like to do, and go from there.

How much time you can give to it

Businesses need a lot of time and dedication – that’s why it is so important you are passionate about what you’re doing. Remember that you’ll have to be an advertiser, designer and promoter along with a business owner. Treat this venture like you would a part-time job back in high school. Back when you had to clock in and work your full shift or your angry, slightly rotund manager would come looking to chew you out.

Budget ten or fifteen hours to start with, and then go from there. If you need more time, add more, but try your hardest not to shirk off hours. Even if you come home completely exhausted, give it at least one or two hours before you turn on the TV or head to bed.

When you can start ‘learning on the job’

Learning by doing is a great piece of conventional wisdom that is only half way to the truth. The first part will be researching everything other people in your field are doing so you can see what works and what doesn’t work.

Is there an online message board you can scroll through? Has Craigslist panned out for a lot of them? What common mistakes do you see people making?

However, in the midst of research, don’t forget about that whole ‘learning by doing’ bit. You can spend a lot of time preparing yourself and then never take any real action. Research is cozy and safe, actually acting out is scary and difficult. Just remember that you will make mistakes – even if you did spend countless hours reading about hiring a website designer, using Groupon, or cutting customers deals, you will slip up. Roll with it, remember what that lesson taught you, and keep at it.

Now, if you treated this venture like a part-time job, remained dedicated, and had a bit of luck on your side, you might have something quite astonishing by September. It may not be as tangible as couple thousand dollars towards a new car or a semester’s tuition, but it could be a lot more rewarding. Just don’t let another Summer pass by without knowing if you can make it. If it doesn’t work out, fine – you’re out a small bit of money and could have gotten a bit more sleep.

But if it does work, there isn’t a better feeling in the whole world than to watch the humble beginnings of your own business begin to grow.

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5 Employment Perks That Need to Happen Everywhere

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We’re a pretty close knit bunch here at MyCorp. Everybody knows everyone pretty well and gets along. But our team is also pretty small and since we aren’t a large corporation, sometimes a couple of us wonder what our lives within a more global company might be like…

There are two different first impressions that come to mind. The first is Google headquarters based. Picture bright colors, ping pong tables, free food and drinks, and flip flops. Laidback and interactive while still getting the job done. The other comes from the film Office Space. Hours of sitting in traffic, hours of sitting in a cubicle, a copy machine that doesn’t work, and a mountain of pointless “TPS reports.” The worst case scenario, as we all voted and agreed on.

Since we’d rather not to think about our attraction to the red Swingline, we’re gonna focus on our dream perks that employers (especially startup business and tech companies) offer to draw in top talent.

On the Clock Research Time

Some companies, notably Google and 3M, allow employees to use 10% or more of their time to do your research on a project that interests them. Granted, it must relate to something about the company, but this is a great way to bring R&D to the every aspect of the company.

Personal Dry Cleaners

Instead of passing 10+ dry cleaners on their way to or from work, wouldn’t it be amazing to offer in-office pick up and drop off? With a discount included? We think so too!

Fitness Stipend

A membership at a gym can get pretty expensive and difficult to work your schedule around going to on a regular basis so why not include a fitness stipend as part of your employment package? Amenities like having clean towels and free classes may cost more, but they’ll help make it easier to start getting into shape after a long day at work.

Company sponsored stipends = easier to go, easier to stay healthier!

Schedule Flexibility

The personal circumstances of every employee are different so being able to schedule in an easier hourly time frame is like tailored clothing; it makes your job the perfect fit for YOU!

Health care perks

This one can take on many forms with anything from unlimited sick days to in-office massages to better than usual insurance coverage included. Since your health is something you don’t really think about until you don’t have it, these perks are essential to have in place before it actually happens. Even better if they help keep you from getting sick too!

Does your company offer any of these perks? What do you wish they offered? Let us know in the comments below!

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How to Avoid the Dreaded Lawsuit

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Lawsuits are an unwelcome guest in any household not to mention in any business; no one wants to be sued! Unfortunately, lawsuits surrounding the workplace are on the rise. Compensation issues, discrimination complaints as well as wrongful termination suits were all in abundance in 2010. For example, in 2010 wage and hour lawsuits under the Fair Labor Standards Act jumped dramatically, adding 700 more cases than in 2009 totaling 6,800 lawsuits.

Other areas contributing to an increased number of lawsuits are disability and leave of absence claims. Requests for disability accommodation as well as for a leave of absence are on a dramatic upswing. Employers are now seeing work-related injury claims stemming from physical or emotional ailments that don’t stem from the job but affect it. Denial of such claims can lead to a lawsuit under the Fair Labor Standards Act. The issue appears to be finding a balance between what legal right the employee has versus what legal right the employer has; the two rights often overlap.

What is causing this increase? Some point to the increased activism by the Obama administration in both discrimination and wage and hour claims. In 2010, the U.S. Department of Labor hired around 200 additional field investigators to strengthen its enforcement efforts. In fact, a number of complaints made surrounding the heightened investigation claim that federal agencies are turning what used to be small, resolvable workplace matters into full-scale investigations. How can the problem be solved? Better yet, how can lawsuits be avoided?

1. First of all, keep open lines of communication between all departments and employees. Full disclosure regarding wages and salaries, over-time pay and leave of absence policies will keep everyone in the office informed of their rights.

2. Provide outlets for counseling and dispute resolution within your business. Employees and employers alike should have an outlet in which they can air their grievances without feeling threatened.

3. Ensure hiring procedures are in place and employees are appropriately classified.

4. Don’t retaliate against employees for complaining. The majority of claims filed with the Equal Opportunity Commission include a form of retaliation.

5. Finally, treat everyone equally and fairly. Employees who feel valued are not only happier, they will perform more efficiently and accurately.

Lawsuits are intimidating. However, they can often be avoided. Keep the above five tips in mind to increase productivity in the office and to create a happier, lawsuit free environment. Learn more ways MyCorporation can help you maintain your business HERE!

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3 Pieces of Internship Advice for New (or Recent) College Grads

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For everyone of the class of 2011… or 2010… or 2009, or maybe even 2008, finding a job is going to be a difficult and trying process. Finding someone who will actually pay you money for work is exciting, but the economy is in a volatile state, and has been for a few years. So what should the recent graduate going to do? Graduate schools, years off, and temporary positions in retail and food service are all on the table as newly minted professionals attempt to “wait it out.” Many are also looking to unpaid internships, which are an old source of college credit and experience. In a recent release, the Department of Labor revealed that the only sector of the job market that is truly showing growth is the unpaid internship. More and more are hoping that, with another sentence emblazoned on their résumé, dream jobs will be that much more attainable.

Don’t think that way. While unpaid internships are great when you have something else on your plate, like finishing college, they are simply not worth the time or effort once you are out of school for three main reasons.

1. It is HIGHLY unlikely they will lead to a full-time job.

Having your diploma is something to be proud of, but it is also the sign that your loan providers are going to be looking for payment. And, trust us, loan providers are ruthless when it comes to getting paid back. Success stories from unpaid internships have a way of winding down the grapevine, but for the most part, unless you are really lucky, this position will not lead to a paid, full-time, job with the company. Companies hire unpaid interns when they want an extra pair of hands without paying for them, and the economy is a slow moving beast.

While things will get better, you probably do not want to, and cannot afford to, stick around with a company for two or three years without pay. Experience and name recognition are great, but with the unemployment rate around ten-percent, there is probably someone who has the jump on you. Companies may also begin to value your work as being worth the price they pay for it: nothing. So try and find a company willing to pay you for a job well done. The pay may be lower than you expected, but it will at least show that they value you enough to give you money for your work, instead of dead-end promises.

2. These positions are signs that employers are willing to cut corners.

This is less applicable to smaller companies and non-profits that depend on people to do a little extra for a little less pay, but still is something to keep in mind. Having a cadre of unemployed laborers means the company is trying to save as much money as possible, and cutting corners is a well established, though very ill advised, way to do that. Horror stories of terrible bosses and evil companies are bountiful, and most people would agree to avoid them at all costs, but you are agreeing accept these abuses by working as an unpaid intern. The Department of Labor recently hired 250 more people to enforce the Fair Labor Standards Act, which it feels many employers are violating with their unpaid internship practices. If they are not willing to put in the effort and investment to hire an actual employee for this position, then they probably are not too concerned with the Fair Labor Standards Act.

3. At this point, you are worth more than “experience”

It is said that most stereotypes have a grain of truth within them, and the image of the overworked intern is so prevalent for a good reason; interns are, typically, worked to the bone. Internships are competitive opportunities, so many of the poor souls who agree to work in an unpaid spot feel they beat out a bunch of other applicants for it and they have to prove their worth as a result. Again, while you are in college, this is a good mentality to have, but when you get your degree you have to begin to see your work as worth a little more. This can be hard as when you walked off the stage, you were not inspected and stamped like a piece of meat; Grade A, worth five dollars a pound. But you went to college to add to your own, personal self-worth so you can get a good wage for the work you do. You probably worked late into the night for four years, but came out of it worth more than when you went in. Remember that when looking for a job. Don’t over-value yourself, but don’t undercut all of your hard work either.

This is all a bit pessimistic and frightening, and is definitely not “one-size fits all” advice. But, for the most part, there is no reason at this stage in your life to accept an unpaid position. Instead, put all of that hard work and effort in sending out your résumé, networking, and finding a good job. Your alma mater probably has a career services office and an extensive alumnus network; use these for your benefit. It is very easy to get discouraged, especially since you are not going to receive any feedback during this process; no one gets an A in looking for a job. But it is worth it if you can find an employer willing to value your work as it rightly deserves.

Plus, it will help end those incessant phone calls from the bank.

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1099 Health Care Act: Information and Implications

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Small businesses face a unique set of challenges in the current economy.

The Senate voted to repeal the unpopular 1099 tax reporting requirement of the Affordable Health Care Act Tuesday, April 5th. This is the first piece of legislation that officially repeals part of President Obama’s widely-debated health-care reform movement.

Small business owners have expressed their frustration at the provision, which would require them beginning in 2012 to report to the IRS all payments of more than $600 on 1099 forms—work that many small companies just don’t have the time or manpower to do. According to the Washington Post, The bill would have generated an additional $22 billion in tax payments over the next ten years. In addition, the major provisions of the Health Care Act include:

1. Tax Credits for small business
2. Help for Seniors with the cost of Drugs in the Doughnut Hole
3. Elimination of Pre-existing conditions exclusions for children
4. A High Risk pool for anyone turned down due to Pre-Existing Conditions
5. Re-Insurance for early retirees (55 to 64)
6. Prohibition on Rescission of insurance policies if you get really sick
7. No More Lifetime Limits on insurance policies
8. Unmarried Children can stay on their parent plan (up to 26th birthday)

Despite the Health Care Act, there are numerous tax implications for employee’s and independent contractors. For small businesses seeking to make sense of the new legislation, regardless of possible appeals, the classification of their employees is paramount. Specifically, what makes someone an employee and not just an independent contractor? The answer is often less than simple. Many business owners fail to make the distinction, thus opening them up to potential lawsuits and tax complications.

The best way to avoid penalties is to know the law. Employee classification holds enormous potential for lawsuits, mainly because most employers really don’t understand the employee distinctions. The IRS published a great deal of information regarding this classification. The information can be found HERE.

Who is considered an independent contractor? The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax. Who is considered an employee? Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

Only time will dictate the future changes and appeals to the Health Care Act. Small business owners should consider all of their employees and classify them into the correct category in order to avoid potential lawsuits and tax complications.

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