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Showing posts with label compensation. Show all posts
Showing posts with label compensation. Show all posts

Wednesday, November 19, 2008

Use that Vacation!!

Ah, vacation. We love to talk about it, and go on them. When was the last time you went, or for that matter, your star employee? Become a Decision Maker. Search Director, VP, & Manager level Jobs.

Vacation or Paid Time Off (PTO), is a significant portion of any compensation package. It is significant not just in monetary terms, but also in productivity terms.

As a manager, you should enable your employees to exhaust as much of their PTO as possible. Why? Aren't employees adults and know how to manage their own lives?

Most Americans don't consume their entire PTO each year, with a significant amount taking little or no time off at all. Employees who don't take time off are at risk for burn-out and reduced performance. Save up to 70% on Business Class Deals to Europe with Air France!

A vacation should be a time to rest and recreate. A vacation also allows employees to rest their minds from work, which in turn, leads them to be more creative when they come back. Additionally, time away from work allows for minor dust ups to pass over, increasing the harmony in the workplace.

As we get close to the end of the year and the weeks of Christmas and Thanksgiving, make sure your folks are taking time off. Don't forget you too! Managers need time off just as much as line employees.

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Monday, July 21, 2008

Manager 2.0, Part V

The post has finally arrived, the last in the series of five on management, Web 2.0 style. Through the previous four posts, we have discussed several topics, from Open-Book Management, compensation, and even Total Quality Management. In this post, we shall discuss items relating to deadlines and opportunities.

Item 13 states: "Deadlines agreed on and set by those doing the work." One could suggest that this isn't realistic, as it ignores both the internal and external customer needs. Consider home renovation. Does the customer allow the contractor to dictate how long the job will take, or is the schedule negotiated? Also, what if those doing the work are inefficient and their scheduling of the work promotes inefficiency? While a negotiated work schedule is best, no one side should have the scheduling power.

Item 14 states: "Employees create opportunities to learn and to be challenged." This is an excellent statement. Employees should be doing this any way! Suppose an employee has access to the company's online training resources. Shouldn't that employee take the opportunity to learn about new things in the business, or just improve other skills? It is always better to be proactive. Study the business, ask questions about the direction of the business, and be prepared to change.

As the Bible states, "There is nothing new under the sun." In each of the 14 topics, we have seen how the cultural phenomenon of Web 2.0 is causing managers to rethink how they operate their business and how they relate to their employees. Web 2.0 has brought acceptance of self-service, as well as acceptance of rapid change. While these elements have been demonstrated as positive for business, they have always required strong leadership. Let's hope that these Web 2.0 lessons will make for a more efficient, and stronger Manager 2.0

Wednesday, July 16, 2008

Manager 2.0, Part II

In this second article in a series of five about managing in a Web 2.o framework, I will discuss points 4-6 of the figure found here.

Item four states: "Employees and teams challenge themselves. If one person or team succeeds, everyone wins." Employees should be give great latitude and more importantly, time, in their development. Management needs to insure however, that the development money spent rewards not just the employee, but also the shareholder. A good example would be an employee taking a basket weaving class. That class might really benefit an employee of Martha Stewart, but not necessarily ExxonMobil. Regarding rewarding "everyone" for an effort, hopefully, the work of the team or the individual is geared to the success of the company. In other words, a team win should, by definition, be a corporate win.

Item five states: "Informal job role created by employee, tailored to their strengths and interests, and changes all the time." Outside of the need of formal titles for compensation studies, this makes a lot of sense. As employees mature and become experts in their work, they should be able to move on to new positions, building on those strengths, and learning more about the business. Regular job rotation is widely regarded as a good thing and can be very manageable.

Items six states: "Emphasis on community." A company is a community of sorts, with different teams supporting the company as a whole. Good management practices are about aligning teams to create a well-organized and functioning business. While this corporate/community function is very important, arguably, customers should have the emphasis.

This discussion has left me with an interesting perspective. Web 2.0 concepts are generally positive, though strongly individualistic. While there is emphasis on team and community, much of these items focus on the individual and create tension with the natural and necessary authority in companies. Taking care of employees in general, and individuals in specific, is good for business. However, without a strong focus on customers and strong leadership, the Web 2.0 principles can lead to a lot of good work serving no purpose.

Tuesday, July 15, 2008

The First of Manager 2.0 Posts

In this post, I will discuss the first of three items listed from the Manager 2.0 diagram listed in the Web 2.0 for Business post. Allow me to first express my gratitude to Kathy Sierra for creating the figure, referenced in Web 2.0 for Business post.

The first item listed in the Manager 2.0 figure is: "All employees are asked to help with policy decisions and solutions." While I think this item is very difficult to implement in a large company, I do agree with the concept. Employees should be well versed with corporate policies and be willing to challenge them, if they have a better way. In some cases, these suggestions will have to be rejected on legal or regulatory grounds, however, if the suggestions save money or do things better, they may be accepted.

The second item is: "Pay is generous and fair, profit-sharing is the norm." Well, who can disagree with generous and fair pay? Profit-sharing can be a good thing, but shouldn't be considered a goal in and of itself. In some cases, there may be other incentive-based pay, other than profit sharing, that achieves the same goal. In each case, the business will need to evaluate its compensation policy to insure that both the employees and shareholders are treated fairly.

The third item is: "Employees are given as much information about the company as possible, including financial." I couldn't agree more! A good model for this and its success is Jack Stack at SRC Holdings and "Open-Book Management." Jack went on to write The Great Game of Business. Once employees understand the components of corporate finance, not just revenue, they can align their actions accordingly.

We have seen in the first three items of the list that many of the Web 2.0 principles of management are not new. Rather, what is novel, is that they haven't been widely discussed in this context. For Generation Y and younger, particularly those who don't have strong corporate experience, or a business school education, these HR-type issues (compensation, management principles, etc.) aren't well understood in a broad context. Instead, they are intuited. People want to have a say in what they do, how they are paid, and they want the inside information.

Friday, July 11, 2008

A Different Kind of Interview

Of the vast and various sources of information about interviewing, none prepared me for the one I had recently. It was different not because I had to wear a chicken costume or audition Tuvan throat singing, but rather because of the information asymmetry.

Most people normally go to an interview knowing the position they are interviewing for, what the job calls for, in general, and what the range of compensation is. However, for this particular set of interviews, I had very little of that data. Further, while the interviewers knew each other, they didn't provide a context as to why they (individually) were chosen to interview me.

The organization I interviewed with, while over 10,000 employees, has a very flat organizational structure. The reason for that type of structure is because they encourage small teams that are nimble and fluid. For anybody working for large companies, this often spoken of, but not regularly executed.

How does one handle this type of interview? I will have to let you know after I get an offer letter! Seriously though, if you are bad with ambiguity, this type of company is probably not for you. If you really value a title and rigid organizational structures, look elsewhere. However, if you like loose structures that are results-focused, this is your type of place.

My suggestions would be to prepare your successes in the type of position for which you are interviewing. Highlight your command of the general base of knowledge, as well as be prepared to offer suggestions as to how the company can do better. Maybe that is a better marketing plan, or different sales techniques, etc.

As always, be honest, confident, and patient. A new and ambiguous situation requires patience. Feel free to think about the questions and ask for clarification. Once you have done an interview of this type, you will definitely be more prepared in the future. You could also find some interview information here.

Friday, June 13, 2008

How to Ask for a Promotion

Asking for a promotion is very similar to asking for a raise. It requires a compelling, fact-based case on why you deserve more responsibility and compensation. What makes a promotion different from a raise is that involves not just compensation components, but also organizational changes, which can be the tip of the iceberg. However, the most common reason one doesn't get a promotion is that it isn't earned.

A promotion can be defined as an increase in responsibility with a corresponding change in title and compensation. In many cases, the promotion is the next step in the chosen career path, or it may be move into a more responsible position in a different career path. Executives & Professionals: Changing Jobs?

The word most inappropriately associated with promotion is "deserve." One often hears, "I deserve that promotion." Really? Doubtful. Companies, particularly public companies, exist for the improved wellbeing of the owners(shareholders). The only thing employees are entitled too is fair treatment as defined by law. Does that mean employers have the right to treat employees badly? Absolutely not. To attract and retain talent, employers must provide above the minimum. Try RingCentral Fax FREE for 30 days

Unfortunately, in modern American culture, there exists an entitlement mentality. While working hard and "paying your dues" are good things, they are expected! To earn a promotion, one has to demonstrate capacity above expectation. So what does that mean?

Performing above expectation is not only meeting all targets and goals in a timely manner, but showing the initiative to do more. It is also exceeding targets and goals and adding to company's value.

If one can seriously and honestly consider the points above, and still think you should get a promotion, then go for it! Put together a fact-based presentation, schedule a meeting, and put it on the table. Don't be surprised if the answer is "no" or "not now," as the organization might require change, and that isn't taken lightly (or shouldn't be!).


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