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Discipline is a necessary part of managing employees, but the secret to employees perceiving discipline, as a positive, is first to apply it fairly. Employees know when they and/or their fellow employees make mistakes; and they are more likely to accept discipline for those mistakes if employers are fair and then turn the mistake and resulting discipline into an opportunity to learn and grow.

Employees understand and accept that discipline is being applied fairly when employers explain that it is not a punishment (unless someone breaks a stated rule or policy). If employers create the right kind of workplace environment, then mistakes can be openly discussed and become important elements of any training program. Not only do employees learn how to improve their performance and eliminate the mistakes, but also those businesses can be more competitive and successful.

According to a Cvent Web Survey white paper, “Companies that encourage or engage their employees to provide ideas and suggestions have consistently higher employee retention rates.”

Businesses invest too much time and money in each employee they lose, and to find a replacement. In fact, the same Survey found that “it can cost 10 times more to hire and train a new employee than it does to retain one.”

An employee survey is one of the most effective and inexpensive methods to engage your employees, so they feel empowered to contribute to the direction and success of the company.

Make sure your surveys are anonymous, so employees can provide honest feedback without any fear of retribution. Structure your surveys, so employees can answer questions or make comments that relate to their position or division of the company. Finally, share the survey results with your employees, even though some of those results may be negative, because only then will they feel they’ve made an impact and be willing to implement new ideas.

According to a number of early February 2010 news reports, the Obama Administration is considering new wages and benefits rules that would affect contractors’ opportunities to receive federal contracts.

“Positive weight in the source selection process is given to bidders based on the labor standards of their entire workforce,” states an administration document.

The standards would be measured by “whether the bidder pays a livable wage and provides quality, affordable health insurance; an employer-funded retirement plan; and paid sick days.”

Some have named this the “High Road Contracting Policy,” and claim it “will improve the service that the government receives and save taxpayer dollars because better wages will lead to higher productivity and product quality.”

Contractors would be required to adhere to wage standards greater than the current law. Supporters state that American workers (approximately two million worked on federal contracts in 2006) will experience an increase in the quality of their jobs. Read the rest of this entry

In early 2009, President Obama signed the Lilly Ledbetter Fair Pay Act. The Act (based on a Supreme Court ruling) allows for the 180-day statute of limitations to file an equal-pay lawsuit, regarding pay discrimination, to begin again with each new discriminatory paycheck, instead of the date when the parties agreed to the wage amount.

Although widely covered in the media, many companies have not taken the proactive steps they should to protect themselves. The first step is to conduct an audit of your compensation system, including the job evaluation process, pay structure, performance management program and compensation guidelines. The second step is to analyze internal salary equity, including standard cohort analysis and regression analysis. The final step is to create a system to maintain pay equity.

According to a recent press release, Senator Dick Durbin (D-IL) and Representative John Conyers (D-MI) have introduced legislation that would create a fairer environment for employees in wage and benefits disputes.

Named the Protecting Employees and Retirees in Business Bankruptcies Act (S. 3033, H.R. 4677), the legislation would “ensure that back pay awarded through [the Worker Adjustment and Retraining Notification (WARN) Act] damages would be given priority in the bankruptcy claims process.”

The Act would also limit bonuses that could be distributed when a company becomes bankrupt.

Historically, the U.S. Army and other branches of the federal government are where the first conscious efforts of employee performance review were instituted; however, the employers were more focused on personality traits than behavior and results.

In fact, General Cass, who is credited with the first-known, formal evaluation of soldiers in 1813, treated the process with a good bit of humor, “This officer has talents, but has kept them well hidden” and “He is open to suggestions, but never follows same.” Since the general had established no specific goals for his men, he was left with a half-hearted attempt that was of no value to anyone, except as a chuckle during the officer’s mess.
Lord & Taylor, a New York department store, may have been the first private business to implement a formal evaluation procedure of its employees, which motivated other businesses, following World War I, to do likewise.

Although government and business have made numerous attempts to develop a “universal” evaluation system throughout the 20th century (and into the 21st), today half of all large businesses and most of small businesses either do not have formal employee performance reviews or still incorrectly focus their reviews on traits instead of results.

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