How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the thirteenth edition of a 22-week special on ideas you could implement to keep those best employees:

13) Pass out a "Blooper" Award
Obviously, mistakes can hurt your business, but so can playing it too safe. If your employees aren't taking risks and being creative, your business will soon be stagnant-and so will your workforce.

Employees want to feel trusted, empowered, and responsible. They want to know they have the leeway to search for new solutions to lingering business problems, and they want assurances from you that an occasional mistake won't wipe out months of hard work and good results.

One effective way to communicate this message is to present an award to the employee who commits the "biggest blooper" of the month. Here's how this might work:

Craig, one of your sales reps, books his own flight and hotel reservations instead of going through the company's travel coordinator, and it cost the company an extra $350. At the end of the month, you gather the troops together for a lighthearted awards ceremony in which you recap Craig's blunder and present him with the award. Craig's coworkers give him some good-natured ribbing. The blooper award sits prominently on his desk until he has the opportunity to present it personally to next month's "winner".

What has happened here? For one thing, you've found a new way to add a little more fun to the office. But, you've also accomplished something more significant. For starters, you can be sure your staff will think twice before making their own travel arrangements. And, more importantly, you've sent a clear message to employees that they have your permission to fail from time to time, the mistakes are to be avoided, of course, but they are also to be tolerated.

Also, make sure to give yourself the award at least once. After all you make mistakes, too! You're all in this thing together!

2011 Budget Deal Includes Changes to Healthcare Reform

The 2011 budget agreement just passed by the U.S. Congress on April 14, 2011, contains provisions of the Patient Protection and Affordable Care Act (Healthcare Reform).

Specifically, the "free choice voucher" program mandated under Section 10108 of PPACA has been repealed. The choice voucher provision of Healthcare Reform required employers to provide vouchers for workers whose employer-provided health insurance premiums cost between 8 percent and 9.8 percent of the workers family income. The vouchers could then have been used by the worker to purchase insurance in the private market or in the exchanges.

In addition, the 2011 budget agreement rescinds $2.2 billion of the $6 billion in start up funding provided for the Consumer Operated and Oriented Plan program created under Section 1322 of PPACA and also rescinds $3.5 billion in performance bonus payments authorized in the 2009 State Children's Health Insurance Program reauthorization.

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the twelth edition of a 22-week special on ideas you could implement to keep those best employees:

12) Match The Reward To The Person
Lately, you administrative assistant has been going the extra mile to fill in for a sick coworker. During your presentation at a company-wide meeting, you single out her efforst and encourage her to join you at the front of the room. The crowd cheers enthusiastically. You silently congratulate yourself for your managerial skills. However, your assistant seems less than pleased. She tends to shy away from the limelight and feels uncomfortable and slightly embarrassed by the attention.

Another story: Bob has been putting in long hours and working weekends to complete an important project. As Bob's supervisor, you want to thank him for his hard work and make sure he feels valued. And so, you give him a plum new assignment, a project everyone in the department would love to have. Bob reacts angrily. You overhear him saying to a colleague, "I break my back for these guys and they reward me by dumping more work on me. Now I'm nver going to see my kids."

The moral of these stories: One employee's reward may be another's punishment. Public recognition, for example, may motivate one person and humiliate the next. Treat each of your staff members like the unique individuals they are by offering rewards that match their personalities.

Get to know your people- what makes them tick? Motivating your employees is a criticial part of maximizing productivity. On the other side of the coin, punishments for not getting the job done need to be handled in different ways as well, depending on the individual. Bottom line- everyone is different, and they respond to situations differently.

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the eleventh edition of a 22-week special on ideas you could implement to keep those best employees:

11) Survey Your Staff
It's hard to imagine a successful company today that isn't close to its customers. We conduct expensive market research to know our buyers better. We ask them to test our products. We mail our satisfaction surveys and wait eagerly for the results.

But what about your employees, your company's most valuable assets? Do you take the time to understand their needs and concerns? A simple, written survey gives employees a forum for sounding off on the issues most important to them. A few rules of thumb to consider:

• Make the surveys anonymous. You're more likely to get honest feedback.
• Share the findings-good and bad-with survey participants. It will help to foster an atmosphere of open dialogue.

• Implement as many employee suggestions as possible. And for those that aren't implemented, explain the reasons.

You may find that what employees want most has nothing to do with money- such as recognition, respect, involvement, and communication- but are key factors in keeping them happy, keeping them challenged, and simply keeping them.

A final tip: Continue to conduct the same survey each year. As time goes by, you'll be able to measure your progress and identify any changes in your employee's attitudes.

Do you have a sublease with another business?

Many of my marina and resort clients sublease a restaurant operation. If you do, there are some important steps that you need to take to protect your business from liability claims associated with your lessee's operations. This article will assume that you have a $1 million limit per occurrence on your general liability policy that protects your business. If you sublease to another business, for example, a restaurant operator, it only makes sense that you require that lessee to maintain a general liability policy with at least a $1 million limit per occurrence. If your lessee sells any alcoholic beverages, they need a $1 million liquor liability policy as well.

In addition to requiring your lessee to maintain the same limits as on your own policy, you should require that they add your business as an additional insured on their liability policy(s). That includes their general liability policy as well as any other liability policies such as a liquor liability policy. If your business were sued for something that occurred due to your lessee's operations, their liability policy would have to respond on your behalf. This protects your limit of liability on your own liability policy and keeps accountability where it should be, with your lessee. You should request a Certificate of Liability Insurance that documents your business as an additional insured and documents that your lessee has a $1 million limit of liability.

Doug Timmons, CIC, CMIP
Marina and Resort Insurance Specialist
Commercial Risk Service

Senate Approves Repeal of 1099 Provision

The U.S. Senate passed a bill April 5th that will repeal Healthcare Reform’s 1099 tax reporting requirement. The measure benefits from bipartisan support, passing on an 87-12 vote.

Under the reporting requirement, businesses would have to file a 1099 form for any person or company to whom they paid more than $600 in a tax year. It was slated to raise $21 billion over 10 years by making it easier for the IRS to identify and pursue those who failed to report the required information.

The bill passed by the Senate makes up for that lost tax revenue by requiring consumers who enroll in their state healthcare exchanges slated to debut in 2014 to return money that the federal government overpays them for their coverage.

Under Healthcare Reform, the government will provide subsidies to those who enroll in the exchanges.

The bill, having already passed the House, now goes to President Obama for his signature.

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected and involved. It takes a whole new way of thinking. This is the tenth edition of a 22-week special on ideas you could implement to keep those best employees:

10) Ditch Your Employee-of-the-Month Program
 Or, if you're thinking about starting an Employee-of-the-Month award, think again. This type of program is a prime example of a well-intentioned idea that could backfire on you. Honoring an exceptional employee each month is certainly one way to recognize your staff, but the drawbacks outweigh the benefits:

• While one employee will be thrilled to win each month, you'll have to contend with dozens-or hundreds- of disappointed "losers."
• It's exclusionary. Is there really only one employee deserving of your praise each month?
• The rewards are often inadequate. Prizes like a plaque have little perceived value in the eyes of the winner, and worse, something like a preferred parking spot may actually alienate the honoree from the rest of the company.
• No matter how fair your judging process is, you'll be hard-pressed to avoid charges of favoritism from deserving candidates who don't win.
• You may actually dampen motivation. Employees who have already won know there's little chance of a repeat, so where's their incentive?

Employee recognition belongs on your daily planner, not your monthly calender. A far better alternative is to give spontaneous, immediate praise wherever and whenever it's deserved. This is a warmer, more personal way to relate to your staff. Think of it as your new Employee-of-the-Month program! I think it will be much more effective!