Roberta Chinsky Matuson
Creating Exceptional Workplaces and Extraordinary Results
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The Real Cost of Zero Percent Pay Increases

Real Cost of Zero Percent Pay Increase

Companies everywhere are trying to reign in spiraling costs. The first thing to go is usually pay increases. But is this approach costing or saving organizations money?

Eliminating pay raises, particularly for top performers, costs more than you think. Here are five signs that indicate you might have made a mistake by telling your top employees they will be receiving a zero percent pay raise this year for all of their effort.

Empty sea of cubicles

You used to smell the coffee brewing when you arrived at the office at 8 am. Those were the good old days when you could count on Mary being at her desk by 7 am. Now you are lucky if Mary gets in by 9 am.

Fast forward to lunchtime. You search for a staff member to assist you on a time sensitive problem, only to find out that you are the only one who hasn’t left for lunch. What’s going on? It’s not even Friday! The office is like an empty sea of cubicles come 5 pm. No one seems to care that the big pitch to a major client is due in two days. You are in your office trying to brainstorm–with yourself.

It never used to be like this. You had a hard time beating people into the office and there was always someone there when you were burning the midnight oil. Your professional employees appear to be acting like hourly workers.

Your Employees are looking quite fit

Remember the good old days when your employees looked tired and worn out? They used to complain that they never had time for the gym. You’ve recently noticed that many of them are looking quite fit. That’s because they are. They are no longer bench pressing panini’s at their desk. Instead, they are actually taking lunch and using the weight room at the on-site gym. Imagine that.

Netflix replaces networking

Your star manager Tom is no longer attending after hours networking events. That’s because he’s replaced networking with NetFlix. Tom now spends his free time enjoying all the movies that he missed, when he used to be out networking on behalf of the company. Be grateful he hasn’t asked you to pay for his monthly membership.

Turnover seems to have spiked

You’ve just lost four top account reps to the competition. That’s never happened before. Get used to it. If you aren’t prepared to recognize and reward your star performers, someone else will.

Morale is just plain bad

It’s hard to put your finger on it but no one seems to be smiling these days. Your customers have even complained that they are being treated like second-class citizens. Think there might be a direct correlation?

If you still believe that the bottom line is healthier because you’ve decided to give out zero percent pay increases to top performers this year then consider this. It might be time to automate your entire business because it won’t be long before you are the only employee left.

What else would you add to this list?

 

Posted in Employee Engagement, Employee Turnover, Performance Management, Productivity

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No Heavy Lifting at US Air

When did flight attendants stop helping passengers’ board for an onetime departure? On a recent US Airways flight flying from Hartford to Miami, I encountered a flight attendant who must have been a former kindergarten teacher. Let’s just hope she treated her kindergarteners with more respect than she treated her passengers.

The flight to Miami was full (no surprise there), as were the overhead compartments. We soon learned that a passenger had left his wheels to his luggage sticking out so the overhead door wouldn’t close. Rather than shifting the luggage herself, the flight attendant decided to teach us all a lesson. She made a general announcement asking for the owner of this black bag (did I mention that just about everyone on the flight had black luggage) to get up and turn his bag or else his luggage would be checked. As luck would have it, the guy who owned the luggage was sitting next to me in a window seat. In order for him to move his luggage, I along with the passenger next to me would have had to get up and block the aisle, while passengers were trying to board. Luckily the guy in the aisle seat offered to get out of his seat and fix the luggage.

Asking three passengers to block the aisle of plane where people are boarding is shear insanity, especially when you are staying two feet away from the problem.

Upon landing, we were treated to a 15-minute sales speech on why we should purchase a US Air Visa card for our future flights. The same flight attendant made the announcement. Perhaps she thought we had short-term memories and would be first in line to order our cards.

Let’s go back to the good old days where flight attendants were on board to assist customers, rather than selling Visa cards.

Posted in Customer satisfaction

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The Secret is Out: What’s Behind All Those Successful Business Women

Sheryl Sandberg

The world is about to get richer for Facebook’s COO, Sheryl Sandberg, who according to Facebook’s filing last week, made nearly $31 million last year, including base salary, bonus and $30.5 million in stock awards. She owns 1.9 million shares in the company and an additional 39 million in restricted stock options. If Facebook goes public at a valuation of $100 billion — which Wall Street sees as a possibility — her stake could be worth as much as $1.6 billion. She would rank among the richest self-made women in America.

Ms. Sandberg is anything but ordinary. She attended Harvard and Harvard Business School and is married to Dave Goldberg, a successful entrepreneur and the C.E.O. of Survey Monkey. She doesn’t exactly have to worry about money, which is one of the keys to finding and hiring good childcare. (She and her husband  have two young children.) I can assure you that without the resources for help or without family close by, it would be next to impossible for her to achieve these levels of success. Yet, we only see the image that is before us.

For years, I watched my peers seamlessly build consulting practices, while I teetered back and forth trying to balance the demands of family and work. I had a difficult time understanding how they were able to do it all, without being exhausted. Eventually, I discovered their secret. They had help. And I mean lots of help. Nanny’s, au pairs, family, drivers…you name it. They had it. Let’s not kid ourselves. It takes resources to hire resources so  you can make more resources. But few successful people talk about this.

Even with resources, it’s still a daily challenge to make sure no child gets left behind. It’s taken me two weeks to prepare for my upcoming week in Miami. Coordinating schedules with my spouse, my help and my clients has me back in crazy mode. Of course much of this craziness could be eliminated with more resources (e.g., live-in help.) Note to self: Bring in more resources to make life easier.

That’s why, when women ask for my advice about entering fields that are traditionally low paying, I suggest they re-think their strategy. Yes, they may be happy for a while, but eventually those who  have families will  become frustrated by their lack of resources. I recommend they pick a career with the potential to earn enough to live a comfortable life. By doing so, they  will have the ability to choose how they spend their resources, which may include helping those less fortunate.

The Times article also discusses the extraordinary mentors Ms. Sandberg has had along the way. She quickly rose from a post as an economist at the World Bank to become the chief of staff for Lawrence H. Summers, then the Treasury secretary. After that, she jumped to Google and, in 2008, to Facebook. Mentors are yet another hidden secret of those who are most successful. Mentors provide guidance to those less experienced and often pave the way for new opportunities. Be sure to download the free bonus chapter for Suddenly in Charge. This chapter is on How to Find and Work with a Coach and Mentor.

I couldn’t be more thrilled that women now have another role model to follow. My hope is  that women (and their spouses) will realize, that behind every successful business woman, there is an army propping her up.

What other secrets are out there that women should know about?

Posted in Careers, Mentoring, Women in Business, Worklife Balance

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Is Your Loyalty Card Driving Business Away?

Am I the only person who finds loyalty cards more trouble than they are worth? I stopped into Barnes and Noble yesterday to purchase a few travel books. At the checkout, I mentioned that my husband happened to be a member of their loyalty club. Since I didn’t have their card on me, I was asked for our phone number. There was no record of the first number I gave, nor the second or the third for that matter so we moved onto e-mail addresses. I just about exhausted all of those when they finally came across a record they could use to apply the discount. Too bad this record was for a card that was expired.

As I looked at my watch, I asked the clerk how much money  I was going to save on this transaction, as it was taking an awfully long time to process my transaction. I was just about ready to give up when they found my husband’s number. Six dollars later (and it felt like six hours later) I departed with my books in hand. Here’s the ironic thing. I could have purchased these books on Amazon, without a loyalty card, and I would have saved a heck of a lot more time and money.

I had a similar experience today at CVS. I use my loyalty card at CVS and always seem to get the coupons that I might need, right after I’ve made my purchase. I don’t know about you, but I certainly don’t need to purchase another 64 ounces of laundry detergent within a one week period after I’ve just stocked up. Today I thought I would take a different approach. I had the clerk ring up one item separately, thinking I would receive coupons I could apply to the rest of my purchase. No such luck, as all the coupons were of no use to me. I’m thinking next time I will go to Walgreens where I have no loyalty, as having a card that does nothing is worth nothing to me.

Besides gathering personal information about our spending habits, I see no value to the consumer to carry around a boatload of cards with the hope that one will hold the magic key to 10 percent off your current purchase (as opposed to your next purchase in 2014.)

It’s time for businesses to ask themselves what is in the best interest of the customer. The clerk at Barnes and Noble certainly could have applied a discount without my number, if she had the authority to do so. Hmmm…here lies the problem. Businesses don’t give the people who serve their customers the authority to delight customers. Instead, they’d rather give out loyalty cards with the hopes that you’ll ignore the lousy service and continue to be loyal.

Let’s start a revolution. Cut up your loyalty card and do business with those companies that provide good service.

Posted in Customer satisfaction

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Buried Alive

And so you have it. Another talented executive leaves his organization so that he can work at the level he was hired to work at Six months ago, this person was a wBuried Alive Courtesy of Flickr-Hodgeralking advertisement for his organization. His enthusiasm was contagious. Then one day things began to happen. One reorganization led to another and before you know it, he was buried under layers of management. This gentleman is one of the most talented people I know. I wonder if anyone at the top will even notice he is gone.

Just because you have the talent now, doesn’t mean that you will have the talent later. In a recent study, 84 percent of respondents said they would be seeking new employment in 2012. I suggest that you don’t bury your head in the sand by pretending all those respondents work for someone else.

Last week, I received a call from another extremely talented executive regarding my Job Search Mentor Program. She doesn’t really want to leave, but she can see the writing on the wall. In six month’s time she’ll be buried under another layer of management, where she feels she will die a slow death. We call this suffocation. She is going to take her talent elsewhere, which is unfortunate for her employer.

I urge you not to wait until people start flowing out your front door. Recruiting and training new staff can be overwhelming and quite expensive. Instead, take a closer look at what we call “the keepers.” These are the people who would be sorely missed if they were gone tomorrow. Then do something you probably haven’t done in a long time. Have a conversation with them to find our how they are doing. Ask what you can do to help them achieve their professional goals. Listen carefully and take appropriate action and you will avoid becoming  buried in a pile of resumes.

Anyone else seeing good people flee? I welcome your comments.

Posted in Creating Exceptional Work Places, Employee Engagement, Employee Turnover, Hiring and Recruitment, Job Searching, Retention

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Guest Post from Gretchen Neels-Looking the Part

Gretchen Neels

I’m honored to share a guest post today from Gretchen Neels, whose I Hate to Shop! But Still Want to Look Great booklets are a must for those who are suddenly in charge or who have been in charge since shoulder pads were in vogue.

If you work for a law firm, consulting firm, government agency, conservative trade association, or in banking, insurance, or any other field where you are in the business of providing services requiring high levels of trust, projecting a look that says, “I am a professional and will treat you and the information you’ve entrusted to me with great respect and confidentiality along with first-class service.”

If you manage others in any of those fields listed above, you will also want to put forth a certain degree of authority and confidence, letting those who work for you know you’re the boss. As a manager, you set the tone for how those reporting to you dress and behave. The old adage, do as I say, not as I do, will get you nowhere when it comes to having your staff turn out professionally if you decide it’s ok for you, as the boss, to wear jeans, a T-shirt and some version of a flip-flop on Fridays.

Another adage to consider is dress for the job you want, not the job you have. In professional services, this is especially true. If you have an eye on the corner office, start dressing the part, today!  Also, understand that opportunities abound, particularly at law firms and management consulting shops, where at the last minute someone is asked to stand in at a client meeting, luncheon or even a court appearance. Woe to the associate who decided yoga pants were a good choice that morning. Luck is when preparation meets opportunity (Seneca said that back in the first century AD), so prepare to seize opportunities when they present themselves. Often there is no “next time.”

In my Style Workshops, I ask participants to write down three adjectives they would like others to associate with them when they meet for the first time. I list some examples such as confident, warm, approachable, likeable, professional, sincere and trustworthy to get the creative juices flowing. After a minute or two, I go around the room asking what the attendees wrote down. Often they use the words I suggested, sometimes adding any of the following: competent, authentic, enthusiastic, kind, expert, honest, friendly, charming, etc. (Note that no one ever lists sloppy, boring, timid, thoughtless or lazy.) I then ask whether or not the clothing they wear (i.e., their “packaging”) gets them close to the ideals they just jotted down.

This is the point where women begin to see the light and realize that their clothing really does matter. What we wear on the outside—the “packaging”—reflects to others what’s on the inside. The trick is to align the outside with the inside. Participants soon realize that taking the time and effort to dress in a way that supports the messages they wish to relay to others makes perfect business sense.

Let’s take a cue from Hollywood for a second. Actors wear costumes for two reasons. The more obvious reason is that costumes provide audiences with lots of information about a character. Think magic nanny Mary Poppins – you see that long coat, funky hat and umbrella and you’d know her anywhere. But actors also use their costumes as a means of getting themselves into character and staying there for the duration of the scene. No doubt Julie Andrews felt more like Mary Poppins when she was in costume. Similarly, any professional will tell you they feel and act differently in a tailored suit than jeans, a sweater and Uggs.

We only get one chance to make a fabulous first impression. In the corporate arena, looks matter, and as the economy continues to tighten, looking and acting the part will make the difference between rising through the ranks or staying put; making it to the second interview or not. Winning or losing.

Below are some dos and don’ts to ensure you will always look like the consummate professional:

Do make sure your clothing is always spotless and wrinkle-free.

Do wear clothing that fits you properly – nothing too tight or too loose. A good fit is the key to looking great in whatever you have on.

Do invest in quality rather than quantity. High quality wool suiting will last longer and wear better than a wool blend or synthetic fabric. Lafayette 148 New York is one brand that makes some wonderful mid-priced Italian wool suiting in misses, petite and plus sizes (available at most department stores).

Don’t expose your cleavage, tummy, or too much leg. Showing too much skin is inappropriate and will have others second-guessing your judgment.

Don’t forget to accessorize. Adding jewelry, a scarf or a belt is a quick and easy way to spruce up a so-so ensemble, making you look more polished and put-together.

Don’t give up. After 40, many professional women focused on careers and family stop paying attention to the way they dress. This is a big mistake! When you look good, you feel good, and others will pick up on the self-confidence and positive energy you’ll project when you look your very best.

Gretchen Neels is the founder and president of Washington, DC based Neels & Company, Inc.

This article is an excerpt from her new e-book series, I Hate to Shop! But Still Want to Look Great, written for professional women who find that although they have a closet full of clothing, they have nothing to wear. As a speaker, consultant and coach, Gretchen is passionate about helping others manage the professional image they project to the world.

Posted in Careers, General Observations, Image

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What’s Stinking Up Your Business?

It’s winter here in New England, which means I have my annual cold. I can’t taste or smell a darn thing. Don’t feel sorry for me. Feel sorry for my children. Yesterday, my eleven-year old daughter told me the milk tasted rotten. How could that be? It wasn’t set to expire for another few days and there was nothing curdling in my coffee. I told her she was wrong. She took one look at me and tossed the milk into the sink. This morning my husband informed me that the milk had soured. I had to take his word, as I still can’t smell a darn thing.

That got me thinking. How does a business owner or executive know if there is something souring in their organization, if their head is stuffed with images of what life used to look like inside their organization? You can’t. You have to rely on others. Inside people may hide what’s really happening, for fear that it will reflect badly on them. Or in some cases, they too have lost their sense of smell. So what’s a business owner or executive to do?

Bringing in someone with a fresh eye, or in this case a fresh nose, to help you quickly sniff out problem areas. This is a job best reserved for someone who doesn’t have any preconceived notions nor a territory to protect.

I get calls all the time from organizations asking me to come in and provide them with an objective opinion as to how they can improve their organizations. I welcome these calls because they come from the cream of the crop. By that I mean, companies that are always looking at ways of doing things quicker, better and more profitably. Now compare this to the calls I receive when companies suspect something is rotting inside their organization, yet they can’t quite put their finger on it. I’ll tell you this. The cream of the crop organizations that I work with usually catch wind that something is beginning to spoil because they have their senses about them. It’s easy for them to make immediate corrections. It takes much more time, effort and money to find and correct the source of a problem that stinks to high heaven.

I went to the doctor this morning for an expert opinion on my condition and I’m now armed with a prescription that will quickly get me back to full health. What are you waiting for?

Posted in General Observations, Productivity, Profitability, Small Business Management

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Nuggets from today’s Profitability Accelerator Teleconference

Small business owners and executives got their businesses off to a great start today. As some of you may know, I’m helping organizations kick their businesses into the stratosphere in 2012 and beyond, through my  free Profitability Accelerator Teleconference series. The next session, How to Increase Sales, is scheduled for Tuesday, February 14th at Noon, EST. All registered participants will receive an MP3 download so you can listen in at your convenience.

Today’s teleconference included a discussion on how to determine who to take along this journey and who to leave behind. This is a topic that many have difficulty thinking about. I understand this. However, sometimes you have to let go to move forward. In today’s teleconference I provided listeners with questions that my most successful clients have used to move their businesses forward. I’d like to share these with you. Feel free to add more questions in the comment section of my blog.

Here are nine questions to ask yourself :

  1. Which, if any, positions in my company are no longer needed? For example, if you’ve automated the reading of meters, do you still need employees to go out and read meters? If most of your employees are home officing do you still need a Director of Facilities Management?
  2. Can certain jobs be combined? Not that you’ve vastly improved customer service and people are rarely disputing their bills can you ask your collections person to take on other accounting functions?
  3. Do I need to unbundle others? For example, does my marketing person have enough hours in the day to also handle social media?
  4. What positions do I need to add to my company so I can grow my business? It’s time to throttle ahead. There’s great talent available. Do so now before the bidding wars begin again.
  5. Who if anyone in my organization has retired in place and what am I prepared to do about it?
  6. If I had the opportunity to do it again, would I hire the same people? If the answer is no, who should be replaced?
  7. Have I done an exceptional job of hiring or have I taken the easy way out and hired a bunch of people with the expectation that some will work out and some won’t?
  8. Are the people I have in place really the people I want representing my brand?
  9. When it comes to my staff, what am I prepared to do to move my organization forward and what’s my timeline for doing so?

Here’s what one of our participant’s had to say about today’s session.

“Great teleconference today!  So much to think about and plan more wisely for!!”

I hope you’ll join us next time.

Roberta

 

Posted in Employee Terminations, Profitability, Small Business Management, Teleconference

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Who’s Lying? Your Kid or the College Placement Office

Who's Lying?

We’ve all read the headlines regarding the lack of jobs for college grad these last few years. I wonder how many of those reporters bothered to check in with the college placement offices to get their take.

I had an interesting conversation this morning with the college placement director of a prestigious college. The conversation was flowing until she mentioned that she had 18 employers lined up for an upcoming job fair and expected to have a total of 80 by the date of the career fair. My jaw dropped and I found myself speechless. I kept saying, “Really???” I went on to ask, “How can this be so, when there are no jobs for college grads?”

“Aha!” she exclaimed. “That couldn’t be further than the truth.” She then went on to tell me that what kept her awake at night, was worrying if enough students would show up at the fair. Silence again on my end of the phone followed by another “Really???” Followed by, “Don’t these kids know how difficult it is to find jobs, especially when there are no jobs?” She went on to tell me how few students connect with the college placement offices these days.  Their parents, who have just invested $250K in their education, do little to encourage them to do so.

I receive calls all the time from parents asking me to consider working with their children in my Job Search Program. These are the same kids who never made it to the college placement office. If you are a parent reading this, I would suggest the following. Make a pact with your child when he or she begins college and get thee to the college placement office. Make sure the office knows who your kid is. Be sure your child shows up when the college placement office has an event. You control the purse strings. No show, no allowance. It’s that simple.

So who’s lying? Are the newspapers lying? Are there really jobs? Are the kids lying when they tell their parents there are no jobs? Or are the people at the college placement offices lying?

What do you think?

Posted in Coaching, Hiring and Recruitment, Job Searching

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Ten Tips for Small Business Success

Business SuccessAs we begin the New Year I wanted to share with you an article that I wrote for Monster’s Small Business Portal.
To Your Success!

By:  Roberta Chinsky Matuson, Monster Contributing Writer

Small business success is top of mind for business owners who are hoping that 2012 will be a sharp improvement over 2011. With that in mind, we recently asked our readers to share their top tips for small business success. Here’s what they had to say.

1. Business Plan Success. A well prepared business plan will keep your company focused and on track for growth and business success. Christine Krivicich Cesarino of Advantage Payroll Services recommends small business owner’s dust off their business plans to make sure they have the right strategy in place for 2012.

2. Business Strategy. A strong business strategy, combined with alignment and discipline, can yield impressive small business growth. Ann Latham, president of Uncommon Clarity advises her clients to begin with a clear and short list of top priorities.

“What are the few things you can do that would really make a difference?” This could range from launching a new product to managing your most profitable set of clients to make them more profitable still. “You then must align your people and resources behind the strategy in order to achieve high levels of success,” notes Latham.

3. Customer Service. Jason Maxwell, Founder of MassPay Payroll Services advises small business owners to make great customer service the thing that sets you apart from the competition. “The best products in the world won’t get you nearly as far as prioritizing relationships with those who buy them,” states Maxwell.

4. Recruiting. Great customer services begins with a recruiting strategy that attracts great people. Business Owner Andrew Schrage, CEO of MoneyCrashers.com spends a great deal of time recruiting. “Choosing the right employee for your company has dual benefits: you know going in that the person is the right fit, and you can significantly reduce employee turnover.”

Schrage adds that  employee turnover costs “are far reaching and can be the death knell of any small business.”

5. Hiring Process. Workplace expert and image consultant, Gretchen Neels, President, Washington, DC based Neels & Company offers the following tips regarding the hiring process and young professionals. Neels recommends asking these three interview questions in your next interview to avoid hiring candidates who will be reluctant to do “grunt” work:

  • Were they responsible for paying any of their higher education costs while in school? If so, what portion and how did they do it?
  • During high school or college, did they work in a demanding, low status position, such as retail sales, wait staff, or my very favorite, dishwasher?
  • Ask them how they feel about getting coffee, answering phones and cleaning the bathrooms, then sit back and LISTEN! If you get an enthusiastic, I will do whatever it takes to get the job done, you’re on your way to a good hire.

6. Management. Starting a small business is one thing. Managing it is another. Ira Bryck, Director of the UMass Family Business Center, advises small business owners to look at carefully at managing teams to do their job well, provide them with the necessary resources and coaching, enabling them to do the part of the job they do best.

7. Due Diligence in Hiring. Business coach Jamie Tardy tells the story of a business owner whose hiring mistakes came from not going as deep as he could in the interview process. He took the applicants at face value. Tardy recommends background checks and asking the question, When I call your former employer what are they going to tell me about you?

8. Small Business – Big Advantage. Big chains may have the advantage when it comes to price, but small business has the advantage when it comes to quality, service and knowledge. Bruce Serbin of Serbin Media advises small business owners to focus is on building relationships and empowering your people to make decisions in favor of your customer.

9. Discipline. “You need to maintain your small business’ focus on what’s
important and keep it there, advises Ron Cappello, CEO of Infinia Group. Cappello recommends forcing yourself to make one more call or one more contact at the end of everyday. The discipline will make you think through what you’ve done that day and plant another seed needed to get a sale.

10. Small Business Innovation. “Small businesses have advantages over large companies when it comes to business innovation: intimacy and speed,” according to Phil Symchych, president of SYMCO & CO. “They are close to their customers, understand their needs and can respond with great speed.” Look past the obvious. Be innovative and do what your competitors haven’t thought of.

We hope this list provides you with ideas to make the coming year your most successful yet!

© 2012 Human Resource Solutions. All rights reserved.

Author Bio:
Roberta Chinsky Matuson is the President of Human Resource Solutions and author of the highly acclaimed book Suddenly in Charge: Managing Up, Managing Down, Succeeding All Around, a Washington Post Top-5 Leadership pick. Sign up to receive a complimentary subscription to Roberta’s monthly newsletter, HR Matters.

 

Posted in Small Business Management

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