6 voluntary trends and opportunities for 2014
Originally posted on https://eba.benefitnews.com
Experts in the voluntary field share predictions for the coming year — and some pretty crazy products that can now be sold through payroll deduction. Comments compiled at SourceMedia’s Workplace Benefits Transitions conference in Chicago Dec. 10-12
Voluntary overall
“[Voluntary] prospects are outstanding because change brings opportunity. Not only today, but going into the future, it’s going to present a lot of great opportunities for us,” said Charlie Grim, sales manager at The BenefitSource in Elmhurst, Ill. While conference co-chair Walter Podgurski noted that Gil Lowerre, president of Eastbridge Consulting and leading expert in voluntary research, has predicted that 2014 will once again be a banner year for the products with health reform fully in place.
Long-term care
Technology
Employer actions need to catch up with financial wellness wishes
Originally posted December 12, 2013 by Andrea Davis on https://ebn.benefitnews.com
Employers are embracing the concept of financial wellness, with 81% of HR professionals saying they believe they are at least somewhat responsible for their employees’ financial wellness, according to a survey released this week by Bank of America Merrill Lynch.
Seventy percent of the 1,000 companies surveyed offer various forms of education related to retirement and, to a lesser extent, planning for health care costs (38%), as well as debt management and budgeting (15%).
And while employers say they’re interested in the concepts of financial wellness and retirement readiness, their actions may have some catching up to do. Less than half of large companies (48%) has a financial wellness strategy in place for employees or plan to add one in the next two years. Among medium-sized companies, the percentage drops to 43%. Among small companies, 26% have a financial wellness strategy in place or plan to add one in the next two years.
“It will be interesting to see how quickly do they then adopt practical, tangible programs to realize their aspirations of what they want to do with their employees,” says Kevin Crain, senior relationship executive for Bank of America Merrill Lynch. “It’s still early stage in their thinking.”
Perhaps not surprisingly given all the attention the Affordable Care Act is receiving, one-third (32%) of HR professionals say they’ve increased the time they spend educating employees about the role workplace benefits play in their financial security.
One area many employers agree needs greater focus and employee education is the rising cost of health care. Eighty-one percent of companies report an increase in health care costs during the last two years, and many admit to having had to pass these rising costs along to their employees. The study found that more than one-third (35%) of employers now provide employees with education about what health care could cost them during retirement, up from 21% in 2012. Among employers who provide at least some education about retiree health care costs, nearly half (45%) believe more needs to be done in this area.
“Employers now understand their employees need far more transparent and easier ways to understand what the cost of health care will be in the future,” says Crain. “The health care expense piece [of retirement] was always, in my mind, not as robust as it could have been.” With all the attention on the ACA, health care costs in retirement is an issue “that’s been brought to the forefront,” he says.
Co-worker relationships more important for employee engagement
Originally posted December 12, 2013 by Amanda McGrory-Dixon on https://ebn.benefitnews.com
When it comes to having an engaged workforce, who your employees work with — rather than who they report to — is an increasingly important factor, according to a recent survey.
The survey from TINYpulse reveals that relationships among co-workers are more responsible for their happiness than their managerial relationships by 23.3%. This finding is supported by a recent survey by the Society for Human Resource Professionals, which shows that 79% of respondents in 2012 regarded their relationships with co-workers as important, up from 76% in 2011. The same SHRM survey also shows that the importance of their relationships with direct supervisors dropped from 73% in 2011 to 71% in 2012.
Among the most desirable traits of co-workers are team play and collaboration, 44.3% of respondents say. Meanwhile, knowledge, skills and talent are considered the top traits of co-workers by only 26.4% of respondents.
"This shows that who you work with is becoming more important than who you work for,” says David Niu, founder and CEO of TINYpulse, which conducted the survey. “We often think of employee happiness and satisfaction as being manager-driven, but now as the workplace becomes more cross-matrixed, collaborative and ‘bottom-up,’ the importance of co-worker relationships continues to grow."
But the leading driver of employee engagement is management transparency, according to the survey.
"Not only are capital markets demanding transparency, employees want the same from their leadership,” says Niu. “The cost of improving transparency is almost zero, and we are seeing an increasing number of companies using transparency as an advantage when attracting and retaining top talent."
The survey findings suggest that organizations must focus on management transparency and recruiting more collaborative employees if they expect to keep employees engaged. Many respondents, however, are already practicing transparency as 82% say their managers have openly communicated their roles and responsibilities. Still, just 42% of respondents report knowing their organizations’ visions, missions and values.
The survey included more than 40,000 responses from 300 organizations.
Bosses: Here are 7 New Year’s resolutions to help retain your talent
Originally posted on December 16, 2013 by Tim Loh on https://blog.ctnews.com
Each year, employees make career-related New Year’s resolutions much more frequently than their bosses — but their top resolution is to find a new job, according to Danbury’s OI Partners-Cunis & Gontin, a coaching and leadership development consulting firm.
And so, Cunis & Gontin has put together a list of New Year’s resolutions for bosses that should help them retain their top talent.
“If more managers resolved to develop their employees’ leadership skills, invite their input, demonstrate continued interest in their careers and recognize their contributions, fewer workers would be determining to find new jobs each year,” said Mary Ann Gontin, Managing Partner with OI Partners-Cunis & Gontin.
Retaining talented employees has become a higher priority in an improving job market, the firm said, as more than three-fourths of employers worry about losing key employees, according to a survey by OI Partners.
Here are the top seven resolutions managers can make to help retain talent:
1. Coach workers in how to become more influential and persuasive. “Explain the implications of their actions and decisions on internal politics and help them become savvier. Provide training and guidance in how to craft their messages to meet the needs of others. Managers are too often frustrated by employees’ inability to work effectively through others. Teach them how to win over people in appropriate ways,” said Gontin.
2. Develop employees’ leadership skills. “Use challenging ‘stretch assignments’ that motivate workers, require them to learn new skills and build coalitions. Look for opportunities where members of your team can step into leadership roles. That may mean you have to be in the background more and become comfortable with sharing the spotlight,” said Gontin.
3. Improve your feedback and increase their accountability. Most managers are inconsistent in communicating expectations and holding people accountable. Be clear about your expectations and give timely feedback to your team when they do a good job or miss the mark.
4. Tap into employees’ wealth of knowledge and experience. Encourage employees at all levels to suggest, create and communicate new ideas based on the direct experience of those on the line. Personally ask people for their input to get the best recommendations.
5. Demonstrate continued interest in employees’ careers. Reassure employees that they are appreciated for the work they’re doing. Increase the frequency of discussions about their careers and one-on-one meetings with their managers.
6. Recognize and reward contributions. Managers should be certain they recognize employee contributions, both big and small. A compliment from the boss can be as effective as a monetary reward. Many employees feel that their managers do not spend enough time thanking them for a job well done, but are too quick to criticize them for making mistakes.
7. Build teamwork and provide developmental coaching to workers.
Look for ways to partner employees on projects and concentrate on assembling compatible teams. Include ground rules on how they should work together, check in with them periodically throughout the assignment and facilitate a discussion on what’s working and what’s not. Coordinate a debriefing at the end of the project for overall feedback and lessons learned. Developmental coaching sharpens employees’ leadership skills and helps retain the most talented workers.
13 Different Ways to Cook a Turkey
Originally posted on https://www.food.com
Roasting, brining, frying — there are as many ways to cook a turkey as there are side dishes. Browse our top methods and find your favorite way to best that bird. Find more turkey recipes here »
"I was the hero of our Thanksgiving dinner! This turkey was fantastic — even my mom mentioned that the meat was cooked to perfection!" -Barb Witherspoon
Slow Cooker: Turkey Breast with Fail-Proof Gravy
"We loved this way of cooking turkey! It came out very tender. We love a lot of seasoning, so I added a mixture of olive oil, minced garlic, onion powder and herbs under the skin." -slickchick
Brined: Alton Brown's Brined Turkey
"Hands down, the best turkey we've ever had! A saltwater brine allows the turkey to hold in tons of moisture and absorb the seasonings deep into the meat." -**Tinkerbell**
Easy: Roast Turkey for Beginners
"This was my first attempt at a Thanksgiving turkey and it was amazing — so moist and delicious! My guests devoured it." -Mrs. Beckman
"I love this turkey! The spice mixture isn't too hot, but you can definitely tell there's some zip to it — and the meat is so juicy." -Shelby Jo
Brown Bag: Famous Brown Bag Turkey
"Everyone (including me) was skeptical about this recipe's paper bag technique, but the turkey turned out awesome. It was by far the best I've ever had, and all of my Thanksgiving guests agreed!" -izbryte
Grilled: Basil Lemon Turkey Breast
"My family and friends enjoyed the flavorful layer of basil, lemon, garlic and Romano cheese in this recipe!" -WiGal
For Two: Stuffed Turkey Breast with Cranberry Glaze
"We made this turkey the night before Thanksgiving, and it was so easy to put together! The cranberry glaze really makes the dish." -Impera_Magna
"Nicely seasoned, moist and delicious — this turkey was a huge hit at Thanksgiving dinner!" -PaulaG
Glazed: Apricot-Glazed Turkey with Onion & Shallot Gravy
"Don't pass this beautiful bird by; you will get so many rave reviews! One tip: The glaze makes the bird brown very fast, so cover it with foil as soon as you need to." -Scoutie
"Awesome! Our family has deep-fried our Thanksgiving turkey for a few years now, and this was the best recipe I've found! The meat was tender and juicy with a nice apple flavor." -Isanti Tigress
Herb-Roasted: Mouthwatering Herb Turkey
"I've used this turkey recipe for two Thanksgivings in a row because it's delicious, and the hot water trick really works to keep the meat moist! It never fails to satisfy." -LizzyGirl09
"I went in search of an amazing turkey recipe when I got a new roaster, and, boy, did I find it! It's perfect for a Thanksgiving feast — the meat retains so much of its juice that it just falls off the bone." -Xanaeq
Safety First Holiday Safety Tips for Last Minute Shoppers
Originally posted on https://www.ncpc.org
Arlington, VA –The National Crime Prevention Council (NCPC) reminds last-minute holiday shoppers to keep safety in mind as they hunt for those last-minute bargains.
The organization best known for its icon, McGruff the Crime Dog, has tips to help you shop safely while getting those great holiday bargains.
Shopping in Stores
• Do not buy more than you can carry. Plan ahead by taking a friend with you or ask a store employee to help you carry your packages to the car.
• Save all receipts. Print and save all confirmations from your online purchases. Start a file folder to keep all receipts together and to help you verify credit card or bank statements as they come in.
• Consider alternate options to pay for your merchandise, such as onetime or multiuse disposable credit cards or money orders, at online stores and auction sites.
• Wait until asked before taking out your credit card or checkbook. An enterprising thief would love to shoulder surf to get your account information.
• Tell a security guard or store employee if you see an unattended bag or package. The same applies if you are using mass transit.
Walking to and From Your Car
• Deter pickpockets. Carry your purse close to your body or your wallet inside a coat or front trouser pocket.
• Have your keys in hand when approaching your vehicle. Check the back seat and around the car before getting in.
• Do not leave packages visible in your car windows. Lock them in the trunk or, if possible, take them directly home.
Shopping with Small Children
• If you are shopping with children, make a plan in case you are separated from each other.
o Select a central meeting place.
o Teach them to know they can ask mall personnel or store security employees if they need help.
Shopping Online
• Before surfing the Internet, secure your personal computers by updating your security software. Everyone’s computer should have anti-virus, anti-spyware, and anti-spam software, as well as a good firewall installed. Visit www.bytecrime.org for free software downloads.
• Keep your personal information private and your password secure. Do not respond to requests to “verify” your password or credit card information unless you initiated the contact. Legitimate businesses will not contact you in this manner.
• Beware of “bargains” from companies with whom you are unfamiliar—if it sounds too good to be true, it probably is!
• Use secure websites for purchases. Look for the icon of a locked padlock at the bottom of the screen or “https” in the URL address.
• Shop with companies you know and trust. Check for background information if you plan to buy from a new or unfamiliar company.
To find more useful shopping tips and personal safety information, visit the National Crime Prevention Council’s website.
About the National Crime Prevention Council
The National Crime Prevention Council is the nonprofit leader in crime prevention. For 30 years, our symbol of safety, McGruff the Crime Dog®, has delivered easy-to-use crime prevention tips that protect what matters most—you, your family, and your community. Law enforcement agencies nationwide rely on our expertise to make an impact on personal safety and crime every day. For more information on how NCPC can be a public safety expert for you or how to “Take A Bite Out of Crime®,” visit www.ncpc.org.
IRS eases same-sex health care tax break rules
Originally posted December 17, 2013 by Allen Greenberg on https://www.benefitspro.com
Thanks to last-minute action by the IRS, employee benefits administrators this year will have one more important change to communicate to employees as soon as possible: legally married same-sex couples can claim tax benefits this year if they’re enrolled in a flexible spending account, health care savings account or cafeteria plan.
The IRS – responding to the Supreme Court’s ruling in June invalidating part of the Defense of Marriage Act – said plans also are able to allow a midyear election change for participants marrying a same-sex spouse after the so-called Windsor decision.
Although it’ll mean more work, IRS Notice 2014-1 shouldn’t be a big surprise to HR managers. In August, the government said same-sex couples will be viewed as married for federal tax purposes, regardless of whether their marriages were recognized by the state in which they lived.
Carol Calhoun, a Washington, D.C., based attorney and former IRS official, said employers will need to move quickly to take advantage of relief granted under the latest guidance.
Calhoun said employees can use benefits remaining in their 2013 FSA accounts for same-sex spousal benefits, even in the case of FSAs set up as self-only FSAs.
“This information obviously needs to be communicated to those responsible for processing FSA benefits,” she said in a post on her firm’s website.
Employers, she wrote, also can now correct inadvertent overwithholding or underwithholding due to the recognition of an employee’s marital status, “but only if they act quickly to do so before the end of the year.”
The IRS notice will affect the amount reportable as income on W-2s, she said, so it’s important for HR departments to be aware of the new guidance as soon as possible.
Retirement plan sponsors are still awaiting IRS guidance on whether they will be compelled to retroactively apply the DOMA decision in calculating spousal and other benefits to same-sex partners.
Here are excerpts from the latest notice, offered by the IRS in Q&A form:
Question: If a cafeteria plan participant was lawfully married to a same-sex spouse as of the date of the Windsor decision, may the plan permit the participant to make a mid-year election change on the basis that the participant has experienced a change in legal marital status?
Answer: Yes. A cafeteria plan may treat a participant who was married to a same-sex spouse as of the date of the Windsor decision (June 26, 2013) as if the participant experienced a change in legal marital status for purposes of Treas. Reg. § 1.125-4(c).
Accordingly, a cafeteria plan may permit such a participant to revoke an existing election and make a new election in a manner consistent with the change in legal marital status. For purposes of election changes due to the Windsor decision, an election may be accepted by the cafeteria plan if filed at any time during the cafeteria plan year that includes June 26, 2013, or the cafeteria plan year that includes December 16, 2013.
A cafeteria plan may also permit a participant who marries a same-sex spouse after June 26, 2013, to make a mid-year election change due to a change in legal marital status.
Q: May a cafeteria plan permit a participant with a same-sex spouse to make a midyear election change under Treas. Reg. § 1.125-4(f) on the basis that the change in tax treatment of health coverage for a same-sex spouse resulted in a significant change in the cost of coverage?
A: A change in the tax treatment of a benefit offered under a cafeteria plan generally does not constitute a significant change in the cost of coverage for purposes of Treas. Reg. § 1.125-4(f). Given the legal uncertainty created by the Windsor decision, however, cafeteria plans may have permitted mid-year election changes under Treas. Reg. § 1.125-4(f) prior to the publication of this notice.
Q: When does an election made by a participant in connection with the Windsor decision take effect?
A: An election made under a cafeteria plan with respect to a same-sex spouse as a result of the Windsor decision generally takes effect as of the date that any other change in coverage becomes effective for a qualifying benefit that is offered through the cafeteria plan.
With respect to a change in status election that was made by a participant in connection with the Windsor decision between June 26, 2013 and Dec. 16, 2013, the cafeteria plan will not be treated as having failed to meet the requirements of section 125 or Treas. Reg. § 1.125-4 to the extent that coverage under the cafeteria plan becomes effective no later than the later of (a) the date that coverage under the cafeteria plan would be added under the cafeteria plan’s usual procedures for change in status elections, or (b) a reasonable period of time after Dec. 16, 2013.
The rules set forth (in the questions above) are illustrated by the following examples:
Example 1. Employer sponsors a cafeteria plan with a calendar year plan year.
Employee A married same-sex Spouse B in October 2012 in a state that recognized same-sex marriages. During open enrollment for the 2013 plan year, Employee A elected to pay for the employee portion of the cost of self-only health coverage through salary reduction under the cafeteria plan. Employer permits same-sex spouses to participate in its health plan. On Oct. 5, 2013, Employee A elected to add health coverage for Spouse B under Employer’s health plan, and made a new salary reduction election under the cafeteria plan to pay for the employee portion of the cost of Spouse B’s health coverage. Employer was not certain whether such an election change was permissible, and accordingly declined to implement the election change until the publication of this notice.
After publication of this notice, Employer determines that Employee A’s revised election is permissible as a change in status election in accordance with this notice. Employer enrolls Spouse B in the health plan as of Dec. 20, 2013, and begins making appropriate salary reductions from the compensation of Employee A for Spouse B’s coverage beginning with the pay period starting Dec. 20, 2013. The cafeteria plan is administered in accordance with this notice.
Example 2. Same facts as Example 1, except that Employee A submitted the election to add health coverage for Spouse B under Employer’s cafeteria plan on Sept. 1, 2013. Prior to publication of this notice, Employer implemented the election change and enrolled Spouse B in the health plan as of Oct. 1, 2013, and began making appropriate salary reductions from the compensation of Employee A for Spouse B’s coverage beginning with the pay period starting Oct. 1, 2013. The cafeteria plan was administered in accordance with this notice.
Q: How does the Windsor decision affect the tax treatment of health coverage for a same-sex spouse in the case of a cafeteria plan participant who had been paying for the cost of same-sex spouse coverage on an after-tax basis?
A: In the case of a cafeteria plan participant who elected to pay for the employee cost of health coverage for the employee on a pre-tax basis through salary reduction under a cafeteria plan and also paid for the employee cost of health coverage for a same-sex spouse under the employer’s health plan on an after-tax basis, the participant’s salary reduction election under the cafeteria plan is deemed to include the employee cost of spousal coverage, even if the employer reports the amounts as taxable income and wages to the participant. Accordingly, the amount that the participant pays for spousal coverage is excluded from the gross income of the participant and is not subject to federal income or federal employment taxes. This rule applies to the cafeteria plan year including Dec. 16, 2013, and any prior years for which the applicable limitations period under section 6511 has not expired.
Be careful about what constitutes affordable care
Originally posted December 13, 2013 by Keith R. McMurdy on https://eba.benefitnews.com
When considering what constitutes affordable coverage under the Affordable Care Act, some employers have come to me and said “Well, I will just charge everybody 9.5 percent of employees’ pay.” And on its face, that seems to be what the rule permits. But, as with other components of the ACA, Congress may have overlooked that our old friend ERISA already has a little something to say about what employees can be charged as a contribution.
Generally, ERISA does not require plans to provide the same benefit coverage to all employees. But the plan’s offerings have to be made in a manner that is non-discriminatory. HIPAA makes it illegal to charge different contributions to employees based on health factors. Specifically, an employer cannot charge some employees more than any other similarly situated individuals based on medical conditions, claims experience, receipt of health care services, genetic information or disability. But HIPAA does allow an employer to make other distinctions in benefits that are offered in the cost to employees, provided the distinctions are not discriminatory.
In order to avoid discrimination, plans have to limit their distinctions between employees to “bona fide employment-based classifications.” The most common examples are things like full-time or part-time status, geographic locations and salaried versus hourly employees. In some instances, it may even be permissible to charge different rates based on time of service, but employers have to be wary of age discrimination rules. However, what is clear is that the plan has to define the rules and explain how the rules apply to each classification of employee.
What employers should be considering as they prepare their compliance program for 2015 is how they define these job classifications. For example, take two employees who do the exact same job, but one makes $10 per hour and the other makes $10.50 per hour simply because they have been employed a year longer. If the employer charges both of these employees 9.5% of their wages for health insurance contributions, there would be discrimination between them because they are similarly situated employees being charged two different rates for the same benefit coverage. Absent plan rules that explain the distinction, this difference in contributions would be discriminatory and arguably impermissible under ERISA.
So before assuming that everyone can be charged 9.5% of box 1 of their W-2s, consider what ERISA already has in place. It is not that it can’t be done this way, it is only that it has to be done properly, with the right plan language and with the correct limits in place. The ACA compliance is also ERISA compliance and employers should seek assistance for staying in line with both.
The information in this Legal Alert is for educational purposes only and should not be taken as specific legal advice.
Healthcare Reform Curbs Full-Time Hiring
Originally posted December 12, 2013 by Jon Jimison on https://medcitynews.com
Almost half of U.S. companies are wary of taking on full-time employees as a result of the Affordable Care Act.
And 20 percent are likely to hire fewer employees while 10 percent may actually lay off employees in response to what's been dubbed "Obamacare."
That's according to the findings from Duke University/CFO Magazine's Global Business Outlook Survey, which was concluded Dec. 5.
The survey found American chief financial officials indicated that because of the Affordable Care Act, they may reduce employment growth or even shift toward part-time employees. In fact, more than 40 percent of companies will consider targeting part-time workers for future employment, the survey found.
"These are some negative, perhaps, unintended consequences of the Affordable Care Act that companies are wrestling with right now that might dampen the hiring horizon a bit," said John Graham, Duke Fuqua School of Business finance professor and a director of the survey.
There was, however, a silver lining in the survey. It found that underlying economic conditions are expected to improve next year. Fifty-two percent of U.S. business leaders believe economic conditions for their firms will be better in 2014.
There will still be some expected employment growth, but health care reform has reduced that growth from what it could have been, Graham reported.
Capital spending among businesses might fare better, increasing up to 7 percent next year.
President Barack Obama's signature 2010 health care law requires many companies to provide insurance to all full-time workers, which the law defines as those who work 30 or more hours per week. Some businesses reportedly have given part-time schedules to their former full-time staffers to skirt insurance requirements.
Larger companies that employ 50 or more people are required to provide health insurance under the law. Smaller companies can opt out.
"The inadequacies of the ACA website have grabbed a lot of attention, even though many of those issues have been or can be fixed," Graham said. "Our survey points to a more detrimental and potentially long-lasting problem. An unintended consequence of the Affordable Care Act will be a reduction in full-time employment growth in the United States. Companies plan to increase full-time employment by 1.4 percent in 2014, a rate of growth which is down from last quarter and unlikely to put a dent in the unemployment rate. CFOs indicate that full-time employment growth would be stronger in the absence of the ACA."
"I doubt the advocates of this legislation would have foretold the negative impact on employment," said Campbell Harvey, finance professor at Fuqua and a director of the survey. "The impact on the real economy is startling. Nearly one-third of firms may either terminate employees or hire fewer people in the future as a direct result of ACA."
Health care in a top local concern as well, officials have said.
Changes to health insurance requirements top the list of concerns for local businesses, Christy Proctor, Wilson Chamber of Commerce chairwoman-elect, previously said.
Most Americans will be required to have health insurance in 2014 under the Affordable Care Act. The law requires coverage and includes fines for not getting insurance. There are subsidies for people who fall below certain income levels. Under the law, residents can't be refused coverage for a pre-existing condition.
The issue has become a heated political debate.
Republicans are quick to point out problems with the government-run website. They also point out Department of Health and Human Services enrollment data showing that fewer than 9,000 North Carolinians enrolled from Oct. 1 to Nov. 30.
Democratic Sen. Kay R. Hagan said she and others called for an investigation into the contracting process related to healthcare.gov">healthcare.gov. HHS Secretary Kathleen Sebelius on Wednesdsay announced that the inspector general of the agency will conduct such an investigation.
"I am pleased that the administration has agreed to investigate the contracting process related to healthcare.gov as I urged them to do last month," Hagan said in a statement. "There is no excuse for not having the website ready from day one, and we must learn whatever lessons we can to ensure we never again have an issue like the initial failures of healthcare.gov">healthcare.gov. I will continue to monitor the progress of this investigation to ensure it is completed in a timely and transparent manner."
“He acts like he owns the place!” (Good Thing?)
Originally posted December 06, 2013 by Dan Oswald on https://hrdailyadvisor.blr.com
Depending on the context, that single sentence—He acts like he owns the place!—can either spell disaster or be one of the most positive and flattering things to be said about an employee, says business and leadership blogger Dan Oswald.
If the statement is made out of frustration about an employee who throws his weight around and has a condescending attitude, you might be in trouble. But if it’s said with pride and satisfaction about an employee, then you’ve found yourself a star.Oswald, CEO of BLR®, offered these thoughts on increasing company performance by instilling a sense of ownership in a recent edition of The Oswald Letter.
In the end, don’t we all want people who think like owners? People who treat the company’s resources as their own. People who are interested in what goes on in every aspect of the business. People who genuinely care about the customer. And people who will go to any length to see the company succeed.
Here’s a funny story about having employees who treat the company’s resources as their own. I say funny because as a manager, if you don’t laugh, it could make you cry—or at least pull out your hair. A number of years ago (and by that I mean more than a decade because as I get older, it seems more efficient to count years in blocks of 10!), I pulled a recently hired business unit manager in to have a discussion about his expense reports. It seems that when he traveled, he spared no expense. First-class plane tickets, limousines, and high-priced dinners appeared on his travel reimbursement requests.
The company didn’t have a hard and fast policy on what was considered acceptable travel expenses, so I felt it necessary to have a conversation about what I believed was reasonable.
I explained to the manager that I had noticed what I thought were exorbitant expenses on his travel reimbursement requests. I listed some of the expenses I thought were especially egregious, and knowing that our travel reimbursement policy didn’t prohibit those expenses (yet), I hit him with, “I’d like you to spend the company’s money like it’s your own.” Take that!
With 100 percent sincerity, he looked me in the eye and replied, “But Dan, I am spending the company’s money like I do my own.” And you know what? He was. This was a guy who spent every dime he made on luxuries for himself. He was indeed spending the company’s money as he did his own. Needless to say, he didn’t last long in the job, and I had to tighten up my travel reimbursement policy!
The lesson was that if you have someone with a real sense of entitlement, you might not want him thinking like an owner. It can be really expensive!
But generally speaking, having a host of employees who think like an owner can be a great thing. That’s why Facebook uses the following motto with new hires: “This is now YOUR company.” That simple statement is plastered on all of Facebook’s onboarding materials, and it’s the first thing new employees see when they walk in the company’s training center. It’s a company goal to have every single employee carry a sense of ownership—not just in the individual jobs but within the company as a whole.
Consider the power of getting everyone thinking that they own the place! Searching out ways to improve operations. Looking for innovative ways to cut waste and inefficiencies. Finding new ways to grow the business and improve the bottom line. Isn’t that what all of us want as managers?
The question is how to make this happen in your department or company. How can you instill this sense of ownership in your people? First, you need to hire the right type of person. You need to hire people who think this way when they walk in the door. In fact, at Facebook, they talk about hiring for the culture, not the skill set. Their rationale? Skills can be taught, but mind-set can’t.
Second, you need to train and reinforce the “ownership” mentality at every level in the organization. That means you provide your people with the information and opportunities that will allow them to act like owners. You can’t expect people to act like an owner if they don’t have the information or the freedom to do so in a meaningful way.
Finally, you must recognize AND reward the people who think this way. When people make a contribution because of their “ownership mind-set,” make sure you let others know that you appreciate and respect that type of thinking. A little recognition can go a long way—not just for the person being recognized for his or her work but for others who desire the same thing as well.
Wouldn’t it be great if you could say “He acts like he owns the place!” and “She acts like she owns the place!” about every one of your employees and mean it in the best way possible?