Saturday, January 15, 2011

Happy New Year!

“New Year’s eve is like every other night; there is no pause in the march of the universe, no breathless moment of silence among created things that the passage of another twelve months may be noted; and yet no man has quite the same thoughts this evening that come with the coming of darkness on other nights.”  ~ Hamilton Wright Mabie

Sunday, January 9, 2011

Smart Management Article Published In Yarn Market News

I’m excited to say that industry magazine, Yarn Market News, published my article on employee handbooks and policies in the Smart Management column of their January 2011 issue. The article is accessible only to subscribers to the magazine but I’m re-publishing excerpts of it here:

You were sitting in your favorite coffee shop, dreaming of turning your passion into a business. You decided to open a yarn shop, a place where people who shared your love of knitting could gather. Your shop would be a part of the community, just like that coffee shop. You would create a place with a creative and unique ambiance. You dreamed of finding the perfect location, the yarn you would carry, the classes you would offer, and the displays that would set your shop apart.

I would lay odds that you never imagined that your dream would also include the amount of personnel management that it does. If you are lucky enough to be like Lauren Lindeman, of So Much Yarn in Seattle, most of your employees have been good fits with your shop. Lindeman says that she usually knows her employees in some other capacity before they are hired on. She describes her shop as “small enough that we are like a family at home where everyone knows the rules.” Still, Lindeman feels that having written policies would help with the smooth operation of her shop and that this would save her time in the long run. Also, as an employer, you want to have some control over how the job is performed and how an employee conducts herself. In the absence of written policies, the employment relationship is often an improvisation. Essentially, you make up your policies as situations arise, or, more likely, after they have arisen.

For these reasons, I encourage clients to be proactive and do the minimal work involved in putting together a few key documents before they need them. The most important of these documents is an employment handbook. When I use the term “handbook” I sometimes get resistance. Many employers, especially in a cottage industry, do not want to “corporatize” their workplace. They feel a handbook is part of a workplace culture that they want to avoid. Do not avoid it simply because you do not like what it connotes. Instead have policies that are in tune with your workplace culture.

I work with my clients to create handbooks that are personal to their workplace. It is important that their policies reflect their approach to managing employees. Together we consider the practical implications of each policy. We also discuss the federal and state laws that are applicable to their business.

One of the problems with a one size fits all template that you might find online is that it is not state specific nor is it necessarily appropriate for your business. I recommend to my clients that they find basic policies online but spend the extra funds to have an attorney spend an hour or two tailor them. Be certain he or she is an employment attorney who is fully versed in the state laws that are pertinent to you. Every state has its own workplace laws and many of these are only applicable to your business if you have a specific number of employees.

Managing employees seems like a secondary priority when you are focused on running your business. But when the first employee issue happens, and it will, you may find that it could have been avoided by written policies. The following policies are among the most important to include.

Disclaimer. One danger of written employment policies is that your employees can “reasonably rely” on promises you make. A court can then find that your handbook is a contract with your employees. For this reason, expressly state that your handbook is not a contract and does not constitute a specific promise in any specific circumstance. Also leave yourself some “wiggle room.” Always give yourself the right to apply your policies as you see fit.

Code of Conduct. I recommend having a code of conduct policy. It can be a simple expectation of common sense, honesty and respect. Or it can be a detailed list of prohibited conduct like theft, workplace violence, and harassment. Lindeman says that the primary employee issue she has come up against is employee attitude. For Lauren, I would recommend a clear policy on the expected demeanor and deportment of her employees. No matter how you approach it, leave yourself the discretion to address any issue that might arise; you cannot anticipate everything so give yourself the flexibility to decide what discipline may be necessary in every situation.

Anti-Harassment and Anti-Discrimination. An employer who exercises “reasonable care” to avoid harassment and provides employees with ways to address harassment has an affirmative defense when a complaining employee fails to take advantage of the employer’s safeguards. A written policy stating how seriously you take harassment is an important part of establishing that defense and your workplace culture. Include the email address and cell phone number of at least one senior manager to make it as easy as possible for an employee to make their complaint.

Whichever policies you decide are most appropriate for your shop, be certain to give yourself the right to change them if and when you see fit. You will find that a good handbook gives you some “authority” when you sit down with the employee who does need performance coaching.
Simultaneously, a handbook gives your employees a greater sense of security and professionalism. Finally, it allows you to spend less time answering questions and explaining yourself, and more time doing what you love most, running your business.
 
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