Compensation- putting the plan in place


Last week we talked about establishing your Compensation Strategy and how to determine the competition and your rationale for certain recommendations.  Once you have a thorough well thought out strategy, though, you need to execute.  Careful, well thought out execution is every bit as important as developing your strategy.  Remember, it is likely that you understand compensation better than anyone else in your organization so start at the top.


Get your Executive Team Bought in

Keep in mind that executive teams have a lot on their mind and are likely not up to speed with why a compensation strategy is important, so start simple. The payroll in a company is by far the largest expenditure and compensation touches all areas like candidate attraction, retention, turnover and satisfaction to some degree.  Pay ranks in the number three spot as to reasons why employees leave positions and the cost to replace that employee is anywhere between 100-200% of their base salary.  Plenty of reason to make sure that compensation is NOT the driving force behind your resignations.


Train your Managers to have Compensation Conversations

Once your executive team is bought into your strategy, it’s time to train your managers to talk about compensation.  We have all heard or experienced firsthand the horror stories of employees finding out what their raise is when their paycheck comes out, never having had a conversation with their manager, or the manager walking into a group of employees, handing each a piece of paper with their raise on it and walking out, thus missing a critical opportunity to further enhance the employee’s satisfaction and level of engagement.  The first step is to listen.  Listen to what the employee has to say, repeat back what you think you have heard.  Share critical information, such as the merit budget pool for the year and the compensation philosophy.  


Communicate the Process

Letting the team know up front and reminding them often of who will do what we go a long ways towards preparing for success.  Communicate the roles that HR will play-to establish salary grades and structures, to provide compa-ratios, to set the merit pool amount and to weigh in on any recommended market adjustments.  The first line managers will be responsible for recommending salary increase, justifying recommendations for promotions or market adjustments and communicating the approved increases to the individual employees. Your executive team has the responsibility to communicate and support the compensation strategy and philosophy they have approved. Employees, too, play a role.  They have the responsibility to ask questions and ensure that they get a satisfactory answer.  Make sure that they know their manager is their first stop, but if questions remain unanswered that HR’s door is always open.

Do you best to create an environment where compensation is not practiced in a black box, but is implemented in a thoughtful, straight forward way, where everyone understands what it is meant to achieve and feels comfortable offering suggestions to enhance the process.  A compensation strategy, created and implemented well, can enhance many aspects of the organization and the employee experience.

Holocracy- Implementation Challenges


Last week we talked about Holocracy, what it is and what its advocates say the potential benefits are.  But in reality, does Holocracy work ?  Can a type of self-management that gives decision making power to fluid teams, or “circles,” and roles rather than individuals yield results and better decisions than a traditional structure?  How well do people deal with the uncertainty that a holocratic approach creates

Sourcing and Hiring

Holocracy models complicate sourcing and hiring decisions.  How do you advertise for a job that is comprised of ever changing micro roles and how do you assess whether the person sitting in front of you actually is competent at those micro roles and any other talents they might have?  People are used to looking for traditional job titles, but in holocracy, there are no traditional job titles.  Do management level employees worry that deviating from their career path might stall out their careers.  What if they are at a Director level now and you are trying to recruit for a team member with a skill set normally held by an Accounting Dir.  How many would take a “team or circle member” title?

Micro Roles

Another issue that holocracy creates is the formation of micro roles.  No longer is one individual responsible for a specific set of set roles, but a swirling set of micro roles that are ever changing.  It can complicate the work actually getting done as employees may be responsible for up to 25 different responsibilities and struggle with prioritizing them and deciding where to focus first.  They may be members of a number of different circles and have weighty responsibilities to each, but not be able to satisfy all of them or be forced to prioritize in conflict with others. 


Compensation becomes difficult as well.  Not only are there struggles with determining internal equity as this now requires each of 100’s of micro roles to be assessed and the value of these roles change as new circles are created and as the organization matures and different skills become more or less valuable, but external equity is an issue.  How do you go to the market to assess the worth of a position when there is no longer a match for the position?  There is nothing to compare the person’s position to.

Unlearning old behavior

For holocrcay to be successful it necessitates that both bosses and subordinates unlearn old behavior.  If everyone is truly to be tapped for their full potential then there cannot be those who are hesitant to express opposing views in front of what used to be superiors.  This is a hard habit to break for both bosses and subordinates.  It is hard for leaders to learn to step back and not lead all the time.

Holocary has yet to be proven as a model that offers significant benefits over a traditional structure. The best of both worlds may be to incorporate some of the circle mentality into the traditional structure allowing everyone a voice to be heard and encouraging growth horizontally as well as vertically.

Hierarchy versus holacracy


Before we delve into whether or not holacracy is right for your organization, how many of us know what holacracy is?  Holacracy is a social technology or system of organizational governance in which authority and decision-making are distributed throughout a holarchy of self-organizing teams rather than being vested in a management hierarchy.  In theory, holacracy empowers people to make meaningful decisions and drive change.

Instead of a traditional management structure where questions must go from the bottom to the top and decisions go in reverse, organizations that adopt holacracy empower agile teams of people to make and implement decisions.


Self-organization models typically share three characteristics:

Teams are the structure

In holacracy, there are “circles” or many companies simply call them “teams.” Whatever they’re called, these basic components are not, individuals, and not units, departments, or divisions but they are the essential organizational building blocks.  Individual roles are defined and assigned in order to accomplish the work. As in more traditional hierarchical organizations, there may be different teams for different projects or functions like finance, tech, sales. But self-managing enterprises have a lot more of them. After Zappos implemented holacracy, 150 departmental units evolved into over 500 circles.

Teams design and govern themselves

Although self-organizing companies try to avoid the traditional hierarchy, the teams are a part of a larger structure, which they are actually able to shape and refine. Holacratic organizations have everyone sign a constitution—a document outlining the rules by which circles are created, changed, and removed. So the circles not only manage themselves; within those guidelines, they also design and govern themselves. The constitution doesn’t dictate exactly how people should do their tasks. It explains in a broad way how circles should be created and operate: how they should assign roles, what boundaries the roles should have, and how the circles should interact with one another. 

Leadership is constantly changing

In self-managed organizations, leadership is distributed among roles, not individual people.  People usually hold multiple roles, on multiple teams. Leadership responsibilities continually change as the work changes and as teams create and define new roles. Technology is essential for keeping all these changes straight. The information is accessible to anyone in the organization and each individual’s commitments are visible to everybody at the company. Supposedly, transparency enables cross-team integration.

Although it is becoming a buzz word, holacracy is not being adopted at a rapid pace. The organizations who have tried to adopt it run into a myriad of issues, including increased turnover and decreased productivity given the endless meetings.  While some look at it with interest, others simply say it does not work.  Next week we will delve into some of the issues that have arisen when organizations have tried to implement holacracy.


Putting Words into Action


There is never a time more appropriate for putting our words into action than in the midst of unforeseen crises and disasters. We all speak of our employees being our biggest asset, of creating a workforce that is engaged and more productive.  We know that when we treat our employees well it builds loyalty, a great culture and better metrics at the bottom line.  But how many of us really show our employees, in a meaningful way, that we care about them as more than just employees? That we care about their lives and families outside of work?

I am proud to work for a Company that does just that in a bigger way than I have previously witnessed.  The unfortunate, recent, back to back hurricanes have devastated parts of Houston, Texas and many parts of Florida.  While many companies put out words of encouragement to stay safe, how many really went the extra mile, went above and beyond?

Here are just a few of the more meaningful ways you can show your employees that you care and, hopefully set an example for other companies to follow:


Full Pay

Ensure your workforce that they will continue to be paid full pay for all the hours/days they are unable to get into the office to work due to the storm or subsequent damage or flooding.  Many employees live very close to their paychecks and losing even 1-2 days of pay creates an undue hardship and stress on the family.



Many employees do carry renter’s or homeowner’s insurance, as well as car insurance, but may not be able to easily afford the deductibles.  Some have purposely chosen policies with lower premiums and higher deductibles in the hopes that they would not run into a situation where they needed them.  Most of these deductibles are in the $100-$500 range.  Think about what it would mean to your employees if you were to offer to reimburse them for their deductibles?



We are fortunate enough to be a property management company with homes all over the US.  We offered all of our employees under evacuation orders, vacant homes to move into, on a short term basis, in other geographical areas out of harm’s way.  Even if you are not so fortunate as to have vacant homes to offer, you can offer to pick up the cost of hotels for the time that the employees are forced to evacuate.



It probably goes without saying that others want to help in times of need.  Set up a Red Cross donation through payroll deduction.   Make it easy for the rest of your workforce to assist those in need.  When we set this up last week, we have over 20% participation with 45 minutes.

Take this opportunity to put your words into action and show your employees that you do truly care about what they and their families are going through and you are here to help.  It’s time we learn to take care of one another out of and in the workplace!

Health Insurance 2018


PwC’s Health Research Institute (HRI) annually projects the growth of health insurance and more specifically, medical costs, in the employer insurance market for the coming year.  They also identify the major factors expected to impact the trend.  Moving into 2018, the healthcare industry seems to be settling into a “new trend” which is marked by more moderate fluctuations and single-digit medical cost trends

HRI projects 2018’s medical cost trend to be 6.5%—the first uptick in growth in three years.

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What does this mean for employers still seeking to get the most for their insurance dollars and provide the best benefits for their employee population?  In a labor market that is heating up and becoming more competitive, employers are looking for new cost containment strategies beyond shifting more costs to their employees.

Target Health and Wellness

Many employers are creating wellness programs and enlisting the employees in a partnership arrangement regrading practicing better health habits.  Although hard numbers are difficult to come by, many employers believe they are creating a focus on wellness that will pay off at the bottom line.  Employers are offering smoking cessation programs, health fairs populated by as many as 100 different vendors, offering everything from multi vitamins to massage, and healthy snacks, like fruit and nuts instead of candy, cupcakes and empty snacks.

Investigate provider arrangements

More employers are taking a harder look the health services they are providing and how those health services are being offered.  Some are considering more restrictive arrangements like EPO’s (Exclusive Provider Organizations)  where they can get better discounts by decreasing the size of the provider network.  Other options include offering 2 tier plans where the employer pays a sizable percentage of the lower plan, but gives the employees an opportunity to “buy up” if they want to choose the more expensive plan.

Evaluate the value of drug spending

Employers are banding together to put pressure on drug companies to moderate price increases. Similar pressures were enacted in the early 1990s and significant decreases in the drug price growth rate.

We are already seeing some pharmaceutical companies take action, limiting price increases, offering cheaper generic alternatives and proactively addressing questions of value in the marketplace.

Even though health insurance price increases have slowed over the past three years, they still outpace inflation and employers need to continue to pursue alternatives that will lead to a healthier workforce and, ultimately, to lower health insurance costs for everyone.


Find Success Through Better Time Management

sherrie suski time management world clocks

It’s no secret that time management is an important part of creating a happier, more successful life overall.  Everyone, no matter what their career path, will have a moment where they feel as though their workload is unmanageable or overwhelming. While that moment may be fleeting for some, it could very well be a persistent feeling for others. The key to finding success rests in how one responds to that feeling of inundation at work.

A healthy approach to time management will help workloads feel more manageable, instill a better sense of work-life balance, and ultimately lead to a more successful career overall.


Why is Time Management Important for Your Career?

For one, there’s only so much time in a day. Our time is limited, and it’s important to use available time wisely. Deadlines wait for no one, and superiors will make note of your ability to make deadlines within the allotted time constraints. When time is managed poorly, quality of work may suffer, or worse, work may not be completed at all.  It will be difficult to excel in any career path if you’re experiencing difficulty getting work finished.

Time management also allows for you to create a timeline to meet larger career-oriented goals. True success never happens overnight. Rather, success comes from careful planning and small steps that will eventually cumulate to become your end goals. Mastering time management is not only important when it comes to plotting necessary, smaller goals on a timeline, it helps you follow through with those goals in an efficient manner.


So How Does One Get Better at Managing Their Time?

There are innumerable lists of tips and tricks available to increase your ability to manage your time. But the most important thing to understand is that true time management comes from a complete change of perspective. In order to be successful at managing your time, you have to make a promise to yourself to remain committed to the changes you make. It’s about changing your long-term habits, and focusing on making a positive change. Keeping that overall change in mental state in mind, start with these two major steps to better time management:

Start Planning Your Weeks

There are certain things that we will always have to do on a daily (or weekly) basis. On Sunday nights, set aside some time to work on your calendar. Schedule out specific chunks of time for checking your email. (Once in the morning, once before & after lunch, and once around 3:30pm is a schedule that may work for you. Tailor this schedule to your specific job.) By setting aside specific times for your email, you avoid the timesink that can come from being constantly connected to your email. Schedule in lunch, coffee breaks, and any recurring meetings as well.  When all of the recurring tasks are blocked in, schedule in all of the tasks that you already know need to be completed that week. This may need to be adjusted based on what happens during the week, and that leads us to our next topic:

Learn to Prioritize

In most work environments, it’s easy to get caught in the revolving door of tasks that land on your desk. It’s important to determine which tasks are the most important, and stick to working on/completing those tasks first. Those crucial projects should never fall to the wayside of the smaller one-off tasks that come your way. Get the tasks with the highest priority checked off of your list of things to do that day, and work your way down to the smaller tasks.

Time Management is hugely important to your overall success. Start with these two steps, and then branch out. Find other tips that work for you, and then, find your success!

For sources and additional resources, please see the following articles: CreativityPost, Career Success , Forbes

TAH Human Resources 101: Establishing Your Core Competencies

sherrie suski business meeting

In our last article we discussed determining what the real purpose of your organization is, often referred to as your Mission Statement.  We emphasized how important it is for you and your employees to understand why your organization exists, what it does, who it does it for and how it does it.  This is the first stepping stone to building employee engagement and a productive workforce!

Once you have clearly defined and communicated your mission, your next stepping stone is figuring out a way to drive employee behavior in support of your mission.  One of the ways you can successfully do this is to create core competencies as a part of your overall Performance Management system.  Core competencies are particular behaviors that you want to encourage and measure in each individual in your organization.  You will want to think about 4-5 core competencies that are shared by all your employees.  These should be directly driven from your mission statement and the work you will do to support your mission statement.  

It is important to have shared core competencies to ensure that each of the employees are moving in the same direction and the same behavioral attributes are being rewarded across the organization.  Examples of these core competencies might be “Results Management” or “Critical Thinking”.  Competencies that are important for everyone in your organization to excel in.   You might also think about whether core competencies by function are important.  An example of a core competency by function might include “Attention to Detail” for your Accounting team, while an example of a core competency for your marketing team might be “Creativity and Innovation”.  If you are going to create these by function, try to limit it to another 4-5 so that you end up with no more than 10 total.

Another decision point is whether you want to level these core competencies to account for the differences in expectations between, for instance, an AP Clerk and a Dir., of Accounting.  In general, I feel it is important to use leveling as our expectations of one position are different than of the other.

There are many excellent Performance Management systems that exist on the market today.  Many will give you a list of core competencies to choose from, as well as letting you create more custom varieties for your own individual organizational needs.

Think about engaging your workforce to help choose the core competencies, especially those by function.  This will encourage both buy-in to your Performance Management process, as well as drive employee engagement.

Next time we’ll talk about developing goals which you will incorporate into your Performance Management system.