Horizon Point Consulting

Category: Beyond Leadership

Beyond Leadership is Horizon Point’s line of resources for managers of people. Managing ourselves is a distinct set of behaviors from managers the work of others, and we are here to help. Read stories in this category if you are ready to take the next step into people leadership (or if you’re looking for articles to send someone else…).

8 Steps to Run and Lead Well

On November 20^th, in wind gusts up to 45 mph, we finished the Philadelphia Marathon. All five of us. Our times ranged from 4 hours 21 minutes to 4 hours 55 minutes, but we all crossed the finish line with a smile.
In taking the journey this fall through the parallels drawn from running and leading well, it really all boils down to these few things:

1. Have a meaningful goal and motivation towards that goal.

2. Have a plan to meet that goal; chunk your tasks into manageable pieces to achieve the goal.

3. There is no elevator to success; you have to take the stairs. Do the hard stuff.

4. Run your own race, not someone else’s.

5. Be aware of your environment, but don’t let it control you.

6. It’s about the journey not the destination.

7. The journey is really all about the relationships. Don’t go it alone.

BEFORE

AFTER

8. And above all, have some fun. If you focus on number six, this one should take care of itself.

CREW RAN THE “ROCKY STEPS” TOGETHER ON OUR VISIT.

What is the best advice you have for accomplishing any meaningful goal in leadership and/or running?

December 2, 2016
Navigating the New Overtime Regulations: Can you classify people in same position differently?
If you are in HR, about all you’ve dealt with in the last few weeks, maybe even in the last few months, has been how to handle the new FLSA overtime regulations. As one of our excellent advisors with Horizon Point, Nancy Washington Vaughn, wrote in a previous blog post about how to navigate the new regulations, “On December 1, 2016, the federal annual salary threshold for white-collar employees exempt from overtime pay will increase to $47,476 from $23,660.”

In dealing with this from a consultative perspective, an interesting question came up with a client recently. Can you classify employees under the same job title and job description differently?

My gut response, was no. You classify positions, not people. In fact, our best practice job description template has at the top of it a field for classification in which the position is indicated as being exempt or non-exempt.

But upon further investigation, you in fact, can classify people under the same job description, differently, in relation to considering whether or not they meet the threshold for exempt status (in addition to considering the duties test related to the roles). Here are some reasons that may effect their pay and therefore warrant different classification:
1. Part-time versus full-time
2. Experience
3. Performance
But employers should proceed with caution. As Paul DeCamp, an attorney with Jackson Lewis in Reston, Virginia said in this SHRM article,“Because any differential in compensation details can seem unfair to employees and thus invite scrutiny and potentially a claim, such as for an equal employment violation, it is important that employers be consistent in how they draw any such lines and that there be a clear and well-thought-out business reason for any pay differences.”

Much of what I have read from various sources suggests distinguishing those who fall into different classifications based on pay in the form of levels as to minimize questions and scrutiny.

What is giving you the most heartburn over the new regulations?

You may also find beneficial: 5 Steps to Efficiently Navigate the New Department of Labor Overtime Regulations
November 22, 2016
Leaders and Runners, Focus on What you Can Control

Week 15
Weekly Mileage: 36.2

Long Run: 26.2- The Marathon is here!

So, it hasn’t rained at all this fall. Having one of the driest and warmest falls on record, we have had no weather related blips in our marathon training.

And as I write this on the Tuesday before we are scheduled to leave, here’s what the forecast looks like for Philly on race day:

Umm yeah, rain, cold rain, with 20-30 mph winds. Looks like the first winter storm of the season has plans to blow through right as we run. Great.

I can’t seem to quit checking the weather every half-hour, thinking that I can will the storm to come through on Monday instead of Sunday.

But then of course, my husband, who by the way is usually the pessimist, or as he calls it the “realist” of our pair, sends our group a text saying we need to “eliminate the clutter and external factors”. And as much as I hate to admit it, he’s right.

I preach the circle of concern versus the circle of influence, a Stephen Covey concept, in just about every training I do. Focus on what you can control is what it prophesizes. Basically, the concept is the central point of Covey’s first habit, be proactive, and is best summarized from his book 7 Habits of Highly Effective People:

Habit 1: Be Proactive is about taking responsibility for your life. You can’t keep blaming everything on your parents or grandparents. Proactive people recognize that they are “response-able.” They don’t blame genetics, circumstances, conditions, or conditioning for their behavior. They know they choose their behavior. Reactive people, on the other hand, are often affected by their physical environment. They find external sources to blame for their behavior. If the weather is good, they feel good. If it isn’t, it affects their attitude and performance, and they blame the weather. All of these external forces act as stimuli that we respond to. Between the stimulus and the response is your greatest power–you have the freedom to choose your response. One of the most important things you choose is what you say. Your language is a good indicator of how you see yourself. A proactive person uses proactive language–I can, I will, I prefer, etc. A reactive person uses reactive language–I can’t, I have to, if only. Reactive people believe they are not responsible for what they say and do–they have no choice.

Instead of reacting to or worrying about conditions over which they have little or no control, proactive people focus their time and energy on things they can control. The problems, challenges, and opportunities we face fall into two areas–Circle of Concern and Circle of Influence.

Proactive people focus their efforts on their Circle of Influence. They work on the things they can do something about: health, children, problems at work. Reactive people focus their efforts in the Circle of Concern–things over which they have little or no control: the national debt, terrorism, the weather. Gaining an awareness of the areas in which we expend our energies is a giant step in becoming proactive.

So I’m working to curb my impulse to check the weather every few minutes. Just like I work with clients to try to help them focus on how they can lead better by focusing not on the market, or the behaviors of their problem employee, or the fact that their candidate did or did not when the presidency, I’m trying to focus on what I can control that could lead to better marathon performance – making sure I eat, hydrate and sleep right. That’s what I can control now.

And if it rains it rains. And sometimes it pours, but focusing on our own behaviors leads to better results and more influence as a leader.

What things are outside of your control that you need to eliminate from you focus? What can you influence today to make tomorrow better?

Like this post? Read other posts from this series:

Leaders, Set Manageable Goals to Lead and Run Well

Leaders and Runners, Don’t Run the Race Alone

Leader, Do You Need to Hold Back?

November 18, 2016
HR Santa Clauses focus on the Employee Experience

Whether you like it or not, the Christmas season really starts the second Halloween is over. I walked into Target a few minutes after it opened on November 1^st(like at 8:01 a.m. because we were out of dog food and the dog was hungry) and it had been transformed into a Christmas shopping wonderland. Where has Thanksgiving gone?

With Christmas marketing screaming at all of us to buy a lot of stuff most of which we don’t need, I’m beginning to think about how to make Christmas meaningful for my almost six and two and a half year old without turning them into materialistic hoarders.

In thinking about this, I’m drawn to a concept that I’ve been hearing a lot about in HR circles and that is the importance of the employee experience. Many people in human resources and talent management are seeking to shift the conversation about employee engagement to one that is centered on employee experience.

At work, this means focusing on meaningful, positive and memorable experiences for employees. Whether it is the company picnicor how the employee logs on to his or her 401K portal to view their assets, it should be an experience. It can be seen from the experience generated when someone requests time off to how that person’s immediate supervisor interacts with them. As these examples illustrate, the focus on experience encompasses the mundane HR relevant tasks (and let’s face it, sometimes those “experiences” are the most frustrating, which can decrease satisfaction in a hurry) to the key leadership decisions and behaviors that drive an organization to be considered a best place to work.

Whereas I’m somewhat thinking the whole focus experience instead of engagement is really just a different word to describe the same thing, I’m beginning to see through the value in a focusing on experience in order to make Christmas meaningful for my children. Maybe experience is what drives the engagement. And focusing on those interactions or experiences is the means, which leads to the end- aka- engagement.

So, this year, as my husband and I prep to make Christmas magical without turning our kids into entitled brats, we plan to have a gift for each of them under the tree that then ties to a more important experience for them. And a personalized experience at that. For example, my son loves Legos, so his gift and experience is shaping up to look like a new Lego set with a “gift certificate” to Lego world in Atlanta for us to experience as a family. My guess is he will remember the trip to Lego world far longer than he will remember the set of blocks given to him under the tree. Just like his time at Lego camp, which uses Legos to focus kids in STEM- Science, Technology, Engineering and Math- learning at school once a week will shape him more than the actual physical toy and will help him to more fully enjoy and engage in school and learning.

And maybe focusing on experiences will help us all put some thanksgiving back in the holiday season by avoiding the time spent shopping for stuff. And just maybe, some thanksgiving can be restored in your organization by a higher level of employee engagement through focusing on the employee experience.

What one HR process do you need to view from the lens of the experience it creates for employees? Does the way you do it now lead to a more or less engaged staff?

Like this post? You may also like: The HR Metric You’re Not Measuring (But Should Be)

November 15, 2016
5 Steps to Efficiently Navigate the New Department of Labor Overtime Regulations
You are likely aware of the revised U.S. Department of Labor overtime regulation revisions that will become effective on December 1, 2016. No business organization is exempt from preparing for compliance with the new federal overtime rules. As such, all companies and many non-profit organizations must prepare to ensure that they are in compliance with the new overtime pay regulations no later than the beginning of the pay period that includes December 1, 2016.

On December 1, 2016, the federal annual salary threshold for white-collar employees exempt from overtime pay will increase to $47,476 from $23,660. Additionally, the salary threshold for highly compensated employees will increase from $100,000 to $134,000. Therefore, all white-collar exempt employees who earn less than the new threshold of $47,476 or $134,000 for highly compensated employees must be paid time and a half for any hours worked beyond the 40-hour workweek. According to the U.S. Department of Labor, its increase in the threshold will result in more than 4.2 million additional white-collar workers being eligible for overtime pay. The Department of Labor estimates that the new regulation will cost private employers $1.8 billion in the first year of implementation. The increased cost for employers will continue to escalate because the Department of Labor will update the annual white-collar exemption salary threshold every three years, reaching more than $51,000 in January 2020 according to Labor Department estimates. The threshold updates every three years are intended to ensure that the white-collar exemption threshold remains equal to the salary of the 40^th percentile of full-time salaried workers in the U.S. Census region with the lowest income. It is imperative that all employers initiate and complete an analysis of how to comply with the new overtime regulation in order to adhere to the law, avoid Labor Department fines and penalties for noncompliance and appropriately compensate all white-collar exempt employees. Here’s how:
1. Obtain a headcount of impacted personnel. Determine and list the current salaries of the total number of white-collar exempt employees who earn less than the new annual salary threshold of $47,476 or $134,000 for highly compensated employees.
1. Estimate overtime pay costs. Analyze the company’s estimated future overtime payment costs for each of the identified white-collar exempt employee based on their individual average hours worked each week. Each employee’s overtime pay must be calculated based on his/her hourly rate of pay. If practicable based on the analysis, then employer’s may elect to pay overtime premium pay of time and half to white-collar employees earning less than $47,476 annually for any overtime hours worked in a workweek. In many instances, it will prove difficult to accurately estimate the overtime pay costs for all impacted employees, particularly managers who often experience regular fluctuations in their weekly work schedules. Therefore, employers seeking a potential fixed cost compliance method may consider implementation of one of the other options explained in this article.
1. Review the company budget to evaluate compensation options. Employers have sole discretion to determine how to comply with the new overtime pay regulations and; therefore, may select one of the following options:
- Increase exempt employees’ salaries. If an exempt employee’s current salary is close to the new higher threshold of $47,476 (or $134,000 for highly compensated employees), then employers may opt to increase their salary in order for him/her to remain exempt from overtime pay if that is the most cost effective option. Employers may include nondiscretionary bonuses, incentive pay and commissions paid on a quarterly or more frequent basis of a maximum of ten (10) percent of the threshold ($4,747 or $13,400 for highly compensated employees) annually to calculate whether an employee meets the minimum salary threshold. Employers have the option to pay quarterly “catch-up” payments to employees if the incentive pay fails to bring them up to the annualized minimum salary threshold in a quarter.
- Reclassify exemption status. Companies may opt to reclassify personnel with annual salaries between $23,660 and $47,476 or $100,000 and $134,000 from exempt to nonexempt. Subsequently, employers must pay overtime premium for all hours worked in excess of forty (40) hours in a workweek for the newly classified nonexempt personnel earning less than $47,476 or $134,000 for highly compensated employees annually. The current Department of Labor standard requiring employers to implement a method to accurately calculate and record hours worked by nonexempt employees remains unchanged. Employers need to evaluate any existing telecommuting policies. Although the policies may not need to be revised, exempt managers must understand that the expectations and close monitoring of a newly classified nonexempt employee’s telecommunication work schedule must be monitored prudently. The nonexempt employees must record all hours that they work remotely and on site each week to ensure accurate calculation of required overtime pay earned, if any. Finally, companies must consider potential changes to employees’ benefits (i.e., insurance, vacation leave accrual, etc.) when they are reclassified from exempt (salaried) to nonexempt (hourly), if any.
- Restructure company personnel. Employers may opt to reduce or eliminate overtime hours worked by impacted employees who convert to nonexempt status by placing restrictions on overtime hours worked; effectively tracking overtime hours; hiring more personnel to handle workloads; or restructuring the workforce by transferring some duties to exempt employees.
1. Audit position descriptions and duties. Many companies should take this opportunity to review job descriptions of exempt positions to verify that the duties are accurate and determine if any positons need to be reclassified. It is imperative to confirm that employees with the same position are not classified differently to prevent the likelihood of discrimination claims. There is no change in the duties test. Therefore, employees who perform executive, administrative and professional duties are exempt from overtime requirements as are certain computer professionals.
1. Monitor Compliance. The duty of employers to continually monitor strict compliance with U.S. Department of Labor regulations is unchanged. All private sector employers and non-profit organizations that are not exempt from the revised overtime pay regulations (U.S. Department of Labor Overtime Final Rules and the Non-Profit Sector Fact Sheet) must properly pay all non-exempt personnel overtime premium pay when earned by employees. Therefore, prudent companies and organizations will implement on-going compliance measures to verify accurate job descriptions that properly classify all personnel as exempt or nonexempt and accurate tracking of overtime hours worked each week by nonexempt personnel.
What are you doing to prepare for the new regulations?
November 1, 2016