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The Book on Handbooks

By
Business Management

They Need to Be Current, and Employers Need to Abide by Them

“Less is more.”

Those three words comprise one of the many forms of advice that Elaine Reall has for business owners and managers when it comes to what’s written in employee handbooks.

She says it should apply to most all content, but especially references to laws and regulations regarding the workplace, including the state’s Paid Family and Medical Leave Act.

“Employers go on, page after page, explaining a very intricate statute,” said Reall, chief legal officer for the Springfield-based Royal Law Firm. “They don’t need to do that; they need to say, ‘you’re eligible under Massachusetts law for the Paid Family and Medical Leave Act, and here’s the hyperlink to the government’s site, which will take you through the entire process.’”

Reall has lots of other advice on handbooks, regarding everything from how they should be updated regularly — especially when there are important changes in laws or seismic shifts in the workplace — to how managers shouldn’t borrow a template off the internet, to … well, whether a small business even needs a handbook.

Elaine Reall

Elaine Reall

“A lot of employers don’t realize that the first or second document that a plaintiff’s attorney in the employment area looks for is the guidebook, handbook, or whatever is being put out there by the employer.”

Indeed, she noted, handbooks are increasingly being viewed as contracts.

“A lot of employers don’t realize that the first or second document that a plaintiff’s attorney in the employment area looks for is the guidebook, handbook, or whatever is being put out there by the employer,” she said. “And they’re looking to see if there are implied contractual commitments that they can use, because Massachusetts does recognize that you can create an implied contract not just with the whole handbook, but with portions of the handbook.”

For this reason, if a business is going to have a handbook, and if it is going to have content on certain subjects, its managers need to be sure they get it right, she said.

John Gannon, an employment-law specialist and partner at Springfield-based Skoler Abbott, agreed. He noted that handbook policies come in two categories — those for which employers are legally obligated to have a policy, such as the Bay State’s earned sick time law, and those that are recommended.

“You don’t have to have them, but you should have them,” he said, adding that policies in this category include everything from remote work (more on that later) to dress codes.

Overall, a handbook should help get everyone on the same page — figuratively, but also literally — and also protect the employer, said Gannon, adding that handbooks are not contracts, but they are, or should be, written in such a way to help protect the employer if there are complaints or legal actions taken by employees.

“One of the reasons you have a handbook — not the principal reason, but one of the reasons — is if there is some kind of litigation and someone is challenging the reasons they are separated from employment,” he explained. “They might say they were fired because of their age, for example; the employer says, ‘no, you violated this policy.’ It’s helpful to have a policy in writing, so you can say, ‘this is the policy, and this is how you violated it.’

John Gannon

John Gannon

“If you have it in writing, that’s good. If you don’t have it in writing, that’s bad. And what’s worse is to have the wrong policy in place, something that’s old and outdated.”

“If you have it in writing, that’s good. If you don’t have it in writing, that’s bad,” he went on. “And what’s worse is to have the wrong policy in place, something that’s old and outdated.”

But — and this is a big but — if an employer is going to put something in the handbook, then it must abide by it, or the company could open itself up to trouble, said Gannon, who has seen this happen on many occasions.

“The best advice I can give is to put it in writing — and follow it,” he said, adding that this is one of the key reasons why training of managers is so important. With training, they’re better able to know the policies and abide by them.

Reall agreed. “There’s a lot of litigation where handbooks show up and are used against employers,” she explained. “You don’t want to require your employees, in the context of your handbook, to do X or Y without recognizing that the courts will recognize that and say, ‘reciprocity — you’re binding their hands here. What about you, employer? If you’re going to make these requirements, then it’s up to you to uphold them.’”

For this issue and its focus on business management, we take an in-depth look at handbooks and how to make sure they do what they are created to do.

 

The Write Stuff

“Telecommuting is not designed to be a replacement for appropriate childcare. Although an individual employee’s schedule may be modified to accommodate occasional childcare needs, the focus of the arrangement must remain on job performance and meeting business demands. Prospective telecommuters are encouraged to discuss expectations of telecommuting with family members before entering a trial period as the employee should not undertake to provide primary care for a young child during at-home working hours. If a young child will be home during the employee’s at-home working hours, some other individual should be present to provide primary care.”

That’s a passage from a handbook that Gannon, who recommends handbooks for companies with six or more employees, helped craft for a client. It’s an example of being both current — remote work, while not necessarily new, has certainly become much more prevalent since the pandemic — and thorough, leaving little ambiguity when it comes to the employers’ wishes, policies, and expectations.

Indeed, the section on telecommuting in this particular handbook covers everything from eligibility to equipment; from safety to time worked, specifically with regard to overtime and those not exempt from the requirements set in the Fair Labor Standards Act. “Hours worked over those scheduled require the advance approval of the telecommuter’s supervisor,” it reads. “Failure to comply with this requirement may result in the immediate termination of the telecommuting agreement and other disciplinary action.”

The rise of remote work and the many issues associated with it provides a reminder that handbooks need to be updated regularly, said Gannon, suggesting every two years. And if that yardstick is used, the updates should be relatively minor in nature. If they aren’t, well, the opposite is true.

“If I reviewed someone’s handbook in 2002 and they bring it to me in 2024, there may be one or two new policies to add and a few things we need to tweak,” he said. “But it’s quick if you stay on top of it. I had someone who just sent me their handbook, which hadn’t been looked at since 2017, which means it’s missing quite a few things and may have policies that don’t even apply anymore.”

He said there are many topics, as well as changes in the social and workplace landscape, that should be addressed in handbooks — everything from the Bay State’s Crown Act, which expands the definition of discrimination based on race to prohibit discrimination based on natural and protective hairstyles, to social media and the need to use gender-neutral pronouns with all policies.

Overall, there are many topics an effective handbook should cover, Gannon said, listing anti-harassment policies, the state’s sick-time and family-leave laws, meal breaks, what he calls a ‘code of conduct’ outlining proper behavior, and a workplace-violence policy, preferably one stating that the employer has zero tolerance for such violence “because that’s a scary thing these days.”

Reall agreed, but noted, again, that companies, and especially smaller ones, should think at least twice about whether they need a handbook and, if they determine they do, what goes in it.

“I tend to see more problems created by handbooks with smaller companies than positive outcomes,” she told BusinessWest. “It’s a tool, but it’s a tool that, if you don’t use it right, can burn you.”

She added that many of these smaller companies look for a template — a free handbook that shows up on Google — or copy another company’s handbook.

“Years ago, maybe not so much now, everyone used to steal MassMutual’s,” she recalled. “It was about 300 pages long and incredibly detailed; it read like an insurance contract, and it was absolutely what you didn’t want if you had 25 employees.”

 

Bottom Line

What employers do want is something that suits their sector and their specific business, Reall went on, adding that, if a company if going to have a handbook, it should enlist the help of an expert. And that employer should make it clear that the handbook is just a guide and that the employer reserves the right, unilaterally, to change anything in the handbook at any time.

“It’s got to look like an employer document and not an agreement between the employer and the employee,” she went on, adding that a handbook can, indeed, be a valuable tool — but only if it’s done right.

“You need to make sure that whoever crafts it knows what they’re doing. If you’re a small employer and you have no HR department, and you’re going to look at your handbook about once every 10 years, that’s very dangerous, and you would be best off not putting things in writing that will come back to haunt you.”

In short, when it comes to handbooks, employers should remember that less can certainly be more.

Managing Different Generations Can Be Challenging, but Rewarding

By
Allison Ebner
Business Management Special Coverage

Culture Clash

Allison Ebner

Allison Ebner says everyone — including the older cohort of workers — is benefiting from workplace changes being driven by Gen Z and younger Millennials.

 

‘Zoomers to Boomers.’

That’s how folks at the Employers Assoc. of the NorthEast (EANE) refer to the four main generations that populate today’s workforce: Baby Boomers, Gen X, Millennials (sometimes referred to as Gen Y), and Gen Z.

“We are at a point where, nationally, almost 50% of our workforce is Millennials and Gen Zs. And there are pluses to having all those different perspectives,” said Allison Ebner, EANE president. “You have the thought processes of the Baby Boomers and the X-ers who have all the knowledge, and they are transferring that knowledge to the Ys and the Zs, but the Ys and the Zs are bringing in new, creative ways to do things and tackle projects.”

It’s a diversity of experiences and perspectives from which savvy companies can benefit by considering their varied needs and expectations, said Cindy Ryan, head of Human Resources for MassMutual, one of the region’s largest employers.

“While you can’t make sweeping assumptions about any generation, it is safe to say that there are different drivers and motivators for employees across different age groups,” she told BusinessWest. “In our eyes, the best way to address these differences is creating a workforce where we place trust in our people to do their work thoroughly and do that work in an environment that best suits them.”

For MassMutual, she said, that includes offering a diverse range of benefits that support mental, physical, and financial health; providing flexible working dress codes and arrangements; and delivering opportunities for networking and internal connection. “We’re always seeking to increase the breadth and flexibility of what we offer, ensuring our benefits meet employees’ diverse needs at each stage of life.”

Ebner agreed that generational differences certainly become evident around employee benefits.

“We moved away from that cafeteria model of benefits where we had a bunch of different things, and you could sign up for whatever was important to you, to more standard benefits packages,” she noted. “But now, we’re kind of back to asking, ‘what are you looking for?’

“When we’re building our employee value proposition,” she went on, “what’s going to retain my staff? What’s going to help me attract and retain the best talent? And one area where there are some distinct differences generationally is employee benefits, for sure.”

“You have the thought processes of the Baby Boomers and the X-ers who have all the knowledge, and they are transferring that knowledge to the Ys and the Zs, but the Ys and the Zs are bringing in new, creative ways to do things and tackle projects.”

For instance, she said, Millennials and Zoomers express more needs around both mental health and financial education.

“There’s a lot of mistrust from the younger generations in the stock market and what’s going on economically today,” Ebner said of the latter. “They’ve lived through 9% inflation, they know that going to the grocery store is costing them a ton of money, they know they can’t buy a house right now with mortgage rates so high. So giving them a financial holistic wellness picture is important, and what a lot of them are looking for.”

At the same time, older workers can also benefit from that kind of perk, she added, in the same way that younger workers have driven the shift toward remote work and hybrid schedules that everyone now enjoys.

“It’s interesting to see some generational trends, and they’re not the same for everybody,” said Irene Costello, director of Operations at the Markens Group, an association-management firm in Springfield. “It’s forced us to become more flexible in our policies: remote work, time-off policies, reducing dress-code expectations. Earlier this year, we changed our time-off policy at the beginning of the year to adjust to the growing requests. A lot of organizations are doing it as well; some organizations are getting super flexible.”

It’s easier for a company like Markens, a small business where most staffers are under age 40, to make those changes, Costello added, but for larger companies with a more prominent cohort of Boomers and X-ers, it can be difficult to change the culture, alter policies around work-life balance, and … well, be flexible at all. “From the employer’s side, it’s challenging.”

For this issue’s focus on business management, BusinessWest delves into the different work styles and expectations of the four main generations in the workplace, how they influence each other, and why their differences can be positive.

 

Change Agents

It should be noted that two other generations are in play as well: the pre-Boomer Traditionalists, the youngest of whom are entering their 80s, and some of whom still work; and Gen Alpha, the oldest of whom are in high school and starting to seek summer jobs and internships.

Cindy Ryan

Cindy Ryan

“While you can’t make sweeping assumptions about any generation, it is safe to say that there are different drivers and motivators for employees across different age groups.”

That’s quite a broad spectrum of employees working together, often with dramatically different expectations and work styles. While broad stereotypes hardly fit everyone, Traditionalists and Boomers are known for appreciating structure, stability, and clear expectations, while Gen X and Millennials are more apt than their older counterparts to prioritize work-life balance, collaboration, efficiency, and, as noted, benefits that speak to personal wellness.

“With older generations, there’s some aversion to change, some difficulty adapting to new technologies and new processes overall,” Costello said, adding quickly that there’s plenty of crossover in what different workers want. “We have a very young staff. I’m 29 years old. But even though I’m younger, I love to see people coming into the office five days a week, to be visible.”

What many employers are dealing with now, in a post-COVID era where companies in many sectors are struggling to recruit and retain talent, is the fact that the growing cohort of younger workers has some leverage to stand up for their own needs and desires, Ryan said.

“As such, we can start to draw different conclusions as to what different generations want from their employers,” she added. “Younger generations, for example, often feel more drawn to work for a company that is committed to bettering their communities.”

As a result, she explained, MassMutual offers a volunteer time-off policy that allows employees to take paid volunteer days to support local initiatives they are passionate about. “In the grand scheme, offering benefits and perks that meet the needs of different generations are now major points of emphasis for employers who are looking to attract and retain talent.”

That’s true of other benefits as well, Ryan said, noting that MassMutual offers benefits that support mental, physical, and financial health; provide flexible working arrangements; and deliver opportunities for networking and internal connection, all priorities for younger workers, not to mention a bereavement-leave policy where employees can define who their loved ones are.

Irene Costello

Irene Costello says open communication in the workplace can create a healthier environment for workers of all ages.

“Holistically,” she added, “it’s about supporting all employees’ well-being in ways that are meaningful to them.”

And, as noted earlier, many changes driven by the youngest workers wind up benefiting everyone.

“The X-ers and the Boomers have learned that, ‘hey, we’re getting this better life-work balance because these younger generations have demanded it. And employers can’t throw down the 60-hour work week demands anymore,’” Ebner said. “So it’s a gift that has been given to them by these younger generations.”

At the same time, she added, the pendulum may be starting to swing back in some sectors — layoffs at large technology companies have been in the news recently, for example — which may reduce some of that employee leverage and change the power dynamic.

One interesting — and, to some, concerning — generational trend, Costello noted, is the reluctance of Zoomers and younger Millennials to engage in chambers of commerce and other business associations.

“Boomers, Gen X, and maybe older millennials are of the mindset where it’s the right thing to do. Someone goes and buys a membership to be part of the chamber of commerce, part of an industry association, paying dues to the industry as a whole,” she explained.

“Now, with the younger generations, folks are looking for a tangible takeaway. Is it a résumé builder? Is there something of value at this conference, some credentialing? Instead of just going to build community, what am I getting from this networking?”

That’s an unprecedented shift, Costello added.

“It’s getting harder and harder to keep growing association memberships because of that. And it’s causing everyone in associations to reconsider their offerings: ‘what do you want? What can we do to change the offerings to keep you as a member, as a part of this community?’”

Though it’s difficult to pinpoint the exact reasons, she suspects people feel life is more hectic and stressful post-COVID, and don’t necessarily want to commit time to a two-hour board meeting at the end of the day.

“The younger generation is prioritizing work-life balance, mental health, and their personal lives over what they’re giving to the community, what they’re putting into work,” she told BusinessWest. “They’re protecting and advocating for themselves and their own interests rather than looking at it from a community perspective.”

 

Let’s Talk

When it comes to managing multiple generations, Ebner said, EANE has been asked to develop some unique trainings, like etiquette training, and how to come back to the office and dress properly. “You know, the yoga pants usually aren’t allowed in the office; flip-flops are a big no-no.

“And we’re getting asked to go back to the basics for some organizations — how to have a conversation with someone when you’re sitting in a room with them. We’re all very bold on the phone, by email, via Zoom. But we’re not in a room with someone watching body language. We need to relearn some of these skills, like how to have a respectful conversation. Being polite is something we’re kind of retraining people on.”

Speaking of communication, teaching the different generations how to talk to one another is critical as well — and can strengthen workplace culture.

“Different generations will naturally bring different perspectives to the table, which is especially important when building a workforce that reflects the markets and communities that we serve,” Ryan said. “This is why we’re always working to create an environment where all feel seen, heard, valued, and respected.”

One innovative initiative is MassMutual’s reverse mentoring program, where members of its Young Professionals Business Resource Group mentor senior executives, she added. It’s a concept that’s been discussed at EANE as well.

“We have some employers that are doing reverse mentoring,” Ebner said. “They’re pairing a Z with a Boomer or an X-er, and they’re having them work together on projects. So, instead of the Boomer mentoring just one way to the newer employee, who’s just coming into the work world, it’s kind of a collaborative back and forth, where the Z is also teaching the Boomer a few tricks. It’s very positive.”

That doesn’t diminish the importance of the traditional mentorship model, of course.

“I have somebody on my team who’s been there for 30 years in association management,” Costello said. “I’m her manager, but she comes into the office and teaches me something every day. I turn to her in confidence. I say, ‘I trust you. Obviously, you’ve done this for 30 years. You have a different perspective.’

“You want everyone on the team to question everyone else — to question everything, in a good way,” she added. “Does this make sense? Is there a better way to do this? Why are we doing this? Why are we still doing this?”

The alternative is a non-communicative culture than can quickly turn toxic, where everyone is putting up walls, Costello noted.

“When no one wants to hear somebody else’s perspective, that’s emotionally draining; no one enjoys it, and no one stands to benefit from it on either side. We have a really strong focus on our culture and that full-circle communication, giving and receiving feedback, no matter who we are, no matter what position we’re in or what project we’re working on.”

Ebner agreed that communication is crucial in effective business management.

“You need to pay attention to the differences, but also don’t think we’re so different that there aren’t some similarities. When employers are struggling, I always say, focus on the things that we have in common. Focus on building that respectful workplace culture where you’ve got one-on-one conversations happening between employee and manager.”

And make sure younger workers have a voice, she added, because at most companies, they’ll be the majority of the team soon, if they aren’t already. “That’s your strategic secret weapon right there: building cross-generational work teams, so they can collaborate and bring the best of all the different thought processes together.”

In other words, bridging the generation gap brings benefits across the board — from the company’s office culture to its bottom line.

Implement a Total Rewards Strategy

By Contributor
Opinion

Opinion

By Pam Thornton

 

The way that we work has changed over the past several years, and as a result of that shift, our mindset around rewards and recognition for employees also needs to change. We are facing a major rebalancing resulting from the severe economic and social shifts that have emerged.

Gartner reports that one of the top five priorities for 2023 is prioritizing the ‘employee experience, with almost 50% of HR leaders making this a major focus. A well-thought-out ‘total rewards’ strategy can have a big impact on attracting and retaining talent and overall employee experience.

Being a human-resources professional is a harder job than it ever has been before. Developing and using skills to influence how organizations shape their employee experience and human-capital strategies is a critical leadership role and one that cannot be done in the HR department alone. The answer is a holistic approach to total rewards that truly engages employees and includes every member of the organization.

There are five critical components in a total rewards strategy to consider when creating better employee engagement: compensation, benefits, recognition, well-being, and development.

It’s important to evaluate the compensation system you have in place. Do you have a system that is linked to organizational goals and individual competencies? Is your incentive and rewards system doing what it is designed to do? Do the benefits you offer resonate with your employees? Are they using them? An evaluation of the effectiveness of the overall strategy is critical, and the only way to really get the answers to these questions is to ask your employees and include them in the assessment and development of a truly effective total rewards program.

Well-being is all-encompassing and means something different to every individual, which makes this one of the hardest things for us to wrap our arms around. Flexible work practices, mental-health resources, financial-wellness solutions, and expanded caregiver-support options are just some of the building blocks that should be explored when creating your strategy. Offer solutions that give employees what they need and balance the business priorities of the organization. Thinking creatively to achieve the right mix is the ultimate goal.

The final and probably the most important component of a total rewards strategy is development. Developing your own skills and the skills of your workforce should be an ongoing journey that everyone participates in.

If we don’t put our life mask on first, we may not be able to help others. “Average leaders raise the bar on themselves; good leaders raise the bar for others; great leaders inspire others to raise their own bar,” author and leadership expert Orrin Woodward said. Leaders, please be students and use what you’ve learned to inspire, model, and teach.

We have an opportunity to re-engineer the traditional employment experience. Not all organizations are created equal, and we don’t have an endless fountain of resources, but we all collectively need to put the effort in to assess and adjust our total rewards strategy to leverage what we’ve got.

 

Pam Thornton is director of Strategic HR Services at the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

Help Your Managers Meet the Moment

By
Opinion

Opinion

By John Henderson

Over the past three years, organizations have learned how to be more agile and nimble to survive the pandemic. With each passing phase of the pandemic, leaders needed to learn how to be ‘in the moment.’ Successful leaders are the ones who are very self-aware of their behaviors and actions in the workplace and how they impact those they lead and those they work for. Self-aware leaders understand their strengths, shortcomings, abilities, and limitations.

As I have read many lists of what skills and attributes a leader needs to be successful, the lists haven’t changed drastically from year to year:

• Great leaders help their employees grow. They are effective in developing, delegating, and directing their employees. They recognize what each individual needs to be successful and know how to adapt to help each person grow.

• They make their team feel valued. Leaders who include, not exclude, their direct reports in decision making when appropriate show they value and care for the employee. When employees feel valued, they have a sense that they belong on the team and in the organization. A sense of belonging is the ‘B’ in DEIB. Diversity is representation, equity is recognizing, inclusion is action, and belonging is a feeling.

• They are empathetic while holding people accountable. Leaders need to be skilled at finding the right balance between empathy and accountability. Learning to relate to others with understanding and empathy is crucial, and so is being able to maintain standards of accountability where business still gets done.

• They prioritize — every day. Great leaders get things done, and they get the most important things done first. Understanding the difference between what is urgent and what is merely important is a sign of a good leader. Managing your time and the time of your employees will make a more successful and enjoyable workplace.

I am always honored to be asked to help a team in their professional development. It’s an amazing feeling when you hear them sharing their own insights and challenges to leading people. I know that, when they return to their workplace, they will focus on being in the moment to lead people for success.

 

John Henderson is director of Learning & Development at the Employers Assoc. of the NorthEast. This article first appeared on the EANE blog; eane.org

Quiet Firings

By Contributor
Law

This Developing Trend Is Moving in the Wrong Direction

By John Gannon, Esq.

 

Quiet quitting is a term many employers are familiar with — it involves a situation where an employee disengages from work and does only the bare minimum in order to get fired and collect unemployment.

Now, employers are firing back with quiet firings.

Quiet firing involves intentionally creating a difficult work environment and/or cutting pay or hours in a way that encourages people to leave voluntarily. In theory, the employee will quickly realize they need to get out and try to find alternate work elsewhere.

On the surface, ‘quietly firing’ a problematic or difficult employee might sound like a good idea. For starters, the manager or supervisor gets to avoid an uncomfortable conversation that will certainly lead to bad feelings and possibly boil over into a confrontation. Second, if the employee who is getting quietly fired is not meeting performance expectations, managers and supervisors avoid needing to coach them and give feedback.

John Gannon

John Gannon

“Managers and supervisors may prefer this method so they do not feel guilty about the end of the employment relationship. And quiet firing can be more easily accomplished in a remote or hybrid environment, as disengaging is easier when you do not have to see someone in the office.”

They can also avoid discussions about the consequences of continued poor performance. Managers and supervisors may prefer this method so they do not feel guilty about the end of the employment relationship. And quiet firing can be more easily accomplished in a remote or hybrid environment, as disengaging is easier when you do not have to see someone in the office.

Finally, some employers may see this as an opportunity to avoid unemployment compensation claims or claims of unlawful termination because employees who resign normally have trouble succeeding with such claims.

Despite what may appear to be advantages for employers who quietly fire employees, employers should resist the urge to utilize use this strategy for a number of reasons. First, creating a hostile work environment could lead to a lawsuit. It is unlawful for an employer to create a hostile work environment that is tied to an employee’s protected characteristics, such as gender or race. Creating a hostile work environment or reducing an employee’s hours could also be considered an adverse employment action, which can lead to claims of discrimination or retaliation.

Employees who are successful with these claims can sometimes recover big damage awards. For example, back in 2018, a jury awarded $28 million in damages to a nurse who succeeded in a retaliation claim against her employer. Part of her claim was that she was being verbally abused by her supervisor. The jury agreed, and the employer had to pay — a lot — for this supervisor’s mistake.

Employees who feel as though they are being squeezed out might resort to avenues other than the courtroom to air their grievances. It is not hard to leave damaging feedback on Glassdoor, a website where current and former employees anonymously review companies. Employees can (and probably will) share their negative feedback with co-workers, which could serve as the catalyst for good employees to start looking for a new job. It’s no secret that hiring and retaining qualified employees seems to be getting harder and harder each day.

Moreover, quiet firing is often the byproduct of a poor manager or supervisor who is unwilling to do one of the more difficult parts of their job — performance management.

So what should employers do? First, leaders should insist on managers and supervisors using traditional methods to address problematic behavior, such as coaching and progressive discipline. Should those efforts prove unsuccessful, managers and supervisors need to be ready to have the difficult conversation necessary to terminate the employee.

HR leaders should also be stepping in to prevent quiet firing from becoming a thing. This should involve regular check-ins with managers to talk about difficult employees and proactively asking how they are trying to solve the problem. Hopefully, the answer is performance management. If it’s not, maybe the manager is the one who needs some coaching and/or discipline. u

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal laws, including family and medical leave laws, the Americans with Disabilities Act, the Fair Labor Standards Act, and the Occupational Health and Safety Act; (413) 737-4753; [email protected]

Use Common Sense with Marijuana

By Contributor
Opinion

Opinion

By Pam Thornton

 

The legalization of marijuana across Massachusetts, Connecticut, and now Rhode Island has further increased the complexity of how we manage drug use in our workplaces. Employers are being forced to re-evaluate their position and practices around maintaining a safe and drug-free workplace.

Although employers may need to revise their drug-testing and accommodation policies, no state law requires employers to tolerate on-the-job drug use, intoxication, or impairment. Communication with your employees, a solid workplace drug policy, and enforcement of your practices can go a long way to keeping your workplace drug-free.

The recent mindset of some employees has really surprised many leaders and HR practitioners. Employees have always known that they can’t come to work under the influence of alcohol or any other controlled substance, for that matter, but with the sweeping legalization of recreational marijuana, employees are taking liberties and showing up to work impaired because “it’s now legal.”

It’s important for employers to educate and overcommunicate. Putting it out there, that even though it’s legal, it’s not acceptable to possess or use in the workplace, really needs to be said from the top down, across all functions and in multiple ways. Practically speaking, this means even having conversations to confirm that marijuana isn’t allowed in the workplace smoking area or at the outdoor company picnic, for instance. Clear communication with some specific examples can really help to get everyone on the same page.

Employers are trying to get qualified employees in the door to do the work in this tight labor market and are thinking long and hard about whether or not they really need to drug test for marijuana. They are weighing the upside of drug testing with the multiple requirements varying by state, with the downside being the risk of not being able to attract or retain talented people. Marijuana is still illegal under federal law, however, and companies that have these specific requirements still need to adhere to these standards.

Developing and implementing a policy that outlines the specifics of the law required by your state and clearly defines use and possession parameters is critical. Properly training managers to be able to identify the signs of impairment will assist in the applicability and enforcement of the policy and can protect everyone. These are different times that we are living in and complicated at best when it comes to this subject, but the employer still has the right to require a drug-free workplace. The burden of outlining and reinforcing common-sense guidelines is one that the employer will bear, but the advantages are sure to be beneficial in the long run.

 

Pam Thornton is director of Strategic HR Services at the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

How Your Money Myths Limit Your Financial Success

By Contributor
Special Coverage Wealth Management

Dollars and Sense

 

There are many myths concerning money, with many of them transcending generations of people in the same family. The truth is that many of these myths — including the one about how money will make you happy and solve all your problems — are false. Worse, these myths tend to limit one’s thinking and limit their financial success.

By Charlie Epstein

 

Most people do not realize they have myths about their money.

And even more people don’t take the time to analyze where these myths come from and why people hold them to be true.

I have worked with thousands of people over the past 41 years as a financial advisor. In the process, I have identified 15 myths people have about their money, which limit their financial and personal success.

A myth is defined as “an unproved or false collective belief that is used to justify something.” The biggest myth we have about money is that “it will make me happy and solve all my problems.”

Do you think money makes you happy?

Are you sure? Want to bet?

Did you know that 90% of all lottery winners go bankrupt within three to five years of winning the lottery? I’m talking millionaires. And the majority have stated they wish they never won the money. They’re miserable, depressed, and suicidal. How can this be?

“I am convinced that your money myths limit your thinking and impact how you approach your life and your finances.”

This happens because the most important thing in their life has been to get money, and now that they have it, they have no idea what to do with it. They often go on a massive shopping spree and buy all sorts of material items that don’t bring any lasting joy or fulfillment. And, more importantly, they stop working or doing anything productive to give their life purpose, meaning, and real value. What they fail to do is stop and ask themselves, “beyond money, what makes me happy?”

I am convinced that your money myths limit your thinking and impact how you approach your life and your finances. The three biggest financial myths most people have are:

1. My home mortgage needs to be paid off when I retire so I don’t have a payment;

2. I’ll be in a lower tax bracket when I retire; and

3. My home is an investment.

My father believed all three of these myths. When he retired, he and my mother moved to Florida to build the house of their dreams, on the golf course of his dreams. He was going to pay cash for that house — $500,000. He was 68 at the time. I said, “Dad, I want you to take out a mortgage instead.”

My dad was shocked. “A mortgage! For how long?”

I said, “for 30 years.”

“Thirty years!” my Dad bellowed. “I’ll be dead before it’s paid off!”

“So what do you care?” I smiled. “You’ll be dead!”

To which my father asked, “what will your mother do?”

I said, “she doesn’t play golf, and she doesn’t play mahjong, so if you die before her, I will sell that house and move her back north!”

I convinced my Dad to put $100,000 down and finance the other $400,000 with a 30-year mortgage at 5%. This was 1992. Bill Clinton had come into the White House and raised the marginal tax rate from 36% to 39.6%. There went money myth #2 — the belief he would be in a lower tax bracket when he retired (a belief I am sure many of you reading this article share).

That didn’t happen. The good news was, he could write off and deduct 40% of his mortgage payments in the first 15 years because it was all mostly interest. My dad was now ‘leveraging’ other people’s money (OPM) by using the bank’s money to take out a mortgage, and Uncle Sam’s money (USM) by deducting 40% of his mortgage payments.

The net cost for my dad to borrow the bank’s money was 3% (5% x 40% = 2%, which he could deduct, so his net cost to borrow that money was 3%). I said to my parents, “If I can’t make you net more than 3% on your $400,000, fire me as your financial advisor.” We averaged 7% to 8% on their money for the next 13 years of his life.

When my dad passed away, I sold my mother’s home in Florida, at a $100,000 loss. This was 2005, and the real-estate market in Florida was overbuilt, and no one wanted to be on a golf course. So much for the third money myth about your home being an investment. I than moved my mother back north and built her a home in an over-55 community. She was 79 at the time, and she said to me, with a twinkle in her eye, “son, do I get to take out a mortgage?” My mother is now 94, and she still has a mortgage — at 2.5%.

What does my mother care about? She only cares that she has enough money to pay for everything she desires to do. What do I care about? That I’m not tying up her money in a ‘dead asset’ — her home. She can’t eat it or drink it, and it doesn’t generate any income for her. And it is not an investment. I know I can make more than 2.5% on her money by using OPM to generate her even more income.

The key to being financially successful with your money is to understand how to maximize OPM and USM to make money on ‘the spread.’ The spread is the difference between what it costs to use other people’s money and what you can make investing your money somewhere else.

Let me add one big caveat to this discussion. If, psychologically, you must have your mortgage paid off so you can sleep at night … then pay it off. I always say psychology trumps economics. Just remember, you may feel good having it paid off, but economically, you won’t make as much of a return on your money and your assets.

 

Charlie Epstein is an author, entertainer, advisor, entrepreneur, and principal with Epstein Financial. He also presents a podcast, Yield of Dreams; yieldofdreams.live; (413) 478-8580.

Companies Need to Hardwire These Traits into Their Organization

By Contributor
Modern Office

Flexible Thinking, Nimble Action

By Susan Robertson

To survive the pandemic, companies were forced to adapt very quickly to radically new circumstances. Even large organizations — where it’s typically difficult to shift directions quickly — managed to accomplish it. Leaders discovered that, when required, their organization could act much more quickly and nimbly than they normally do.

So, the obvious questions are: what was different? And how can you ‘hardwire’ this flexibility into your organization so it continues to be stronger in the future?

 

What Was Different?

All humans have a set of cognitive biases, which are mental shortcuts used for problem solving and decision making.

To be clear, cognitive biases are not individual or personal biases. They are a neuroscience phenomenon that all humans share. It’s also important to understand that they operate subconsciously; they affect your thinking in ways that you don’t realize.

You have two different thinking systems, commonly known as system 1 and system 2, sometimes referred to as thinking fast and thinking slow.

System 1 is the intuitive, quick, and easy thinking that we do most of the time. In fact, it accounts for about 98% of our thinking. It doesn’t require a lot of mental effort; we do it easily, quickly, and without having to think about the fact that we’re thinking.

System 2 thinking is deeper thinking, the kind that’s required for complex problem solving and decision making. This deeper thinking requires more effort and energy; it literally uses more calories. Since it’s less energy-efficient, our brain automatically and subconsciously defaults to the easier system-1 thinking whenever it can to save effort.

Cognitive biases result when our brain tries to stay in system-1 thinking, when perhaps it should be in system 2. The outcome is often sub-optimal solutions and/or poor decision making. But we don’t realize we have sub-optimized because all of this has happened subconsciously.

In typical circumstances, several of these cognitive biases conspire to make us perceive that continuing as we are — with only slower, incremental changes — seems like the best decision. It feels familiar, it feels lower risk … it just feels smarter. Choosing to do nothing different is, very often, simply the default. It frequently doesn’t even feel like we made a decision; instead, it feels like we were really smart for not making a potentially risky decision.

But during the pandemic, changing nothing, or changing very slowly, were simply not options. This particular situation was so unique that our brains didn’t have the choice to stay in short-cut system-1 thinking. System-2 thinking was required. Since we consciously realized we must change — quickly — our brains literally started working harder, in system 2, and the normal cognitive biases weren’t a factor.

 

How Can We Be More Nimble in the Future?

The key to maintaining flexible thinking and nimble behavior is to not allow our brains to fall into the trap of cognitive biases. Obviously, since these are intuitive and subconscious responses, this is not an easy task. But there are proven ways in which we can better manage our brains. Here are a few ways to start.

• Knock Out the Negativity Bias. This is the phenomenon in which negative experiences have a greater impact on your thoughts, feelings, and behaviors than positive experiences. So you are much more highly motivated to avoid the negative than you are to seek out positive. The way this manifests in your daily work is that you are much more prone to reject new ideas than to accept them, because rejecting ideas feels like you’re avoiding a potential negative.

Respond to “yes, but…” with “what if…?” This requires a dedicated and conscious mental effort, by everyone on the team, to monitor their own and the team’s response to new ideas. Every time “yes, but…” is uttered, the response needs to be, “what if we could solve for that?” This reframing of the problem into a question will trigger our brains to look for solutions, instead of instantly rejecting the idea.

• Short-circuit the Status-quo Bias. The status-quo bias is a subconscious preference for the current state of affairs. We use ‘current’ as a mental reference point, and any change from that is perceived as a loss. As a result, we frequently overestimate the risk of a change, and dramatically underestimate the risk of business as usual.

When weighing a choice of possible actions, be sure to overtly list “do nothing” as one of the choices, so you are forced to acknowledge it is a choice. Also include “risk” as one of the evaluation criteria, and force the team to list all the possible risks. Then comes the difficult part: remind the team that their subconscious brain is making them perceive the risks of doing nothing to be lower than the reality, so they should multiply the possibility of each of those risks.

• Curtail the Curse of Knowledge. In any subject where we have some expertise, we also have many subconscious assumptions about that subject. Under normal circumstances, this ‘curse of knowledge’ (these latent assumptions) limits our thinking and suppresses our ability to come up with radically new ideas.

Rely on advisors who don’t have the same curse of knowledge. In other words, seek out advice from people outside of your industry. When evaluating ideas or actions, these outsiders won’t have the same blinders that you have, so they will likely have a more clear-eyed view of the benefits and risks.

The bad news is that cognitive biases are always going to be a factor in our problem solving and decision making; they’re hardwired into us. The good news is that, with some dedicated and continuous mental effort, we can mitigate them and become nimbler in the face of change.

 

Susan Robertson empowers individuals, teams, and organizations to more nimbly adapt to change, by transforming thinking from “why we can’t” to “how might we?” She is a creative thinking expert with more than 20 years of experience coaching Fortune 500 companies. As an instructor on applied creativity at Harvard, she brings a scientific foundation to enhancing human creativity; www.susanrobertson.com

A Dose of Good Advice

By Contributor
Senior Planning

Eight Tips for Medication Management for Seniors

By Kara James

In general, as we age, our need for a variety of medications increases. This includes everything from prescriptions to over-the-counter medications, as well as vitamins and supplements.

Unfortunately, as the number of remedies we take increases, so too does the difficulty in managing them, which can lead to problems such as potential interactions and missed doses. Here are eight tips to help properly manage medications.

1. Check for interactions. Talk to your pharmacist and let them know about all the medications you are taking, including natural remedies and over-the-counter products. Your pharmacist can let you know in advance about any potential for interactions that could have serious health consequences.

“As the number of remedies we take increases, so too does the difficulty in managing them, which can lead to problems such as potential interactions and missed doses.”

2. Make a written schedule. It’s important to take medications as prescribed so they work effectively. Write down which medications you need to take, and at what time of day (morning, noon, evening, or bedtime). Be sure to include any important reminders, such as if you are supposed to take a medication with food or on an empty stomach. Keep this schedule in a visible place. Use an alarm to set reminders, if necessary, to stay on schedule.

3. Pre-sort medications weekly. A pill organizer makes it easy for you to see what medications you need to take and when, and also lets you easily see if you already took a dose so you don’t accidentally take it twice. Our MediBubble medication-management system does this for you with monthly pill-pack organizers.

4. Create a comprehensive list. Make a list of all your medications and supplements and keep it on your phone or in your wallet for easy reference. Include the medication name, dosage, frequency, and purpose.

5. Store medications appropriately. Many people store their medications in the bathroom; heat and humidity can cause medications to degrade. They should be kept in a cool, dark place, out of the reach of children.

6. Ensure accessibility. Some seniors struggle with opening child-proof bottles, so make sure you can actually access the medications you need to take. If you must put them in another container, make sure the container is labeled with the medication name, dosage, and other instructions.

7. Understand side effects. Make sure you understand the potential side effects of medications you take, and be sure to let your provider know if you experience any that are serious. They can often provide advice or change the medication or dosage to minimize issues. You can also talk to your pharmacist with questions and concerns about side effects.

8. Plan ahead for refills. Make sure you order refills well in advance to avoid missed doses. Some pharmacies now offer medication-management programs allowing for routine refilling of your prescriptions, and will notify you when your refill is ready. n

Kara James, Ph.D. is pharmacy manager and co-owner of Louis & Clark Pharmacy in Springfield.

Asset Protection

By
Local Business Advice

The Wealth Technology Group

By: Gary F. Thomas, JD, LLM, CLU, ChFC, AIF, CDFA

A couple of weeks ago I spoke with a potential client on the phone who had recently purchased some trusts through an online service, and had questions about them. To create the trusts he spoke with an individual on the phone and filled out a short questionnaire listing his wishes, assets and beneficiaries. A short time later received the documents. He was told that the trusts would accomplish his three primary objectives:

Probate Avoidance

Estate Tax Reduction

Asset Protection

I responded that without reading the trusts carefully as well as knowing more about his current financial situation, it would be impossible for me to answer his concerns. We agreed to meet.

Bill arrived carrying a handsome, two-inch thick leatherette folio with his family name embossed in gold lettering on the cover. The binder included two trusts: a Revocable Living Trust and an Irrevocable Asset Protection Trust. Neither trust was funded. In addition, there was a “pour-over” will, designed to fund the Living Trust with probate assets at the time of Bill’s passing.

After chatting with Bill, I learned that he was seventy-three years old, and had two adult sons who were comfortable financially. Up until the creation of his trusts, he had a simple Will leaving all his assets to Martha, his wife of 40 years. She had recently passed after a lengthy illness, motivating Bill to reconsider his estate planning options.

Bill’s major assets included a sizable conservatively invested 401k which listed his children as beneficiaries. Bill’s other assets consisted of a couple of CDs, a modest checking account and a three-bedroom ranch built in the 1960s. Although Bill would be considered to be financially comfortable, his combined assets were only slightly above the one million dollar threshold for Massachusetts estate taxes, with no likelihood of approaching the Federal limits.

The trusts would not serve to avoid probate or to protect Bill’s assets. His major asset, the 401k, was already set up to avoid probate as it had named beneficiaries. As a retirement account it is protected from creditors under both Massachusetts and Federal law. Transferring his 401k to the Irrevocable Trust would necessitate cashing it out, resulting in an income tax disaster.

Bill asked what course he should take regarding the CDs and his home. He could, if he chose, transfer his CDs into either trust but as they were only a modest portion of his assets, the net effect of doing so would be marginal. And although he could transfer his home to the Irrevocable Trust in the hopes of protecting it from the high cost of long-term care, he would still be required to spend down his other assets to qualify for care.

Properly structured, drafted and funded, trusts are valuable tools for probate avoidance, asset protection and estate tax avoidance, but they are not needed by everyone. Basic estate planning documents such as a Will and a Durable Power of Attorney, with careful selection of beneficiaries plus proper insurance planning often produces the desired outcome.

Please consult a qualified professional who can assess your situation and guide you properly through your estate planning journey.

Social Security Informational Workshop: June 11, 13, 18, & 20th • 6:30 pm

Wealth Technology Conference Center – 130 Southampton Rd, Westfield, MA

 

Gary F. Thomas

JD, LLM, CLU, ChFC, AIF, CDFA

“Because it’s not what you make … it’s what you keep!”

Gary is the President of The Wealth Technology Group, with offices in Pittsfield and Westfield. His company serves over a thousand individuals and businesses in Massachusetts, Connecticut, and across the country, helping them reduce taxes, diversify their portfolios, and keep more of what they have.

Gary is a native of Pittsfield and is a graduate of the Massachusetts College of Liberal Arts and Western New England University Law School. He is a member of the Massachusetts Bar and holds the prestigious Master of Laws in Taxation degree from Boston University Law School. Gary is a Chartered Life Underwriter and a Chartered Financial Consultant. He is also certified as an Accredited Investment Fiduciary, having met the ethical and education standards of a prestigious network of forward-looking investment professionals dedicated to advancing fiduciary responsibility.

Gary has conducted courses on retirement planning, financial management, and estate planning at General Dynamics Corporation, Tubed Products, the Massachusetts Nurse’s Association, Plumbers and Pipefitters Locals 4 and 104, Westfield State University, Berkshire Community College and the Massachusetts College of Liberal Arts, and has lectured financial planning and insurance professionals throughout the U.S. and internationally on best practices and customer service. He specializes in education about safe money management and the maximization of pension and Social Security benefits, so that his clients enjoy a stress-free retirement.

Gary is a member of the Massachusetts Bar Association, the Financial Planning Association, the National Association of Insurance and Financial Advisors, and the International Association of Financial Planners; he sits on the Board of Directors of the MCLA Foundation. Last year, Gary was honored to be appointed a member of the Board of Trustees for Western New England University. He also underwrites programming for WHMP, Channel 57, and is a member of the Westfield Chamber of Commerce and the Better Business Bureau. He was chosen Outstanding Philanthropist of the Year for 2013 by the Western Mass Association of Fundraising Professionals.

Gary is a presence on local media and is sometimes called upon to comment on financial news. Every few weeks Gary also has some fun talking about financial topics with Bax & O’Brien on Rock102. His programs are available on the station websites, and are podcast on iTunes and at www.wealthtechnology.com. He has appeared nationally on Fox Business News, and has been quoted on the Forbes and CNN Money websites.

(800) 266-6793

[email protected]

www.wealthtechnology.com

17 Ways To Get More Work Done

By
Employment

(And Also Be at Least Reasonably Happy Doing It)

By John Graham

Most everyone has figured out that performance expectations keep going up. To put it bluntly, we face the challenge of doing more in less time. And it’s not about to change anytime soon.

In the past, those with lots of experience fared well. But not today. Experience can hold us back, like running against a strong wind. Experience is about what we’ve done in the past, and it has value in an ever-changing environment. On the other hand, expertise prepares us for what we must do next so we can face the future with confidence.

The question, then, is how to transition from experience to expertise, from looking backward for answers to looking forward with solutions. Here are 17 ways to do it.

1. Have the right mindset. Experience short-circuits the thinking process. We go from zero to 60 in a split second. We tear into tasks because we’ve been there before and know what to do. It takes an analytical mindset when entering uncharted territory.

2. Figure out what you need to know. More often than not, problems, misunderstandings, and confusion occur because we didn’t ask enough questions — or, more likely, any questions. We get off on the wrong foot by not knowing what we need to know.

3. Give yourself time. Some say they do their best work in a crisis or at the last minute. It’s also easy to deceive ourselves. Where does that leave us when we run out of time? The answer: in trouble and making excuses. And feeling overwhelmed.

4. Work on it and let it sit. The best solutions rarely, if ever, occur on the first attempt, whether it’s writing a report or working on a project. The human mind needs ‘noodling’ time to work in the background without pressure. Remember, everything can be improved.

5. Avoid confrontations. It isn’t easy, particularly since we seem to possess an urge to be right, a gyroscope of the mind. When coming into contact with an opposing view, the mind pushes back to regain its balance. It helps to view it as a signal to take a closer look before having a confrontation.

6. Never assume things will go smoothly. Why do we never get over being surprised when things go wrong? It’s as if someone is playing cruel jokes on us or deliberately throwing us curveballs to cause us grief. It’s best to be prepared by anticipating what might go wrong.

7. Second-guess yourself. To avoid getting blindsided, ask yourself ‘what if’ questions to foresee possible outcomes. Then, when asked about alternatives, you can say you considered various options and why you chose this one.

8. Learn something new. If you can do your job without thinking about it, you’re probably bored and underproductive. The human mind gets moving and stays active by coming up with new ideas, making improvements, and solving problems.

9. Go beyond what’s expected of you. It’s easy to put up a ‘I’ve reached my limit’ or a ‘I’m not paid to do that’ sign. Everyone feels that way at times. If we do, we can count on dismal days ahead.

10. Be present. It’s easy to be at work and not be present. The average employee spends just under eight hours a week on personal stuff, most of it on e-mail and social media. For those ages 18 to 34, add two hours a week, according to a staffing firm Office Team survey. That’s a day each week of not being present.

11. Ask questions. Have you started on a task and get into it only to discover you’re on the wrong track? Most of us have — too many times. It occurs when we’re too sure of ourselves or reluctant (or embarrassed) to ask questions. Asking the right questions is a sign that you’re thinking about what you’re doing.

12. Look for possibilities. Instead of just doing your work each day, take it to another level and interact with it so you get feedback from what you’re doing. Ask yourself: is it clear? Is it complete? Will the recipient understand it? Is it necessary? Will it make the right impression? What have I missed? Should I start over? Is it time for another set of eyes?

13.Take a chance. It’s invigorating to try something new. You may have been thinking about it for a long time, and it doesn’t really make any difference what it is. By taking your mind off all the annoying daily irritations, it can help invigorate your outlook and improve your productivity.

14. Have clear goals. Tedium sets in on any job. One day you realize that what was interesting and challenging is now tiring and unpleasant — perhaps even intolerable. If so, it’s ‘goal think’ time. Start by asking what you want to accomplish today, then add another goal for the coming month, and so on. When you know where you’re going, the tedium fades away.

15. Eliminate confusion. We may not be in a position to control the confusion around us, but we can avoid adding to it. We can make sure our messages are accurate and complete so there’s no misunderstanding, our address book and other files are current so we don’t need to bother others, we meet deadlines so we don’t leave others waiting, and so on.

16. Raise your standards. Others respond to us based on how they view us. How do they see you? Someone who get things done, who takes quality seriously, and who demands a lot from yourself? Make a conscious decision as to how you want to be perceived.

17. Take on a challenge. Nose around to see what you can find, drop a few hints, and even raise your hand. But be sure it’s something you want to sink your teeth into. If it is, you’ll have a great time doing it.

Follow this advice, and not only will you get your work done, but it will be more than you thought possible, and you’ll be happier at the same time. Better yet, your employer and your customers will be happier, too.
As it turns out, happiness doesn’t depend on what others do for us, but what we do for ourselves.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly e-bulletin, “No Nonsense Marketing & Sales Ideas”; [email protected]