The Preventive Program Guide

The Preventive Program® Guide



What is the Preventive Program®? The Preventive Program® is a complete plan for developing positive employee relations based on the following ten (10) principles: 1. Establish Employee Standards 2. Define Human Resources 3. Educate Administrators and Managers 4. Discipline on Facts 5. Develop a Compensation Plan 6. Create Quality Work Life 7. Foster Employee Communications 8. Promote From Within 9. Determine Labor Policy 10. Fight when Right

01 4 | Establish Employee Standards Establish Employee OUR DEAL Standards I, the employee, promise to: Employees should clearly understand what you expect from them and what they can expect »» Read my employee handbook; from you. All employees should receive an »» Abide by the handbook’s standards; easy-to-read notice of all required standards »» Carry out the goals, duties, and of performance that confirms what is actually requirements of my job; practiced at the property. Employment rules, »» Follow the Complaint & Arbitration benefits and policies should be included in a Procedure for any concern or dispute I may handbook that also defines the “deal” you have have. with the employee. What the two parties have My employer promises to: agreed to is the “deal.” »» Treat me as a valued employee; »» Provide competitive wages and benefits; »» Give me fair treatment through the Complaint & Arbitration Procedure when I have a complaint or concern; »» Follow the Complaint & Arbitration Procedure for any concern or dispute I may have. Stokes Wagner Preventive Program® Guide

Define Human Resources | 5 02Define Human Resources In the service industry, our product is, to a great extent, “people.” In the “people” business, an established and defined human resources function is critical to success. Who’s In Charge? Where a facility has no Human Resources Director who The key to long-term preventive success in human handles personnel matters, the responsibility of human resources is a defined commitment to the workforce. resources is often assigned to an existing manager Whoever is assigned to handle personnel matters- or administrator. In this case, it is not surprising that whether a full-time Human Resources Director or not- with so many operational matters requiring attention, must have the power to make the job manageable, human resources issues are often given only limited enjoyable and productive if that person: consideration. »» Understands and believes in our culture and where we want to go as a company; Generally, the person assigned to human resource »» Understands and believes in our standards management will: and The Preventive Program’s® 10 Principles; »» Screen for selection & recruit employees; »» Understands and believes in the value of our »» Train & advise; people as fundamental to our “product”; »» Communicate standards, policies & »» Views the Human Resources function as a vital procedures; component of our health and success as a company; »» Monitor wage & benefit programs; and »» Counsel employees; »» Organizes the Human Resources function so »» Document employee actions; that the handling of human-resources matters - as »» Review disciplinary actions; well as the communication of information to, from »» Foster the culture; and and among the staff - is complete, consistent, and »» Implement the Preventive Program®. increasingly easy to manage. Stokes Wagner Preventive Program® Guide

6 | Educate Administrators and Managers 03Educate Administrators and Managers Well-trained managers and supervisors are fundamental to preventive labor relations. They should clearly understand our mission, the “deal” we have with employees, and our policies and procedures. They should also be educated about certain legal requirements which affect us, such as those relating to: »» Equal opportunity and anti-discrimination; »» Wages and hours of work; »» Unions, unionization & collective bargaining; »» Job safety and health; »» Leaves of absence; »» Workers’ compensation; »» Unemployment compensation; »» Immigration; »» Polygraphs; »» Drug testing; »» Alcoholic beverage controls; and »» Tort liability (libel & slander, breach of contract, wrongful discharge & negligence). Stokes Wagner Preventive Program® Guide

Discipline on Facts | 7 04 Preventive Discipline Rules® Discipline on »» Knowledge of Employees: Is it Facts appropriate discipline for employee and offense? To ensure fair treatment, allegations of »» Performance Standards: Is violation of a misconduct or poor performance must be standard clearly established? thoroughly investigated before discipline »» Employee’s Notice of Hearing: Did the is imposed. The employee should receive employee know specific job standards were notice of error and be given the opportunity violated? Was the employee allow to state their to be heard, as well as give a handwritten side of the case? statement explaining her/his own side of the »» Progressive Discipline: Is discipline story. Remember, always suspend pending appropriate in light of past offenses? investigation before taking any severe »» Total Investigation: Was investigation disciplinary action, particularly discharge. complete on both sides, including written The Preventive Discipline Rules® are critical statements from the offending employee? components of The Preventive Program®. »» Grievance Procedure: Does the employee have the right to complain about the Stokes Wagner Preventive Program® Guide discipline? »» Documentation: Are relevant facts from all sides well-documented? »» Suspension Pending Investigation: Was the employee suspended pending investigation before termination? »» Consistency & Fairness: Is the employee’s discipline or discharge consistent with similar cases? »» Just Cause Discharge: Do facts justify discharge?

8 | Develop a Compensation Plan 05Develop a Compensation Plan Competitive times demand synergy between Administrators and managers should have an employee relations and labor costs. Today’s appreciation of past and present facts concerning managers must be able to speak in economic the costs of wages and benefits in relation to terms--to gather, analyze, and contain ever- revenues to help develop a compensation plan. increasing labor costs. At the same time, they must be capable of effectively communicating »» Do you know the total labor cost with, and motivating, our greatest (and most percentage of revenues for the last five (5) years? expensive) asset--the employees. »» Have you predicted the total labor cost How can there be a “win-win?” percentage of revenues for the next five (5) years? A compensation plan you can live with begins with a full understanding of the facts. All total »» What is the number/percentage of remuneration of wages and benefits should compensable non-productive hoursin comparison not only be competitive within the relevant to compensable productive hours? marketplace, but there should be an element of compensation which is directly connected to the »» Does the amount of time you pay staff service product you are selling. members not to work keep pace with revenue increases? »» Do you give wage increases to employees because that’s the way it was done in the past? »» Do you give wage increases because the union demands that it’s the “industry standard”? »» Do you know your employees’ total hourly remuneration by job classification? »» Do your employees understand their total real wage & benefit pie chart? Stokes Wagner Preventive Program® Guide

Develop a Compensation Plan | 9 05 Stokes Wagner Preventive Program® Guide

05 10 | Develop a Compensation Plan The information from a labor cost analysis can »» A comparison of labor costs to identifiable be used to educate the employee as to the true revenue categories; value of their employment and can include: »» A comparison of labor costs to gross sales; »» A method of quantification, such as “wage »» Calculation of the impact of a wage cents per hour” or “wage cents per productive increase upon other “parasitic” costs, such as hour”; taxes and benefits; and »» Evaluation of the impact of turnover upon »» A comparative review of labor costs of overall labor costs. similar businesses in the area; To give yourself the most accurate picture, labor cost information should be developed for a period »» A review of the cost of benefits, including of ten (10) years, analyzed for the five (5) preceding an analysis of eligibility and disqualification years and projected for the five (5) future years. provisions of benefit plans and their relationship Looking at labor costs fully and holistically will to benefit costs; help generate economic decisions with which you can live. »» A real wage or remuneration pie chart for each employee. »» The pie chart shows total labor costs, such as wages, insurance, overtime, taxes, expenses, benefits, etc.; Stokes Wagner Preventive Program® Guide

Develop a Compensation Plan | 11 05What Can You Do with Labor Cost Information? »» Generate maximum profits by directing how, and how not, to spend. »» Generate long-term goals which are achieved. »» Prepare training programs for administrators, managers and supervisors about developing and evaluating relevant financial data, such as P&Lstatements, daily reports, etc. »» Implement productivity and incentive programs. »» Reward employees based upon merit; for example, job performance, attendance, reliability, resident satisfaction, loyalty and/or overall value to the operation. »» Publicize and market the wage/remuneration pie chart to employees. »» Explaintoemployeeshowtheyarecompensated,whatthatcompensation includes, and how it has developed consistent with their commitment to you. Communicate financial information responsibly. When times are tough, employers are often inclined to communicate more financial information than when times are prosperous. It is important to maintain a balance in this regard. Whatever you communicate on one occasion will probably be expected to be communicated again and again. Stokes Wagner Preventive Program® Guide

06Create Quality Work Life 12 | Create Quality Work Life Because your employees spend most of their »» In the employee cafeteria, locker rooms and waking hours working for you, it is essential to other areas, display poster-size photographs of create a work life that fosters personal satisfaction employees and/or their children from a company and a sense of accomplishment. Be as creative and picnic or party. imaginative as possible. Here are examples of simple things that help create »» Display original drawings from employees’ a quality work life: children or sponsor an employee art show. »» Know the name your employee likes to be »» Establish an “Open Door”policyto encourage called (for example, “Rick” instead of “Richard). your employees to communicate their suggestions, recommendations, etc. Listen to your employees »» Have a biographical sketch of each employee and implement workplace improvements based that tells you something about his/her family and upon their feedback. personal accomplishments. »» Recognize employees for a job well done. In addition to “Employee of the Month” program and thank-you notes, give employees write-up’s for things they do well. »» Plan company picnics, outings and potlucks. Stokes Wagner Preventive Program® Guide

Foster Employee Communications| 13 07Foster Employee Communications Effective communication travels a two-way street. Your employees want to hear from you, and they need to know you want to hear from them. The journey can be a pleasant and productive one. Communication programs can include: »» Regular meetings and contact »» One-on-one communications with managerial and non-supervisory between supervisors and the employees employees concerning all aspects of in their areas of responsibility; their employment; »» A newsletter to be produced on a »» A periodic “Administrator’s regular basis; Meeting” that would enable employees »» A paycheck stuffer program; to hear a short presentation by your »» Regular “visits” from the managers and to meet with them Administrator at coffee breaks, informally after their remarks; and departmental meetings and other gatherings; »» Recognitionandawardsprograms »» Orientation and “re-orientation” that are properly publicized throughout programs; your property, such as in-house training »» Well-tailored audio-visual and motivational and leadership training sessions for managers and supervisors. programs relating to benefits, policies, unions, and your property; Stokes Wagner Preventive Program® Guide

08 14 | Promote From Within Promote From Within Design training programs that encourage employees to see how far they can advance at your property! Promotion from within: »» Indicates job satisfaction, loyalty and productivity. »» Gives employees hope for upward mobility; »» Promotes professionalism and commitment to quality service; »» Increases productivity; »» Encourages better attendance and reduces turnover; »» Fosters positive employee relations and supports company loyalty; »» Encourages employee feedback and sets a standard for performance. Stokes Wagner Preventive Program® Guide

Determine Labor Policy | 15 09 Determine Labor Policy One of the most fundamental decisions facing Why? The dwindling of union membership is a business owner, administrator or manager is due in large part to: whether to operate union or non-union. In the past, unions represented millions of employees »» The Civil Rights movement; throughout the country. However, in recent »» Theincreased commitment ofemployers years, membership in labor unions has declined to fairness and a quality work life; substantially. Opinion surveys show that union »» The effect of corruption within major influence is diminishing for most Americans. unions; and »» The legislation which protects workers, such as anti-discrimination, wage & hour and safety and health laws. Stokes Wagner Preventive Program® Guide

10Fight When Right 16 | Fight When Right A well-known country song advises us to “know The critical factor in winning is fairness. Where when to hold ‘em and know when to fold a case is based upon discipline or discharge of ‘em.” The same holds true for employee an employee, be prepared to prove that you: disputes. When they arise, generating an administrative charge, lawsuit or investigation, »» Gave the employee clear notice of your we should understand all facts and make the standards; decision early whether to fight the claim. When the case is without merit and the »» Gave the employee notice of how she/ decision is made to fight it; use the first he failed to live up to those standards; hearing possible--such as the unemployment compensation hearing--to discover information »» Conducted a thorough investigation of and to determine the respective positions of the matter; the parties. Then, assert your rights as far as the law allows and WIN! When determining »» Afforded the employee the opportunity whether to fight a claim, remember: to give her/his side of the story, both verbally »» The “Good Guys” (and Gals)win labor »» and in writing; and and employment cases on the facts. »» Analyzed the evidence before imposing the penalty. »» If you tell the truth, you will always know Not only will these factors help assure the what to say. appropriateness of any discipline imposed, but it will also enable management to discover the »» Arbitration is cheaper and faster than bad, as well as the good, facts about a case court. before large sums are spent on lawyers and litigation. Stokes Wagner Preventive Program® Guide