🔒How To: Turn new federal overtime rules into a competitive advantage

The new federal overtime rules will more than double the threshold for employers to avoid paying overtime when salaried employees work over 40 hours — moving from $23,660 per year to $47,476 per year. This presents serious challenges for employers. I am not writing to defend or explain the law, but rather to discuss how to turn this problem to a competitive advantage.

I tend to talk about the soft side of management — communication, engagement and expectations. The silver lining of this rule change is that it is a tailor-made opportunity to do all these things. Do not relegate this decision to your HR department or a board meeting — engage your employees and managers one-on-one around this business challenge.

For most employees, there is more at stake than simply moving from hourly to salaried. For some it is a status issue and for others it is about the money, since “salaried” often involves perks and benefits beyond the paycheck. For still others, it is an issue of recognition. Changing someone's paycheck or status is directly connected to their personal world view. The solution must be tailored to the individual.

This means a one-on-one discussion with the employee to talk about goals and aspirations. What does he or she want to accomplish? What are the five- and 10-year goals? Your company may have managers approaching retirement age. Could this employee be part of your succession planning? Let them know how much you value them and precisely why — engage their energy and drive and launch their productivity. You may conclude that the employee is worth a substantial raise and not just because the feds are forcing the issue.

The next question to pursue with employees is, “What do you most like and most dislike about your current position?”

You may be able to modify the position to be more attractive for the employee, or change his or her position to suit goals.

Let us discuss an employee who is not highly valued. He or she is a good employee, but inconsistent. The person may be disengaged or have low energy and drive. Many managers would rather put up with mediocre performance than address it directly. Here is a perfect opportunity to put the employee on notice that mediocrity is no longer acceptable. Use the questions outlined above. The conversation may reveal new information and provide leverage to foster greater energy and drive; or the conversation may serve to put the employee on notice that their attitude must change. What would it do for your bottom line to replace every mediocre employee with a high performer?

In all the above examples, make your expectations clear and in writing — and document their expectations of you as well. A good expectation has a goal and is time-limited. For the valued employee, these can be inspirational. For the mediocre employee, your expectations must be challenging and demanding. Do not pass up this opportunity to boost your employee's productivity, loyalty and drive.

My clients know I am fond of the challenge “Get on with it.”

That philosophy is the driver behind my comments. Use the new federal overtime rules as your motivator to have the strategic conversation every manager should have with every employee on a regular basis. Use this opportunity to nudge a valued employee to maximum performance, and challenge a mediocre employee to step up or step aside. Get on with it.

Art Boulay is CEO of Strategic Talent Management, a business consulting firm in Brunswick. He is a Certified Master Coach, as granted by the Behavioral Coaching Institute. He can be reached at aboulay@strategictalentmgmt.com

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