HR Professionals are Becoming key Board Members

For all of my Human Resource colleagues out there, thought you might like to know that many corporations are seeking out HR professionals to sit on their boards. Here's the article from the Wall Street Journal on December 14th by Joann Lublin. HR Executives Suddenly get Hot. If the link doesn't work, click on my facebook icon and it should route you to story.

Terroir: Experiencing it First Hand

Having gotten everything back in order from my travels and visits with clients in France, Spain and Portugal, I have a new found appreciation for how significantly the geography and the geology affect wines around the world. Having grown up in Northern California, I have traveled throughout many of our wine growing locales, and enjoy and appreciate the differences. Prior to my trip, I would have said I have a California palate. Before leaving, I attended a trade tasting for both Argentina and Spain's Rioja region, and the wines were significantly different from each other, in good ways. I have always tried wines from many areas, but haven't always understood what I was drinking.

Upon arriving in France I immediately visited E. Guigal in the Côte Rôtie area of the Rhone. E. Guigal is a large négociant in France that also has their own vineyards and winemaking facilities. Guigal has excellent wines in a broad range of price points. Getting to see the land and the winery allowed me to understand the different techniques they use, and to understand why certain wines tasted the way they did. The winery has several vineyard designate wines that are extraordinary. Seeing the difference a mountain, direction of a hillside or the soil the grapes grew on was quite a lesson in terroir.

Upon leaving Guigal which is in the Northern Rhone, I traveled down through the valley, witnessing the changes in topography, elevation and soil. Côte Rôtie is quite different from Chateauneuf-du-Pape, and the wines reflect it.

Traveling in to Spain, the weather was significantly warmer, and the countryside was much like California. Feeling at home, you would think that the wines would taste similar to Californian wines. But each region within Spain has significant differences. The wines of Tarragona were much different from Jumilla and Yecla, not to mention other wine districts in the country. And while the countryside reminded me of home, the wines had a different personality. While I know this is because the wines are made with grapes that aren't used as much as in California, I think it also has to do with a long history of wine making and use of the land.

I think I would be remiss not to point out that the attitude towards wine significantly affects how the wine tastes. Yes, in a blind taste test this wouldn't be the case, but when you pull in to a roadhouse in Alicante for lunch on a Tuesday and the two truckers next to you are eating a three course meal with a bottle of wine split between them followed by coffee and dessert, you see a different attitude to wine. In the countries I visited, it is a way of life to take your time, eat well and have a glass of wine with your meal. Coming home, I have found this almost impossible to institute in my own life--instead I am wolfing down my food while being distracted by what I have to do next. Wine is drunk here more like a cocktail, not as a dining accompaniment.

Spain is an immense land, which I found out while driving around it. It has so many different areas, all with their own personality. The Spanish are a very independent people, which is evident in the fact that the individual states have a lot of power in comparison to other Southern European countries. You also see this in the wines, with significant differences between regions and sub-regions.

Portugal was very similar to Spain in climate, but there was a different feel to it. Visiting the Douro River area and tasting the great wines and ports that are produced with distinctive grapes was eye-opening, and sometimes vertigo inducing. Many of the wineries still stomp their grapes underfoot, which was so surprising to me. Also the ports and other dessert wines were extraordinary, and won over many of my traveling companions who previously didn't like sweet wines.

Back on to Rioja in Spain. I had enjoyed the trade tasting the Rioja tourism group gave in San Francisco, and was able to tour many producers in this area. The wines were very good, and agreed with my palate. The people I met here were also very helpful and friendly, making the time there extremely enjoyable. This was the highlight of my Spanish wine tour.

Leaving Spain we headed to Bordeaux. This fabled wine making area I have read about for years, but have never understood the affect the land had on the wine. Getting to visit the different locations; St. Emilion, Medoc, Pomerol, gave me a new outlook on the wine. The geography was surprising to me, such a flat area without significant elevation. Throughout California vineyards boast their elevation, terrain and jagged cliffs. I didn't see that in Bordeaux. But tasting the wines, you see the difference. Yes, they have had significant success in the past, and money has been put in to maximizing the expression of ideal characters in the fruit. To look at a map does not allow you to understand what terroir means for the area. I was able to get to some great 1st growth properties and taste some exquisite wines, which yes indeed tasted unique to the area.

At the end of the trip I was in Burgundy. This was a late addition to the travel itinerary, but well worth getting to. Visiting several sites in the Beaujolais area, it was interesting how different the land was. The Saône river winds its way through, with some hilly areas and other flatter production areas. Many of the sites are small growers who sell their wine to a larger négociant or co-operative. Seeing the difference between small production areas and large Burgundy wines allowed me to understand the wines and the geographical distinctions better. The last stop in Burgundy was at a nice restaurant that served only local wines, which is easy to do in this area, and excellent traditional French cuisine.

Coming home I have been enjoying my glass of wine in the evening. I've been trying some new wines, while also going back to some house favorites. I have been surprised by how my palate has changed, often favoring the European wines I have visited. Some of the tried and true California wines taste big and overpowering recently. Now when I'm browsing the aisles at the wine shop, I know where the wine is coming from, and what impact the terroir has on the resulting taste. This is so exciting to me. Wine education is very important in explaining the story of a wine, and seeing the areas first hand has been enlightening. I recommend touring as many wine producing areas as possible, and am already planning the next itinerary. Argentina.....Chile.....

Salary Survey in this Month's Wine Business Monthly

Subscribers to Wine Business Monthly: This month's issue has the salary survey in it. www.winebusiness.com

Overall salary trend: Surprisingly, salary increases. But also a lot of talk about consolidation and shedding of jobs. I have seen salaries continue to rise, but for very crucial positions. I think this may be driven by the need to put together very attractive compensation packages in order to attract serious talent. While new hires may have seen an increase in salary, this does not offset the large number of people who are suddenly out of work. I think there will have to be some adjustment of compensation programs to address the overall shift in the employment outlook in the industry.

On the Road

Off to visit several of my European wine clients in the next couple of weeks. Will be learning a lot about employment trends, winemaking strategies and thoughts on the state of the international industry.

Salary Information: What is the Industry Standard

While interviewing both clients and candidates I learn a lot about salary ranges for all types of positions. I file the information away for future salary negotiations. While I may talk to 5 people a day about money, I realize that my clients don't. How can you educate yourself about what salaries people are getting at other companies.

First of all, talk to your HR department. Large companies have excellent salary survey data that's done both in-house and industry wide. Your HR manager also is continually talking to job seekers and has a good idea about what going salaries are.

If you don't have an HR department, or are re-evaluating your compensation programs, there are lots of other resources. First of all, Western Management Group, www.wmgnet.com has been doing wine industry compensation surveys for the last 8 years. Members can receive detailed reports about compensation plans and trends in the marketplace. Western Management Group has provided the survey that Wine Business Monthly uses for their Annual Salary Survey Report. This report provides data on the basic job categories in the wine business.

There are a few other websites that provide salary data, but they are not as specific to the wine world. Salary.com and Payscale.com have good location specific pay rates for general job titles, such as Administrative Assistant, Controller, etc. These sites are good for a ball park figure.

Career Advice in the Wine Industry: Mentors: Answers or Guidance

Career Advice in the Wine Industry: Mentors: Answers or Guidance

Confidentiality

I have been mulling this blog posting for a few weeks, maybe months now, but think it is something worth discussing. What is confidentiality?

In recruitment many of my positions are confidential, for reasons such as my client does not want competitors knowing there is a vacancy, the company is going through a restructuring or a host of other reasons. As a recruiter, it is very important that I honor this confidentiality. The wine industry is pretty small. After only a few calls people start to hear that I'm recruiting on a certain position, and often start guessing who it is. While the guesses are fun to hear, I cannot divulge the name of my client.

As a headhunter, I am also contacting potential candidates confidentially. If in my networking I begin working with someone who is currently employed, the same confidentiality is important to them. If I slip up and the employee's work finds out, it puts the employee in a bad spot now and an even worse one if they don't end up getting the job. Many employers never regain the trust in a person they have found out was considering taking another job.

When recruiting some clients have me sign a confidentiality agreement, barring me from divulging the company unless given prior authorization. On the candidate side, many job seekers are more than willing to sign a nondisclosure agreement so that I can tell them everything. I have always shied away from NDAs. Even if I get a signed form, the only thing I have is a piece of paper to show that the candidated blabbed about the position, violating the NDA. I'd rather give less information and only give up the secret when the client OKs it.

It can be tricky to navigate a confidential search. People get preconceived notions about the client based on who they think I'm recruiting for. Some candidates drop out of the search since they can't do their own investigation of the company. Sometimes people get involved in the search process only to bow out when they find out who the client is.

But these problems are insignificant when my client has trusted me with private information. While I do have to work under some generalities, my candidates tend to understand the sensitive nature of the search and work with me to learn more about the potential opportunity. If you are needing confidentiality, work with your recruiter to outline what needs to be kept quiet, and under what circumstances information can be shared. This will keep the search moving forward without any undo facts being exposed.

Hiring Trend: Currently Employed Candidates

Last week Dana Mattioli of the Wall Street Journal wrote an article entitled Only the Employed Need Apply http://online.wsj.com/article. Ms. Mattioli cites how many employers are only interested in hiring people who are currently working.

This isn't a new idea in recruiting. Many job seekers know the best time to be looking for a job is when you have one. If your company philosophy is to hire currently employed people, there are some factors to consider.

• Be prepared to take your time: If you want only currently employed candidates, you also want employees who will act professional. All professional employees give adequate notice before leaving a job, and will need to do the same before they can take your job. Also you will have to schedule interviews and meetings around their schedule to limit any concerns they have about their current employer finding out.
  
• Things are tough out there: People are seeing that jobs aren't as secure as they once were, and may be hesitant to leave one job for an unknown employer. While an employee may be unhappy at their current job, they know what they need to deal with. At the new place they don't know anything about the politics or policies, making them hesitant to jump ship.
• Money still talks: With people holding on to their jobs, being able to offer attractive salaries and benefits will be important. An underpaid superstar knows their worth, and will be happy to accept a job for someone who pays them that.
• Keep an open mind: There have been significant lay-offs throughout the wine industry. Many times people's positions were made redundant after an acquisition or merger. Often new managers want to work with their own team, and don't even consider the talent that was previously handling the job. There are a lot of great candidates out there who have become unemployed for no cause of their own. Take a look at someone who might be the superstar you want.
• Educate the potential hire: If you have a superstar that is interested in moving further along the interview/hiring process, let them know as much as possible about the position. Give them access to key staff members. Be available for questions that arise during their interview process. Follow up with them to gauge their interest. Explain any changes that have occurred in the past and let them learn all they can about the company. Openness speaks a lot about how a company will handle itself in the future.

Hope this information helps. Good luck with your searches.

How to Work with a Recruiter

I called my favorite client yesterday to see how everything was going. As usual, he was quick to take my call and was happy to hear from me. It got me thinking about how my successful placements all have a common denominator. I have been the most productive with clients that are active participants in the search process. There is a lot to be gained by having a good relationship with your recruiter.

So, how do you work best with a recruiter? I think there are a few basic principles.

• Make a time commitment upfront and meet with the recruiter. Allow them to learn all they can about the position you are hiring for, as well as about your company and you. Understanding a hiring manager's background and how the future employee will fit into the organization is crucial for a successful recruitment
• Take some time to map out what you need in the new employee, what the responsibilities of the position are, and what an ideal candidate's profile would be. While this may seem like something a recruiter could figure out, gaining your perspective on the ideal hire helps steer the recruitment in the right direction.
• Ok, I have to say it, have reasonable expectations. If you are hiring a high level executive for a key spot in your organization, it may take longer than 4 weeks to find the ideal person. Take a peek at salary surveys to see if your proposed salary will be competitive in the market. There are a lot of variables to consider, but being realistic and flexible will allow a smoother recruitment
• Be available. If a recruiter has a great candidate but can't get any feedback from you, the candidate may get another offer before you even think about interviewing them. Being available can also include being flexible about interviewing in off-hours and taking calls or checking emails when you are able to.
  
• Ask questions. If you want to find out how the recruitment is going since you haven't heard from your recruiter in awhile, call. If a candidate looks great on paper and you want to get some perspective on the person's background, call the recruiter to see what they know about the candidate. Recruiters are talking to the candidates they submit frequently, and may have a quick answer to a specific concern. If your recruiter doesn't know the answer, they can talk with the candidate and get back to you with the information. Some quick questions and answers can save you time that would have been wasted on fruitless interviews.
  
• Give feedback. If you don't like the set of resumes you are receiving, let your recruiter know what is missing. Sometimes what comes across in the first meeting with a recruiter may cause the wrong skill sets to be presented. Tweaking the requirements of the position may quickly bring you spot-on candidates, one of which will end up being your great employee. Even if you can't put a specific quality on your feedback, be open about your hesitations or concerns. Recruiting isn't simply putting skilled employees at the right job, but also making a satisfactory match of a person's soft skills. This isn't always quantifiable, but completely understandable to your recruiter.
• Keep your recruiter informed. It is easy during the hiring process to gain a closer relationship with the future hire than the recruiter has. You want this--this person will soon be working closely with you and your staff. But let your recruiter know how things are progressing. If you have talked about salary, benefits or potential start dates--update your searcher. This is helpful for us recruiters to know how the search is progressing, but also for you. If we know that salary was discussed, we can talk to the candidate about where the negotiation stands. Sometimes sticky situations can be averted by a recruiter simply talking things out in a neutral setting.
• Get guidance. If you are not sure your bonus program is up to industry standards, talk to your recruiter for their insight. If you aren't sure what type of educational background would be best for a production management position, your recruiter can say what the profiles are of other people in similar positions. Recruiters deal with this type of stuff all day, every day. We know you are working on different issues at the company, and interviewing and hiring is something you don't do often. Your recruiter can offer som insight in how similar situations have been handled, and offer you ideas on how to handle them.
  
• Keep us informed, even after the start date. I love to get a fill, and am so thrilled for both the new hire and the employer. Often the first few weeks are a time of transition for the new employee and client. We recruiters understand, and want to allow you to get things in order quickly. But once the new employee is settled in, let us know how things are going. When we recruit on a position, we understand what the company is looking for, and some of the upcoming projects and changes involved. It's interesting to learn how things progress. Forming relationships with both clients and candidates is something recruiters like to do, so keeping in contact is always rewarding for a recruiter.
  

Getting that position filled sometimes can seem to take forever. Working closely and effectively with your recruiter can make it go smoother and many times, faster.

Newswire: Workers' comp hike looms

Yesterday Steve Hart with The Press Democrat reported about the upcoming hike in Workers' Compensation rates. Here's the link: http://www.pressdemocrat.com/article/20090531/BUSINESS/905311018/1339?Title=Workers-comp-hike-looms

Hiring a Consultant? Some Things to Consider

Consultants are a great resource for companies to bring in expert advice or to handle specific projects. There are a lot of winery professionals that call themselves consultants, but as an employer and a company, there are a few things you need to think of when bringing on a consultant.

The IRS offers an online 12 point checklist to use to make sure you are hiring a consultant. A consultant is a business person who is responsible for their own business, taxes and marketing. A winery does not have any responsibility to a consultant other than that outlined in a consulting agreement. The general rule of thumb is that a person is an independent consultant if the hiring company has the right to control or direct only the result of the work, not what the work is to be done or how the work will be done.

The basic items the IRS checklist covers are:

• Behavioral Control: An independent consultant is not directed and controlled by the client. The client can only direct and control the work.
• Financial control: A contractor has a financial stake in the work, and will incur expenses that the client does not need to reimburse for. Also, a consultant can show a profit or incur a loss for their business, unlike an employee who is compensated with a salary.
  
• Relationship of the Parties: A contractor must maintain their own benefits, insurance and business activities. A consultant is not an employee, and therefore is not entitled to the same benefits an employee is.

Why is this important? There have been rulings in the past where independent consultants did not meet these requirements, and were eligible to receive the benefits of a regular employee. Microsoft and several other large companies were found to be misclassifying regular employees as independent consultants. These were landmark rulings, and have caused independent consultants to come under scrutiny with the IRS.

A 20 point checklist has been created to see if a consultant is really able to be classified as a consultant. Here are the questions:

For the following questions, a "yes" answer means the worker is an employee.
1. Does the principal provide instructions to the worker about when, where, and how he or she is to perform the work?
2. Does the principal provide training to the worker?
3. Are the services provided by the worker integrated into the principal's business operations?
4. Must the services be rendered personally by the worker?
5. Does the principal hire, supervise and pay assistants to the worker?
6. Is there a continuing relationship between the principal and the worker?
7. Does the principal set the work hours and schedule?
8. Does the worker devote substantially full time to the business of the principal?
9. Is the work performed on the principal's premises?
10. Is the worker required to perform the services in an order or sequence set by the principal?
11. Is the worker required to submit oral or written reports to the principal?
12. Is the worker paid by the hour, week, or month?
13. Does the principal have the right to discharge the worker at will?
14. Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal?
15. Does the principal pay the business or traveling expenses of the worker?

For the following questions, a "yes" answer means the worker is an independent contractor.
16. Does the worker furnish significant tools, materials and equipment?
17. Does the worker have a significant investment in facilities?
18. Can the worker realize a profit or loss as a result of his or her services?
19. Does the worker provide services for more than one firm at a time?
20. Does the worker make his or her services available to the general public?
(from TaxProphet.com, http://www.taxprophet.com/apps/active2/indep-mm.html).

Making sure your consultant is a true consultant and not a quasi-employee will allow you to have them bring their expertise to the company, and allow you the flexibility to maintain the appropriate compensation and employment relationship.

These points were previously discussed for consultants on WineTalent's employment blog at Avoid the Taxman: http://winetalent.blogspot.com

Employee Morale After Layoffs

With the current economic situation, many wineries are dealing with staff reductions. After weathering the layoff, the employees that are left are often nervous and apprehensive about their own job security. Managing through this time is necessary and can quickly improve productivity.

Elizabeth Garone of the Wall Street Journal recently published an article in the Career Journal about steps to take after a layoff. Here are the five things she outlined to keep morale up

• Find alternative incentives: If you previously gave out cash incentives for meeting or exceeding goals and now can't justify the expense, think of other ways to incentivize your staff. At my former employer, we created various bonus programs that included half-day and full-day paid time off. These programs also included various small ticket gifts and lunches. After working on large projects, Fridays were reserved for a staff lunch where we were able to joke and relax a bit more. All of these led to great increases in morale.
• Transparency is key: Communicate with your staff about why the lay-offs occurred and what the company is doing to right the ship. While losing co-workers is hard, employees like to see what is happening with the company and see ways to help the company become more profitable. Also openly discussing the situation allows people to ask questions and raise concerns in a non-threatening environment.
• Recognition counts: Everyone likes to be recognized for a job well done. During this time, make sure you talk to people who are putting in extra effort and thank them for it. Don't forget that keeping the business running smoothly during this time of upheaval can be the biggest accomplishment, and recognizing anyone who is helping in that vein is very important.
• Keep educating: When budgets are slashed, training can be one of the easiest areas to economize on. While you may not be able to send your staff to a company retreat, bring experts in to talk about certain situations. As Ms. Garone points out, having staff members lead in-house training sessions can be very enlightening. Look at the talent you have within the company or staff unit, and give those people a forum to teach others.
• Promote a good work/life balance. After a layoff there are fewer people to do more work, which can lead those who are still around to lose the balance between work and home. While it is important to keep your staff working while at work, remember that the stress they are facing at work can spill over to problems at home. Be sensitive to employees' needs to help out at home or take time out of their day to address some personal needs. By being compassionate, your staff will be understanding as well.

Employment and Labor Lawyer

Many of the resources I've mentioned were brought to my attention by my attorney friend Barbara Cotter. Barbara specializes in employment law, and is a partner at the Sacramento offices of Cook Brown, LLP. Cook Brown, LLP specializes in representation of employers in all aspects of labor relations and employment law.

Barbara Cotter is very active in the legal community, and is a valuable resource for you. Please visit the Cook Brown, LLP, www.cookbrown.com website for her contact information.

Employment Law Resources

My employment lawyer contact recommended some sites for employment-related news and updates. These websites are a resource for you, and often offer instruction and training on some employment issues.

• Jackson Lewis, Workplace Law Firm, http://jacksonlewis.com. The Legal Updates section has a lot of valuable insight.
• Shaw Valenza, LLP, http://shawvalenza.com, What’s New in Employment Law Blog
• The California's Chamber of Commerce has a lot of valuable employer information, www.calchamber.com
• Carlton, DiSante and Freudenberger, LLP has a CA Labor Law Blog,
  http://www.cdflaborlaw.com

Some government sites are also a good source. Some that focus on California law are,

• California Department of Fair Employment and Housing, www.dfeh.ca.gov
• California Department of Industrial Relations, www.dir.ca.gov
• California Employment Development Department, www.edd.ca.gov

Also, the Internal Revenue Service site has a lot of information for employers, www.irs.gov

Employment Law Resource Available to You

For years I have talked to lawyers about employment law in California. California is one of the toughest states for employers, and the laws are often unique to this state. A resource for any California employer is the California Chamber of Commerce's HRCalifornia. The CalChamber is the largest business advocate in California. The Calchamber offers many products and services to employers, and their employment law information is a regular reference for lawyers and employers alike.

Tax Laws Change for Deferred Compensation

In 2008 Congress and the IRS adopted new rules in regards to taxation of deferred compensation. Deferred compensation is money earned in one year but paid in another. Examples include stock options, executive retirement plans, bonuses, salary reduction arrangements and bonus deferral plans. This tax law change has significant impacts on many executive pay packages. The IRS is requiring that deferred compensation amounts be included immediately in an employee's income. An additional penalty tax may also be owed, which is equal to 20% of the deferred compensation amounts. ,

My employment lawyer contact said this rule should be carefully followed, and companies should evaluate their compensation policies in light of the new tax law.

I looked up several sites for guidance on this. The IRS site has a lot of information for you. For a simple write up about it, I found Gordon, Thomas, Honeywell, Malanca, Peterson & Daheim LLP's site to have good information. I don't have any connection with that law firm, but found their information easy to understand and similar to other sites I reviewed.

Furloughs

Living in the capital city, I hear a lot about what the state government is doing about the current economic downturn. Here in the heart of the city, many of my neighbors and friends are state employees. Recently, the state has put most of their staff on a two-day-a-month furlough. In the past, many employers furloughed workers when needed. But in recent years, furloughs have been replaced by lay-offs and reductions-in-force. Furloughs can be a great solution for handling a slowdown, allowing you the ability to bring your staff back to full-time hours once the economy picks up.

Yesterday the Wall Street Journal had an article about how furloughs are being used. In the article by Dana Mattioli and Sara Murray, they discuss how companies are furloughing staff.

While many companies still choose to lay-off employees, a furlough can allow the employees to stay on as regular, salaried employees with the same benefits and wages. With the state's furlough, the employees are working two less days a month, which in effect is a 10% reduction in pay. While many people are moaning about bringing home less money, the other option is cutting staff. Most employees don't want to potentially be the 10% of staff laid-off.

Saving money monthly in wages is an attractive option for many employers, and the ability to end the furlough when times are better allows the staff to stay whole. This also allows you to eliminate new recruitment efforts when times improve, allowing management and human resources to focus on other issues.

WineTalent's Employment Blog

Since 2006 WineTalent has had a blog for job seekers in the wine industry, http://winetalent.blogspot.com/. With this blog, http://winetalentHR.blogspot.com/ , I will be supplying employment advice for winery owners, managers and human resource professionals. Changing times brings the need for access to new information, and I hope to be a resource to my current and future clients.