If you hire in more than one city, “we follow FCRA” is not the same as “we’re Fair Chance compliant.” San Francisco just added hard clocks to its Fair Chance Ordinance. Miss a deadline, and a clean process on paper can still turn into a violation.As of August 10, 2026, covered employers have new timing rules after they send a notice that criminal history may cost someone a job or a promotion. There is also a new required poster, dated August 2026. This guide is a practical checklist for HR teams who already run background checks and need the San Francisco overlay to line up with federal FCRA steps.This is not legal advice. San Francisco, California, and federal rules stack. Talk with counsel about your locations, remote workers, and CRA package before you change templates.What changed on August 10, 2026?San Francisco’s Fair Chance Ordinance (FCO) has been on the books since 2014. It already limited when you can ask about arrest and conviction records and what you can consider. The July 2026 amendments, effective August 10, 2026, add process and raise the cost of getting it wrong.The two changes most HR teams need to operationalize first:1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New response clocks. If you send a prospective adverse-action notice based on conviction history or an unresolved arrest, the applicant or employee still has seven days to respond with evidence the record is inaccurate, evidence of rehabilitation, or other mitigating factors. If they do respond, you must confirm receipt within 14 days. You must send any final adverse-action notice within 30 days of receiving their information, or within 30 days of your original notice if they do not respond.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A new official poster. The Office of Labor Standards Enforcement (OLSE) posted an updated Fair Chance Ordinance Notice (dated August 2026). Post it where employees can actually read it. Provide a copy to each applicant or employee before you run a background check.Penalties also went up. Administrative penalties are now $1,000 per affected person for a first violation, $2,000 for a second, and up to $4,000 for later violations. Liquidated damages in a civil action moved from $500 to $1,000 per affected applicant or employee.The city also tightened which out-of-state records may never be used when the underlying conduct is lawful in California. Treat that as a “do not use / ask counsel” category, not something to litigate in a job ad. If a report surfaces an out-of-state item that might fall here, pause and get advice before it drives a decision.Who is covered?The FCO applies to employers located or doing business in San Francisco with five or more employees, counted anywhere, not just in the city.It applies to positions where the person works, or will work, at least eight hours per week in San Francisco. That includes:·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary, seasonal, part-time, contract, contingent, and commission-based work·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Work through a temp or staffing agency·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vocational or educational training, paid or unpaid·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remote work from a location in San FranciscoThat last bullet is the one multi-state teams miss. A role “based” in Texas that is performed from an apartment in the Mission can still be an FCO job.California’s statewide Fair Chance Act (AB 1008) still applies too. Employers who hire in San Francisco must satisfy both. When the rules differ, follow the stricter local clock and the stricter “do not consider” list.Housing providers have a separate Fair Chance track through the Human Rights Commission. This article is about employment.When can we ask about a record?Same core rule as before: do not ask about arrest or conviction records until after a conditional offer.That means:·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No checkbox on the application·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No “have you ever been convicted” in the first interview·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No running the criminal search as a pre-screen to decide who gets an offerSuggested job-ad language from the city: “Pursuant to the San Francisco Fair Chance Ordinance, we will consider for employment qualified applicants with arrest and conviction records.”After a conditional offer, you can order a compliant consumer report and review conviction history that is actually usable under the ordinance. You still cannot treat every hit as a reason to pull the offer.What still cannot be considered?Even after a conditional offer, covered employers may not use, among other things:·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An arrest that did not lead to a conviction (except unresolved arrests)·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation in a diversion or deferral-of-judgment program·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A conviction that has been dismissed, expunged, invalidated, or is otherwise inoperative·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A juvenile-system conviction·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An infraction or other non-felony/non-misdemeanor offense·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A conviction more than seven years old (unless the role supervises minors or dependent adults)·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A conviction for decriminalized conduct, including non-commercial cannabis use and cultivation·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain out-of-state convictions or arrests for conduct that is lawful in California (confirm the current list with counsel before you rely on an out-of-state item)If a database search still shows a sealed, dismissed, or expired item, that is a data problem, not a hiring fact. Pause, verify, and do not let a stale hit drive the decision.What does a compliant adverse-action process look like now?Think of San Francisco as FCRA plus a local timer.Federal FCRA (when you used a consumer reporting agency) generally still requires:1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A stand-alone disclosure and written authorization before you order the report2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the report may cost the person the job, a pre-adverse notice with a copy of the report and a summary of rights3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A reasonable waiting period4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A final adverse-action notice if you still proceedSan Francisco FCO layers on:1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An individualized assessment before you decide the record is disqualifying. Look at whether the conviction is directly related to the job, how much time has passed, evidence the item is inaccurate, rehabilitation, and other mitigating factors.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A written notice of prospective adverse action that identifies the specific items you are relying on, plus a copy of the report if you have one.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seven days for the person to respond.4.&nbsp;&nbsp;If they respond, confirm receipt within 14 days and actually reconsider.5.&nbsp;&nbsp;If they make a reasonable factual showing that the decision is based solely on a conviction that is not directly related, you are required to withdraw the adverse action.6.&nbsp;&nbsp;Send any final adverse-action notice within 30 days of receiving their information, or within 30 days of your original notice if they stay silent.California state Fair Chance timing can differ from San Francisco’s seven-day window depending on how you send the notice. Do not assume your national CRA template already matches both.A simple timeline you can put on the wall1.&nbsp;&nbsp;Conditional offer2.&nbsp;&nbsp;Provide the FCO poster / notice, then order the check3.&nbsp;&nbsp;Review only usable records; run the individualized assessment4.&nbsp;&nbsp;If you may rescind: send prospective adverse-action notice + report + specific items5.&nbsp;&nbsp;Day 0–7: wait for a response6.&nbsp;&nbsp;If they respond: confirm receipt by day 14 and reopen the assessment7.&nbsp;&nbsp;Final notice by day 30 (from their response, or from your original notice if they did not respond)Put owners on each step. “HR will get to it when the hiring manager is back from PTO” is how the 14- and 30-day clocks get missed.What should we audit this month?Use this as a working list, not a scorecard.Job ads and applications·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Chance statement is in solicitations·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No conviction question before a conditional offer·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staffing/temp vendors who fill SF hours are using the same ruleWho you treat as “in San Francisco”·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees who work 8+ hours a week in the city, including remote-from-SF·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seasonal and contingent roles, not just full-time HQ jobsCRA / background-check package·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorization happens after the conditional offer for FCO-covered roles·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports can be filtered or reviewed against the “do not consider” list (7-year limit, dismissed/sealed, juvenile, infractions, cannabis, unresolved vs. non-conviction arrests)·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Someone is assigned to flag out-of-state items that may be off-limits under California law·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can produce the report quickly when you send a prospective adverse-action noticeLetters and clocks·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prospective adverse-action letter lists the specific items, not a vague “your background check”·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calendar holds for the 7-day response, 14-day receipt confirm, and 30-day final notice·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the person replies, someone sends a short “we received this on [date]” note inside 14 days·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Final letters do not sit in a queue past day 30Poster and notices·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August 2026 FCO poster is up at each workplace or job site·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Posted in English, Spanish, Chinese, and any language spoken by at least 5% of employees at that site·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy goes to each applicant or employee before the background checkDocumentation·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Individualized assessment notes (direct relation, time elapsed, rehab/mitigation)·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dates of notices, replies, and receipt confirmations·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual compliance reporting to OLSE if you are a covered employerHow does this sit next to a national FCRA process?A lot of FCRA lawsuits are about the process, not the record. Stand-alone disclosure, written authorization, pre-adverse notice, a real wait, final notice. San Francisco did not replace that. It made the wait measurable.If your team uses one national adverse-action workflow, San Francisco is a reason to branch it:·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Same federal notices·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local “do not consider” filters·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local clocks and a receipt-confirmation email·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A poster step before the orderThat is also where a consumer reporting agency earns its keep. Speed still matters. So does a report you can actually explain, dispute, and date-stamp. Instant database results are a first pass. County court depth is often what tells you whether a hit is current, dismissed, or someone else’s record. Neither replaces the Fair Chance steps.Quick answersDoes this apply if nobody sits in our San Francisco office?&nbsp;Possibly. Five employees anywhere plus 8+ hours a week worked in the city, including remote-from-SF, can be enough. Map the work, not the org chart.Can we still run a criminal check?&nbsp;Yes, after a conditional offer, using records the ordinance allows, plus an individualized assessment. The FCO is about when and how, not a ban on screening.What if the report is wrong?&nbsp;Give the person the items you relied on and the seven days to show inaccuracy, rehabilitation, or mitigation. Confirm you got their reply. Reassess. If the only item is not directly related, withdraw the adverse action.Do we need a new poster if we posted the 2018 version?&nbsp;Yes. Use the August 2026 notice. Old posters are the easiest miss on an audit.Is this the same as California’s Fair Chance Act?&nbsp;No. Similar idea, different details. Comply with both. When they conflict, take the path that gives the applicant the greater protection and confirm it with counsel.The takeawaySan Francisco did not invent Ban the Box in August 2026. It put a clock on the part of hiring where people get quiet: the days after you send a “we may not hire you because of this record” letter. Confirm you received a response. Finish the decision. Send the final notice. Post the new notice. Filter what you are not allowed to use.If you hire across cities, treat adverse action like a timed workflow, not a gut call. Your employees are your biggest asset. Informed, lawful screening is how you protect them without improvising the last mile.Questions about building a check that is fast enough for hiring managers and clean enough for Fair Chance and FCRA? We’re here. Subscribe to the CriminalWatchDog newsletter for more practical hiring-compliance updates, and share this with the HR partner who owns your offer letters.ADDITIONAL STORIES THAT MIGHT INTEREST YOU.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;How Ban the Box Legislation is Changing Hiring Practices·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Ultimate Pre-Employment Screening Checklist

New Clocks on Fair Chance: What San Francisco’s August 2026 Adverse-Action Rules Mean for Multi-State Employers

The reasoning behind non-compete agreements is simple: when an employee leaves a company, the contract prevents them from leaking the business’ confidential information to a competitor. This makes sense when non-competes are applied to only business executives, partners, or officials — people who are actually in possession of the trade secrets the agreements are meant to protect. But when the clauses extend to entry-level workers or employees of businesses that don’t trade secrets, things can get messy.Non-competes are a hot issue right now due to the growth of digital communication, documentation, and higher competition among businesses. Clauses are especially prevalent in such fields as engineering and finance, according to <a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/21/the-rise-of-the-non-compete-agreement-from-tech-workers-to-sandwich-makers/" rel="noopener noreferrer" target="_blank">a new working paper</a> by economists at the University of Illinois and University of Michigan, but are also appearing in less obvious fields like <a href="http://www.nytimes.com/2014/06/09/business/noncompete-clauses-increasingly-pop-up-in-array-of-jobs.html?_r=0" rel="noopener noreferrer" target="_blank">lawn care and hair styling</a>.But as with other company-specific laws, such as <a href="/resources/employment-law/how-ban-the-box-legislation-is-changing-hiring-practices/" rel="noopener noreferrer" target="_blank">Ban the Box legislation</a>, it’s often difficult to establish where the line between being enforceable and being unreasonable is for non-compete agreements. State laws, time and geographic restrictions, employee rank, and industry type are all things that must be considered when determining whether or not a non-compete agreement is enforceable and/or necessary.To help navigate the complicated world of non-compete agreements, below we define exactly what a non-compete agreement is, outline what they entail, provide examples of what is and is not (generally) enforceable, and link to a sample of a standard non-compete contract.<h4>What Is a Non-Compete Agreement and Why Are They Used?</h4>A non-compete agreement is a type of <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">restrictive covenant</a>. Essentially, it is a promise by an employee to not work for competing businesses in a specific region for a specific time period following termination of employment.Employers use non-compete contracts to keep confidential information — intellectual property, client lists, financial data — safe from competitors. They see the agreements as a way to mitigate the risk of hiring and entrusting private material to employees, consultants, or contractors.The goal of non-competes is to provide an employer protection from unfair competition (competition involving the “misappropriation of good will” — a.k.a. stealing an employer’s relationship with customers, clients, or vendors and/or confidential business information) while not unreasonably prohibiting a former employee from earning a living.<h4>What Is Included In Non-Compete Agreements?</h4>Non-competes specify the geographic scope, duration, and type of activity an ex-employee is prohibited from engaging in. For example, a car salesman might have a 50-mile non-competition radius so as not to steal customers from his or her previous dealership. A TV news reporter, on the other hand, might be forbidden from working for other local television stations for a period of time following termination; time frames can range anywhere from a few months to two years.<h4>When Are Non-Compete Agreements Enforceable?</h4>Here’s where things get tricky. Whether or not a non-compete agreement is enforceable depends on <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">whether or not it is reasonable</a>, and what is reasonable is determined by state courts on a case-by-case basis; <a href="http://www.beckreedriden.com/wp-content/uploads/2012/09/Noncompetes-50-State-Survey-Chart-20130814.pdf" rel="noopener noreferrer" target="_blank">every state has its own laws regarding non-compete clauses</a>. Non-compete agreements are typically considered enforceable if they:<ul><li>Have reasonable time restrictions (generally less than one year)</li><li>Are limited to a certain geographic area (specific cities or counties, rather than entire states)</li><li>Are necessary to protect certain employer interests, including trade secrets, confidential business information, and the company’s relationship with customers, clients, and vendors (including market position and reputation)</li><li>Are "supported by consideration," meaning an employee receives a benefit (additional compensation, stock options, acceleration of benefits, etc.) in exchange for promising to not work for a competitor</li></ul>Non-compete agreements must also be industry specific in order to be enforceable. For example, a newspaper writer could be barred from working for the other local newspaper, but not writing novels, even though that uses many of the same skills.Technically, a standard non-compete contract <a href="http://thedailyrecord.com/2014/09/26/should-your-company-use-non-compete-agreements/" rel="noopener noreferrer" target="_blank">is more likely to be upheld</a> if the time limitation is short, the geographic scope is small, the type of activity is narrow, and the employee is only prohibited from soliciting their former employer’s established customers.<h4>When Can Non-Compete Agreements Be Disputed?</h4>Non-compete agreements can be disputed and are unenforceable whenever they are too restrictive — which is often. Every state has its own laws about whether or not non-compete agreements are enforceable. Some, <a href="http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&amp;group=16001-17000&amp;file=16600-16607" rel="noopener noreferrer" target="_blank">like California</a>, have deemed them illegal except in the sale of a business or a shareholder’s stock or dissolution of a partnership. Others, <a href="http://www.lindquist.com/files/Publication/5ad45f6f-fa73-4842-983d-e9cbd88bf37e/Presentation/PublicationAttachment/840cb492-f058-4199-8c2a-ecdb8e9c6636/Employer%20Beware%20-%20Is%20Your%20Noncompete%20Agreement%20Enforceable.pdf" rel="noopener noreferrer" target="_blank">like Wisconsin, Nebraska, and Arkansas</a>, allow reasonable agreements but will invalidate contracts that are too broad.<a href="http://www.beckreedriden.com/wp-content/uploads/2012/09/Noncompetes-50-State-Survey-Chart-20130814.pdf" rel="noopener noreferrer" target="_blank">This chart</a> outlines each state’s laws and rules about whether, when, and to what extent a non-compete agreement is enforceable, and demonstrates the complications involved in determining enforceability. It includes information like:<ul><li>Whether non-compete agreements are permitted at all (in California, non-competes are illegal unless you are selling a business)</li><li>Specifications for what is and isn’t allowed (for example, in Arkansas, customer relationships are only protected where the employee was the sole contact)</li><li>Whether the state follows the <a href="http://www.natlawreview.com/article/how-50-states-differ-revising-non-competes-different-strokes-different-folks-or-red-" rel="noopener noreferrer" target="_blank">reformation rule, the blue pencil doctrine, or the red pencil doctrine</a></li><li>Whether non-compete agreements are enforceable against at-will employees whose <a href="http://www.criminalwatchdog.com/resources/employment-law/how-performance-management-protects-businesses-when-firing-employees/" rel="noopener noreferrer" target="_blank">employment was terminated without cause</a></li></ul>In general, courts will rule in favor of an employee in cases determining the reasonableness of a non-compete agreement. Some of the <a href="http://corporate.findlaw.com/business-operations/will-your-non-compete-agreement-withstand-a-court-challenge.html" rel="noopener noreferrer" target="_blank">factors judges look at when deciding on a ruling</a> for these cases include:<ul><li>Geographical restrictions (state-wide won’t be enforced, but a local areal restriction might, if it is necessary to protect the employer)</li><li>Time period restrictions (the longer it is, the more likely it will be deemed unfair)</li><li>Type of industry, work, or specific company (businesses with direct competitors may indicate the company they don’t want employees going to)</li><li>Circumstance (whether the employee was terminated or left voluntarily)</li><li>Too broad (unnecessary restrictions, usually pertaining to geographic or time limits)</li><li>Type of work/job position (if an employee doesn’t have access to confidential information or trade secrets, the non-competition clause may be deemed automatically unnecessary)</li></ul>For prospective employees, it’s always a good idea to read the fine print of a non-compete contract. When doing so, ask yourself if the clause is relevant to your job, if it is fair, and if it is reasonable to you considering your location, position, and job responsibilities. Here’s <a href="http://www.kkrlaw.com/articles/noncomp.htm" rel="noopener noreferrer" target="_blank">an example of a general non-compete contract</a>, and the stipulations you might encounter.For employers, non-compete agreements should be used only to protect confidential information and only when absolutely necessary. If you do decide to require a non-compete, make the requirement known in a prospective employee’s offer letter. This inherently fulfills the consideration aspect of the agreement, with the benefit for the employee being the job. Asking employees to sign a non-compete later on in their tenure, or following a promotion, means <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">a benefit must also be included</a> (raise, bonus, stock options, etc.), which adds additional complications to an already complicated process.<h4>So, are Non-Compete Agreements Actually Enforceable?</h4>Non-compete agreements are complicated and multifaceted deals. In some cases, such as in the sale of an entire business, they are necessary and practical. In most situations, however, they are unreasonable and unenforceable. Being aware of state laws and the specific requirements outlined in a non-compete agreement are the best ways to avoid messy legal disputes and maintain positive employee–employer relationships.

Are Employee Non-Compete Agreements Enforceable?

The importance of employee engagement is no secret. Motivated employees put more effort into their work, which leads to better business outcomes. In fact, businesses with highly engaged employees <a href="http://www.engageforsuccess.org/wp-content/uploads/2012/09/The-Evidence.pdf" rel="noopener noreferrer" target="_blank">achieve twice the annual net income</a> of those who lag behind in engagement.However, coming up with new and interesting ways to motivate employees is challenging. That's because we're trying to influence and sometimes even change the behavior of our entire staff. Recruitment is exhausting enough. Add scalable behavioral modification to the mix and our jobs can seem impossible!Thankfully implementing an employee engagement strategy doesn't require an organizational overhaul. Rather, we can take baby steps and avoid catastrophic cultural or operational changes by looking at how other businesses motivate employees. Below we've outlined five employee engagement ideas that worked for other companies, and actions you can take right now to implement the engagement technique to your organization.<h3>Motivating Employees Idea 1: Gamification</h3>The use of games in the workplace to increase employee engagement is growing. In fact, the gamification market is expected to be worth $2.8 billion by 2016, according to <a href="http://gamingbusinessreview.com/wp-content/uploads/2012/05/Gamification-in-2012-M2R3.pdf" rel="noopener noreferrer" target="_blank">M2 Research</a>. But what is it?<a href="http://blogs.gartner.com/brian_burke/2014/04/04/gartner-redefines-gamification/" rel="noopener noreferrer" target="_blank">Gamification</a> uses game mechanics and design techniques in a non-gaming context to drive business performance. Much more than social networks, leaderboards, and badges, gamification is a unifying technique that helps employees of all levels connect with one another. It provides a system for recognizing and remembering things like employee cooperation, (friendly) competition, advancement, and success.For example, utilities company EDF used gamification to crowdsource ideas for how their organization might innovate, <a href="http://www.uk.capgemini.com/energising-edf-energy-through-gamification" rel="noopener noreferrer" target="_blank">generating</a> five times as many ideas from employees than previous attempts. Pretty impressive.Employees <a href="https://hbr.org/2011/02/making-sure-your-employees-suc" rel="noopener noreferrer" target="_blank">are more likely to succeed</a> if they know their companies' goals, and gamification is a way of tangibly quantifying their contributions toward business objectives. Also, gamification lends itself to analytics, which can provide interesting insights into the impact of our motivational techniques.<h4>How to implement gamification</h4>The good news is we can start small. By thinking about our employees’ motivations and clearly identifying our business objectives, we can integrate game elements into existing processes.“Something as simple as a scoring system can motivate employees to change their behavior,” says Elena Bertozzi, a professor of digital game design at Quinnipiac University, when talking to <a href="http://theinstitute.ieee.org/technology-focus/technology-topic/gaming-in-the-workplace" rel="noopener noreferrer" target="_blank">The Institute</a>.For example, at the University of California Benioff Children’s Hospital in San Francisco, nurses were given points for logging in their daily tasks as part of an effort to prevent hospital-acquired infections.“It’s difficult to teach motivation,” says Bertozzi. “That’s what games can do. Game developers look at a situation and figure out how to persuade people to engage in a specific activity by turning the situation into a more competitive one.”And competition in the workplace can be a <a href="https://hbr.org/2012/05/the-darwinian-workplace" rel="noopener noreferrer" target="_blank">good thing</a>, as it boosts productivity when managed carefully. Keep things simple and entertaining to make sure employees buy in (low barriers of entry make games easily accessible to everyone), and offer real-time rewards and feedback. For more implementation ideas, check out this <a href="http://www.cognizant.com/InsightsWhitepapers/Gamifying-Business-to-Drive-Employee-Engagement-and-Performance.pdf" rel="noopener noreferrer" target="_blank">paper</a> about getting started with a gamification process.<h3>Motivating Employees Idea 2: Peer-to-Peer Bonus Programs</h3>Rewards shouldn’t always come from the top. After all, those who are around us on a daily basis really notice when we’re putting in the extra effort.Zappo’s <a href="http://www.zapposinsights.com/blog/item/four-peertopeer-ways-zappos-employees-reward-each-other" rel="noopener noreferrer" target="_blank">recognizes this</a>, and uses a peer-to-peer employee rewards program that allows its staff to acknowledge those who are an excellent example of company culture and who’ve been doing a fantastic job.Peer-to-peer rewards not only improve engagement, but they also foster a positive team spirit. They’re a great way of showing employees that the things they do make a big difference, and they’re not going unappreciated.<h4>How to implement a peer-to-peer rewards program</h4>Set up a process whereby employees submit nominations with brief explanations to a designated team or individual. Make it so that each employee can nominate one person a month, then pick winners on a qualitative or quantitative basis.Rewards don’t have to be expensive. One of Zappo’s core values is “do more with less” and this means it works hard to keep its reward program affordable and scalable. For example, give awesome parking spots, free lunch for a week, or small cash prizes. To give peer-to-peer rewards an extra boost, monitor them over time and hold an awards ceremony at the end of the year to recognize the employee who earned the most.<h3>Motivating Employees Idea 3: Funded Social Events</h3>Beyond salary, psychological and social fulfilment can determine whether employees are motivated to stay, perform, and contribute to an organization, says Sylvia Vorhauser Smith for <a href="http://www.forbes.com/sites/sylviavorhausersmith/2013/08/14/how-the-best-places-to-work-are-nailing-employee-engagement/" rel="noopener noreferrer" target="_blank">Forbes</a>. In other words, employees who have their <a href="http://smallbusiness.chron.com/motivating-employees-maslows-hierarchy-needs-11828.html" rel="noopener noreferrer" target="_blank">basic human needs</a> met by their employer are more likely to be engaged.UK-based Peninsula Business Services came third in the Sunday Times' "Best Companies to Work For" <a href="http://www.b.co.uk/Company/Profile/305891" rel="noopener noreferrer" target="_blank">list in 2014</a>, partly because it funds monthly socials for its employees. While this is just one of its many methods of boosting employee engagement (for example, its 759 staff receive a free breakfast every Monday morning to make the start of the week more palatable), hosting social events is something that even the smallest business can do.<h4>How to implement funded social events</h4>From Friday afternoon beer o’clock to a holiday meal, funded socials are one of the easiest ways to improve employee engagement. Or try <a href="http://ctb.ku.edu/en/table-of-contents/maintain/reward-accomplishments/awards-ceremonies/main" rel="noopener noreferrer" target="_blank">reward ceremonies, which</a> are a great way to kill two birds with one stone — publicly recognize the efforts of high achievers and gather all employees in one place to bond. Just make sure that social events don't exclude certain employees — the last thing we want to do is to turn an employee engagement activity into an <a href="/resources/employment-law/ways-employers-encourage-discrimination-in-the-workplace" rel="noopener noreferrer" target="_blank">unintentional workplace discrimination</a> suit waiting to happen!Worried about actually funding social events? Compared to the cost of high staff turnover and poor engagement (disengaged employees are estimated to cost the U.S. economy $450 billion to $550 billion annually, according to a <a href="http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx" rel="noopener noreferrer" target="_blank">survey</a> by Gallup), a monthly, or even quarterly social event isn’t a huge expenditure in the scheme of things. Review the books for discretionary budget and stick to small-scale events to keep costs down.<h3>Motivating Employees Idea 4: Anniversary Celebrations</h3>We know that employees who feel appreciated often go above and beyond what is expected of them, are more productive, and are less likely to leave a company. Well, celebrating employees’ workplace anniversaries is another way of letting them know that their commitment and loyalty haven’t gone unnoticed.It’s another two birds, one stone situation. On the one hand, it improves the confidence and happiness of an individual employee. On the other, seeing another employee's achievements celebrated boosts morale across the whole office, because other employees know that their milestones will be met with similar rewards.<h4>How to implement anniversary celebrations</h4>This is another employee engagement technique that is extremely simple to set up. It only requires active management of a calendar to document employee start dates and some day-of preparations.What's more, it doesn’t have to be organized from the top down. Setting up a celebration committee is a great way of sharing the work and fun; and it can improve the engagement of committee members since they'll have ownership of something that increases their peers' happiness.What employees receive on their anniversary is limited only by our imagination. For example, employees celebrating their 20th anniversary with OhioHealth are <a href="http://fortune.com/best-companies/ohiohealth-35/" rel="noopener noreferrer" target="_blank">rewarded</a> with a shopping spree at an upscale mall before receiving a red carpet lunch with the CEO, while those reaching 10 years at Info-Tech Research Group get to join an exclusive veteran’s club and are <a href="http://www.greatplacetowork.ca/storage/documents/Publications_Documents/2013_Best_Workplaces_in_Canada.pdf" rel="noopener noreferrer" target="_blank">given</a> a $2,000 Air Canada gift certificate. From extra vacation days to simply an anniversary balloon, the options are endless.<h3>Motivating Employees Idea 5: Offer Flextime</h3>Flextime is a valuable tool for increasing employee satisfaction and engagement; considering it helps reduce absenteeism and staff turnover, improves the health of workers, and increases their productivity, according to a U.S. government <a href="http://www.whitehouse.gov/files/documents/100331-cea-economics-workplace-flexibility.pdf" rel="noopener noreferrer" target="_blank">study</a>.In fact, workers value flexibility <a href="http://newsroom.cisco.com/press-release-content?type=webcontent&amp;articleId=1528226" rel="noopener noreferrer" target="_blank">over almost anything else</a> — 66% of American millennials said they felt that an organization that adopts a flexible, mobile, and remote work model has a competitive edge over one that requires employees to be in the office from 9 am to 5 pm every weekday.<h4>How to implement flextime</h4>Allowing more personal days, flexible working hours, remote working options, compressed hours (where employees work longer hours over a shorter period of time), and half-day Fridays can all contribute to a more engaged workforce. It makes sense — employees <a href="http://www.entrepreneur.com/article/159440" rel="noopener noreferrer" target="_blank">love</a> when employers are willing to contribute to a healthier work/life balance, and they work harder to ensure they can keep this optimal arrangement.Adopt a formalized flextime policy rather than allowing an ad-hoc approach (which could get out of hand), and make sure all employees are aware of it. Some businesses do this by enforcing core hours, which means that regardless of start and finish time, all employees must be at their desks between, say, 10 am and 3 pm.If it’s not realistic to implement this as standard, then why not take a leaf out of the Palo Alto-based law firm, Cooley’s, book? When its employees do a great job, they’re rewarded with “Snooze or Cruise” certificates, which allow them to come in two hours late or leave two hours early on a day of their choosing. The law firm's flexible initiative was <a href="http://fortune.com/2014/01/16/10-top-perks-from-fortunes-best-companies-to-work-for-2014/" rel="noopener noreferrer" target="_blank">featured</a> in Fortune Magazine’s “10 Top Perks from Fortune’s Best Companies to Work For” and is an affordable way to motivate and reward employees.<h3>Takeaway</h3>Motivating employees isn't just about providing perks. Employees want to work for organizations that support and reward excellence, encourage honesty, and operate fairly. It’s our responsibility to provide them with this type of work environment as best we can; and in return we'll be rewarded with engaged employees.Remember, we don’t have to make monumental organizational changes all at once. We can reduce risk by looking at the results achieved by other employers and adapting their initiatives to suit our own company objectives. We can also reduce the likelihood of internal resistance by starting small, measuring the impact of our employee engagement strategies, and collecting feedback before rolling things out on a larger scale.

Employee Engagement Ideas: 5 Proven Ways to Motivate Employees

Firing employees is never easy. As managers, we’re often painted as the bad guy, but it’s our responsibility to establish an efficient, happy, and talented workplace. We have to look out for the business and each individual employee, balancing the needs of both to bring about positive growth.Sure, the "sorry, we have to let you go" conversation can be emotionally-charged and difficult to initiate, but it can also lead to consequences if not handled properly. Thankfully, performance management can help spread the burden of responsibility when it comes to terminating employment, both legally and emotionally. It’s a way of ensuring employees are aware of their goals and duties, so that should they fail to meet them, appropriate steps can be taken to address the situation.<h3>First, What is Performance Management?</h3>Performance management is an organized, ongoing process that involves making sure employees continuously contribute toward business goals, and if they are not, provides a process for letting them know and helping them improve.<a href="http://www.acas.org.uk/index.aspx?articleid=4668" rel="noopener noreferrer" target="_blank">According to management consultancy ACAS</a>, good performance management ensures that everyone knows:<ul><li>What the business goals are</li><li>How they can help the business achieve these goals</li><li>The skills they need to do this</li><li>The standards required of them</li><li>How well they’re doing</li><li>How they can improve</li><li>When there are problems</li></ul>To be successful, performance management requires regular meetings between managers and team members so that they can discuss all of the above issues. This should happen both informally and formally, and detailed documentation should be made as both types of meetings occur.<h3>What Risks Do Businesses Take when Firing Employees?</h3>Firing employees should be a last resort and should only be necessary when other steps taken to resolve performance issues have failed. This is because businesses assume a number of risks when they make the decision to fire someone. These include:<h4>Security risks</h4>Firing employees can leave them feeling hurt and angry, and unfortunately this can lead to security breaches or retaliation. Terminated employees often have access to company resources (including digital ones) which could be abused and result in business interruption, sabotage, embarrassment, lost productivity, and other financial costs.Unfortunately, it’s also a sad fact that termination can result in injury and even death. In September 2012, a former employee of a Minneapolis signage company allegedly <a href="http://www.myfoxtwincities.com/story/19659885/minneapolis-office-shooting-chestnut-ave" rel="noopener noreferrer" target="_blank">shot and killed</a> five people at his workplace the day after he was fired, before taking his own life.A <a href="http://minnesota.cbslocal.com/2014/09/22/settlement-reached-in-accent-signage-shooting-suit/" rel="noopener noreferrer" target="_blank">lawsuit</a> was later brought against the employer by the family of one of the victims. It stated that the shooting was reasonably foreseeable based on the shooter’s former behavior, and was later settled out of court.This highlights the need for proper pre-employment screenings, regular <a href="/criminal-background-check" rel="noopener noreferrer" target="_blank">criminal background checks</a>, and constant <a href="http://www.doli.state.mn.us/WSC/PDF/WorkplaceViolencePreventionGuide.pdf" rel="noopener noreferrer" target="_blank">monitoring for high-risk employees</a>, as it's our responsibility to provide a safe work environment that <a href="http://www.criminalwatchdog.com/resources/employment-law/what-is-OSHA-and-other-workplace-safety-questions-answered" rel="noopener noreferrer" target="_blank">abides by OSHA standards</a>.<h4>Legal risks</h4>A number of different factors determine whether or not employees have the right to pursue a lawsuit against their employer, including the type of contract they’ve signed, union membership regulations, and the length of their service.For example, employees who feel they were dismissed unfairly can file <a href="http://www.dol.gov/dol/topic/termination/" rel="noopener noreferrer" target="_blank">wrongful termination</a> lawsuits. This often happens when employees aren’t given a reason for being fired, when they’ve been led to believe they’re good workers, or when their dismissal coincides with a complaint that they’ve made against an individual or the company.In addition to this, employees may also cite discrimination as the reason for their termination. Discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information is illegal, and it’s also illegal to retaliate against a person because he or she complained about discrimination to the Equal Opportunities Employment Commission (<a href="http://www.eeoc.gov/laws/practices/index.cfm" rel="noopener noreferrer" target="_blank">EEOC</a>). It's <a href="/resources/employment-law/ways-employers-encourage-discrimination-in-the-workplace" rel="noopener noreferrer" target="_blank">surprisingly easy to unintentionally encourage or practice discrimination in the workplace</a>, so when firing employees we need to be able to prove that the decision had nothing to do with any of these factors.<h3>So, How Does Performance Management Protect Our Businesses?</h3><h4>It minimizes losses</h4>When it comes down to it, we need to protect our business and our jobs. Performance management can help us do that. It gives us a clear process for making underperforming employees aware that they need to improve, and outlines the potential consequences if they don’t.What's more, this systematic approach can help us find employee inefficiencies faster. Why the haste? Apart from the direct effects that poor performers have on business objectives, holding onto disengaged, unfocused employees can result in a ripple of negativity across the organization. It’s demotivating for others to see other employees not pulling their weight and this can lead to low morale and reduced <a href="/resources/employee-engagement/" rel="noopener noreferrer" target="_blank">employee engagement</a> across the board. And poor morale and engagement can result in actual financial losses, since disengaged employees are estimated to cost the U.S. economy $450 billion to $550 billion annually, according to a <a href="http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx" rel="noopener noreferrer" target="_blank">survey</a> by Gallup.In a way, performance management is putting the ball in underperforming employees' court. By setting clear goals, giving them the right tools to achieve them, and offering performance reviews along the way, we’re giving them a fair chance to improve, while also ensuring that we won’t sustain further losses if any issues continue.<h4>It provides fair warning, which reduces legal risk</h4>When performance evaluations are a consistent part of an organization's processes, employees are made fully aware of their responsibilities and growth (or lack thereof) on a regular basis. It means we're giving employees plenty of chances to fix issues and to ask for help.Employee turnover costs money, as much as <a href="http://www.inc.com/suzanne-lucas/why-employee-turnover-is-so-costly.html" rel="noopener noreferrer" target="_blank">150%</a> of each lost employee’s annual salary to be exact. Remember, <a href="/resources/employee-engagement/5-ways-to-motivate-employees/" rel="noopener noreferrer" target="_blank">having a performance management strategy</a> not only saves us money from an operational standpoint, it also saves us from expensive legal fees due to wrongful termination or discrimination lawsuits filed against us. Thus, we want to make sure we only terminate someone after a series of straight-talking discussions, performance improvement plans, and documented actions.Effective performance management is also a way of putting a human face to the dismissal process, which is a softer way to reduce the risk of someone filing a lawsuit after termination. If our employees feel that we’ve done everything we can to help them succeed, by the time dismissal occurs it won’t come as a surprise. They should leave feeling as though they’ve been consulted throughout the process, not victimized.<h4>It creates a trail of evidence</h4>If employees are let go and they file a lawsuit, we want to make sure we can provide evidence that they were fired with just cause. Performance management is a way of preparing ourselves to do just that.Effective performance management involves keeping accurate and up-to-date personnel files on all employees. These serve as a historical timeline of their employment from hire through to termination, including evidence of all goals set, training undergone, and feedback given.These files are invaluable should a court case arise, and having them on-hand can save time and money when defending ourselves against a claim of unfair dismissal. So we need to make sure that our organizations have an employee performance review process that gathers documentation, such as through the help of employee evaluation software like <a href="https://www.small-improvements.com/" rel="noopener noreferrer" target="_blank">Small Improvements</a> and detailed "recap" emails sent to employees by managers after every one-on-one meeting.<h3>Takeaway</h3>Performance management is by no means a silver bullet; it takes a lot of work to maintain an effective, user-friendly, ongoing program, and it must be applied consistently across the board for it to be a success.However, when implemented properly, the benefits far outweigh the costs, both in developing a performance-driven culture and in protecting our business from legal disputes. As managers, we’re protectors of the workplace. Our employees are the key to our success and it’s down to us to do what's best for the majority of them.Are you having issues with under-performing employees? If their poor performance is due to lack of engagement, check out these <a href="/resources/employee-engagement/5-ways-to-motivate-employees/" rel="noopener noreferrer" target="_blank">five proven employee engagement ideas for motivating employees</a>.<h3>Additional Resources You Might Find Interesting:</h3><ul><li><a href="/resources/leadership-and-management/" rel="noopener noreferrer" target="_blank">Management advice that will make you a better leader</a></li></ul>

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