Where There's Smoke …

Q: Ever since my grandmother died of lung cancer three years ago, I've been vehemently opposed to smoking. I haven't gone as far as specifying in my help wanted ads that smokers need not apply, but I don't think I could knowingly hire someone who smokes. Could I be accused of discrimination?

A: You are certainly within your rights to insist that no one smokes on your premises. This will save your staff and customers from the unpleasantness and potential harm of secondhand smoke. You will also be protecting your merchandise, especially plush and apparel, from being tainted by the smell of cigarette smoke.

Not hiring smokers, however, is another issue. In general, what employees do in their free time is a private matter, unless it directly impacts their ability to work.

While it could be argued that the higher health risks associated with smoking makes excluding smokers from your health insurance pool a logical move, such discrimination probably isn't legal. We don't discriminate against individuals with handicaps or other health problems requiring extensive medical care. Your state might even have smokers' rights laws prohibiting discrimination against those who smoke tobacco outside of work.

Check with your health insurance provider to see if it offers wellness incentives. A discounted membership in a fitness club or classes in stress management could have a positive impact on a smoker who is hoping to quit. Some plans might even offer discounts on classes that help smokers kick the habit.

Q: The downturn in the economy means that less than half of my employees will be getting raises at their annual reviews this fall. I'm dreading the process, and would appreciate some advice.

A: Since your employees have an expectation of receiving a raise during their annual conferences, I would suggest calling a general staff meeting before you begin the individual meetings in order to explain that, regrettably, no one will receive a raise due to the state of the economy. Then, some time well after the annual reviews are completed, find an occasion to privately offer a salary increase to those who merit one. Stress that this increase, like all personnel matters, is confidential information and should not be mentioned to others who may not be receiving a raise at this time.

When raises are associated with annual reviews, the salary increase tends to become the focus of the meeting for the employee. No matter how much you praise a staff member's performance, if their monetary expectation is not met, the staff member will feel let down — and perhaps even doubt the sincerity of your praise.

For that reason, it's best to offer raises at other times of the year, and if possible to tie them to an increase in responsibility or specific accomplishments by the employee. Giving a staff member a raise should be an opportunity for a positive one-on-one conference about their role.

The last thing you want is for a yearly performance evaluation to be a negative experience for your staff. Criticisms and concerns about job performance, as well as positive feedback, should not be saved up for the annual review. Rather, you should do your best to give employees individual attention throughout the year. If you are communicating well, there won't be any surprises at the annual review.

Employees who give exemplary customer service, or take on duties beyond their job assignment, should receive praise right away. It's often worthwhile to include some public recognition along with your personal words of praise. Mention the employee's accomplishment in the staff newsletter, or on a bulletin board. Try to find something in every employee's performance to praise from time to time.

If you have a specific concern about an employee's performance, arrange to meet privately with that person as soon as possible. Discuss the problem, and explain why it's a problem. Then you and your employee can come to an agreement about how to alleviate it. You might also want to schedule a meeting for two or three weeks later to assess the employee's progress. Make notes of these meetings for your personnel file. Documentation will be important if the employee needs to be terminated in the future.

What, then, is the purpose of annual reviews? Think of them as a chance to focus on each employee individually. Begin your annual reviews by listing the employee's achievements, and talk about any long-term goals the employee would like to work towards, and how they can be achieved. If you have specific questions about how your store is functioning, annual reviews are a good opportunity to gather information. Perhaps you'd like to find out about gaps in product training, improvements in staff communication, suggestions for scheduling, or other store issues. By asking every employee the same questions, you make it clear that you are treating your staff members equally, and not secretly targeting anyone's shortcomings. You might even want to give your employees a list of questions in advance, so that they can be prepared with thoughtful answers. Lastly, ask your employees what you can do to make their job easier or better.

Presenting the store's annual reviews as a chance to discuss store issues and employee responsibilities — rather than just salary increases — will give you, as a manager, valuable input into the operation of your store.