Coaching Conversations

I just got off the phone with a colleague I've known for several years, although we've never met in person and this colleague lives most of the way across the country from me. We spoke of the downturn in the economy, changes in our workload, aggravations of management that sometimes can be ambiguous and send mixed messages, and my colleague's eventual goal to reinvent himself after retirement.

When the phone conversation began, my colleague, whom I'll call Tom, sounded a bit tired and edgy. He'd had a stressful couple of weeks - mostly due to that oft-time aggravating situation of having ambiguous messages from company leadership or lack of clear support from the upper level management team. I've often seen professionals and mid-level managers who truly want to work hard and become fully engaged in their organization's success; however, there is an apparent lack of a clear and consistent vision or support from the leadership team. It's difficult to jump on board the organizational train if leadership either continuously changes direction, or management alternately hitches and unhitches cars from the train showing support at times and lack of support otherwise.

As my conversation with Tom wandered a little and he mentioned a potential new direction or link between his current work and something he'd like to be doing in the future, we discussed the link between employee discipline, employee relations, and labor relations - including the differences and similarities of these human resources focus areas. The more we talked the more that future possibilities seemed to have a positive potential. Tom's voice started to sound much more relaxed and comfortable. He was beginning to see that things would not always be the way they were looking today - and that his attitude would make all the difference between a positive or negative future outcome.

The call ended on a good note - with both of us feeling better and more energized than we would have felt without working through the conversation. I was reminded of why I enjoy sometimes taking a coaching role with family, friends, co-workers, employees, and colleagues half way across the country. Conversation can be a great mood enhancer and problem solving tool. Just as a computer and the internet are the technology of written communication - conversation is the technology of coaching.

Cleaning Out Closets

I think it must be contagious because even though I am not the most meticulous of housekeepers, lately I've been cleaning out closets - not just at home, but at work, and in my mind. The closets I'm cleaning don't all look like closets. Some are email inboxes, some are piles of papers to be filed, some are stacks of books on the garage floor, some are old habits that are not doing me any good.

Last week we had new flooring installed in our home. Prior to having this done it was necessary to move the furnishings into the garage - so that there was nothing left in the rooms. This week, with fresh new flooring in place, each room is a clean slate. Looking at the garage, I've started thinking of everything that needs to be moved back into the rooms - and more importantly of everything that does not need to be moved back. At least half of the things that I had stashed in closets, drawers, filing cabinets, and various nooks and crannies don't serve a useful purpose. They are there because "sometime" we "might" use them. I have just gotten my family's permission to not move everything back into place. Instead, we will move back only the items we need or use frequently. The others will go into two piles - one to be sold or given to others and one to be tossed in the trash or recycle bins.

It has been so refreshing to only move back in those things we need or use frequently.

So, the contagion has started to spread - I cleaned off my desk at work today; I deleted emails older than 6-months from the folders I had set up to store them "in case I might need to refer to them"; I took the inbox off of my credenza so that mail cannot pile up in it. That was very refreshing too.

Now, the contagion is beginning to spread to my co-workers and staff - they were talking in the office today about "fall cleaning" and the destruction of unnecessarily stored paperwork.

And, the contagion is beginning to spread to the less tangible. As I was putting some needed and useful items back on the shelves at home my mind began to wander to all those unneeded habits and routines that do not add anything to my life. I started thinking about how much more time I would have to spend with my family, friends, and activities I used to enjoy - if I just change a few things. Fall cleaning - indeed!

Don't Panic! or Panic! which advise is right?

Over the last few weeks employees at my workplace have been contacting the human resources benefits office wondering what to do with their defined contribution retirement savings programs. There is no universal answer about what to do with 401K savings, invested in mutual funds, during a fluctuating and volatile market period. Also, as employers (not financial advisors), we are often reluctant to give advice in an area where we are not considered experts.

That said, employees will look to human resources and benefits professionals as experts regarding workplace investment programs such as 401K, 403b, or 457 type accounts. Speaking without knowing the facts, or remaining silent are both mistakes.

So, here are some possible words of wisdom from a friend of mine who is a financial professional and who has a calming demeanor:

"These past few weeks have been the most volatile and I have seen in my twelve year career in financial services. And, I have been handling numerous inquiries from participants as to what should be done. My message has remained: Stay the course / Don’t Buy High and Sell Low / If a mutual fund looked good at a share price of $20, it looks great at $14!

Here are some additional points made over the course of several discussions:
1) Think “long-term” … Most people have more than a decade and a half until they access the bulk of their retirement savings. Seeing that the market runs on 6.5 year cycles, there’s going to be at least two more “bull” markets in that time … ‘you gotta be in it to win it,’ per se.

2) Don’t rush to Bond Funds or the Plus Fund: With market conditions the way they are, you might not meet some retirement goals by staying invested in equities but, if you limit your potential returns, you definitely increase the likelihood that you will not meet retirement goals at all.

3) We will look back on this as the biggest buying opportunity in the history of the market. Everything is “on sale” and will probably continue to be so for the next year. Take advantage of low prices.

4) Don’t reduce your contribution, increase it. Yes, a primary use of an investment account is to increase wealth. However, qualified accounts such as 401K, 403b and 457 also provide a shelter from current taxes; lowering contributions will allow Uncle Sam to take more of your earnings. Plus … see #3 above!"

I thought those were words of good advice and passed them along to the employees where I work. Being silent sends a message that we don't care about the worries of our employees. Providing calming words of timeless advice from a calm, financial friend is a better option.

Let me know what you think - email sandra@skysthelimit-hr.com or take the quiz on this blog page!