Archive for December, 2009

  • Learn to Manage Upward

    Our .02 Cents

    It’s fair to say most employees become anxious come performance review time. After all, in many ways, it’s the moment of truth – a judgment is made by your employer (your boss) as to how well (or not-so-well) you’ve done. It’s a time replete with conesquences… on the positive side, a pay increase or a promotion; more negatively, a demerit, even termination.

    The process often is one-sided as well, a top-down approach. One listens while another person does most of the talking, a one-way discussion. But it needn’t be. In fact, many companies have found that employees feel empowered when given a chance to assess the performance of those who sit above them on the corporate ladder.  It’s called “managing upward” and can be an effective way to improve not just a company’s morale but its bottomline as well. Often those who sit in the middle know best, able to provide fresh perspectives and insights into how an organization might operate better.

    2009.12.31 / no responses / Category: Human Resources, Our .02 Cents

  • Vacation Payout – Mandatory?

    An issue that too often causes employers much heartburn when it comes to employee separations… Are companies required to cash out unused vacation or earned time off? The answer: No. As the U.S. Department of Labor (DOL) makes clear:

    “The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or holidays (federal or otherwise). These benefits are a matter of agreement between an employer and an employee (or the employee’s representative).”

    Click here for answers to other Frequently Asked Questions provided by the DOL.

    2009.12.30 / no responses / Category: Human Resources

  • Nationwide, Unemployment Reserve Funds at Risk

    Currently 25 states have run out of money they previously set aside to fund unemployment benefits – and matters are likely to get worse. By 2011, according to the Department of Labor, 40 state funds will have been depleted due to widespread and prolonged joblessness. To continue delivering benefits, these states would have to borrow $90 billion in loans. To address the emerging problem, states are pretty much left with two choices: either raise employer taxes or shrink benefits.

    Read more here.

    2009.12.29 / no responses / Category: In the News

  • Caregiver Discrimination Protections on the Uptick

    In 2009, the Equal Employment Opportunity Commission (EEOC) drafted new, informal guidelines of sorts -  “Employer Best Practices for Workers with Caregiving Responsibilities” – to educate companies as to caregiver rights and protections in the workplace.

    Earlier, in 2007, the EEOC had issued guidance explaining the circumstances under which discrimination against workers with caregiving responsibilities might constitute discrimination based on sex, disability or other characteristics protected by federal employment discrimination laws.

    The 2009 information supplements the 2007 guidance by providing suggestions for best practices that employers may adopt to reduce the chance of EEO violations against caregivers, and to remove barriers to equal employment opportunity.

    Perhaps not surprisingly, at least 63 local governments in 22 states – including some of the nation’s major urban areas – have taken matters into their owns hands. They have gone a step further, passing their own employment anti-discrimination laws that go beyond federal and state statutes to ensure that those with caregiving responsibilities are not discriminated against at work.

    2009.12.28 / 2 responses / Category: Human Resources, In the News

  • Wage Theft a Growing Concern

    About 68 percent of low wage workers reported some kind of wage theft in 2008, regardless of citizenship status, according to a study that surveyed approximately 4,400 low wage workers in Chicago, Los Angeles and New York City.

    Here’s more of what researchers uncovered:

    Minimum Wage Violations
    - 26% of workers were paid less than legally required minimum wage in the previous work week.
    - Such wage violations were not trivial – 60% of workers were underpaid by more than $1 per hour.

    Overtime Violations
    - Over a quarter of respondents worked more than 40 hours during the previous week, and of those, 76% were not paid the legally required overtime rate by their employers.
    - The average worker, whose wage protection had been violated, put in 11 hours of overtime… hours that were either underpaid or not paid at all.

    The report goes on to document other types of violations – violations related to being “off the clock,” meal breaks, paystub deductions, tipped wages. It also found that when workers expressed concern or complained about being paid unfairly, they often faced retaliation from their employers (fear of reduced hours or cut wages, lost jobs, etc.).

    To read the full report, “Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America’s Cities,” click here (PDF).

    2009.12.26 / no responses / Category: Human Resources, In the News

  • Indiana as HSA Leader

    Health Savings Accounts (HSAs) are one aspect of health care reform that deserves more attention. Case in point: The state of Indiana, where some 50% of all government employees have one. While not a be-all end-all to health care reform, HSAs can be structured in such a way as to incent more appropriate decision-making among consumers of medical care. Under Governor Mitch Daniels leadership, each state employee receives a deposit of $1,500 if an individual, and $3,000 for families. Employees are then encouraged to make contributions up to federally-allowed maximums, approximately double these amounts respectively.

    Source: “Indiana HSA Success a Lesson for Other States,” Health Care News (December 2009: 10).

    2009.12.24 / no responses / Category: Benefits

  • Advice on Handling Employee Complaints

    All businesses or employers must strive to minimize risk on the personnel front. Employee complaints should always be taken seriously, as more often than not they can crescendo, reaching a boiling point if left unaddressed.

    So what to do? A few helpful tips:

    - Include a complaint resolution procedure in the employee handbook, and then follow through on it – adherence is key
    - Treat all complaints seriously and equally – what may be a mole hill of a problem for one employee, may be a mountain of an issue for another
    - Evaluate the need to conduct further research – some problems may require more extensive digging into
    - Get back to the complainant (the employee who expressed initial concern) with a resolution if possible – when someone asks a question, they expect an answer

    Read more here.

    2009.12.23 / no responses / Category: Helpful Tips, Human Resources

  • 2010 Business Outlook Improving (Albeit Slightly)

    According to the recent Duke University/CFO Magazine Global Business Outlook Survey, which concluded Dec. 11, asking 1,431 CFOs from a broad range of global public and private companies about their expectations for the economy, the pain experienced by many companies may be lessening.

    THE BAD
    - 75% of U.S. companies say they have reduced their workforce during the recession and expect it will take 32 months to return to pre-recession staffing levels.
    - 61% of U.S. firms reduced overtime hours during the recession.
    - 30% to 40% reduced hours worked, furloughed employees, eliminated 401k matches or reduced the company contribution to health benefits or other benefit plans.

    THE GOOD
    - 67% of firms say they will increase their workforce in 2010 if demand for products and services increases sufficiently.
    - Earnings are expected to rise by more than 7 percent in the U.S. and in China and by 9 percent in Europe.
    - In the U.S., capital spending is expected to rise by nearly 2 percent in 2010, as are marketing expenditures and R&D.


    2009.12.22 / no responses / Category: In the News

  • Resolving Customer Service Complaints

    Some interesting data from Forrester Research. Customers have the most faith in the ability of apparel companies, banks and hotels to handle complaints. They have less confidence in Internet service providers, computer companies and health insurers.

    As this article notes, “In fairness, a piece of clothing is much less complex than a computer or a health insurance policy. But whatever the industry, there is always room for improvement, and putting more resources into customer service may well yield higher revenue.”

    Percent Surveyed Who Think It Would Be Easy to Have a Customer Service Issue (Complaint) Resolved (by type)

    54% Clothing and Apparel
    48% Bank Account
    46% Hotel
    45% Auto Insurance
    40% Television
    39% Credit Card
    36% Wireless Phone Plan
    36% Internet
    30% Computer
    30% Health Insurance

    2009.12.21 / 1 response / Category: In the News

  • Flex Time Wins Out, Especially Good News for Women

    Following the lead of many states that have shifted to compressed (or reduced) work weeks, businesses of all stripes – large and small, across industries and geographically dispersed – have similarly come around… a growing recognition of the value of having a flexibly-structured workplace. In fact, many companies are promoting their flexible approach to staffing as a recruitment tool, particularly to obtain and retain top talent. And working women perhaps stand to benefit most, typically more likely than men to request (even require) creatively-structured work routines due to familial commitments.

    As this recent New York Times article notes:

    “The accounting giant KPMG, looking for a way to save payroll costs without losing valued employees, introduced an initiative called Flexible Futures. This new program offered the 11,000 professionals in KPMG’s British operations the following options: They could go to a four-day workweek and take a 20 percent pay cut; they could opt for a mini-sabbatical at 30 percent base pay; they could opt for both of the above; or they could stick with their current arrangement. The program was hugely successful. Over 80 percent of KPMG’s professional employees (men and women) volunteered to take one of the flexible options. This allowed KPMG to achieve its goal of retaining jobs while cutting costs…

    KPMG is not alone in using time as currency. The global consulting firm Booz & Company recently started a ‘partial pay’ sabbatical. As of April, Booz employees can take a one-month to a yearlong sabbatical at 20 percent of base pay plus medical benefits and return to a guaranteed job. The program is positioned as a way to cut costs in this downturn while holding on to crucial talent.”

    The article ends appropriately with the comment, a possible sign of things to come: “When a 35-year-old high-performing woman who happens to be a new mother can scale back to a four-day week and be honored for that choice rather than being written off, we’re on our way to a different future.”

    2009.12.20 / no responses / Category: Benefits, Human Resources

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