HR Forum

Advice for HR in the new economy

How will you handle HR in the new economy? Outsourcing, secret identities, improved strategies, joining the circus?

Here's some advice from some of the most promising human resource professionals of the future:

Hiring, salary freezes to melt within the next year

A majority of U.S. employers plan to reverse some of the changes they’ve made to pay benefits and other HR programs, according to the latest survey results from Watson Wyatt.

The survey discovered that 62% of companies that made hiring freezes and 69% of companies that froze salaries plan to eliminate them within the next 12 months. Almost half (48%) of companies that reduced their employer 401(k)/403(b) matches also plan on reversing their decision within the next year.

Unfortunately, not all of the affected employer benefits will experience the same changes. One in five employers plan to keep salary reductions in place and 46% of employers do not plan on reversing the increases in the percentage that employees now pay for health care premiums.

"While more employers now feel the worst of the current downturn may be behind them, most are not expecting to go back to 'business as usual'," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "The challenge for companies will be to determine which cost-cutting changes can be reversed and which will become ingrained into the permanent business environment." (Yahoo! News)

In the next three to five years, companies expect staffing issues including difficulties in attracting and retaining skilled employees to extend long-term. They also expect staff sizes to be significantly smaller than pre-economic levels.

Compared with pre-economic crisis levels, the companies surveyed expect the following changes within the next three to five years:

45% foresee difficulty retaining critical-skill employees
41% expect increased difficulty attracting critical-skill employees
50% expect no increase to current salary levels
52% expect to see a decrease in staff sixes
76% expect no change in employer contributions to defined contribution plans (e.g., 401(k))

The survey also found that nearly one quarter (24%) of the companies surveyed believed their results have “bottomed out,” double the number of survey participants that said the same in April.

"Laying off workers and cutting back on pay and benefits are never easy decisions to make. Now, companies are now looking to the new economic landscape that lies ahead," said Laurie Bienstock, U.S. strategic rewards leader at Watson Wyatt. "The challenge for employers is to reassess short-term cost cuts and ensure they have the right workforce and resources in place to meet the organization's long-term financial goals." (Yahoo! News)

Form I-9 expiration date extended past 6/30/09

The U.S. Citizenship and Immigration Services (USCIS) recently announced that the current Form I-9 will continue to be valid for use beyond June 30, 2009.

USCIS has requested that the Office of Management and Budget (OMB) approve the continued use of the current version of the Employment Eligibility Verification Form I-9. While the request is pending, the existing I-9 form will not expire.

The extension will allow employers to use either the Form I-9 with the updated revision date or the Form I-9 with the 02/02/09 revision date at the bottom of the form.

USCIS expects to approve a new version of the Form I-9 before the June 30, 2009, expiration date. Read the full USCIS article here.

It is mandatory for all U.S. employers to verify the employment eligibility of new and existing employees by completing a Form I-9 for each individual.

The G.Neil legal team will continue to watch for news from the USCIS once the extension is approved. Check back here for the most current information available.

Seen the HR Bobbleheads yet?

What would your company look like if it were staffed entirely of bobbleheads? One small tech company in suburban Pennsylvania decided to try it out and put the whole thing on video.

The latest HR Bobbleheads episode examines the differences between the interviewing norms 50 years ago and interviews today. Take a break for a few minutes today and check out some of the previous episodes. They’re funny enough that even the evilest of HR ladies will be cracking a smile.

HR Bobbleheads - Episode 5: Interviews Then & Now from HR Bobbleheads on Vimeo.

Employees putting your data security at risk?

Odds are good that they are, according to the latest research.

More employees are ignoring data security policies and engaging in online activities that could put their employer at risk, according to a survey released by Ponemon Institute. Even more worrisome is knowing that they’re doing it even if they understand it’s wrong.

The top data security offenses include copying secure data to USB drives or disabling security settings on mobile devices like laptops. Some employees admit to losing USB sticks that stored confidential corporate data, but failed to report it to the company immediately, the report said.

Almost 31% of employees surveyed said they also engaged in social-networking activities from work computers. More than half (53%) said they downloaded personal software on company computers, heightening the risk of infecting the corporate network with malicious software.

Mobile technologies that let employees do more while on the road are contributing to the issue, said Larry Ponemon, chairman and founder of Ponemon Institute, in a blog entry. As the use of mobile devices grows, the inability to enforce data security policies could increase the possibility of data breaches. "I'm seeing a confluence of conditions that appear to be contributing to this challenge to data integrity," he said. (PC World)

Negligent online activity puts not only data security at risk, but could also be putting the company’s reputation in a vulnerable position. Remember the Domino’s incident?

About 60% of corporate executives feel they have the right to know how employees portray themselves and their organizations in online social networks, according to the Deloitte LLP Ethics & Workplace survey. However, most employees (53%) say their activity on social networks should be none of their employers’ business.

Whether it’s your data security or corporate reputation you’re looking to protect, having a sound social media policy is your first line of defense. We’re all adults here, but once in a while we all need a friendly reminder of what it means to be responsible online.

Social media policies will differ from company to company, but they all share a few key points: understanding what unacceptable online behavior is, being mindful of the business’ image, using good judgement and knowing that employees represent of the company.

For more help on developing a social media policy, read these past posts:

Bosses concerned over employees’ online behavior, employees say “butt out”

Domino’s employees fired, charged after “gross” video goes viral

The impact of social media on corporate culture

Dangers of using social networking sites to screen applicants

Supreme Court limits worker age-bias suits

The Supreme Court handed down a verdict late last week that would give businesses more strength in employee lawsuits alleging age discrimination.

Employees now bear the burden of proving that age was a dominant factor in his or her firing or demotion in order to win a case. Under the Age Discrimination in Employment Act (ADEA), employees have the burden of proving that age was the “but-for” cause of an employer’s adverse decision.

With age-discrimination lawsuits growing at an alarming rate, the 5-4 ruling (Gross v. FBL Financial Services, Inc.) is considered a win for businesses that face age-bias lawsuits. Before last week, workers had to show only that age was a factor in the decision.

"The burden of persuasion does not shift to the employer to show that it would have taken the action regardless of age," Justice Clarence Thomas wrote for the majority. He added this legal rule applies "even when a plaintiff has produced some evidence that age was one motivating factor."

Karen Harned, executive director of the National Federation of Independent Business, said the opinion would help companies defend against age-bias claims. "Requiring claimants to show direct evidence that age played a substantial role in the challenged employment decision is the appropriate and fair standard," Ms. Harned said. (Wall Street Journal)

Since the U.S. economy began to slide downward, age discrimination claims filed with the Equal Employment Opportunity Commission (EEOC) have increased by 29%, a jump from 19,100 in 2007 to more than 24,500 in 2008. (Washington Times)

This case involved a lawsuit brought against FBL Financial Group by Jack Gross, under the ADEA. Gross claimed that FBL violated the ADEA when he was demoted and some of his prior responsibilities were given to a younger worker.

Employers brace for 2010 healthcare cost hike

It’s estimated that U.S. employers will see a 9 percent jump in healthcare costs in 2010 and workers will be footing more of the bill, according to an annual trend report by PricewaterhouseCoopers (PwC).

The annual medical costs trends report also revealed that workers are more likely to utilize their health insurance coverage out of fear that they will loose their jobs. More uninsured and underinsured people are expected to turn to Medicaid for health coverage.

The rise in healthcare costs may be offset partially by cost declines associated with U.S. health care reforms and the potential for high deductible health plans and wellness programs, according to PwC.

Of the 500 employers surveyed by PwC:   

42% plan to increase their workers’ share of healthcare costs in 2010, and
41% said they would change the design of health care plans to increase medical cost sharing.

The study comes at a time when new health-reform legislation is heating up congressional hearings. President Obama has pledged to push his plans to revamp health-care regulation through Congress and Senate hearings this summer. Before anything is approved, it will be up to employers to manage rising costs.

"Employers are squeezing dollars out of their programs to save money," Mike Thompson, principal at PricewaterhouseCoopers global human resource solutions group, said in a statement.

"As the economy recovers, employers will refocus on more sustainable longer term approaches to medical cost containment based on an increasingly shared interest between employers and their workers." (Reuters)

What is your company doing to offset the rise in healthcare costs? Please leave a comment and let us know.

Same-sex harassment complaints growing

Dillard’s, Inc. will pay $110,000 and provide significant remedial relief for a same-sex harassment suit in Florida, according to an announcement from the Equal Employment Opportunity Commission (EEOC) last week.

The EEOC claimed that Dillard’s violated Title VII of the Civil Rights Act by permitting a sexually hostile work environment for men at its Fashion Square Mall store in Orlando, Fla. The EEOC charged that a male sales associate and a young dockworker were verbally and sexually harassed by a male supervisor.

The workers accused their supervisor of exposing himself in front of them, making sexual propositions, and making sexually explicit and derogatory comments. According to the EEOC, Dillard’s store managers ignored complaints made by the workers about the harasser.

Dillard’s argued that the store wasn’t liable because the supervisor had been fired and had an anti-harassment policy in place. The court rejected that argument and “found that Dillard's anti-harassment policy could not absolve it of liability if the policy hadn’t been effectively implemented.” (Business Management Daily)

“The EEOC will hold corporate America accountable for failing to prevent and correct employment discrimination,” said Commission Acting Chairman Stuart J. Ishimaru. “Sexual harassment charge filings by men have trended upward over the past decade. Employers must be more vigilant in ensuring that men are not subjected to sexually hostile workplaces.”

In addition to paying $110,000 to the two male victims, the Dillard’s Fashion Square Mall store must:

distribute policies to the workforce on preventing sexual harassment and retaliation;
conduct sexual harassment and anti-discrimination training for all employees;
train employees who are responsible for investigating sexual harassment complaints;
submit to monitoring throughout the decree’s three-year duration;
and post a notice about the resolution of the case.

“Employers must diligently enforce policies to prevent sexual harassment and ensure that managers take same-sex harassment complaints seriously. It is vital to protect both men and women from workplace harassment,” said EEOC Miami Regional Attorney Nora Curtin.

The number of sexual harassment charges filed with the EEOC are up 11% from last year and at the highest rate since 2002. Sexual harassment charges filed by men make up 16% of total charges, a figure that once stood at 12% in the late 1990s.

Sexual harassment is sexual harassment no matter if it’s male-on-female, male-on-male or female-on-female. Even if the harassment doesn’t look exactly like what was taught in the training video, it should still be handled with the same sensitivity and diligence that would be given in any “normal” situation.

According to Mindy Chapman, Esq., of Mindy Chapman & Associates, in a recent Business Management Daily article, companies can learn three major lessons from this case:

Train “it.” Anyone designated in your anti-harassment policy’s reporting procedures needs to know they could be tagged “it” with a complaint. Train them so they know “it.”

Script “it.” The store manager should have responded by saying, “Thank you for letting me know. You are important to us at Dillard’s. I will help you immediately.” Then he should have, in the next breath, contacted the district manager.

Stop “it.” The manager had an obligation that if he saw “it,” heard “it,” or heard about “it,” he should have stopped “it,” but never ignored “it."

Would you work for free to keep your job?

While getting ready for work this morning this story on Good Morning America caught my attention:

About 40,000 people work for British Airways, which means they show up, do their jobs and get paid. But now, the airline is asking workers to do their jobs for up to a month without the "getting paid" part.

British Airways asks its employees to work without pay for up to one month.

In a letter to employees this week, British Airways said, "The airline fights for survival ... people will be able to opt for one-week blocks of unpaid leave or unpaid work."

It's a twist on sacrifices being made by employees around the world. In Connecticut, for instance, Courtney Bosch was given a one-week furlough from Kodak.

"In these times, I was comfortable with it, you know I can honestly say I was happy to still be employed," Bosch said.”

Watch the story here.

Furloughs are one thing, but asking employees to work for free for up to one month is quite another.

With nearly one in 10 U.S. workers without a job, some people are so afraid of joining the ranks of the unemployed that working for free sounds like the only choice they have.

Employers should still use caution when considering such a plan. ABC News workplace commentator Tory Johnson went on to say that expecting people to work for free is “absolutely a slippery slope” for employers.

More than a thousand employees have signed up for British Airway’s “no-pay plan.” The airlines also said there is no sense of intimidation or peer pressure among employees regarding the plan.

Is asking workers to go without pay simply a sign of the times or is there a better way for companies to save money? Would you work for free to keep your job?

Are you prepared to handle flu-related HR issues?

As the World Health Organization (WHO) raises the alert level of the H1N1 flu virus (aka. swine flu), employers’ concern over how an outbreak could affect their businesses has seemingly tapered off.

The WHO officially declared the H1N1 flu virus a pandemic on Thursday by raising the threat level of the virus to Phase 6. The pandemic status of the virus doesn’t mean that it is more dangerous, but that it has infected people in more countries. The Phase 6 threat level means community-level outbreaks have hit more than one continent.

News coverage surrounding swine flu has calmed down and so seems employers’ concern regarding any danger the illness may pose to their organizations. Approximately two in five employers (41%) do not have a human resources policy in place for health-related emergencies, although they have employees working in areas with confirmed swine flu (or Influenza A) cases, according to a survey by Mercer.

“With the continued increase of reported cases of Influenza A [swine flu], it is important for employers to develop a plan for dealing with the myriad HR issues that can arise in the event of a pandemic or other health care emergency,” said Danielle Dorling, a consultant in Mercer’s HR effectiveness consulting business. “In particular, organizations with a global workforce and decentralized HR units need to have a coherent procedure in place for employee care in the event of a health emergency.” (Mercer press release)

Among the key survey findings:

53% of the employers surveyed were considering whether to create back-up and contingency plans in response to the outbreak
43% said they planned to restrict or cancel business travel
41% said they planned to allow employees to work at home
27% opted for voluntary quarantine for employees exposed to risk
24% enforced quarantine on employees judged at risk
24% indicated they were taking no special actions.

Employers also said they would cancel meetings, screen staff members returning from travel, require medical check-ups and review health or insurance plans as a result of the recent swine flu outbreak.

“Business continuity plans should be standardized and employers must be able to communicate in a streamlined, swift and decisive fashion,” Dorling said. “Ad-hoc reaction can lead to confusion, unnecessary panic and expensive global inconsistencies that can expose the organization to significant financial risk.”

In April, Secretary of Homeland Security Janet Napolitano asked private employers to do their part in helping the federal government protect workers from the illness, saying that employers should be thinking ahead about what they would do if affected by swine flu or other contagious diseases.

Before you create policies and procedures regarding the spread of viral infections in your workplace, there are a few legal and ethical issues to consider. Employers should know the rights of exposed employees, if they can order employees to go home and how the Americans with Disabilities Act could come into play, among a list of other important questions.

G.Neil’s free “Flu in the Workplace” white paper explains the answers to those questions along with information on how to protect your employees and business from serious contagious diseases.

Time-sheet cheating creates unnecessary costs

About one in five hourly employees admits to cheating on their time sheets to receive extra pay from their employers, according to a new survey conducted by Harriss Interactive and commissioned by The Workforce Institute.

While it’s hardly a new problem for employers, the rate at which time-sheet cheating is happening should be raising a few red flags that the problem is growing.

Of those who said they admitted to cheating on their time sheets:

69% admit to punching in earlier or punching out later than scheduled
22% admit to adding additional time to their time sheet
14% say that they don’t punch out for unpaid lunches or breaks
5% admit to having someone else punch them in or out

About 35% of survey respondents said their employers use paper time sheets to keep track of employees’ time, a practice that could be putting companies at risk for significant payroll inflation.

Organizations that use manual time and attendance tracking systems generally run up unnecessary payroll costs of roughly 1.2% of their total payroll costs because of inaccurate application of payroll rules and human errors, according to a Nucleus Research report.

Remember, the survey only discovered how many employees “admit” to cheating on their time sheets at work, suggesting that the actual number of time-sheet cheats is much higher.

Fortunately, businesses can do something to fight unnecessary payroll costs by moving away from outdated or mechanical employee time-tracking systems. Automated time-tracking tools can prove to be significantly more efficient than any paper-based payroll system.

With the vast number of options out there, it’s possible for businesses of any size to find an automated time-tracking tool that fits their needs. From basic software systems that electronically track who’s on the clock or not, to more advanced solutions that turn any PC into a time clock station, automated employee time tracking can lower costs and reduce payroll errors.

Ensure hourly employees are being paid for the time they work and limit the risk of costly payroll mistakes by taking control with an updated timekeeping system.

What does happiness in work look like?

Is there a formula for finding happiness in our work?

Many have tried to explain it, but few have been able to create a clear picture of the road to happiness.

Among those creative few stands Bud Caddell, author of the blog What Consumes Me. Earlier this month, he put his idea of what happiness in business looks like in a Venn diagram:

As someone who has been working at start-ups and small businesses since he was 14 years old, Caddell was able to put what he learned over the years into a beautifully crafted diagram.

Caddell’s idea of happiness in work is based on three overlapping factors: what we do well, what we want to do and what we can be paid to do.

Find all three and ‘Hooray!’ you’ve got happiness.

Or is it that simple?

Take a look at Caddell’s full blog post and read his tips for finding your way to the ‘Hooray!’ point. Then come back and let us know what you think of Caddell’s happiness formula.

How do you find happiness in work?

IRS answers more pressing COBRA questions

If you’re an employer struggling with COBRA questions, the Internal Revenue Service (IRS) has published added guidance on the federal premium subsidy to help answer some of the most common issues.

The new COBRA regulations, which were part of President Obama’s American Recovery and Reinvestment Act of 2009, contain specific changes to COBRA health benefit requirements that affect former employees, their employers and COBRA coverage providers.

Under the subsidy, involuntarily terminated employees must pay 35 percent of the COBRA premium and employers must front the money for the remaining 65 percent. After paying insurers directly, employers can then claim the payment as an offset against payroll tax liabilities using the updated Form 941.

The IRS published information earlier this year to answer major questions from the public regarding eligibility for the COBRA subsidy. Information has been added to the question-and-answer style document as new questions develop.

Last week, the IRS updated the online document with additional information including guidance on whether an employee who is a reservist would be eligible for the subsidy if called to active duty.

Q. Does an involuntary termination of employment occur if a member of a military Reserve unit or the National Guard who is employed by a civilian employer is called to active duty?

A. Yes. This is the case regardless of whether the civilian employer otherwise treats the employee’s absence as a termination of employment or a leave of absence.

The IRS also added information in response to questions regarding elected officials and employees hired for a limited period of time.

Q. In the case of an employee who is hired only for a limited period, such as a seasonal worker, or a teacher hired only for one school year, can the end of employment at the end of the period be considered an involuntary termination?

A. Yes. Under Notice 2009-27, Q&A-1, an involuntary termination may include the employer’s failure to renew a contract at the time the contract expires, if the employee was willing and able to execute a new contract providing terms and conditions similar to those in the expiring contract and to continue providing the services. Thus, if an employee hired for a limited period works to the end of the period, is willing and able to continue employment, and terminates employment because of the failure of the employer to offer additional work, an involuntary termination occurs for purposes of the premium subsidy.

For more answers to questions on COBRA continuation health coverage read the IRS FAQs for employers.

What workers want most this summer: Time

Flexible schedules and leaving work early on Fridays are the the benefits employees want most this summer, a new survey by OfficeTeam suggests.

More than 450 office workers were asked, “Which of the following summer benefits would you most like to have?” They answered:

Flexible schedules 38%

Leave early on Fridays 32%

Activities (e.g. company picnic, potluck) 6%

More relaxed dress code 5%

“Employees appreciate flexibility in their jobs because it gives them greater control and enables them to handle other commitments without sacrificing their work performance,” said Robert Hosking, executive director of OfficeTeam.

Flexible scheduling can be an inexpensive way to motivate employees during the summer months, adds Hosking. For businesses worried that customer service will suffer, he suggests staggering workers’ schedules to maximize the total number of hours employees are able to assist customers.

“Companies should pilot flexible schedule programs before rolling them out permanently,” Hosking recommended. “This gives businesses time to evaluate the impact on workflow and productivity.”

If flex time isn’t an option, allowing employees to occasionally leave early on Fridays can boost morale. Many workers plan activities and weekend trips during the summer months and would appreciate the extra time to get started, says Hosking.

How employees aim to impress during tough times

As eight out of ten companies continue to cut labor costs by such means as reducing salaries, worker hours and job perks, many employees are taking extra steps to ensure their jobs aren’t part of those cuts.

A recent Randstad survey revealed exactly how employees aim to impress their bosses and improve their job security during times of economic unrest. While some employees are willing to put in the extra work to make a good impression, most won’t take it much farther than working some overtime.

  Some key findings of the survey include:

Only 47 percent are willing to work overtime to impress their boss in order to create more job security for themselves

Only 37 percent reported a willingness to come in early or stay late to impress their bosses

Less than half of employees (43 percent) think their boss is open to new ideas

A mere 19 percent view their boss as their biggest advocate

Despite all that these employees are willing to do to impress their boss, taking a pay cut is not one of them (4 percent)

More women are willing to take on more work and responsibilities than men (11 percentage points more), 63 and 52 percent respectively

Mass layoffs and downsizing can have a severe impact on the morale of employees in surviving positions. The stress of watching their coworkers leave and working in an office with a growing number of empty cubicles may have some workers wondering if they’ll be the next to go.

Even companies that are economizing by eliminating low-cost perks like coffee cups and plastic utensils can be seriously damaging employee morale. While finding ways to save money, companies may be unintentionally pushing employees out the door.

“Employees’ professional development and morale should always be a priority for employers, and especially in an economic slowdown when employees may feel additional burdens,” said Eric Buntin, managing director, marketing and operations for Randstad USA.

“A healthy employee-employer relationship greatly contributes to an overall positive workplace attitude. Employers who connect with their employees create an environment where workers are more engaged in their jobs. Ultimately, this increases retention and productivity, both of which tie directly to a company’s financial success.”

As an employee, have you been doing anything differently to impress your boss since the recession began? As an employer, do you notice your employees putting in any extra effort to create better job security for themselves?

Please leave a comment and tell us all about it.

If you can't go paperless...

At least now you can turn your paper waste into something useful, and save some money on all that Charmin you buy for the office.

Nakabayashi, a Tokyo-based company that offers products from child car seats to office supplies, just announced the release of its new in-office machine that turns used office paper waste into toilet paper right there on site, according to CrunchGear.

(Image via CrunchGear)

At 1323 pounds, with a price tag of $95,000, it may be asking a little too much your average office looking to get a little greener.

Chatty employees more productive than quiet coworkers

Though email and other communication technologies have made office communication more convenient, they may be doing little to improve workers’ productivity. A new study suggests that giving employees more time to chat around the water cooler could actually help them get more done back at their desks.

People who interact with each other in person are more productive than people who rely on electronic forms of communication, according to a recent report by researchers at MIT and New York University.

By outfitting workers in a Rhode Island call center with wearable sensor packs, or “sociometers,” researchers recorded details of individuals’ social interactions throughout the day. What they found was that employees who had more in-person conversations with coworkers tended to be more productive than those who did not.

The same team of researchers conducted a similar study last December that backs these recent findings. The December study examined a tight-knit team at an IT company, finding that face-to-face communication improved worker productivity by about 30 percent.

"The big idea is that what you do on your coffee break and over lunch really matters for productivity," says Sandy Pentland, a professor at MIT's Media Lab, who led the study. "Face-to-face networks matter, and the implications are huge."

Researchers cite two main reasons for the connection between in-person communication and productivity:

Face-to-face conversations help employees maintain strong relationships with coworkers, those relationships help workers solve complex problems and complete calls more efficiently.
Support networks among coworkers increases overall morale and job satisfaction - two major factors of productivity.

Researchers suggest that giving employees time to interact with each other will “likely bolster information transfer across individuals and departments,” a vital ingredient in organizational success.

"The underlying theme here is that humans are social beings," says Pentland. "Technology pushes us toward the abstract, and away from richer face-to-face communication."

The moral of the story: Encourage employees to interact and work with each other in-person. Improved face-to-face communication could be the key to your business’ success.

HR survey shows more slashing salaries, less layoffs

Eight out of ten companies continue to cut labor costs, most by reducing salaries, worker hours, perks, and using furlough or forced vacations, according to a survey released yesterday by Challenger, Gray and Christmas.

According to the report, more than half (52%) of human resources executives surveyed in May said their companies had decided to slash or freeze pay, more than double the 27% of companies using the same cost-cutting techniques in January.

Executives listed as many as 13 different measures they’re currently using to cut expenses, but they’re not necessarily using these techniques in place of layoffs. Survey results revealed that the companies which had gone through layoffs were more likely to use cost-cutting methods than companies that had not.

Slashing benefits, pay, and perks allows companies to lower their labor costs without cutting workers. Layoffs can create a major challenge when the economy begins to recover and employers are short on trained workers. "It is a lot easier to restore compensation and benefits that it is to rehire and retrain workers when the economy improves," says John Challenger, chief executive of Challenger, Gray and Christmas. (U.S. News & World Report)

The percentage of employers making permanent cuts fell since the beginning of the year, from 56% in January to 43% in May, according to the survey. Altogether, 86% of executives said their companies were implementing cost-cutting measures, which is slightly better than in January when 92% of organizations were slashing costs.

Has your company been able to avoid layoffs by implementing other cost-cutting measures, such as salary reductions or freezes? Leave a comment and let us know what worked for your organization.

E-Verify regulations on hold again

The federal government has extended the effective date of the E-Verify requirement for federal government contractors to September 8, 2009. The requirement was previously set to take effect on June 30, 2009.

The rule would require most government contractors to verify the immigration status of current and new workers using the federal government’s E-Verify electronic employment eligibility verification system.

Implementation of the requirement has been delayed “to allow President Barack Obama's administration more time to complete its review of the rule,” Jennifer Kerber, vice president for federal and homeland security policy for TechAmerica, wrote in an e-mail message to members today. (via Washington Technology)

An official announcement is expected to be published in the Federal Register later this week.

This will be the fourth delay in the effective date of the E-Verify regulations, which were originally scheduled to take effect in January.

Don’t Facebook when home from work sick?

You feeling like you're coming down with the flu, so you use some of your paid sick time and stay home from work. Should you also stay away from Facebook?

Last month, a Swiss woman was fired from her job after surfing Facebook while out sick, according to her employer.

The employee said she could not work in front of a computer and needed to lie in the dark, but was later seen to be active on Facebook. Her employer, the National Suisse insurance company, said in a statement that her actions had destroyed the company's trust in the employee.

"This abuse of trust, rather than the activity on Facebook, led to the ending of the work contract," said a National Suisse spokesperson.

The woman admitted to using Facebook on her cell phone, but accused her employer of spying on her by sending a mysterious friend request that allowed the company to see her activities on the social network. The company denied her accusation and said a colleague witnessed her online activity.

So we want to know: When you stay home from work sick do you spend time on Facebook? Should employers care?

Leave a comment and let us know what you think.

Fear, lack of paid time off drive sick employees to work

Despite daily news coverage of the swine flu outbreak and reports of flu-related deaths, U.S. workers continue to show up for work sick, according to a recent Monster.com poll.

The nationwide poll revealed that 71% of almost 12,000 U.S. workers who responded between May 11 and May 18, 2009, said they report to work even when feeling ill.

“Of those who go to work sick, 33 percent fear losing their job if they take a sick day, while 38 percent admit their workload is too busy to take a day off from work even when they are ill,” said Norma Gaffin, director of career content, Monster.com, in a press release.

When asked “Do you go into work sick?” respondents answered:

Yes, work is too busy for me to miss a day: 38%
Yes, in this economy, I’m afraid I’ll lose my job: 33%
No, I work from home if I’m sick: 10%
No, I rest up to get better: 19%

Even if they wanted to, many workers can’t stay home when they’re sick. An estimated 57 million working Americans have no paid sick days. For these workers, staying home from work means losing pay or possibly losing their job.

"The problem has really come into sharp relief the past few days," said Debra Ness, president of the National Partnership for Women and Families, which has long pushed for paid sick leave. "Many people don't even realize that almost half the private sector — 48 percent — has no sick days, not even a single one."

"We have officials telling people to stay home when they're sick," she added. "Well, guess what? That can be the beginning of economic disaster for many, especially in this economy."

A 2008 study on sick leave found that 68% of workers without paid sick days had gone to work with a contagious illness like the flu or viral infection. Additionally, one in six workers reported that they or a family member had been fired, suspended, punished or threatened with firing after taking time off to care for themselves or a family member, according to the 2008 study by the University of Chicago's National Opinion Research Center.

Currently, the U.S. is the only country out of the top 20 world economic powers with no federally mandated sick days. But that may be about to change.

On May 18, 2009, Sen. Edward M. Kennedy, D-Mass., and Rosa DeLauro, D-Conn., reintroduced the Healthy Families Act (H.R. 2460), which would let workers earn up to seven paid sick days a year. Those paid sick days could be used to care for themselves or a sick family member.

“As Congress works hard to pass quality, affordable healthcare for every American, they must make sure workers are able to do the things necessary to keep themselves and their families healthy. Paid sick days benefit both workers and employers, as there is substantial evidence that it improves productivity and the bottom line,” said DeLauro in her address to the House of Representatives last week.

Our legal team will continue to watch the Healthy Families Act and how the legislation may affect your business. Check back regularly for the most up-to-date information.

Do you still show up to work when sick? Why? Do you think the U.S. should have federally mandated paid sick leave? Leave a comment and let us know what you think.

Lonely cubicle graveyards killing employee morale

Since the recession began, companies have been forced to make difficult decisions, including mass layoffs and downsizing. Among a list of other negative repercussions, those difficult business decisions are transforming once bustling gray mazes full of busy employees into barren “cubicle graveyards.”

Workers may now have more room to stretch out, but the ever-growing emptiness is having a harmful effect on remaining employees’ morale.

During the past year, the average square foot per office occupant has risen to 435 square feet, up from 415 square feet in 2008, according to International Facility Management Association (IFMA) in a recent MSNBC article.

Compared to last year, there are fewer people working in a greater amount of space. A spokesperson for the IFMA attributes the growing amount of empty space to the economic downturn and mass layoffs our country is experiencing.

While the sight of empty cubicles can be depressing to remaining employees, many organizations aren’t doing much to improve the situation.

"To some extent, companies are waiting until things stabilize so they can look at their options," says Ilene Gochman, an organization effectiveness expert with consulting firm Watson Wyatt. "People are not sure they have the right size organization yet. They don’t want to move people and then have to move them again."

Unfortunately, it’s not that easy on those left behind.

"Emotionally, workers look around the empty office, and it brings the depth of the economic crisis home for them in a personal way," says Leslie Seppinni, a clinical psychologist. "They wonder: 'Am I next?' and a tremendous amount of anxiety and depression builds as they try to figure out what steps to take next." (MSNBC)

Other workplace experts featured in the article offered some tips for offices dealing with cubicle graveyards:

If you’re an employee upset over the empty office landscape, speak up. Some managers may be unaware of how the empty cubes are affecting morale and usually all it takes is a simple conversation to bring it to their attention.

Rearrange the office and test different layouts. Take a look at how employees are using the space they already have and ask, “Do they need more conference rooms or more collaboration space, such as informal meeting areas?”

Let in natural light. A simple way to immediately improve the mood around the office is to allow more natural light flow through windows. Disassemble cubicles and give more employees a window view. Set up Wi-Fi in the office so workers can become more mobile and collaborate easier.

Not the coffee!

On the drive into work this morning, I was listening to the DJs on my favorite station ranting about coming into work and finding that coffee cups were no longer being supplied. Nor were napkins, plastic utensils and paper plates. Apparently even toilet paper is in short supply!

They talked about putting in more and more hours to cover for employees who are no longer there. About increased pressure to perform. And the reward for all that hard work? The DJ had to empty the mug he used as a pencil cup and wash it in the men's room sink while people were using the restroom.

They opened up the phone lines and the calls came pouring in. Lots of people had experienced the loss of coffee cups. Another caller talked about their company taking away the spring water machine (the cost to the company had been $20 a month.) No more tea bags. No paper towels in lunch rooms. Missing toilet paper or sanitary products. No more plants in the office. The outrage was evident in most callers' voices. They were willing to work hard. But this was a last straw. You could hear the motivation to go the extra mile evaporating.

There's a lot of talk in the HR world about low cost motivators and inexpensive employee retention tools. Companies need their remaining staff to perform exceptionally well, but raises are out of the question. So the scramble is on for cheap ways to keep people happy at work.

And yet, companies are economizing by taking away low cost perks that keep people happy. That very act does several things:

1) Conveys a message to employees that they are not important and that the $20 savings is worth more than their happiness at work

2) The message they hear is "Today the sugar and creamer, tomorrow your job." That scares employees and increases stress levels, which in turn reduces productivity. Stressed people make more mistakes, take longer to complete tasks and are at greater risk of accidents.

3) Tells your star employees that your company is a sinking ship, and encourages them to look elsewhere.

Before you cut back on low cost perks like paper plates, or allow restrooms to run low on toilet paper, think about the message you're sending. Are the savings you'll realize worth the cost you'll incur in the long run?

Top employee retention tips and advice

With the economy the way it is right now, many businesses are worried about losing top talent only to be short staffed when the market turns around. Today it’s all about employee retention strategies that will keep employees happy and motivated in their current positions.

You could be like Google and use a mathematical formula to calculate when a staff member is most likely to leave the company, but most would probably reach for a more conventional method. Luckily, there’s a world of valuable resources out there to help you discover the best option for your team.

Here are some of the top blog posts and articles on employee retention from across the Web:

Along with being “desperately” short staffed in skilled jobs, many leaders are also facing an increase in the number of toxic employees and their impact on the organization. Read how leading with gratitude can make your workplace better from Globoforce.

Though budget cuts and layoffs may be a necessary evil during a recession, organizations can boost morale by giving employees challenging assignments that promote growth. Read more on how to incorporate “stretch goals” in this recent BusinessWeek article.

Times are tough everywhere, but it’s still no excuse for bad management behavior. Read what Jessica Lee from Fistful of Talent would tell a badly behaving manager who’s worried about employees leaving.

The revolutionaries at Renegade HR take a slightly different approach and suggest that you shouldn’t focus on employee retention at all. Instead, “recruit great people and inspire them to do amazing things.”

And for a little laugh, check out the top three retention strategies that didn’t quite make the cut from Upstart HR. One tip: Don’t use a hitman.

Bosses concerned over employees’ online behavior, employees say “butt out”

Sixty percent of businesses executives feel they have a right to know how employees portray themselves and their organizations in online social networks, according to the Deloitte LLP Ethics & Workplace survey.

Even though bosses might want to know what their employees are up to on the Internet, employees aren’t ready to open up. More than half of workers (53%) say their activity on social networks should be of no concern to their employers. Younger employees are in the most agreement, with 63% of 18- to 34-year-old respondents believing that employers have “no business” monitoring their online activity.

While they may not be ready to let their bosses in on the conversation, most employees seem to have a clear understanding of how their activity is a risk to their employer’s reputation. As much as 74% of respondents believe online social networking sites make it easier to damage a company’s reputation.

“With the explosive growth of online social networks, such as Facebook and Twitter, rapidly blurring the lines between professional and private lives, these virtual communities have increased the potential of reputational risk for many organizations and their brands,” said Sharon Allen, chairman of the board, Deloitte LLP.

Just last month, Domino’s Pizza went into crisis control mode after two employees posted a video online showing themselves contaminating food while preparing it for delivery. The “gross” video went viral, resulting in embarrassment on the part of company executives and a couple of felony charges for the employees.

“While the decision to post videos, pictures, thoughts, experiences and observations is personal, a single act can create far reaching ethical consequences for individuals as well as employers. Therefore, it is important for executives to be mindful of the implications of this connected world and to elevate the discussion about the risks associated with it to the highest levels of leadership,” said Allen.

If they’re worried about the reputational risk it poses to their organization, most executives don’t seem to be doing much to curb it. Only 17% of executives surveyed said they currently have programs to deal with the possible risks related to employees’ activity on social networks. However, nearly half (49%) of employees stated that such guidelines would do little to change their behavior online.

“One-third of employees surveyed never consider what their boss or customers might think before posting material online,” Allen continued. “This fact alone reinforces how vulnerable brands are as a result of the increased use of social networks. As business leaders, it is critical that we continue to foster solid values-based cultures that encourage employees to behave ethically regardless of the venue.”

Read these related posts for more information on the impact of social networking on corporate culture and how to set social media policies:

Domino’s employees fired, charged after “gross” video goes viral

The impact of social media on corporate culture

Dangers of using social networking sites to screen applicants

Want to cut costs? Send employees home.

To work, that is.

While it can hardly be considered a new idea in the business world, telecommuting may deserve a second look if your company is searching for ways to cut costs, according to a recent Entrepreneur.com article.

“Rather than thinking outside the box, you may want to think outside the office.”

In 2008, more than 17 million U.S. workers telecommuted at least one day a month, according to a WorldatWork report. Telecommuters account for slightly more than 10% of the workforce and their numbers have grown almost 40% from 2006.

Over the next seven years the U.S. telecommuter population will reach 63 million, amounting to almost a third of all U.S. workers, according to Forrester Research predictions.

Both U.S. business owners and their employees are proponents of telecommuting. More than 70% of the U.S. workforce and 53% of small businesses are interested in telecommuting, according to Citrix Online’s Worldwide workplace survey.

The benefits of telecommuting on the business’ side range from lower energy costs, to improved employee retention and lower payroll costs. About 1 in 5 workers are willing to give up 5% of their salary to telecommute just a couple days a week, according to the Citrix survey.

However, simply sending employees home to work won’t immediately reduce your payroll. There will always be some management and logistical issues to work out before putting an employee telecommuting program in place.

From Entrepreneur.com:

If people share workstations when they are in the office, you need a schedule of when they'll be home and when they won't. There's also the question of oversight and management--some business owners and managers want to see their employees (and, let's face facts, some employees need to be seen). Plus, not every business function is conducive to remote work. Point being you need to pick your spot.

There's also a technology hurdle to clear. To be effective, your remote workers need access to communications and applications and you need to figure out how to provide everything from a phone extension to secure IT access.

These days, every company is looking for ways to get more done with less and telecommuting offers a major advantage. After working out the logistics, telecommuting gives employees the benefit of flexibility and employers will stay competitive by cutting operating costs and having the ability to hire top talent regardless of their location.

Of course, telecommuting won’t work for every business or career, but it’s worth taking another look at. Depending on your situation, it has the potential to deliver some real perks.

Citrix’s “Worldwide Workplace: The Web Commuting Imperative” is available at www.workshifting.com.

Has your company saved money by allowing employees to telecommute? What benefits/drawbacks to telecommuting have you experienced?

Pay-for-performance programs more popular in tough economic times

More companies are paying closer attention to their pay-for-performance programs than the traditional “automatic raise” systems, according to a recent study by the Institute for Corporate Productivity (i4cp).

i4cp polled over 500 companies, revealing that 78% of companies tie pay to performance, with most of the focus directly on solid performers. In large companies with 10,000 or more employees, 84% tie pay to performance.

More than half of the companies surveyed (54%) don’t offer merit raises of any kind to low performing employees. However, merit raises for average and high performing employees varied only slightly. Average performers generally received raises between 3% and 4%, while high performers received between 4% and 5%.

The survey also found that companies are keeping a close eye on the accuracy of their pay-for-performance programs. The majority of companies (71%) said senior management is holding managers accountable for their rating accuracy. To ensure that accuracy, 73% of companies offer training for managers and supervisors who determine employee performance rates.

"Companies are becoming more willing to withhold merit raises for poor performers, but in general they are still not truly distinguishing the top performers from the average," says i4cp research analyst David Wentworth. "This could be due to a fear of creating a perception of unfairness when they are trying to find the fine line between the good and the very good. In this economy, where reductions in force are the norm, companies are really focused on how they treat the surviving employees."

Performance rewards most often come in the form of cash, with 69% of respondents providing a salary increase (74% of large organizations). Another 64% of companies (72% of large companies) offer a one-time cash bonus as a performance reward.

A smaller number of large companies (24%) and only 14% of all companies use stock options. The least popular rewards come in the form of non-monetary perks, with just 14% of companies using non-cash rewards.

The recession has forced pay-for-performance systems to the top of priority lists for many companies. The study found that 44% of companies cite the economy as the main reason for giving their merit-based programs higher priority.

Read more about the i4cp study. Visit the Performance Management section of the HR Library for more information on evaluating and rewarding employee performance.

Are you living a life of "weisure"?

A life of "weisure"? What in the world is "weisure"?

"Weisure time" is a term coined by sociologist Dalton Conley of New York University, to explain the increasingly blurred line between work and leisure for Americans.

From the CNN article:

Many who haven't already abandoned the 9-to-5 workday for the 24-7 life of weisure probably will do so soon, according to New York University sociologist Dalton Conley, who coined the word. It's the next step in the evolving work-life culture.

"Increasingly, it's not clear what constitutes work and what constitutes fun," be it "in an office or at home or out in the street," Conley said. Activities and social spaces are becoming work-play ambiguous, he says, as "all of these worlds that were once very distinct are now blurring together."

Smartphones, like the Blackberry and iPhone, have made mixing work and play easier than ever before. Such technology has made it almost commonplace for Americans to be connected with the office while spending time with their families.

But when leisure invovles work, is it truly leisure time? Aren't we all supposed to be working toward a healthy work/life balance?

Do you feel like you're living a life of "weisure"? Post a comment and tell us about it.

DOL seeks public comment on mental health parity law

The U.S. Departments of Labor (DOL), Treasury, and Health and Human Services (HHS) published a request for information (RFI) in the April 28 Federal Register asking for public comments regarding the Mental Health Parity and Addiction Equity Act of 2008.

The mental health parity bill was signed into law in October 2008, ensuring better insurance coverage for mental health treatments. The law requires health care plans to provide equal coverage of mental and physical illness.

Before the bill was signed, insurers could set high co-payments and deductibles and stiff limits on treatment for mental illness and addiction disorders.

The government is now seeking information and advice from the public regarding the best ways to implement the new rules for group health plans.

The public is encouraged to share comments on issues including:

The types of financial requirements or treatment limits currently set by health plans.
How certain terms in the statute could be clarified to make compliance easier.
Health plans’ current disclosure practices regarding medical necessity determinations and denial of medical coverage.
Current health plan practices concerning out-of-network coverage for mental health benefits.

Public comments may be submitted by mail, through the Federal eRulemaking Portal (http://www.regulations.gov), or by sending an e-mail to E-OHPSCA.EBSA@dol.gov. Comments will be accepted through May 28, 2009.

Unpaid interns and the FLSA, what you need to know before hiring summer help

Spring is here and summer fast approaching, along with droves of college students hoping to turn their free time into a few months of valuable on-the-job training.

Whether it's because they're simply looking for work experience, or they need to earn a few more college credits, many students are willing to intern for little to no money at all.

While many companies may see at it as the perfect opportunity to get some extra help around the office, there are a few legal issues to consider before agreeing to something for nothing.

Intern or employee?

The Fair Labor Standards Act (FLSA) requires that nonexempt employees receive at least minimum wage for all hours worked and must also receive time-and-a-half pay for all hours worked more than 40 during the workweek.

While the FLSA doesn't define what an intern is, nor provide an exemption from minimum wages or overtime for interns, it does define an employee as "any individual employed by an employer." The definition of "employ" under the FLSA "includes to suffer or permit to work."

Under federal law, for-profit organizations must pay workers unless the position fits six criteria:

The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school;

The training is for the benefit of the trainee;

The trainees do not displace regular employees, but work under close observation;

The employer that provides the training derives no immediate advantage from the activities of the trainees and on occasion the employer’s operations may actually be impeded;

The trainees are not necessarily entitled to a job at the completion of the training period; and

The employer and the trainee understand that the trainees are not entitled to wages for the time spent in training.

To ensure compliance, employers offering unpaid internships should structure the position in a way that the intern receives the full benefit of the experience.

Employers can take it a step further and establish a written agreement between the business and the intern outlining the terms of the unpaid internship. The document should contain a clear definition of the position, including that it is a learning experience.

If you're not careful, hiring an unpaid intern that later turns out to qualify as an employee could potentially cost your company thousands in unpaid wages and hefty legal fines. When in doubt, pay interns at least minimum wage to avoid legal problems.

Unpaid internships that do not match all six of the DOL's criteria could also lead to legal problems involving workers' compensation, employee benefits, discrimination laws, federal and state taxes, and unemployment insurance coverage.

Failing to comply with wage and hour laws can lead to serious FLSA administration errors that could cost your business thousands in fines. Tools like the FLSA Compliance Kit can help you navigate through every FLSA regulation from child labor laws to timekeeping discrepancies.

Any additional advice for companies hiring unpaid interns for the summer? Please leave a comment and share your tips.

Illegal immigration enforcement shifts toward employers

U.S. Immigration and Customs Enforcement (ICE) recently announced that illegal immigration enforcement will be shifting away from undocumented workers and toward employers.

The announcement comes in the wake of a Supreme Court decision on May 4, ruling that a worker can not be charged with aggravated identity theft, subject to an extra two years in prison, if the worker was unaware they were using an actual person’s information.

Violating the statute requires that an offender “knowingly … uses, without lawful authority, a means of identification of another person.” The government argued that “knowingly” didn’t pertain to the identity theft portion of the law.

On behalf of his colleagues, Justice Stephen Breyer wrote, “As a matter of ordinary English grammar, it seems natural to read the statute’s word ‘knowingly’ as applying to all the subsequent elements of the crime.” (Workforce Management)

Only days before the ruling, on April 30, the Department of Homeland Security changed their policy on illegal immigration and will now target the employers of undocumented workers, rather than the illegal workers themselves.

“Effective immediately, ICE will focus its resources in the worksite enforcement program on the criminal prosecution of employers who knowingly hire illegal workers in order to target the root cause of illegal immigration.” (DHS)

ICE has been instructed to target “employers who cultivate illegal workplaces” for civil fines, along with criminal prosecution in federal court. ICE will continue to arrest any illegal workers found during worksite investigations and process them for deportation.

DHS issued a new Fact Sheet on its Worksite Enforcement Strategy to help employers fully understand the change in policy and comply with immigration laws. Download a copy of the Fact Sheet (.pdf).

As of April 3, 2009, employers are required to use the revised Form I-9 for Employment Eligibility Verification. All new employees, including U.S. citizens, must verify their work eligibility with an I-9 form when they are hired.

Employers do not need to submit forms to the government for verification, but must hold on to the forms for three years after the employee’s date of hire or for one year after the date the employee leaves the company (whichever date is later).

Order the updated Form I-9, along with detailed tip sheets, to ensure your business stays in compliance with federal recordkeeping requirements. Employers can find more tools and information on filling out I-9 forms correctly in the ComplyRight I-9 Recordkeeping Kit.

HR pros push for paid leave policies

The Society for Human Resources Management (SHRM) is leading the way in a debate over a U.S. workplace flexibility policy that meets the needs of both employees and employers. SHRM today announced its commitment to assisting in the development of a federal policy in a letter to all U.S. Senators and Representatives.

"We believe employers should be encouraged to provide the paid leave their workforces need, and let employees decide how to use it," wrote SHRM CEO and President Laurence O'Neil. "Providing some agreed-upon amount of paid leave for workers should be considered as a way for employers to satisfy federal, state and local leave requirements." (PR Newswire)

It’s predicted that Congress and the Obama Administration will promote “paid sick leave” legislation this year because many believe current labor laws have fallen behind the times. Along with SHRM, they believe the current labor laws must adapt to the changing needs of a diverse and mobile workforce.

SHRM’s “Principles for a 21st Century Workplace Flexibility Policy” was also issued to Congress and the Administration, encouraging lawmakers to create a federal leave policy that encourages employers to voluntarily provide paid leave.

"SHRM believes employers, not the government, are in the best position to know the benefit preferences of their employees," O'Neil said. "HR professionals have decades of experience in designing and implementing programs that work for both employers and employees. We're eager to share this expertise with policymakers and welcome a positive dialogue on a workplace flexibility policy for the 21st Century."

The organization seeks a federal policy that would:

Encourage employers to offer uniform and coordinated paid leave;
Create administrative and compliance incentives for employers who meet the leave standard;
Provide certainty, predictability and accountability for employers and employees; and
Allow for different work environments, industries and organizational size.

Research data also released today by SHRM reveals that most U.S. employers currently provide some form of paid vacation leave for full-time employees. The survey of more than 500 randomly polled HR practitioners showed that nine out of 10 respondents provide paid vacation leave, eight out of 10 provide sick leave and 42% offer leave through a paid time off (PTO) program for full-time employees.

"Solid benefits program makes it easier for organizations to attract and retain great employees," O'Neil said. "Both employers and employees want a workplace characterized by fairness, balance, flexibility and freedom of choice. We're ready to take the lead in working with all parties to find a solution for America's workers, their families and employers."

Do you agree with SHRM’s push for setting a new policy on workplace leave? What types of paid-time-off benefits does your organization currently offer full-time employees?

Free white paper: Flu in the Workplace

The swine flu is dominating news outlets across the country, as new cases are reported daily. Schools and workplaces are typically considered high risk locations for the spread of viral infections. As an employer, what are your rights and responsibilities when it comes to protecting your workforce from contagious diseases?

The risk of illness spreading in the workplace is nothing new, but you still want to limit the risk to your staff and customers. G.Neil’s new “Flu in the Workplace” white paper explains important legal and ethical issues to consider before you create a policy, including:

The rights of exposed employees
Can an employer order a sick employee to go home?
Application of the Americans with Disabilities Act (ADA)
Discrimination based on ethnicity
Safety obligations and liability for employee exposure
Establishing a safe workplace policy

Download our free white paper and learn how to protect your employees and business from the spread of flu and other contagious diseases.

Employers plan to cut more retirement perks amid recession

The number of employers offering, and planning to offer, retirement perks to new employees has fell in response to the recession, according to a recent survey by Hewitt Associates.

Instead of offering premium retirement features, including automatic enrollment and company matches, the survey found that employers are more focused on offering lower-cost strategies, such as automatic rebalancing and target-date funds.

Hewitt’s annual survey of about 150 mid- to large-sized employers revealed that half (51%) currently offer automatic enrollment, up from 44% in 2008.

Among the companies that don’t currently offer automatic enrollment, just 25% are likely to add it for new hires, down from 57% in 2008.

The top reason for not offering automatic enrollment is because of the high cost of the employer match. According to the survey, only 2% of employers have cut or temporarily suspended 401(k) company matches since the recession began, about 5% plan to do the same this year.

Depending on where our economy stands in the next 12 to 18 months, Hewitt predicts that about 10% of companies will also cut or suspend 401(k) matches.

Has the economy forced your business to cut back on employee retirement perks? What lower-cost strategies are you using instead?

Workplace discrimination up as economy worsens

The economy is down and, if they haven’t already done so, most businesses are looking for ways to trim their budgets. Though some cutbacks are necessary, new research suggests that this is not the time to pull your diversity programs.

Diversity programs are more important now than ever before, according to a new study by Eden King, assistant professor of psychology at George Mason University. King’s research found that during an economic downturn workplace discrimination tends to increase.

Additionally, those in hiring positions may be less likely to hire a minority job applicant during difficult economic times. Competition for fewer jobs and resources often forces minority groups to the outside, King says.

“The reality is, diversity programs and disadvantaged groups may be the first to go in times of economic uncertainty,” says King. “This causes real problems for people of socially disadvantaged groups.”

As part of their study, King and her team of researchers found that when white women and men were told that the economy might decline and were then asked to evaluate four equally qualified job candidates, they favored the white male candidate. When the group was told that the economy may be on an upswing, they chose the female Hispanic candidate.

"In good economic times, people know they are supposed to support diversity and will tend to hire a minority candidate to get affirmative action points," says King. "But when times are tough, people tend to look out for their own group and isolate outsiders, and that's when discrimination can begin to rear its ugly head."

King noted that managers and human resource professionals should approach prejudice in today’s unstable workplace with caution.

"They need to understand that the short-term solution of cutting diversity programs might ultimately end up costing them even more in the long-run."

How could the swine flu outbreak affect U.S. workplaces?

Yesterday, Secretary of Homeland Security Janet Napolitano held a press conference on swine flu and touched on how the outbreak may affect the American workplace.

Repeating President Obama’s message, Napolitano reminded the audience that “swine flu is a cause for concern, but not a cause for alarm. We are simply in preparation mode. We do not yet know how widespread this flu will be within the United States. So we continue to move aggressively to prepare.”

Napolitano asked that private employers assist the federal and state governments in protecting their workers.

“We are reaching out to the private sector to make sure that they are preparing and to inform them of the latest actions we are taking. It's important that they be thinking ahead about what they would do should this erupt into a full-fledged pandemic, which it has not yet, by the way,” she said.

The Centers for Disease Control (CDC), Department of Health and Human Services (HHS) and the federal government are stressing that people use common sense right now to reduce the impact that any flu, including swine flu, may have on the U.S. public.

The CDC is advising the public to take these everyday actions to stay healthy:

Cover your nose and mouth with a tissue when sneezing or coughing. Dispose of the tissue immediately after you use it.
Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand sanitizers are also effective.
Avoid touching your eyes, nose and mouth to avoid spreading germs.
Avoid close contact with sick people.
If you feel ill, stay home from work or school and limit contact with others to avoid spreading the flu.

The CDC and HHS have also put together a business pandemic influenza planning checklist that companies can use to prepare for a potential flu outbreak and other emergencies.

These simple measures can “materially improve” the chances of swine flu becoming a full-fledged pandemic, said Napolitano.

“I mean, the normal tendency is, you know, we have a lot of Type A personalities and people want to go, keep working, and—we're saying don't do that if you believe realistically that you have the flu. If you don't know but you show some of the symptoms, contact your doctor. ”

“Everybody has a role to play here. It's our function to make sure that what the government is doing is coordinated, that we are thinking in advance of the problem,” she said. “But, again, government cannot do this alone. We all have an important part to play.”

Currently, there are 64 confirmed cases of swine flu in the U.S., including 45 in New York City, according to the CDC. The swine flu outbreak in Mexico is suspected in 152 deaths and more than 1,600 illnesses, according to the Mexican health minister.

As doctors try to understand and bring the swine flu outbreak under control, many people are nervous that the virus will continue to spread. It also leaves some important questions up for discussion:

What are the implications for business and HR policies?
Is preventing/identifying swine flu a workplace training need yet with so few cases in the U.S. and all mild?
Will it affect hiring/business expansion plans if the spreading swine flu could further hurt the U.S. economy?

What do you think? Is it time for businesses to start taking action? Leave a comment and let us know.

Fight the flu at work by raising awareness of sanitary procedures with these helpful flu prevention solutions.

Download "Flu in the Workplace," a free white paper on how to keep employees safe and get a better understanding of your rights as an employer.

New EEOC best practices against caregiver discrimination

The Equal Employment Opportunity Commission (EEOC) recently released an online guide covering employer best practices for workers with caregiving responsibilities.

Along with advice on avoiding discrimination against caregivers the document also provides examples of best practices employers can adopt that go beyond federal non-discrimination requirements to reduce the chance of EEO violations.

This most recent guide supplements a 2007 document on unlawful disparate treatment of employees with caregiving responsibilities. The new EEOC guide outlines added suggestions for employers including suggested language for a written EEO policy addressing caregiver protection and best practices in recruitment, hiring, promotion and conditions and terms of employment.

Among the best practices explained in the new document, the EEOC encourages employers to:

Train managers and supervisors on their legal responsibilities regarding employees with caregiving responsibilities under federal regulations including the Americans with Disabilities Act, the Equal Pay Act, the Pregnancy Discrimination Act, Title VII of the Civil Rights Act and the Family and Medical Leave Act (FMLA).
Develop, distribute and enforce a strong EEO policy that clearly explains examples of discriminatory behavior against caregivers.
Respond to caregiver discrimination complaints efficiently and effectively.
Identify and remove barriers to re-entry for individuals who have taken leaves of absence due to caregiving responsibilities or other personal reasons.
Encourage employees to request flexible work arrangements that allow them to balance work and personal responsibilities.
Monitor compensation practices and performance appraisal systems for patterns of potential discrimination against caregivers.

Employee training is your first line of defense to prevent employment discrimination and minimize legal action. Protect your company from lawsuits by educating your employees on their responsibilities when it comes to discrimination and harassment in the workplace.

Without the proper training, employees may be engaging in or condoning unacceptable behavior without even knowing it. The Harassment-Free Workplace -- Take Control is a comprehensive training program that teaches workers how to take responsibility for their own actions. Prevent harassment and protect your business with more tools from G.Neil.

What if your employees were volunteers?

There are thousands of ideas out there on how to improve employee performance without having to spend a dime, but “sometimes incentive and motivation programs aren’t necessary.”

That’s the message from Paul Hebert at Incentive Intelligence, ironically a blog dedicated to aligning behaviors and goals through motivation, rewards and recognition.

Last week, Hebert proposed an experiment that any manager, supervisor and coworker can try, that simply involves asking yourself one question:

“What would you do different if everyone you relied on for your business success was a volunteer?”

Volunteers are tied to their work with passion, not pay. They’re able to walk out of an organization whenever they please because they’re working because they want to, not because they have to.

Looking at your employees as volunteers forces you to identify their passion and discover why they’re working at your organization. Whatever their passion or reason for working, managers should create a mission and set goals that are aligned with employees’ passion.

“Managing volunteers means valuing contribution and working to match desire to function within the team to achieve the stated mission. Managing volunteers isn't about directing effort as much as it is about allowing effort to find it's best path.”

Hebert suggests that every manager ask themselves - “What would I do different if all my staff could just walk out tomorrow?”

Wellness programs stay strong despite recession

Despite the recession, companies continue to add wellness and health-management programs to reduce costs while encouraging employees to improve their physical health.

The latest Watson Wyatt/National Business Group on Health survey discovered that companies are still adopting employee wellness programs. The survey results also revealed that many companies improved employee participation rates by offering workers financial incentives.

Survey results show how companies increased the availability of various wellness programs:

58% of companies offer lifestyle improvement programs, up from 43% in 2007
56% offer health coaches, up from 44% in 2007
52% offer weight-management programs, up from 42% in 2007
80% offer health-risk appraisals, up from 72% in 2007

Companies that encouraged employees to participate in wellness programs by offering financial incentives reported significantly higher participation rates, according to survey results. Only 40% of companies reported that less than 5% of their workforce participated in weight-management programs.

"Employers continue to see gains from promoting wellness and health management initiatives," said Scott Keyes, senior group and health-care consultant at Watson Wyatt. "Effective financial incentives are one of the keys to encouraging worker participation in these programs — an effort that not only improves the health of workers but also helps reduce costs."

The survey also found that motivating employees with financial incentives significantly increased participation rates. Currently, 61% of employers offer incentives for health-risk appraisals and many employers are also offering incentives for smoking cessation and weight management programs.

Using financial incentives between $51 and $100 have been successful in encouraging employees to participate in smoking cessation programs, weight-management programs, and encourage employees to receive biometric screenings, according to the results.

"The relationship between the amount of the incentive and the level of program participation among employees is strong," said Sherri Potter, senior group and health-care consultant at Watson Wyatt. "A properly structured incentive program does much more than protect investments in health management; it creates a healthier and more productive workforce."

For more information on employee wellness programs and employee health, read these past posts:

Obesity linked to more expensive workers’ comp claims

HR survey reveals top green business practices

New research suggests exercise makes you smarter

Economic stress impacts employee health, productivity

How to beat stress in the workplace

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