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“ALL OF YOUR BASE ARE BELONG TO US. RESISTANCE IS FUTILE.”

Thursday, September 30th, 2010

By Robin E. Shea, Attorney, Constangy, Brooks & Smith, LLP

The U.S. Department of Labor is planning to impose new “affirmative action” requirements on employers, requiring them to develop “plans” to address workplace safety, equal employment opportunity, and wage and hour/employee classification issues.

For the most part, these requirements – called “Plan/Prevent/Protect” – will not be limited to federal contractors but will apply to all employers covered by the relevant laws.

The proposed changes are dramatic, and shift from what the DOL calls “catch me if you can” (in other words, employer is presumed compliant unless the government is given reason to believe otherwise) to “Plan/Prevent/Protect” (in other words, employer is presumed guilty unless it can prove otherwise). “[E]mployers and other regulated entities will be asked to assemble plans, create processes, and designate people charged with achieving compliance,” says the DOL, and “compliance will be non-negotiable . . . .” (Emphasis added.)

Here are the basic guidelines of “Plan/Prevent/Protect”:

The “Plan” component will require employers to enlist employees in “identifying and remediating risks of legal violations and other risks to workers.” The plans must be made available to the workers “so they can fully understand them and help to monitor their implementation.”

The “Prevent” component will require employers to “thoroughly and completely implement the plan in a manner that prevents legal violations. . . . The employer . . . cannot draft a plan and then put it on a shelf. The plan must be fully implemented . . . .”

The “Protect” component will require employers to ensure “that the plan’s objectives are met on a regular basis. Just any plan will not do. The plan must actually protect workers from violations of their workplace rights.”

In the context of compliance with the Fair Labor Standards Act, Plan/Prevent/Protect will require that employers provide information to employees about how their pay is calculated, and prepare a “classification analysis” with respect to any job that it treats as FLSA-exempt. Of course, the analysis will have to be made available to the employees and the government.

The DOL will issue proposed regulations on Plan/Prevent/Protect at some point in the future.

Robin Shea will be a presenter at CAI’s Triad Employment Law Update on Wednesday, Nov. 3, 2010 at the Koury Center in Greensboro, N.C. For additional information on the conference, visit www.capital.org/triadlaw.

Photo Source: my.aegean.gr

affirmative action, Brooks & Smith, Compliance, Constangy, employees, HR, Human Resources, LLP, management, North Carolina, plan, prevent, protect, Robin Shea, U.S. Department of Labor Posted in Compliance, Everything Else, Human Resources Management comment No Comments »

Job Satisfaction: What Matters Most to Employees?

Thursday, September 23rd, 2010

Job security was rated by employees as the most important factor contributing to job satisfaction in the annual Job Satisfaction Survey conducted by The Society for Human Resource Management (SHRM). Benefits and the ability to use skills and abilities on the job ranked second and third.

The survey, conducted in January 2010 and released on June 27, asked employees and HR professionals in the United States about contributors to job satisfaction. Most interesting in the survey results is the difference between what employees see as most important and what HR professionals think employees see as most important:

HR professionals expected the relationship with the supervisor to be first. Relationships with the supervisor was not even in the top six of employee selections.
Employees ranked the work itself as fourth, while HR professionals perceived it would be much further down the list (13th).

Key learning points from the survey are that employers should:

Emphasize effective communication with employees
Look at employees’ skills and abilities and find ways to use them in the organization for mutual benefit
Utilize employee feedback and knowledge to develop short- and long-term goals that contribute to the organization’s strategic plan

While this survey provides interesting data, it may not be representative of what your employees think. Breakdowns of the data by age and sex revealed differences in what employees ranked as most important to job satisfaction. A survey of your employee population may yield totally different results.

As the SHRM survey revealed, perceptions of what is important to employees may be very different from reality. CAI’s Employee Opinion Surveys can help you determine what is most important to your workforce. To assess your employee satisfaction and engagement, as well as organizational climate, contact Molly Hegeman at (919) 878-9222 or molly.hegeman@capital.org. You can also visit our Employee Opinion Surveys Web page.

Photo Source: Y’s Photostream

CAI, Communication, Employee Opinion Survey, Employee Satisfaction, HR, Human Resource Managements, Human Resources, Job Security, SHRM, Society for Human Resource Management Posted in Everything Else, Human Resources Management comment No Comments »

Six Key Steps to Properly Classifying Independent Contractors

Thursday, September 16th, 2010

It has been well documented that the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) are cracking down on employers who misclassify employees as independent contractors.

Federal and state governments are seeking to contest these misclassifications due to the current economic strain on their finances. Independent contractors, who can be reclassified as employees, represent increased revenue in the form of federal and state payroll income taxes, Social Security taxes, Medicare taxes, and unemployment insurance taxes. President Obama has allocated $25 million to the DOL to hire additional federal investigators to lead this effort, and predicts the outcome will bring in another $7 billion in tax revenues over the next 10 years.

What Steps Should Employers Take to Properly Classify Their Workers?

1. Written, signed contracts. Independent contractors should have specific contracts with the employer, including all terms and conditions citing when and where the work will be performed and that the contractor is not entitled to the same benefits as an employee.

2. Performance of duties. Provide an independent contractor with a general overview of his or her responsibilities within the contract itself.

3. Form 1099 vs. W-2. Independent contractors should receive a Form 1099 at the end of a calendar year, not a W-2. A Form 1099 demonstrates the contractor was treated as any other accounts payable, and not as an employee requiring taxation.

4. Be consistent. Treat your employees like employees and your contractors like contractors. Independent contractors should not be supplied with the same perks (for example, equipment, cars, expenses, etc.) as your employees.

5. Recordkeeping. Retain any information that demonstrates the independent contractor is in business for themselves and is not an “employee” of your organization. These items could include business cards, letterhead, signed contracts, federal taxpayer ID number, copies of business insurance and workers’ compensation insurance policies.

6. Conduct your own audit. You can have your attorney, auditor, or an HR professional conduct an audit on your behalf to ensure these steps and others are being followed to properly classify your workers.

The IRS uses Form SS-8 as a guideline for determining worker classification. Familiarizing yourself with the contents of this form and the questions asked will help you when classifying your workers.

For more details on the proper classification of employees and independent contractors, please call a member of CAI’s Advice and Counsel team at (919) 878-9222 or (336) 668-7746.

Photo Source: Wikimedia Commons

Form 1099, Form S-8, HR, Human Resources, Independent Contractors, Internal Revenue Service, IRS, U.S. Department of Labor, w-2 Posted in Everything Else comment No Comments »

How Providing Child Care Can Benefit Your Company As Well As Your Employees

Tuesday, September 7th, 2010

Here’s a common misconception: When employees ask about whether your firm is offering any child care or dependent care programs, they are not necessarily asking if you have an on-site program. They just are inquiring if you address the subject at all.

In fact, most companies that provide dependent care assistance to their employees have a plan where they can contribute part of their pretax wages to individual accounts. Those contributions are used to reimburse the employee for child or dependent care expenses away from the company.

Whether on or off site, many companies are considering a review of their policies for child and dependent care. Some advantages providing child care to your employees can offer your organization include:

Possible savings in money – A 2005 study co-authored by University of North Carolina professor Rachel Willis surveyed 925 employees at three light manufacturing firms—two that offer on-site child care and one that does not. It found that the two firms offering the benefit saved between approximately one-half and twice the cost of operating the child care centers, including subsidies to employees and other costs.

Improved employee morale, reduced turnover and absenteeism, and increased productivity – In a report by the National Conference of State Legislatures, employers cite child care issues as causing more problems than any other family-related issue in the workplace, with increases in absenteeism and tardiness reported in nine out of 10 companies. And 80 percent of the companies surveyed said that work days were cut short because of child care problems.

Incentive for recruitment – A study conducted by Simmons College, Graduate School of Management found that 93 percent of parents cite work-site childcare as an important factor in job change, and that 42 percent of all employees surveyed said that the availability of on-site child care was an important factor to their decision to join their present employer.

The issue of child and dependent care remains a divisive one. Many questions arise from regulations, including liability for taking care of ill or injured children, and some younger and older employees see it as an incentive that does not benefit them. It is a decision that needs careful consideration of its pros and cons before being implemented at a company.

For more details on how you can establish child or dependent care policies for your employees, please call a member of CAI’s Advice and Counsel Team at (919) 878-9222 or (336) 668-7746.

Photo Source: mehedstrom

CAI, Child care, dependent care programs, HR, Human Resources, National Conference of State Legislatures, Rachel Willis, Simmons college Posted in Everything Else comment 3 Comments »

Basic Strategies for Succession Planning

Thursday, September 2nd, 2010

Succession planning is an important process that should be carried out by a management team to ensure the continuity of an organization’s business plan. The key goal is to identify, recruit and prepare the most talented employees for key roles within the company. These carefully selected employees should be provided with the education and training they need to achieve and succeed at higher levels and with broader responsibilities.

Through the planning process, these highly recognized employees will appreciate the time, attention and development invested in them, resulting in key employee retention, which is absolutely necessary to ensure the effectiveness of succession plans.

Succession plans vary by company, business plan, and the availability of talented employees. However, every succession plan should follow some basic strategies:

Monitoring Future Needs – Tomorrow’s key roles may not even exist in today’s organization
Talent Assessment – Develop a way to identify your most talented employees
Hire for the Gaps – Identify the roles that are beyond the capabilities of your current employees and hire to fill those skill gaps
Share Your Plan – Key employees should understand early in their careers the special path you have put them on and the importance of the role they are being developed to fill
Use Available Technology – Track and monitor the training and development of high potentials
Create Developmental Opportunities – Seek out education that offers executive training and mentoring
Measure Performance – Challenge your key employees, but measure them fairly as you are asking them to stretch beyond normal expectations

Remember, effective succession planning is a journey, not a destination. Once you have the plan in place, it requires constant and consistent monitoring for adjustments and improvements as the organization changes over time.

If you need further information or assistance with succession planning for your organization, contact Molly Hegeman, CAI’s Director of HR Services, at (919) 878-9222, (336) 668-7746 or molly.hegeman@capital.org.

Photo Source: madebytess

CAI, hiring, HR, Human Resources, North Carolina, recruitment, retention, Succession, Succession Planning Posted in Everything Else, Human Resources Management comment No Comments »

HR Success – Eye Care Associates

Friday, July 9th, 2010

Ranked among the top 25 largest U.S. optometric-optical practices, Eye Care Associates has 19 offices throughout central and eastern North Carolina. It has grown aggressively over the past three years, adding seven new locations and upgrading several more of its existing offices. Along with this expansion, it has retained most of its talent. That accomplishment resulted in the firm winning a 2010 CAI Ovation Award in the small employer category (companies with 250 or less team members).

A few years ago, Eye Care Associates Human Resources Manager Melissa Short often heard team members tell her they wanted to achieve, learn and experience more to be engaged in the company’s mission as part of its growth. At the same time, Eye Care Associates knew it needed to identify and develop high-potential team members as part of its expansion activities. The company had lost a few exceptional team members because of a perceived lack of advancement opportunities.

Short started brainstorming ideas for a program that would meet everyone’s needs, from the corporate management team, who found themselves with insufficient time to develop a large number of team members, to the supervising office managers who needed employees on site for patient care. Working closely with the company’s training manager, Lois Paul, and two experienced office managers, Short tried to balance those interests as she designed and created the Visionary Development Program.

This 14-week intensive program identifies and tests high-potential team members while providing them with a strategic and more in-depth view of the organization. It consists of job shadowing, increased company involvement, and work on special projects. Eye Care Associates’ upper management team is actively involved in this process, mentoring employees and spending time with participants to educate them on their roles. Only a small group of team members – usually four or five – can participate in any four-month period when the program occurs.

The Visionary Development Program resulted in multiple benefits for Eye Care Associates, including:

Excellent retention among participants (15 out of the first 16 chosen for the program have stayed with Eye Care Associates, with the one leaving only for health reasons)
Improvement of the management team’s professional and interpersonal relationships with participants
A stronger pipeline of internal candidates for succession planning and expansion plans
Increased employee engagement and participation
Improved individual performance results
Innovative ideas from participants that would likely have remained undiscovered without the program
Increased credibility and respect for the management team by among program participants and their peers, as a result of witnessing their knowledge level and work volume firsthand
More confidence from the management team in participant abilities, resulting in more involvement of participants in special projects
Additional support to the management team that may have saved in administrative costs
The establishment of a true stepping stone for future advancement in the company

Eye Care Associates plans to revise and tweak the Visionary Development Program in the future to reap additional returns. This is a great model that other employers can replicate in their workplaces. Engaging employees more in the success and operations of the company is a great way to improve talent retention. For additional information about the Visionary Development program, contact Short at mshort@ecanc.com.

CAI recognizes North Carolina companies for innovative HR/People solutions with Ovation Awards during its annual HR Management Conference in February. If you’d like to be considered please send a 2-3 paragraph description of your program to doug.blizzard@capital.org. The description should summarize the business need, describe how the solution was implemented, and highlight the measurable and/or forecasted business results.

Photo Source: The-Villages-Onli…

CAI, employee engagement, Eye Care Associates, HR, Human Resources, job shadowing, management, Melissa Short, North Carolina, optometric-optical practice, Ovation Awards, Raleigh, retention, training, Visionary Development Program, Workplace Insights Posted in Everything Else comment No Comments »

HR Professionals: The “Compliance Police” or “Business Partner?”

Tuesday, June 22nd, 2010

Over the last few years, there has been a deluge of commentary on the concept of the HR professional being a “strategic business partner.” A Google search of the phrase “business partnering” yields more than 2.3 million hits. More tellingly, a Google search of “HR strategic business partner” yields an astonishing 3.83 million hits! Those numbers are higher than the combined total hits for searches of “Twilight” and “Lady Gaga!” (Ask your kids.)

If being a strategic business partner is that prevalent on the web and in the business press, then why don’t most HR professionals you meet today consider themselves as strategic business partners? Is it an “us” problem? Or is it a “them” problem? Perhaps it is a little of both.

HR professionals, when asked to explain what they do, often use phrases like “policy police” or “employee counselors.” The view that HR serves to staff and take care of staff, or to make sure the “i’s are dotted and t’s are crossed,” is still held by many in management. Unfortunately, this view has been a longstanding perception in industry.

The HR function grew out of the need for large organizations to handle employee concerns and companies to ensure that they had the right people in the right jobs. As sweeping new employment laws were enacted in the 1960s and 1970s, organizations looked to the HR function to make sure they were compliant. Though this is a relatively simple history, it serves the purpose of showing the prevailing view of the HR function that still pervades organizations today—making it more challenging to become a strategic partner.

But, we can’t blame it all on “them.” While it is true that the perception of HR as a compliance function exists, it is also true that many HR professionals are unable to fill that role of a business partner. Is it because they don’t have the skills needed? Perhaps, in some cases. But more often than not, it is simply because the HR professional does not have the knowledge of what a business partner is nor the language to speak to upper management.

To be a strategic business partner requires you to understand the core of what your organization is and what it does. You don’t make widgets or “serve” your customer. You add value to the customer.

What is your organization’s “value added?” How does the HR function work to support your organization’s mission statement? How does HR add value to the customer? How does HR serve as a source of sustainable advantage in the marketplace?

These are important questions that HR professionals need to know. By truly understanding these questions, the HR professional is more equipped to speak to upper management and show the value added of HR beyond compliance, drug testing and benefits administration.

HR can, and should, serve as a source of competitive advantage—something that helps set your organization apart from your competitors. If the HR professional can do that, they can get that proverbial “seat at the table.”

Photo Source: Freeimagedepot.com

Brad Geiger, business partners, CAI, Compliance, HR, HR professionals, Human Resources, North Carolina, Workplace Insights Posted in Everything Else comment 2 Comments »

HR Success – Netflix

Thursday, April 29th, 2010

Netflix has proved to be a recession-proof company, showing record growth from $19.99 a share in November 2008 to $75 a share in April 2010. Much of the credit can be pointed inwardly at their own employees who have helped drive the company’s growth through new technologies and customer satisfaction.

With more than 2,000 employees, Netflix has grown to a $1.36 billion business. Netflix’s success can be directly attributed to their solid HR department who value quality over quantity and embody the same values as they seek in their employees.

They reward responsibility with freedom and recognize what strategies keep top talent long-term. As they seek innovation from their employees, they also embrace innovative HR policies like their vacation policy and time tracking: there is none. Their philosophy is that work hours are not tracked between late nights and weekends worked or e-mails answered at odd hours, so why track vacation hours? So they eliminated vacation and tracking all together.

Contemporary ideas like that keep Netflix on the path towards major growth and success as they transition with new technologies. As Netflix continues to grow, they continue to minimize “rules,” which allows for more flexibility, a great social responsibility and a solid loyalty factor, which in turn creates long-term, top talent retention.

Netflix’s methods seem to be working for them and could really revolutionize how growing businesses can retain top talent while maintaining their small business feel. Emerging companies should take note of this methodology and see if it works for them.

Photo Credit: Mr.Thomas

CAI, HR, Human Resources, labor issues, management, Netflix, retention, Workplace Insights, workplace morale Posted in Everything Else, Human Resources Management comment 1 Comment »

Workplace Insights

Archive for the ‘Everything Else’ Category

“ALL OF YOUR BASE ARE BELONG TO US. RESISTANCE IS FUTILE.”

Job Satisfaction: What Matters Most to Employees?

Six Key Steps to Properly Classifying Independent Contractors

How Providing Child Care Can Benefit Your Company As Well As Your Employees

Basic Strategies for Succession Planning

HR Success – Eye Care Associates

HR Professionals: The “Compliance Police” or “Business Partner?”

HR Success – Netflix

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