Keeping your Gen-Y Employees Engaged

By Nicholas Aretakis

Your company has an immediate need to hire additional staff to address robust growth prospects, and many of these new employees will be 20-somethings in entry-level positions. Will you be able to educate these entry-level employees quickly and generate productivity and subsequent return on your investment?

Human resource management with younger employees offers interesting challenges. To start with, many of these younger employees will be struggling with personal aspects of their lives since breaking the financial umbilical cord they maintained with their parents for the past 22-plus years. For many Generation Y-ers, the workplace is the first adult, truly independent experience they’ve had since school.

How can you provide mentorship to the Gen-Y employees who will become a substantial component of your company’s growth and future? How do you avoid high attrition rates and a “brain drain” amongst a generation of young employees who job-hop more frequently than any other in history?

First, let’s look at what we know about these employees. A two-year survey of more than 200 young adults at over 60 major colleges, universities, and technical schools, including recent grads and those embarking on first careers, revealed some interesting findings. It found that what today’s 20-somethings worry about most is making a life-long decision too early. What these young people say they want is to enjoy life right now more than to make money. And what they believe holds them back is a lack of basic job-survival skills—and sometimes, the basic life skills, such as budgeting and debt management, as well.

From an HR perspective, this information offers a gold mine of opportunity. Like it or not, your company becomes a second “home” to these young people. For Gen Y-ers, a good relationship with supervisors and co-workers is crucial, as is the sense that their work is meaningful and relevant to their life. As an HR professional, how can you make their work relevant and keep them engaged and happy?

To start with, you can address their major concerns and challenges in the workplace, and help them get settled in their new position at your company. Above all, you can help them develop into experienced, loyal employees by getting them off to a good beginning—and then by keeping an eye on their progress and job satisfaction.

Here are some specific tips to help a young employee acclimate to a new job—and stay relevant over the long haul.

A one-on-one “goals” meeting with each young new hire
Discuss what they want and expect. Encourage entry-level workers to develop and articulate long-term goals, and then help them map out short-term stepping-stone goals to achieve them. Be sure to talk big picture as well. What does this young person dream about? How might this job accelerate their development, responsibilities and earning potential? Let them know you want to be part of their future.

Make expectations clear
Discuss, as new hires, what is expected of them. Include such specifics as extended hours during crunch times, business travel, and professional work behavior. Be as specific as possible: e.g., use of cell phones, social networking on the clock, dress codes, language, arriving late, sick days, socializing during work, email/IM/BlackBerry addiction, and so on. Many Gen Y-ers have difficulty making the transition from dorm rat to suit. Simple cube etiquette guidelines, and even basic ideas such as meeting deadlines, sometimes present learning curves for these young employees.

Alert them to feedback procedures
Every young employee needs to understand that their actions have consequences. Explain how their performance of tasks will be acknowledged, detail your company’s policy on constructive feedback and coaching, and offer guidelines about giving and getting feedback. Young employees need to know that it’s okay for them to speak up, and that it’s also all right to make mistakes—as long as they seek to understand a misstep and make an effort to correct it.

Encourage them to keep an “accomplishment log”
This is the employee’s own private record of tasks accomplished, skills learned, triumphs, and so on. Encourage them to include everything they are proud of. Not only is this a good way to keep track of goals and progress, but such a log will come in handy when the first performance review rolls around. A young employee who can confidently articulate his or her worth will be viewed more favorably when promotion time arrives.

Pair them with a mentor
Without infantilizing young employees, there are ways to help them understand effective ways to get noticed, shine in meetings, and be rising stars – without offending older, more established employees. Talk with them about respect and humility, which can be demonstrated by: asking questions, rather than being a know-it-all; framing ideas or suggestions in the form of a question, such as “Would it make sense to call the company and request payment?” rather than, “We need to call the company and tell them they need to pay right now.”

This type of communication leaves room for interaction. Talk about: offering solutions rather than complaining; listening instead of getting defensive; and taking ego out of discussions rather than taking things personally. Older, more experienced employees are great mentors and models for these basic workplace behaviors.

Emphasize quality of life
If your company offers amenities, such as gym membership, corporate volunteer programs, or development incentives, help employees become acquainted with these from the get-go. You may even want to provide a list of local restaurants, stores, ATMs, and other attractions to help them think of their workplace as a hub. Young employees who feel that their company takes an interest in their happiness, well-being, and work-life balance are more likely to stick around.

Help them get settled
Often, 20-something employees are not only working their first real job, but are living in their first real apartment, perhaps even in a new city. Without infringing on their privacy, it is perfectly fine to ask employees if they need any advice about the city, their neighborhood, cultural offerings, etc. Some HR departments offer introductory packets that include local entertainment, transportation, and other information to help newcomers feel welcome.

Introduce them around
Make new employees feel welcome. Introduce them to as many people as you can. Take the time to chat with employees so the young new hire (this applies to any new hire, by the way) can get a sense of your company culture. You might even want to invite the employee to lunch and include a number of employees from different departments, so they will have a chance to exchange questions.

Model reliability
Show new employees that you are reliable, that you do what you say when you say you will, and that you follow through. If the employee wants information about the company’s 401(k) for example, make sure you write down this request and then deliver. Young employees need to know that they have someone they can “count on.” You are the first person this employee has spent a lot of heart-to-heart time with. Don’t squander this privileged position.

Check up on them
After the new Gen-Y employee is initiated in the job, schedule a monthly meeting for each of the first three months to make sure that they are thriving. Invite questions and suggestions. Revisit one or two of the short-term goals, and ask the employee how well they’re staying on track.

Catch them doing things right
Above all, Gen-Y employees need to feel welcome, appreciated, and relevant. Make an effort to pass along compliments in an informal manner – don’t wait for the performance review.

Young employees may need a little extra attention from HR, because they are making a major life transition—not just a job transition. It is the wise HR professional who addresses the specific needs of new 20-something hires – and reaps enormous benefits in the form of retention rates and more productive young employees as a result.

Top Ten Worries of Gen Y Employees

According to a two-year survey of hundreds of 20-something college students and recent grads nationwide entering the workplace, here are their top ten worries:

1. Making life-long decisions at such an early age.
2. Self-doubt caused by too many career choices.
3. Fear of failure.
4. Finding a job I love that also pays well.
5. Working so much that I don't enjoy life.
6. Getting into a 9-to-5 rut.
7. Making a big mistake and not being able to turn back.
8. Not making enough money to live.
9. Becoming unhappy with my job and my life
10. Having life/career regrets later.

How HR can Use this Information

When hiring young employees:

• Provide a work culture that is stimulating, fun, and welcoming.
• Pay attention to work/life balance issues, which rank among the top concerns of 20-something employees.
• Earn their trust so you can talk frankly about their work satisfaction.
• Give them tasks that feel meaningful to them.
• Build job flexibility into their positions.

Are these companies for real? Yes - they really are. IBM, KMPG, S.C. Johnson & Sons and Patagonia are just to name a few. But truthfully, these companies are few and far between. While these epicurean benefits are surely attractive, it is also understandable that it may not be feasible for all companies to do so.

However, just because a company can’t go the extra mile, doesn’t mean a company can’t take baby steps in a positive direction. After all, the 95% of female employees who don’t return to their workplace after maternity leave, don’t just fall off the face of the earth. The majority continue working at some time – just not for you - but often with your competitor. So what can you do to ensure the retention of some of your most valuable players? Here are some suggested “baby steps” you can take:

Step 1: Company Culture - The moment an employee tells you that they are pregnant, be excited. No need to jump up and down, but this is a wondrous moment in a person life. Join in. A sour face followed by asking, “when will you be out?” does not give the impression of a supportive workplace. Once negativity is perceived, it will be hard for an employee to ignore it. A positive attitude toward motherhood should start at the management level. A sense of community is crucial if she is to spend her career peaking years with your organization.

Also, the reason many women wait so far into the pregnancy to inform management is probably fear – fear of job loss, demotion, lost opportunity. From line assemblers to senior partners – fear is often the culprit. If this is something your company is experiencing, a close look in the mirror is needed. Fear, unfortunately, is often created by management and significant changes need to be implemented toward the perception of pregnancy in the workplace. Behavioral changes need to start at the top.

Step 2: Information - Start immediately. Once informed of the pregnancy, companies should have HR/management sit down to inform the employee of the benefits available. There will always be misconceptions about benefits. Do they or don’t they? Often employees are fearful to ask. What can a company do to clear the air? Throw it all on the table. Give them all the information they may need.

Why should companies start early? The reason is because women start early – they start making decisions from day one about how they plan to balance their work lives after a baby is born. Often, women leave their jobs never speaking up for what they want because they just assumed there would be no way of getting it. When a woman is debating about her decision to return to work, knowing up front the benefits and options available is crucial to swaying her back into your company.

As a suggestion, a good way to provide this information is to have a package of information ready for expectant mothers, informing them of the company’s leave policy and any other benefits available to them. Include in-formation on various resources that you foresee expectant mothers will need. With the new baby arriving, packaged information is a blessing for mothers who don’t know where to begin. The earlier a mother can plan for her pregnancy the earlier a company will be put on notice of when and what they will need to supplement their workforce. After all, time is money.

KMPG, a New York based accounting firm, gives a box of goodies as a kind of shower gift to expectant parents. The gift includes a rattle, a baby bottle and toddler size t-shirt that says, “My mom works at KPMG.” Included in this box is a pamphlet of information that spells out various parental leave benefits available.

Step 3: Flexibility - The most attractive benefit for new mothers is job flexibility. Explore various return to work options that maybe be feasible for your company including, reduced work schedules, virtual work, job sharing, telecommuting, flextime and or part-time work. Even having a few extra hours a week with a newborn can make a tremendous difference for a mother. Suggest a trial period and work together for a solution. Communication and innovation is what keeps companies competitive. Why not incorporate these strategies into your benefits programs?

Step 4: Paid Maternity Leave - Consider paid maternity leave. While 100% paid leave may not be an option, partial paid leave is something every company can consider. Whether for one week or twelve weeks, every little bit helps in this country where a dual income is the norm. Even with state-assisted partial paid leaves, not all employees are covered. Keep in mind that one of the biggest stressors for a new mother is the loss of income. By providing paid maternity leave, even partial pay to an employee, you are clearly stating that as a company, you care about the well being of your employees and their families.

Going that extra step is not only about good will and feeling good. Taking care of your mothers, as well as all your employees, will result in significant bottom line profits. It is no surprise that research has shown that retaining employees is far more cost efficient than recruiting and training new ones. When companies offer generous benefits, it inspires loyalty and self worth in employees, often resulting in happier, harder working employees who are there to stay.

By Amy Lee,
Helpline Consultant

COBRA Tips (Part 2)

As any HR professional knows, COBRA administration is a complex and tricky matter. Please refer to Part 1 in the October 2007 newsletter. Here are some additional points on this issue.

Qualified beneficiaries
Qualified beneficiaries are individuals who can independently elect COBRA because they were on the plan the day before the first qualifying event (COBRA event). Dependents may be added during COBRA continuation coverage (per the plan’s rules), but will never have independent COBRA rights. There is, however, one exception: new born babies or adopted children of the covered employee who are added during a COBRA period have independent COBRA rights. Qualified beneficiaries can lose their independent rights if they are not covered under COBRA from the first qualifying event.

Gaps in health care coverage
There are three situations where there are gaps in coverage and COBRA can still be elected: (1) where the spouse is taken off the plan before the legal separation or divorce (see Part 1 of this series/Oct. 2007); (2) where coverage during FMLA is declined (they can elect COBRA only after FMLA), and (3) where a COBRA waiver is rescinded during the 60 day election period (coverage does not have to be provided retroactively while the waiver was alive).

Open enrollment rights
Persons on COBRA have the same open enrollment rights as active employees, including the right to add other types of coverage (e.g., a new vision plan where the COBRA coverage was just for medical). Many insurance companies have a different interpretation of COBRA open enrollment rights.

“Similarly situated individuals” rule
Under this rule, where there is no specific COBRA regulation, persons on COBRA must be treated exactly the same as “similarly situated individuals” who have not had a COBRA event (active employees and their dependents).

Cal-COBRA’s extension compared to COBRA’s 11 months
Cal-COBRA allows an extension of 18 months where the COBRA continuation period is for 18 months (termination or reduction of hours). Generally, the Cal-COBRA extension is just for medical coverage. COBRA allows for an additional 11 months of coverage (for Social Security Disabled persons and their dependents) where the COBRA continuation period was for 18 months (termination and reduction of hours). COBRA’s 11-month extension is for medical, dental and vision. If the federal 11-month extension is elected first, then Cal-COBRA may be elected for seven months (18 + 11 months of COBRA + 7 months of Cal-COBRA = 36 months total).

Electing Medicare or other group coverage
If Medicare or other group coverage (which has no pre-existing condition exclusion or limitation) is elected before a COBRA election, then the person is allowed to have both COBRA and the other coverage. If the timing is reversed – i.e., Medicare or other group coverage is elected after electing COBRA – then COBRA may be discontinued.

“At Will” doesn’t Mean “Scott Free”

By definition (in most U.S. common law jurisdictions), At Will Employment means contracts of employment without a definite term of service. For example, those employment contracts that are not in writing or part of a collective bargaining agreement are held to be “at will,” which means that the employer may dismiss the employee at any time for any reason.

In turn, an employee can also quit at any time with or without reason at any time. Sounds simple? Yet, every day employers are scratching their heads whether they can terminate an employee by using the “At Will” excuse. I state “excuse” because some employers are terminating employees illegally and using the “At Will” playing card.

If you want to terminate an employee for any of the following reasons, using an “At Will” excuse, you may face a wrongful termination lawsuit or breach of contract:

• if an employee refuses to break the law,
  
• is in retaliation for filing a discrimination or safety claim,
  
• is taking a leave under the Family and Medical Leave Act,
  
• the company is not following it’s own procedures or policy (disciplinary steps),
  
• the employee is within protected classes such as race, gender, national origin,
  
• for reasons not contained in the employment contract.
  

Gather and go over the facts
Before you move forward in terminating an employee, you should first get all your facts. Ask yourself, are you basing your decision on someone else’s complaint or do you know everything about the case and feel that after investigation your remedy is termination?

Secondly, decide whether their performance is not adequate. Is this person properly matched for the job, for your environment, for you as their manager? Is he or she simply lacking skills and information, or have you simply not had the time to transfer those skills and information?

Thirdly, decide the reason the misconduct occurred. Always focus on the behavior, not the employee’s attitude. The behavior should be measurable, whereas most descriptions of behavior of bad attitude are not.

Fourth, document, document and document. It is best to over document than not to document the employee’s behaviors/misconduct. If you have taken disciplinary steps, you should document each step, so when it comes down to terminating the employee, it is not a surprise.

Fifth, determine what your business reason is for taking this action. You will need to ask yourself, does the termination benefit our operations, company, employers and our clients.

Lastly, if you are unsure about the termination, seek legal advice especially when it involves compliance. It is best to be safe now than sorry later.

Avoiding lawsuits
The reason so many employers have faced lawsuits is because the California Labor Code Section 2922 has not been held to be absolute in the courts, but has instead created a presumption that “at will” employment can be overcome by evidence that the company had employment policies or practices that establish the employee’s right not be terminated, except for good cause.

The policies and practices that have been held to create such a right include long term employment, commendations, pay raises, good evaluations and other positives. An ineffective “at will” provision starts in the hiring process. Train your hiring supervisors and managers not to say in their interviews things such as “I am looking for a long-term employee,” or we see you being here for a long time and probably be promoted fairly quickly.” Such statements in the interview can undermine the “at will” status.

Also, some employers feel that if they state the disclaimer of “at will” at the end of the application or in the employee handbook they are protected. The courts have held that these provisions are not sufficient. An employee does not sign the employee handbook and the application is not a contract.

Steps to protect your company
Make sure the “at will” provision is integrated into everything.

1. For example, make it clear in your offer letter/application that employment is “at will”. This means that terms and conditions of employment may be changed with or without cause, and with or without notice, including but not limited to: termination, demotion, promotion, transfer, compensation, benefits, duties and location of work.
   
   
2. In employment contracts, management bonus agreements, sales commission agreements, confidential information, patent agreements and stock option agreements should state employment is “at will.”
   
   
3. In your handbook, you state that employment is “at will,” but then you don’t have anything in the handbook that states this is not a contract, and none of the provisions in this handbook are binding. If you do this, you are contradicting yourself.
   
   
4. “At will” agreements should be a part of promotions and increases in compensation or benefits.
   
   
5. Make sure they are signed and dated by the employee.
   
   
6. You should also state that your status as an “at will” employee cannot be changed except through a written agreement signed by the president of the company.

California employers had almost given up on the protection of “at will” since so many employees have claimed breach of contract and have won. Luckily for employers, the most recent case of Dore v. Arnold Worldwide, Inc., (August 3, 2006) has allowed California employers a little bit of breathing room.

In this case, the court found that the employment contract, the offer letter, contained clear and unambiguous statement of “at will” status and rejected the plaintiff’s proffered evidence to show otherwise. In other words, if you as an employer integrate the language of “at will” clearly in all your documents and not terminate the employee illegally for the items I stated earlier, your “at will” provision is enforceable.

Again, if you question yourself about terminating an employee and all your ducks are not in a row, please seek legal counsel.

Affirmative Action Plans 101

Have you ever wondered why some companies have an Affirmative Action Plan (AAP)? The purpose of this article is to help uncover the fundamentals of Affirmative Action requirements and, more importantly, the unfavorable consequence that may result from compliance reviews.

What is affirmative action?
“Affirmative Action” means positive steps taken to increase the representation of qualified women and minorities in areas of employment, education, and business from which they have been historically excluded. It is a set of public policies and initiatives designed to help eliminate the effect of past and present discrimination based on race, color, religion, sex, or national origin.

Affirmative Action is any attempt to work proactively in order to achieve greater diversity in a workplace or school (whether for race, gender, ethnicity, or any other protected classification) rather than simply ceasing to actively discriminate.

Requirements for an Affirmative Action Plan?
When affirmative action became federal policy in the 1960s, the nondiscrimination principle, though fragile, was gaining strength. Preferences, by contrast, were flatly rejected by civil rights leaders like Hubert Humphrey, Ted Kennedy, and Martin Luther King, Jr.

In the three decades that followed, more and more Americans began to embrace nondiscrimination and to oppose affirmative action; yet, as John Skrentny shows in his treatise, Ironies of Affirmative Action, federal bureaucrats extended affirmative action with little public notice or debate. Today, affirmative action is widely seen as a demand for favoritism, or even equal outcomes.

Justice demands that we each be given an opportunity to be judged as individuals, not as members of a particular group that we belong to. Affirmative action is not only necessary, but it is also effective.

Who is required by law to have an Affirmative Action Plan?
An organization with 50 or more employees and a government contract or sub-contract over $50,000 is required by law to have a written Affirmative Action Plan in place. Companies that may also be added to this category are financial institutions, districted educational institutions, and hospitals. Qualifying Employers are subject to compliance audits by the OFCCP.

What are the recent changes that affect Affirmative Action Plans?
The Eight Factor Analysis changed to two-factors (internal and external). This analysis refers to measuring workforce availability (benchmarks). The focus is on percentage of minorities and women with requisite skills in the reasonable recruitment area. The second focus is on the percentage of minorities and women among those who are promotable, transferable, or trainable within the establishment.

The “Officials and Managers” job category has been divided into two groups: Executives/Senior Level Officials and Managers and First/Mid Level Officials and Managers. “Office & Clerical” has been renamed to Administrative Support Workers.

(Editor’s Note: For any questions, call Employers Group’s AAP department at 213-765-3942.)

By Clarissa Castillo,
Compliance Specialist, and
Eva Navarro,
Compliance Program Coordinator

Can the unemployment insurance (UI) reserve be transferred from one employer account to another when a company changes ownership?

When a business changes hands – through purchase, merger, consolidation, etc. – the new owner may request a transfer of the UI reserve account of the former owner. If granted, the new owner will inherit the reserve account credits and charges of the company they purchased, which can have a significant effect on an employers’ UI cost.

However, a transfer may or may not be advantageous. If the previous owner had a low tax rating, or a more favorable reserve balance, with prospects of few benefit charges, the transfer could mean an immediate tax advantage. But if the former owner's reserve account has a higher tax rate or prospects of substantial benefit charges against it, the new owner could be negatively impacted.

If only a portion of a company is bought, the new owner can apply for a partial transfer of reserve based of the employees they are adding to their payroll. These funds will then be credited to their existing account. This procedure can have an immediate positive effect on the reserve balance and tax rate of the existing account.

If part of another business is acquired, you must file an application within 90 days after the date of acquisition. If a company acquires all of another business they have three years to file an application. However, rate reductions are not retroactive.

A word of caution, various schemes used to dump UI liability charges into the general fund to obtain a lower UI tax rate is referred to as SUTA (State Unemployment Tax Act) dumping.

• SUTA Dumping Prevention Act of 2004 - Signed by President Bush in August 2004, this law requires each state to enact laws to prevent employers from inappropriately lowering the UI contribution rates. The law not only bans SUTA dumping but also levies heavy penalties on those who engage in or promote such abusive practices.
  
  
• The Employment Development Department actively pursues and prosecutes employers who participate in SUTA dumping and other tax manipulation schemes and has the authority to subpoena records and individuals in its investigations.

There can be a definite cost savings in some cases when an employer transfers a reserve account; however, because of the legal ramifications, it is recommended to seek legal advice.

This year’s California Legislative Session officially ended on October 14, the deadline for Governor Arnold Schwarzenegger to sign or veto all of this year’s bills. About 30 employer and business-related bills were passed by the Legislature, but the Governor vetoed 22 of them and signed only eight.

Health Care
AB 8, which was the Assembly Speaker's health care proposal that would have imposed a 7.5% payroll tax, was vetoed, to no surprise, since the Governor had already announced he would do so. Plus, he already released his own plan for Health Care Reform.

The Governor’s veto message for AB 8 reads:
“…While I appreciate the Legislature’s efforts to reform our broken health care system and applaud the hard work that has gone into AB 8, I cannot sign this bill. AB 8 would put more pressure on an already broken system.

“AB 8 does not achieve coverage for all, a critical step needed to reduce health care costs for everyone. Comprehensive reform cannot leave Californians vulnerable to loss or denial of coverage when they need it most. Finally, to be sustainable, comprehensive reform cannot place the majority of the financial burden on any one segment of our economy. Unfortunately, AB 8 falls short on all three accounts.

“California needs a financially sustainable health care reform plan that shares responsibility, covers all Californians and keeps our emergency rooms open and operating. I cannot support reform efforts that fall short of these goals and threaten to weaken our already broken system.”

Commenting on his own reform plan, the Governor said (in an October 12 press release) that it “ensures that everyone can get insurance and requires employers to pay their fair share – but not the full share – of reform… the time is now for all of us to return to the negotiating table, find a middle ground and pass the comprehensive reforms we need to fix our broken health care system.”

The Governor also vetoed the following bills:

• AB 435 (Wage discrimination), which would have required employers to maintain wage and job classification records for five years, and given plaintiffs alleging wage discrimination up to 4 years to file lawsuits (current law allows 2 years).
  
  
• AB 448 (Minimum wage claims) would have permitted employees to recover liquidated damages in complaints brought before the Labor Commissioner alleging payment of less than minimum wage.
  
  
• AB 1043 (Employment contracts) would have prevented employers from making it a condition of employment for an employee to agree to a choice of legal forum other than the State of California in any employment-related dispute arising in California.
  
  
• AB 1636 (Workers’ Comp/job displacement benefits) would have required an employer, in circumstances where workers compensation permanent disability cannot be determined, to provide a voucher based on a reasonable estimate, and to pay an additional amount immediately if the permanent disability is found to be higher. Also, the bill would have provided that an employer shall not be liable for supplemental job displacement benefits if, within 60 days, the injured worker is offered regular or modified work.
  
  
• SB 549 (Bereavement leave expansion) would have given employees the right to take up to four days off for bereavement leave.
  
  
• SB 622 (Independent contractors) was a particularly bad bill, authorizing employees who suffer actual harm (or a labor union) to bring actions to recover penalties against an employer for misclassification of an employee as an independent contractor.
  
  
• SB 727 (Unemployment/disability benefits) would have added grandparents, grandchildren and siblings to the Family Leave Law.
  
  
• SB 936 (Workers’ Comp/permanent disability), by Senate President Don Perata, would have revised the formula for computing payments for workers compensation permanent disability benefits.
  
  
• SB 942(Workers’ Comp/permanent disability) would have specified that if a workers’ compensation injury causes permanent partial disability and the injured employee does not return to work within 60 days after the disability becomes permanent, the employee would be entitled to receive a supplemental job displacement benefit.

The Governor signed these bills:

• AB 338 (Workers’ Comp/temporary disability) The Governor signed the “compromise” in AB 338, which will allow a 5-year payout window for workers’ compensation temporary disability benefits. The compromise came at the end of the session when AB 1341 was inserted in AB 333 (which had, until then, been considered a “bad bill” for employers). In it’s final version, this legislation is considered a sensible fix for the previous 2-year benefit distribution. It maintains a cap of 104 weeks of benefit for all injuries on or after April 19, 2004.
  
  
• AB 392 (Leave for military spouses) This bill requires employers with 25 or more employees to approve up to 10 days unpaid leave for employees who are spouses of military personnel who are on leave from combat deployment or returning from deployment. This bill has an urgency clause, which means it became effective on the day that the Governor signed it on October 9, 2007. Any employee who works 20 or more hours a week qualifies; however, independent contractors do not. The employee is required to provide notice within two days of receiving the notice, and employers may require a copy of the military order stating the leave. This law does not cover “significant others.”
  
  
• SB 929 (Computer Professionals hourly rate) This legislation exempts a computer professional from overtime requirements if he/she is primarily engaged in work that is intellectual or creative. The bill may reduce the required hourly compensation a professional employee in the computer software field receives beginning January 1, 2009.

The California Division of Labor Statistics and Research (DLSR) adjusts the computer professional pay rate on October 1 of each year to be effective on January 1 of the following year based on the percentage increase in California’s Consumer Price Index for Urban Wage Earners and Clerical Workers.

Currently the minimum compensation prior to DLSR adjustment is $41 per hour, and with the adjustment it is $49.77 per hour. On October 1st. 2008, the DLSR will determine what the adjusted rate will be on January 1, 2009. The new law changes the minimum compensation from $41 to $36 per hour, so the pay after adjustment will likely be lower.

More information
For a complete listing and the final status of all employer-related bills this year, visit Employers Group’s website’s home page, and go to the last link on the left side under What’s New.

Looking ahead in 2008
Legislation that was still pending as of Legislature’s Adjournment on September 14, 2007 must pass through the committee process by the end of January to remain “alive” in 2008. New legislation will begin being introduced when the Legislature reconvenes January 7, 2008.

Employer Denied “Mixed Motive” Defense

A discharged Screen Actors Guild (SAG) official admitted she diverted $30,000 in union funds to friends and her husband’s business. However, the Ninth Circuit Court of Appeals permitted her to continue her suit claiming that her termination was based on racial discrimination in violation of the Civil Rights Act of 1866, § 1981. The employer’s mixed motive defense was not permitted – see Metoyer v. Chassman (2007).

Dr. Patricia Heisser Metoyer, a black African-American was hired by SAG in 1998 as an Executive Administrator of Affirmative Action for an annual salary of $65,000. The case facts assert that Metoyer was assured that the title would be upgraded to Director, and that her salary would increase to $89,000 per year.

While employed at SAG, the nameplate on her door read, “Patricia Heisser-Metoyer, National Executive Director Affirmative Action.” Shortly after she was hired, Linda Shick, the new HR Director, advised her that they planned to appoint 30 directors and that her position of National Director of Affirmative Action would be one of them. However, all of the planned appointments to national director positions were granted except for Metoyer’s. Her request that the senior staff create the position of National Director of Affirmative Action was denied because the Affirmative Action Department was not set up to operate on a national basis, and therefore there was no need for a national director.

Schick reportedly commented to Metoyer that SAG had never had a person of color higher than the position she held and that it would be very difficult for senior staff to accept new ways. And, it is asserted that Schick said, “There are no people of color on senior staff, and it’s very unlikely that there will be.”

Metoyer claimed that several SAG employees approached her with complaints of racial discrimination at the Guild. They complained that SAG senior staff discriminated on the basis of race in assigning work, promotions, and in wages. Senior staff was also accused of responding to the complaints with “blatantly racist” comments.

According to the case, a senior SAG staff member responded to complaints that African-Americans were being kept in low-paying jobs by stating: “I'm keeping them there because I want to keep an eye on them because black people like to party and eat and don't do their work. …They ought to be glad they have a job. …All of these people are lazy and malingerers. Is that something special with African-Americans that they have to socialize all the time and they are never happy? They should be happy to have this job.” Metoyer claims that they were retaliated against after she brought their complaints to the attention of senior management.

Metoyer was warned that she “…would not go far in the organization because she was too outspoken and SAG senior management did not tolerate people of color talking back the way she did. …You talk more than other black people here. The rest of them are like they’re a tribe or something. They hang around together, and they don't talk. You're unusual. You talk too much.”

Metoyer said she thought she may lose her job because of the actions of senior management against other minority employees who brought complaints. She asked whether she was “too outspoken” and says she was told that she was, and that she was not liked because she was too outspoken in attempting to implement affirmative action policies.

In 2000, Metoyer's budget was reduced, and at the same time the Guild received an increase in racial discrimination complaints by its employees. Metoyer reportedly was accused of “fomenting” discontent and unrest amongst SAG employees regarding racial discrimination and encouraging them to file race discrimination complaints.

In late 2000, a temporary employee at the Guild discovered a suspicious-looking invoice and check request in Metoyer's box. The check request was signed by Metoyer, and it ordered a payment of $10,736. In describing the use for the funds, both documents listed seven events purportedly scheduled by the Affirmative Action staff earlier in 2000. The temporary employee suspected that the events had not in actuality occurred, and ultimately referred the matter the Guild’s in-house legal counsel.

As a result, in early 2001, an audit was conducted to investigate outstanding grants. The audit concluded that Metoyer had improperly ordered payment for two current and one former employee, and to her husband without disclosing their identity. Her actions resulted in payments in excess of $30,000. On May 30, 2001, Metoyer was discharged for unsatisfactory performance and misconduct. She then brought several claims of her own, including a race discrimination claim under Section 1981 of the Civil Rights Act of 1991.

The lower district court granted summary judgment in favor of the Guild on all claims. The Ninth Circuit Court of Appeals reversed the decision in part, and determined that Metoyer has raised a triable issue of fact on all but one of the federal and state race discrimination and retaliation claims.

SAG attempted to use a “mixed motive” defense in this case. According to Black’s Law Dictionary (8th ed.) the “Mixed Motive Doctrine” is: “…when the evidence in an employment-discrimination case shows that the complained-of employment action was based in part on a nondiscriminatory reason and in part on a discriminatory reason, the plaintiff must show that discrimination was a motivating factor for the employment action and, if the plaintiff makes that showing, then the defendant must show that it would have taken the same action without regard to the discriminatory reason.”

In this case the court decided that, “In light of the substantial direct and circumstantial evidence of discriminatory animus by SAG management, which made the decision to audit Metoyer, we conclude that Metoyer has raised a genuine issue of fact as to whether SAG was more likely than not motivated by discrimination in its decision to terminate her. ...Therefore, we conclude that the district court erred in its grant of summary judgment on the § 1981 claim of discriminatory termination.”

IT Employees Enjoy Competitive Pay in 2007

While professionals in other fields have seen stagnant salary increases during these past years, IT professionals have enjoyed high and competitive pay practices. According to Employers Group’s latest compensation survey, 2007 and 2008 will be no exception, meaning the retention and recruitment headaches that many companies endured in 2005 and 2006 have (unfortunately) not diminished this year.

According to the 1,817 national firms that participated in Employers Group’s 2007 National IT & Engineering Compensation Survey, compared to an overall national salary increase of 3.9% for all jobs, skilled IT employees remain in high demand. Employers Group’s report shows IT staff members received increases of 4.13%, and IT and Engineering Management received an increase of 4.33%. Unlike last year, when pay slightly dipped for IT staff, this year’s salary increases and alternative pay practices have jumped. Average retention bonuses rose to $4,294 in 2007 (from $3,506 in 2006) for IT staff, whereas IT management dropped back down to $12,406 (from $14,747 in 2006).

Employers brace for an IT talent drought
Last year, there was a clear discrepancy in employers’ pay practices between IT management and IT staff, due to companies’ clear need for IT staff who have business and managerial skills. However, this year, employers’ focuses have again shifted. According to the Bureau of Labor Statistics, the unemployment rate for IT occupations fell to an all-time low of 2% in the most recent quarter, meanwhile demographic data shows that more tech pros will retire from U.S. companies over the next decade than can be hired domestically, even taking into account foreign workers imported under H-1B and other visas.

Consequently, while more than 50% of all companies planned to increase their IT staff headcount by 5% or more in 2007, there’s little surprise that according to a study conducted the Society for Information Management (SIM), employers have ranked their No. 1 concern for 2007 as attracting, developing, and retaining IT staff, as well as management. With baby boomers to soon retire and leave, employers can expect that years of tech expertise and decades of accumulated knowledge regarding business and customers will leave with them.

According to the SIM, universities and colleges are partially to blame. Declining enrollment in tech-related programs are causing universities to fail in providing programs with business and other softer-skills courses to groom more-rounded tech professionals. Also, often those who do graduate with IT-related degrees are hired quickly, putting little pressure on schools to invest in curricula that would better balance the business tech needs of employers.

More aggressive pay increases for all
IT employees have reported record highs in feeling secure about their job and being the happiest they've been in two years, according to Information Week, and do you blame them? Demand for tech talent remains stable and strong, and the percentage of firms allowing benefits such as education reimbursement, flexible work schedules and special perks (i.e., laptop, cell phones, etc.) remain strong. While companies in other fields have pulled back on salary increases and instead have supplemented employee compensation with spot bonuses and performance awards, employers seem to be doing the opposite with their IT employees.

According to Employers Group’s survey, 9.9% of employers plan on “more aggressive pay increases for 2007 (up 3 percentage points from 2006). Meanwhile, only 20 companies reported that they expected lower salary increases for IT staff and IT management for 2008.

Employers seem to be doing all they can to retain and recruit talented IT employees this year, and an unfortunate backlash may be that benefits, including insurance and lifestyle benefits that employees do appreciate, are being taken for granted. As the job market becomes more and more competitive, companies may feel that they’re losing touch as to what their workers want should consider engaging their workers in a dialogue through an employee opinion survey or a formal review. After all, who knows better than your own employees about what will make them want to stay?

Obtain a copy of the 2007 National IT & Engineering Compensation Survey!
EG’s National IT & Engineering Compensation report is the largest and most comprehensive technical survey in the U.S., comprising data from more than 1800 firms across the U.S. The survey report is available in a U.S. edition or a U.S. / California edition. Participating member companies will receive a complimentary copy; others may purchase the full report. To order, or for more information on all salary and budget information such as retention, recruitment, referral programs, and bonus programs for IT and Engineering firms, please call EG’s Research Services at (213) 765-3920 or write to surveys@employersgroup.com.

Employee Retention (Part 1)
Employee engagement is key

An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. In other words, the kind of employee you want to keep! Employee retention is critical to the long-term health and success of your business. Retention will be a challenge, according to a recent study. Retention requires a lot more than employee involvement, recognition, advancement, development and pay based on performance.

The role managers play
Managers readily agree that their role is key when it comes to retaining your best employees and ensuring business success. If managers cite this fact so well, why do many behave in ways that frequently encourage great employees to quit their job?

It is not enough that the manager is well liked or a nice person. A likeable manager earns some points with employees. An unjustly harsh, nasty, or controlling manager takes points away from the company – more so than a company with below market benefits and compensation. A manager who is an expert at employee retention knows that the quality of his/her supervision is the main factor in employee retention. Effective managers create employee retention – and they start by communicating clear expectations to the employee.

For starters, managers whoshare their view of what constitutes success for the employee in both the expected deliverables and the performance of their job, provide clarity about expectations. Managers provide frequent feedback about performance, and make the employee feel valued. When an employee completes an exchange with a manager who retains staff, he/she feels empowered, enabled, and confident in their ability to get the job done – this constitutes success for the employee and company. These managers integrate core values, mission, and vision that enable employees to align themselves with the company direction.

Employee “engagement”
Only 29% of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company. People that are actively engaged, help move the organization forward. Eighty-four percent of highly engaged employees believe they can positively impact the quality of their organization's products, compared with only 31% of the disengaged.

Seventy-two percent of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged. Sixty-eight percent of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged.

Seventy-two percent of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged. And lastly, 68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged.

Engaged employees feel a strong emotional bond to the organization that employs them. This is shown when employees demonstrate a willingness to recommend the organization to others and commit time and effort to help the organization succeed. This suggests that people are motivated by intrinsic factors (e.g., personal growth, working to achieve a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors (e.g., pay/reward).

Whether employees work for personal fulfillment, for the love of what they do, or to accomplish goals to feel they are contributing to something, the bottom line is that employees all work for money – AND for other individual reasons.

In 1999, The Gallup Organization published research indicating that engaged employees are more productive, more profitable, more customer-focused, safer, and less likely to leave their employer. The review stated that “engagement with employees within a firm has shown to motivate the employee to work beyond personal factors and work more for the success of the firm.”

Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to organizational performance. As productivity is clearly connected with engagement, creating an environment that encourages engagement is considered essential for effective management of human capital.

Engaged employees care about the future of the company and are willing to invest their discretionary effort. Also, they have a strong emotional bond with the organization.

So, what influences employees?
According to a 2006 study:

• An employee’s attitude toward the job’s importance and the company had the greatest impact on loyalty and customer service.
  
  
• Clarity of job expectations, basic materials and equipment. When expectations are unclear and basic materials and equipment are not provided, negative reactions such as boredom or resentment may result in an employee who is focused on surviving until something else comes along; rather than focusing on how the organization can succeed. Employees should be provided with:
  
  
• Career advancement and improvement opportunities
  
  
• Regular feedback and dialogue with supervisor,“Thanks, you did a good job”.
  
  
• Quality working relationships with peers, supervisors, and subordinates. If an employees’ relationship is strained, then no amount of perks will persuade an employee to perform.
  
  
• Values of the organization – i.e, inspirational manager – drives an engaged employee.
  
  
• Effective internal communications – a clear description of what is going in the organization and the department. Employees want to be involved.

Productivity IS the bottom line
Employee productivity is connected with employee engagement, creating a workplace environment that encourages employee engagement is considered essential in the effective management and retention of employees. Engaged employees care about the future of the organization and are willing to invest effort. Employees feel a strong emotional bond to the organization. It is worth repeating that this is best demonstrated by recommending the organization to others and by committing time and effort to help the organization succeed.

The quality of supervision an employee receives is critical to employee retention. People leave managers more often than they leave an organization and their job.

A 10-Step Program for Planning Company Events

Whether it’s your company picnic, holiday party, employee training, or annual performance awards dinner, HR professionals are frequently called upon as the designated go-to “Event Planner.” Event planners are the magicians behind the scenes who pull all the strings and make an event a success. Regardless of whether you have had to fill these shoes (yet!), here are some tips and suggestions to help you personally and professionally.

1. Pre-planning
A budget lays the foundation for your event. Create line-items for everything: room rental, food and beverage, marketing, postage, giveaways, employee expenses, etc. Vendor quotes are quite helpful for creating estimates. Err on over-estimating costs, as it is always preferable to have an event under budget than over.

Create an action plan with a timeline and assignment delegating where possible. Most people like to get involved in event planning and you will definitely appreciate the assistance. Also begin to create a checklist of what will be needed during the event. This will help later on.

2. Know your audience
Take into consideration the type of event you are planning. Who is your target audience? What would attendees get excited about? Providing options and positive experiences maximizes the event’s potential not to mention your own! Your audience may also determine a theme for your event. Keep themes simple negating the need for expensive props and accessories that might be needed for an elaborate event.

3. Select a venue
Location, location, location. Convenience should be a key factor. If you have guests flying in, how will they get to the venue? Is it easily accessible from the freeway? For extended events, are there close-by nighttime activities for attendees? Inquire with the hotel on the availability of reserving blocks of rooms for your guests. Also identify the caliber of the accommodations and whether the venue is easily accessible for less mobile attendees. Is the venue staff attentive? Venue staff are pivotal in making the event a success. Failure to return phone calls or to follow-up are two good indicators you should look for a different venue. If possible, do a site visit before selecting your final venue.

4. Study the legalese
Signing off on a hotel/venue contract is no different than signing any other legal document. Venues can be sloppy in putting a contract together, so read everything. Most contracts are fairly standard, but if anything raises a red flag, question it or have your legal counsel review the contract. Ensure that you have policies in place for attendees, including reimbursement for travel, consumption of alcohol or any other potential employer liabilities that may be involved at your event.

5. Where’s the beef?
Your audience and the type of event will determine the content of your program. Knowing the desired outcome will provide guidance on speakers, topics, materials, agendas, promotions/giveaways, etc. These are frequently the hardest components to plan in an event and the ones most likely to change. Plan to spend a significant amount of time tweaking content and continuously following up to ensure everything is in order. There are almost always last-minute changes, so have some contingency plans up front.

6. Marketing
Depending on your audience, you may need to market your event to customers, vendors or even employees. Plan to spend some money here. There are a variety of marketing approaches that are available, so choose carefully and don’t limit yourself to one type of marketing campaign. Involve others and proof everything with an eagle eye. It would be unfortunate to spend thousands of dollars on promotional materials only to realize the misspelled CEO’s name. Also, don’t get depressed if registrations don’t magically materialize. People need gentle reminders every now and then, which will help achieve your registration goal.

7. Where’s the gravy?
If content is your “beef,” the food and beverages are the gravy. Venues typically rotate menus based on the season, and keep in mind that appetites vary with the seasons (lighter fare for bathing suit season). Avoid very salty foods, heavy sauces or complicated entrees with lots of ingredients. Be cognizant of individuals with food allergies and vegetarians, so having a few choices would be ideal.

Cost overruns can quickly occur if you guarantee more meals than needed; however, underestimating could mean that some people go hungry. Balance is hard to master, so just be very cautious.

8. The devil is in the details
Routinely, stay in contact with your venue contact person. A good venue contact will call you to inquire about details that may have been overlooked: room set-up, AV equipment needs, decorations, venue parking, room accommodations. Don’t forget about travel arrangements, internal staffing, and how the final bill will be settled. Also, begin to plan for the unstructured and one-on-one times during the event (registration and breaks), as well as the small touches (name tags). Surprisingly, these are often the most memorable and leave a lasting impression.

9. Attending the event
Remember that checklist? Use it and be sure you have everything packed and ready to go. If possible, do a walk-through the day before. Talk to venue staff on-site and try to meet the individuals you will be working with. Arrive early the day of your event! Having your contingency plans in place will help be one step ahead in case of unforeseen issues. Keep in contact with venue staff to immediately alert them of any changes or issues. Remember to have fun! The most rewarding part of event planning is seeing all the hard work come to fruition. Enjoy it!

10. That’s a wrap
It’s not over yet! Evaluate the event. Identify if the end-result was achieved. It also doesn’t hurt to get feedback on what worked and what didn’t for future events. Conduct a de-briefing with staff who attended or were involved in the event. Take notes. Each will have unique insights and suggestions. Reconcile final invoices to the budget. Send thank you notes, gifts to your speakers and/or acknowledge those who helped make the event be a success. And, it is never too early to start planning the next event!

By Kristin Morris,
Learning Services Manager