When HR is the Messenger…
A bullet-proof tool for workplace communication!

By Isabelle Albanese, B.S.

The ability to communicate clearly and to identify effective communication has never been more important than today in our hectic, fragmented world. And while there are undoubtedly thousands of books written, papers published and philosophies out there about how to communicate effectively, there’s a surprisingly simple framework I’ve developed and perfected over the past ten years – The 4Cs of Truth in Communications™.

The 4Cs of Truth in Communication is a simple model that can be used as a pocket tool for HR managers who have the challenge of drafting messages to a disparate audience – from CEO's to middle managers, supervisors or employees. No matter what the message, applying the 4C’s will help identify if it really rocks and why - or where it needs help to keep from sinking like a rock. The method is immediately actionable – you can use it in your very next communiqué – whether it's delivering a speech, some bad news, change in policy or announcing the latest management hire. The 4Cs puts everyone on the same page.

Comprehension. Connection. Credibility. Contagiousness.
While the Cs might seem like a no-brainer - rational, methodical and left-brained – it’s nothing I care to apologize for. It is in the combination of the Cs through which clarity emerges. It is when a message has been put through the model that a clear understanding of what is working and what needs to be fixed is revealed. The 4Cs model asks a series of questions about how the intended audience might respond to your message. In the answers lies the direction you need to move forward.

Comprehension: Get it? Got it? Good!
What is the single message and is it being clearly communicated? Simply, put – will the audience get it? The Comprehension “C” is fundamental to basic communication. On the surface, this is a simple assessment of whether or not the intended message is being understood.

Simple in theory, but not always easy to achieve, because sometimes we are determined to make our audience work exceedingly hard just to get the message. How many times have you received a letter, e-mail, or document that after reading and re-reading with some degree of frustration, think to yourself “what the heck are they trying to say to me?!” And this sort of built-in evasiveness starts at the very highest level of the communication world – advertisers! From my early days as an assistant account executive working at Ted Bates Advertising in New York, I have constantly wondered why marketers and advertisers want consumers to work so darned hard to figure out the basic message. And what makes them think any of us have the time or inclination to do so?

After talking to something like 3,500 consumers over the past nine years, I can say unequivocally, that people just really don’t have the time or interest to figure out what it is you’re trying to say to them! No matter what the level, everyone is busy.

In interviews conducted with C-Level professionals for a holding company conglomerate, the “comprehension C” for a magazine ad was dismally elusive. They repeatedly said, “I’m just not going to spend much time figuring out what they’re trying to say to me. I’m already turning the page.” Generally, your audience is perfectly willing to listen to your message. In fact, many may need to hear it. They just don’t want to work hard to GET IT.

Connection: Yeah Baby!
Does the message resonate with your audience? Is it persuasive? Does it “click” with them? Does it communicate that you are in sync with them and their needs simply by the way you have positioned your message? These are all critical questions in determining the extent to which any form of communication connects with its audience.

Connection is often an emotional response – something that is felt, but can’t be explained. That moment when it becomes impossible to ignore that the message has made a visceral connection with the audience. It’s that “yes!” feeling. That genuine rapport has been established. Sort of like, “my message, my friend.” So, for instance, it’s no longer HR managers talking to supervisors trying to inform them about a compliance issue; it’s a message from someone who really knows their supervisors and understands what matters to them. So much so, that they feel the message is speaking directly to them on a personal level. “My message, my friend. Yes!”

Connecting with your audience means you have begun to establish a relationship with them via your communication. It means something you said or showed them resonates on some internal level, whether in a rational or irrational way. It has tapped into an existing truth relative to the subject – and it usually reaches them at a deeper level to something emotional – or at the very least, something that is not entirely rational: frustration, excitement, anger, passion, joy, happiness, sadness, resignation, etc.

I was working on a communications evaluation for a new Suave hair care campaign, which was at that time, a completely new message based on a new positioning and tapping into a newly discovered consumer truth. Four print ads depict “mom” (the target) in various family life situations from making a peanut butter and jelly sandwich to potty-training to playing dress-up. All real-life situations to be sure.

Many women are likely to say “I can see myself” in that ad. That doesn’t necessarily mean they like what they see, are moved emotionally or otherwise motivated by that image. But in this case, it did mean that. One mom looked at those four ads and said, pointing to each one, “that’s me, that’s me, that’s me and that’s me!” And the connection wasn’t made simply because she could see herself in the situations, it was made because she saw that each of the moms (“me, me, me, me”) had great looking hair. And internalized the message that even though I’m a mom and have a crazy, chaotic mom life, using Suave can help me look good! And the beautiful epilogue to this story is that in subsequent testing, these ads met all quantitative communication hurdles. And the Suave hair care brand went on to experience share and sales growth. As consumer insight consultant, a seeker of consumer truth and fellow mom, I’ll just say, “yeah, baby!”

Credibility: Not a trace of doubt
Does it make sense for the message creator to speak to their audience in a certain way? Is the tone and manner consistent with the author's position in the “brain space” of the audience based on their experience with and understanding of their equities and past performance? If the message isn’t credible, if it doesn’t conform to the subject matter's (or cause’s or platform’s) existing “truth” in the minds of the audience, it’s meaningless. The audience needs to believe who is delivering the message, what it is that’s being communicated and how (tone, manner, strength of cause). Otherwise any connection previously established immediately begins to break down.

• WHO: Does it make sense for you to speak to your audience in this way? Does it logically fit for them – given the equity you have developed among your core target?



• WHAT: Is it something your audience expects to hear from you? This could be good and bad. If it’s something expected, it could become glossed over or even ignored outright. It may fit, but if it’s just “same-old,” there better be enough going on in the areas of Comprehension, Connection (and Contagiousness, the last “C” explained below) to make up for too smooth a fit. On the other hand, if it is an unexpected message coming from you, care needs to be taken in crafting the introduction to set the stage.
  


• HOW: An unexpected message or mode of delivery can bring a lot of energy and attention to the subject matter (or even to you), especially if you are already known for your personal credibility. It can be even more powerful if the conditions and audience attitudes make it acceptable.

The point is, credibility leads to believability and believability leads to persuasion and persuasion leads to behavior. So even if it’s not instantly credible – it becomes credible because your audience can see a way to make the message fit. That counts too.

The credibility “C” is all about the author's “truth” and that of the message. It’s either going to work for your audience or it isn’t, because of the associations made – many of which you have no control over. For a message to be really driving the Credibility train means it gets an immediate head-nod. No question about it. Not a trace of doubt in my mind. Message credibility removes a potential obstacle to comprehension, connection and contagiousness. In fact, when it’s credible, the audience doesn't even think about it. Think about it yourself. When you receive a message from someone whom you believe is credible in delivering it, you're not questioning the veracity of the message. You just keep reading and taking it all in.

Contagiousness: the “ah-ha” factor
You know how it is when you're in a meeting making a presentation and you've touched on just the right point - the room starts buzzing, your colleagues start discussing what they’ve just seen/heard—that’s when you know the communication is on its way to effectiveness.

I’ve found that Contagiousness in the positive sense, is often intimately threaded to Connection. When a message resonates with its audience in a profound, sink to the bones way, there tends to be a residual Contagiousness effect. They simply can’t help thinking about it or mentioning it in conversation.

• Is there a sense of energy around the message and the way it is delivered?
  
  
• Does it offer a new or different way to view or think about the topic?
  
  
• Is it differentiating? In the endless realm of message exposure, is there potential to cut through?
  
  
• Is it innately memorable?
  
  
• Might it have talk potential (may not always be positive talk)?
  
  
• Does it motivate the target to do something, think something, wonder about something, get more information, etc.?

Remember my Suave example – “that’s me, that’s me, that’s me!” For that moment, that woman got excited about the message. She spoke out, her voice rose, she pointed to each ad – she was infected. The brand had found an idea that not only resonated with its target, but it was executed it in a way that left her feeling empowered and excited by it. The Suave brand now had the opportunity to “infect” the way their consumer thinks about the brand. That’s contagiousness. It can be tricky, but in many cases, it can be all that truly matters.

The 4Cs method can help HR professionals strengthen both their internal and external communications. The simplicity of this approach takes the mystery out of understanding what makes communication effective. Using the 4Cs framework can help you develop stronger communiqués and lead to stronger business results.

Will the Workers’ Comp Bubble Burst…Again?

By Rose Nordbrock, Vice President,
Bolton & Company Insurance Brokers

Watch out: Experience rating and expected losses
The California workers’ compensation system has undergone major reforms in the past four years and the reforms have had a significant impact on workers’ compensation rates and medical indemnity losses. By reducing losses, however, the reforms are also impacting the experience modifications. Many employers, without any losses in the experience period may see a higher experience modifier. The reason is that employers’ experience is now being compared to a lower average expected loss rate (ELR) for their industry.

There are two primary components in experience rating: (1) the loss experience of the specific employer to be experience rated; and, (2) an estimate of the losses that can be expected from other employers that are of a similar size within the same industry. The ELR represents the average losses per $100 of payroll estimated to be incurred by employers in each industry classification during a three-year experience period that precedes the effective date of the experience modification.

The WCIRB, which is responsible for the determination of experience modifications, has reduced the ELR factor in the experience rating formula for 2008 – primarily due to a reduction in claims costs. One of the key components in determining the experience modification is the ELR.

The net result, for many businesses with claims in their 2004, 2005 and 2006 policy years (the years used to determine the 2008 Experience Modification), is an increase in their experience modifications. In several cases, we have seen increases as much as 20% in experience modifications when compared to the use of the prior years ELR.

Might history repeat itself?
The passage of SB 899, including the implementation of Medical Provider Network (MPN), the revision of the Permanent Disability guidelines and the new rules regarding apportionment, have had a significant positive impact on California workers’ compensation rates. However, applicant attorneys, unions and injured workers and their legal teams have been challenging the many provisions of SB 899 in court and have had some success.

So what does all this mean and what can you do to prepare your company for possible negative effect on your bottom line? We need to remember what happened back in the mid to late 1990’s when California went to the “Open Rating” system and rates were declining significantly year after year. We saw renewal rates go down despite claims history.

Unfortunately, many businesses cut expenditures on safety programs, reduced awareness of workplace hazards and management follow-through on their open claims. When the rates started to rise in 2000, poor claims management resulted in higher experience modifications and increased premiums due in part to many carriers leaving the State of California and/or becoming insolvent.

Keep in mind, some old rules still apply. There are things that California businesses cannot control, such as rates, legislation, etc. However, there are factors that your business can control. By identifying those things we can focus on specific improvement in areas, including:

1. Implement effective loss control/safety measures to prevent claims from occurring in the first place.
   
   
2. Identify and eliminate workplace hazards.
   
   
3. Wherever possible within your operations, develop a Return-to-Work program.
   
   
4. Educate employees on the costs of workers’ compensation to everyone in a business (Workers’ compensation claims do not just affect the injured employee; they also affect the ability of the business to grow and prosper).
   
   
5. Take advantage of your carrier and insurance broker’s loss control and claims management services, ensuring your awareness of all open claims and reserves.
   
   
6. Implement and follow the rules for your carrier’s MPN program.

It is important to remember and learn from the past as we enter the next cycle of workers’ compensation insurance in California. While currently the rates are close to what we were paying in 2000, before all the increases hit, we must stay vigilant.

In addition, let’s keep in mind that the indirect costs (e.g. overtime, temporary labor, production slowdown, administrative cost of handling injured employees, etc.) represent several times the direct cost of the injury. Many employers see only the direct costs of the workers’ compensation as the total cost. Yet, the indirect costs represent 20 to 30 percent of the overall injury costs. More importantly, the value of healthy employees is paramount in any successful business.

When Employees Self-Destruct

We’ve all seen it happen. An otherwise agreeable employee starts challenging every directive their supervisor gives them. An employee with a stellar work ethic is missing work, showing up late, or not at all and without so much as a call into their supervisor. Or, quite simply, an employee approaches you, sits you down, and tells you they’re burned out. The downward spiral could be quick or gradual over the course of several months or years and triggered by home or work life or no discernable reason at all.

Ideally, this is the point HR intervenes and brings them back from the brink. This article is not, however, about that process. (See Tanya Butler’s excellent article entitled “Suffering from Burnout? What you and your employees need to know” in the July 2007 EG newsletter, for such a discussion.) This article is about the employee who does not respond to those attempts to intervene or employees for whom the company isn’t necessarily interested in investing the time to rehabilitate.

The unemployment issue
It’s not uncommon for employees to be entirely misinformed about unemployment. While employees generally know that if they resign, under most circumstances they aren’t eligible, they mistakenly assume that if they’re discharged, they can automatically collect.

Unemployment insurance is a fault-based system, meaning that the final decision to award or deny benefits rests on the entity most at fault for causing the job separation. In a resignation, it’s usually the employee; in a layoff, the employer is at “fault.”

If an employer terminates an employee for something like poor performance, however, but only after affording the employee every opportunity to succeed in a job that was suitably matched for their skill sets, the employer cannot be at fault for the employee’s lack of motivation, poor work ethic, etc. In such a case, the employee would be denied unemployment, unless they could prove conditions beyond their control (e.g., compelling family obligations, etc.) prevented them from performing within expectations.

If you suspect that an employee is self-destructing simply to collect unemployment, clarify that the company does not terminate an employee without reason (i.e., reason enough to defend an unemployment appeal). In other words, let the employee know they’re mistaken to assume they are eligible to collect unemployment just because the employer is the moving party. Then, of course, ensure their supervisor documents everything.

The set-up
Your employee may know better than to assume they can just file for unemployment. They want to set up a claim for wrongful termination and are waiting for you to make the wrong move.

Employees familiar with the process of filing a complaint of, say, illegal discrimination, know what the Department of Fair Employment and Housing and/or Equal Employment Opportunity Commission want (i.e., facts that illustrate how they were treated less favorably than individuals outside whatever protected classes they fall under and any stray comments that could imply an intent to discriminate). In such cases, the employee may even be aware of how the company has treated similarly situated employees in the past (yet another reason why you never share disciplinary action you take with an employee with anyone who doesn’t have a need to know).

If you suspect that you may be dealing with someone who is trying to set you up, proceed carefully, but don’t back down from issuing discipline that is warranted. Ignoring an employee’s misconduct or poor performance only makes it more difficult for you to address the same down the road. Rather, do your due diligence to ensure that if there are similar cases in the immediate past, the discipline you issue is consistent with action taken in those cases. If the employee’s actions warrant more severe discipline, give it, but take pains to assure the employee understands just how severe the company considers their conduct.

The best thing you can do with someone waiting for you to misstep is to make sure your steps are measured enough that they’ll be left wanting.

The despondent ones
By far the worst case scenario is the despondent employee – the employee who has nothing to lose. This is the employee who you suspect does not want anything out of their looming job separation: they don’t want to collect unemployment; they’re not gunning for a windfall settlement from the company. They just want to do damage to the company’s interests. They haven’t done anything yet that would warrant termination, but everyone can sense they are laying the groundwork for it.

In these cases, don’t wait for them to act out. Contact your legal counsel. If your counsel is not comfortable with you exercising employment at will (remember, you can terminate for a good reason, a bad reason, or even no reason at all, but never an illegal reason – the fear in most cases is that they have an argument you acted based on just such an illegal reason), he/she may elect to have you approach them with a severance package in exchange for them signing a release of claims agreeing not to sue.

The point here is that there are options available – with your counsel’s guidance – options that don’t involve waiting for the inevitable bomb to drop.

Conclusion
Situations like the ones addressed above test even the most optimistic HR professional’s resolve. When it’s clear an employee’s interests are in opposition to the company’s, be aware of the above considerations and plan for contingencies.

And of course, if you ever suspect that the employee may act out in a way that could compromise the health and safety of your employees, trust your instincts and immediately consult legal counsel or, depending on an actual threat, law enforcement.

Why Conduct a Cultural Audit

As the world advances with better and better communication tools, more American companies are expanding their operations into various parts of the world, and other countries are expanding their operations here in the United States.

Multiculturalism in the workplace
When someone starts a job search in the California market, they shouldn’t be surprised that the companies they are applying to might be owned by a parent company headquartered in England, China, France or Japan. Although these companies are operating here in the United States, they may be heavily influenced by the way they do things based upon where the parent company is headquartered.

Many of these international companies sometimes transfer someone from their headquarters. Some may work in the United States operation for a period of time, while others officially make the United States their permanent residence. They come here and work alongside their fellow American colleagues. The comfort level they bring with them is that they are still working for the same company they worked for at home, just on different soil. They know the company, they know the culture and they know what is expected from them. So what could go wrong?

Some companies do really well when they expand into foreign soil and others face disaster. Those that do well are sensitive to the needs of the newly transferred individual, as well as to those who are already working there. It is often difficult to incorporate standard policies and procedures across the board if you operate in five different countries.

Let’s take holidays for example. In the United States, we have several holidays that are observed, yet if you have an operation in Venezuela, these same holidays may not be applicable. Venezuela may have its own holidays that are not observed here. Making the situation fair and equitable for everyone can be quite challenging for Human Resources.

Integrating foreign employees
Let’s take a closer look at the individual who is being transferred in from a foreign headquarters. As mentioned earlier, they know the company and they know the job, so we often expect these individuals to just transition in immediately. When we don’t take the time to introduce them to the American culture and how things are different here, we are likely setting them up for failure in their new environment.

Remember, the foreign worker may have some knowledge of the American culture, which is fed by the media, but things don’t always translate correctly. They, too, might bring with them certain expectations or ideas. They may view the vision and mission statement of the company differently than others do. How they handle or view conflict resolution may differ dramatically. Their viewpoints on our events, celebrations and traditions may or may not be positive. They might also think that because it is a transfer they keep the same types of benefits or policies they had at home, which could cause friction due to perceived inequity.

Cultural audits improve cultural sensitivity
Cultural values and preferences can impact how employees, vendors/suppliers and customers of a global organization respond to its strategies, products, practices and communications. The compensation plan, marketing strategy, corporate communication or personnel policy that is successful in one culture may be wholly ineffective in a different culture, resulting in not just loss of revenue, but also loss of goodwill.

The company must engage in a “cultural audit.” It is a strategic approach to diversity management, providing information about the culture, climate, and systems operating in the organization, and enabling the global organization to align business processes with desired outcomes. The objective of a cultural audit is to identify areas in business practices for improving cultural sensitivity. It helps identify the challenges and opportunities, and analyze the gaps and effective initiatives.

Valuing diversity in both theory and practice
Cultural audits can foster employee loyalty, enhance their productivity and allow their internal and external relationships to flourish. By conducting a cultural audit, you can prevent errors and help build an infrastructure for continuous improvement.

The first step in a cultural audit is the assessment. During this period, you can conduct surveys, run focus groups, perform site visits, review print and other media used, and interview employees. This area is very important because it will provide you with all the data. Once you analyze the data, you can provide recommendations.

If you find yourself working for a global company that faces challenges in communication, strategies and practices, a cultural audit may help in taking the pulse of your company. There are various resources available with this specialization. Remember, culturally competent organizations value diversity in both theory and practice.

Office Romances
Should you have a Policy?

Do romantic involvements cause problems at work? The 2005 case involving the extramarital affair of Boeing Company’s Chief Executive Harry Stonecipher grabbed the headlines, signaling the beginning of the end to corporate America’s willingness to ignore the sexual indiscretions of its leaders. Stonecipher was hired to bolster ethical practices after a string of scandals at the company. Boeing’s code of conduct prohibits behavior that may embarrass the company, which is exactly what he did. He admitted to using poor judgment.

Many companies, however, choose to continue looking the other way at employee affairs, especially when there is no reporting relationship between the parties, and neither person benefits professionally from the liaison. There can be, however, serious repercussions from office romances. Should formal policies be put into place? This article offers a discussion on the subject.

Downsides of office romances
A workplace romance may generate discord and distraction that results in lower productivity on the part of the pair who are involved and others around them. There may be increased problems resulting from charges or favoritism and conflicts of interest. Co-workers may become resentful and demoralized. Romantically involved employees can disrupt the work group if they become jealous or if there are problems in the relationship. A romantic involvement, particularly between supervisory and subordinate employees, may create increased liability for sexual harassment. These problems have led some organizations to try to control potential problems by instituting no-dating or restricted dating policies.

Creating a “no-dating policy”
A strict no-dating policy will prohibit any dating between employees and sometimes between employees and customers and vendors. Less strict policies prohibit dating between supervisory personnel and subordinates. Other policies do not prohibit dating but require that employees disclose their romantic liaisons. Employees typically sign a statement attesting that their relationship is consensual and are required to report when the relationship ends. This is often called a love contract.

It is difficult to draft a no-dating policy. First, one must define dating and specify the scope of the policy. For example, does it include just dating or also cohabitation? Does it cover all employees, does it include vendors and customers or just supervisors and subordinates. Also, the policy should specify whether it governs dating between gay couples as well as heterosexual couples. Closely related to dating is the issue of how to deal with married couples when one supervises the other.

The consequences of violating the policy must be spelled out. Will it require a transfer to another department or will it require a resignation? Which one of the two will need to transfer or resign? Will this be based on the choice of the couple, or will a rule have been predetermined? The rule might be that the subordinate is the one who will have to resign or transfer. Another possibility is requiring the one with less seniority to resign or transfer.

Are there business reasons to establish the policy? If so, these should be documented. Being able to demonstrate a business need for the policy may help if there is subsequent litigation Once a policy is established, it must be uniformly and fairly applied. To avoid discrimination charges, an employer should not make exceptions to its dating policy.

Pros and cons of having a dating policy
Those in favor of having a policy usually cite concern over liability for sexual harassment as the primary reason. Romantic involvement between supervisors and subordinates creates the greatest exposure as it may lead to a hostile environment or “quid pro quo” sexual harassment. In quid pro quo sexual harassment, managers or supervisors condition certain benefits such as, continued employment, promotions, raises, or desirable work assignments, on the subordinate's submission to unwelcome sexual advances. If an employer permits supervisors to date subordinates, the employer is put in the difficult, if not impossible position, of determining which relationships are consensual and which are unwelcome. No-dating or love contracts may be very helpful.

On the negative side, employers adopting dating policies also must be aware of possible legal challenges to enforcement of the policies. Employees who are discharged pursuant to a dating policy might file a wrongful discharge suit against the employer based on discrimination or invasion of privacy.

The positive side
Not having a policy is the choice of organizations that believe the positive outcomes and values of employee romances may be more important than the possible liability. Some organizations want to respect employees' privacy and not be concerned about employee’s legal off duty activities. They may encourage employees to have close relationships with one another to build a comfortable environment and encourage loyalty. Allowing social interaction makes working long hours easier. Not allowing employees to date may drive some very good conscientious employees to leave the company or remain and carry on secretly with resentment. Ultimately both may leave.

On a practical level, can you prevent romantic involvements among employees? Probably not. Many of us have met our spouses at work or through work. Surveys show that as many as 80% of workers have been romantically involved with someone at work. Less than 15% of companies have policies addressing the issue.

Legal considerations
Whether or not an employer has a legal right to regulate off duty behavior depends on the job and the legal jurisdiction. Legal counsel must review no-dating and disclosure policies, as there are many potential legal problems. Policies may be challenged on the basis of wrongful discharge, discrimination or invasion of privacy. However, so far most no-dating policies have been legally upheld when challenged in court.

Sexual or gender discrimination may be a claim when employers are not careful about applying the consequences of violations of no-dating policies.

The bottom line is that dating between employees presents challenges with no easy solutions.

New Laws for 2008

This article is a recap of the laws that go into effect this year (with the exception of the Spousal Military Leave, which is already in effect as of October 9, 2007).

Spousal Military Leave
AB 392 was considered an urgency measure and thus became effective on the date that Governor signed the bill, October 9, 2007.

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.”

• 2% - 6.5% of employer payroll (sliding scale)
  


• Individual mandate (including tax credits and subsidies)
  


• $2 tobacco tax increase (replaces leasing of the lottery)
  


• New tax on hospitals (revenues used for subsidies)
  

New Minimum Wage
Effective January 1, 2008, California’s new state minimum wage is $8.00 (up from $7.50). Presently the federal minimum wage is $5.85; it will rise to $6.55 on July 24, 2008.

Computer Professionals Wage
This required hourly wage will decrease from $49.77 to $36.00 in 2008. A salary equivalent may also be paid of $74, 880 per year. Computer professionals who perform high level duties (there’s a list) can be exempt from overtime if they receive $36 an hour (or an annual salary equivalent of $74,889) for a 40-hour work week. To put it another way, only the half time (of time and one half) or the straight time (of double time) is excused.

Hands-Free Law
Don’t forget as of July 1, 2008, cell phones used wile driving must be use with a hands-free device. Employers should address this in their policies, and update their handbooks to include this information.

IRS Standard Mileage Rate
The IRS standard mileage rate for 2008 is 50.5 cents. This rate is up 2 cents from the previous rate. Employers are cautioned that paying a mileage rate less than the IRS standard mileage rate can lead to the employer being liable for an employee’s car damage due to a work-related accident.

No Full Social Security Numbers on Wage Statements
As of January 1, 2008, employers must ensure that their payroll systems limit the use and display of employee Social Security numbers on required wage statements Only the last 4 digits are allowed to be used.

Workers’ Compensation
AB 338 removes the requirement that temporary disability payments be paid within 104 weeks of the first date that the temporary disability is paid. Now, injured workers must be paid up to 104 weeks of temporary disability as long as the payments are made within five years of the date of the injury

New I-9 Form
Employers are reminded that the new I-9 Form must be used starting December 26, 2007 – or fines and penalties from that date forward. Visit www.employersgroup.com for the form itself, and for information about completing it (see the UGCIS Handbook for Employers).

You can also call the US Citizenship and Immigration Service (USCIS) at 800.870.3676 to order forms, or call the National Service Center at 800.375.5283 for information on procedures and immigration regulations.

Notice of Earned Income Tax Credit
Within one week of providing the form W-2 or form 1099 (whether before, after or at the same time), employers must hand-deliver or m ail to employees (last known address) a notice that the employee may be eligible got federal earned income credit (“EITC”). Employers are not allowed to only post this notice or send it through office email.

Earned Income Tax Credit eligibility is based on an individual's adjusted gross income. To qualify for earned income tax credit for the 2007 tax year, an individual's adjusted gross income must be less than $37,783, with two or more qualifying children, $32,241, with one qualifying child, or $12,590, with no qualifying children.

Employees are defined as any person who is covered by unemployment insurance by his or her employer, under the California Unemployment Insurance Code. The required notice must state:

Although the Earned Income Tax Credit is available only to a limited number of employees, all employees must receive the required notice. Employers will likely find it most efficient to enclose a copy of the notice with the W-2 Form, 1099 Form or similar annual income statements issued to employees.

Finally, upon the request of any employee an employer must process, in accordance with federal law, Form W-5 for advance payments of the tax credit.

For further information
As an Employers Group member, please feel free to contact our Helpline consultants to clarify any of the above laws. We are on hand to assist you and answer any additional questions you may have. Call 800.748.8484 (Option 1).

“Waiting Time” Penalty Not A Wage

In California, an employer may incur ‘waiting time’ penalties if it fails to pay an employee final wages on time. How long can an employee wait before making a claim just for waiting time penalties only? Recently, a California Appeal Court determined that an employee had to make such a claim within one year. The court determined that a waiting time penalty is not a wage but is a penalty. If the penalty were to be considered a wage, the time to file a claim would be much longer, see - McCoy v. Superior Court (2007).

According to the case, Derrick McCoy was employed by a temporary employee company - Kimco Staffing Services, Inc. He led a class action suit against the company in an effort to collect past waiting time penalties provided for under section 203 of the California Labor Code. The suit claims that the company failed to pay employees in a timely manner after the completion of temporary work assignments. For example, instead of paying employees when they were fired or within 72 hours of resignation, the company reportedly paid them on the next scheduled pay day. The wages were paid to the employees, but not at the proper times, in violation of California Labor Code sections 201 and 202 according to McCoy.

McCoy argued that waiting time penalty claims should be considered wages and therefore subject to a four-year statute of limitations. The lower Superior Court did not agree, and ruled in favor of the company. McCoy then appealed the decision of the Superior Court.

The Appeal Court declared it would agree with McCoy that the longer period of time would apply to waiting time penalties, if they were in conjunction with claims for back wages. The court, however, would not condone the longer time limit for suits seeking only penalties, because the objective of Section 203, the legislative intent, and the common sense meaning of the section's language do not support it.

Labor Code Section 203 sets the maximum number of days that are subject to the waiting time penalty, it states: “If an employer willfully fails to pay ….any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefore is commenced; but the wages shall not continue for more than 30 days. …Suit may be filed for these penalties at any time before the expiration of the statute of limitations on an action for the wages from which the penalties arise.”

General statutes of limitations appear in California’s Code of Civil Procedure starting at section 335. “The periods prescribed for the commencement of actions other than for the recovery of real property, are as follows: … [section]340. Within one year: (a) An action upon a statute for a penalty or forfeiture, if the action is given to an individual, or to an individual and the state, except if the statute imposing it prescribes a different limitation.

Section 338 sets the limit “Within three years: (a) [for] An action upon a liability created by statute, other than a penalty or forfeiture.” Section 338(a) sets the three-year time limit for the recovery of wages, and section 340(a) sets the one-year time limit for the recovery of penalties. Recently the California Supreme Court in Murphy v. Kenneth Cole Productions, Inc. (2007) decided that: “The statute's plain language, the administrative and legislative history, and the compensatory purpose of the remedy compel the conclusion that the ‘additional hour of pay’ is a premium wage intended to compensate employees, not a penalty.”

The court noted that McCoy contends “the statute of limitations in section 203 applies to any action for penalties, regardless of whether there is also a claim ‘for the wages from which the penalties arise.’ He points to Code of Civil Procedure Section 312, which directs: ‘Civil actions, without exception, can only be commenced within the periods prescribed in this title [setting out the general statutes of limitations], after the cause of action shall have accrued, unless where, in special cases, a different limitation is prescribed by statute.’ Plaintiff [McCoy] asserts that section 203 is ‘one of these ‘special cases' that contains its own statute of limitations, thereby supplanting section 340.”

Additionally, McCoy asserts that construing the statute of limitations in section 203 to apply to only apply to claims where both back wages and a penalty are sought “allows two different limitations periods to exist for one cause of action based on events unrelated to the cause of action.” He also claimed that the: “period could change based on an employer's belated payment of wages. [and] …Assuming a three-year statute of limitations for a wage claim, if an employee does not sue within the first year and an employer then pays the back wages after that one-year period, the employee loses the right to sue for the penalties.” McCoy claimed that this gives an employer “…incentive to delay payment until after a year has expired.”

The court determined McCoy’s argument has several flaws. “First, it ignores the purpose of the penalty, to compel speedy payment of the wages, not to provide for a penalty independent of the wage claim. …That the overarching purpose of the statute is not to provide for a penalty is emphasized by the limit on the penalty itself. Wages continue as a penalty only until the date the back wages are paid or an action to recover them is filed, but not for more than 30 days, regardless of how long the employer waits to pay the back wages. Had the Legislature sought to impose a penalty qua penalty, it would not have capped it after such a short period of time. Second, the argument is illogical within the context of section 203. If an employer waits to pay wages beyond one year, he is subject to a longer statute of limitations for the penalty than if he pays sooner before a wage claim is filed. This fulfills the purpose of section 203, prompt payment of wages. Being subject to a penalty no matter when back wages are paid is actually a disincentive to pay promptly; there is no benefit in doing so.”

Upgrade your 2008 Recruitment Plan

With the mass exodus of baby boomers expected to build momentum this year, the face of our workforce is changing. As more and more Generation Y’ers enter the workforce, HR professionals should reevaluate and upgrade their own recruitment strategies for 2008.

The U.S. Bureau of Labor Statistics estimates that by 2008, 22 million baby boomers (those born during 1946-1964) will retire from the workforce in all industries. According to a recent survey conducted by ClearRock, a Boston-based executive coaching firm, two-thirds of companies reported they expect baby boomer retirements to have a measurable impact on their organizations, yet more than three-fourths of employers said that they have not started thinking about how this issue will affect them.

Although recruitment continues to be a hot-button issue, the pressure to find knowledgeable and qualified employees among the Generation Y’ers is more palpable than ever. But, with the low unemployment rate in recent years creating an extremely tight job market, many HR professionals are scratching their heads at the biggest question: Where to find quality people?

Woo your Baby Boomers
An obvious answer may be, “Look right under your nose.” Baby boomers are to retire within the next few years, but as people are living longer and healthier lives, many companies will take advantage of rehiring older workers. Companies are looking to keep baby boomers by investing in training programs and flexible work schedules, and offering to hire retiring employees on a consultant basis. It is likely that for 2008 and in the coming years, HR professionals will have to start adopting more of these policies. Already nearly half (44 percent) of Chief Information Officers (CIOs) surveyed said their companies’ IT workforce is telecommuting at a rate that is the same or higher than five years ago; only 3 percent said IT staff work remotely less frequently today than five years ago.

Bloggers – no longer an HR headache
Another untapped resource to find prospective employees may be to look online. Generation X and Y’ers are among the vast group who take full advantage of the Internet, thereby changing the way people communicate. A “blog,” shorthand for “web log,” is a website where a person can post absolutely any information that is viewed by whoever chooses to access it, somewhat like an Internet diary. Although many initially perceived the rise of the blogosphere as a huge HR headache (many worried that their “dirty laundry” would be aired online by a disgruntled employee), according to Technorati, more than 70 million blogs existed as of April 2007 – and that figure continues to grow at an estimated rate of 120,000 new blogs a day. As the blogosphere grows, so does the perspective of this tool. What was once dismissed as an “online diary” is now a viable resource for prospective job candidates.

Blogging has evolved from an online soapbox for technology savvy teenagers to a platform for professionals to share their knowledge and advice. As a result, more and more stories are being heard about people in all sorts of different professions finding employment simply through their blog. For example, Chemical and Engineering News has been recruiting chemistry bloggers as columnists, and more recently as a staff editor. Meanwhile, the Wall Street Journal reported in April that Wal-Mart Stores Inc.’s recruitment managers also spend one to two hours a week sifting through blogs for new talent. Whether, your company is looking to hire new sales associates or even a food critic, there’s sure to be a blog pertaining to the subject, and even more likely, a knowledgeable job candidate.

Career networking
Since the birth of Monster.com in 1994, online networking sites have evolved to become a favorite resource for finding jobs, as well as for searching for talent. Unlike the one-dimensional Internet job sites of yesterday, where employers would swim through a sea of online resumes, sites like LinkedIn, create online communities that allow professionals to network online, and have fun doing it. Professionals can now connect with a hiring manager through people they know (and vice versa), giving employers and employees a leg up on the competition.

On the other hand, candidates often reveal things about themselves on social networks that could be used for illegal discrimination, such as age and nationality. Violations of the law are easy, and often unintentional, with the amount of data available on social networks. Thus, employers should exercise caution when turning to online resources to scope out talent, as there are potential legal issues in doing too deep of a search.

To stay competitive, companies should reevaluate how their policies are translated by multi-generational job candidates. While younger workers may be comfortable working long hours, how will your older employees feel? Employers are already seeing a more diverse workforce. Companies should be sure their workplace policies are not one-size-fits-all, but are flexible and intuitive to employees’ individual needs.

Growing as an HR Professional

Are you a human resources professional who wants to continue to grow and learn? Are you newer to HR or less-experienced and looking for career advancement? Or, are you a seasoned professional and want to take on more responsibility and directly impact your company’s success?

If you answered yes to any of these questions, it’s a good idea to build your skills and develop yourself professionally.

It is increasingly clear that executives are looking to HR for a well-rounded business approach as a department that supports overall company operations. This means that individuals in your “C” or chief executive suite expect you to focus on supporting company objectives, finding ways to measure your function and demonstrating you and your department’s value to the organization.

HR competencies
There has been much discussion about HR professionals and the “competencies” they possess, or those they should strive to possess (competency is defined as a combination of skills, knowledge, and ability, which allow for performance excellence).

The most popular list of necessary HR competencies includes:

• Strategic contribution
  
• Personal credibility
  
• HR delivery
  
• Business knowledge
  
• HR technology
  

Strategic contribution
Strategic contribution focuses on issues that align HR activities with the company’s overall goals and objectives. The activities undertaken by HR would need to help place the company ahead of its competitors while meeting the demands of the stakeholders. Additionally, HR needs to be instrumental in the communication efforts of the organization to help all employees understand where the company is headed and each person’s role in getting there.

As an example of this competency, can you think of a time when your senior management team involved you in discussions about where the company is going and how HR is expected to support that? Imagine a scenario where a company wants to expand into new markets. HR’s contribution would be to assess the labor force in the new market, help with the operations team to determine where labor will come from, and project the cost.

Personal credibility
Your credibility is vital for your effectiveness as an HR professional. We must be credible to all parties we serve. Without credibility, HR professionals are not invited to be involved in company business and strategic planning. HR professionals will gain credibility through a number of activities and successes, particularly in the realm of strategic initiatives.

In this arena, there are numerous examples of how HR builds and maintains credibility. HR must be seen as objective, consistent, reliable, etc.

Additionally, does HR provide the most up-to-date information to its audience? Is HR’s knowledge current and do they have good resources from which to pull the best information?

HR delivery
This competency encompasses many areas of “traditional” HR activities, such as staffing, compliance, development and performance management. The pressure is on to ensure that these kinds of activities are meaningful and provide value to the organization and its bottom line. So, HR professionals will examine their processes and procedures to look for efficiency effectiveness.

Business knowledge
Your business knowledge is critical to your understanding and ability to contribute on a strategic level (and is perhaps one area that is traditionally weak for HR professionals). In this area, HR professionals are expected to understand their business, the industry and the environmental factors that affect the company. This knowledge is necessary for building credibility and assisting with strategic planning (see above).

In order to demonstrate “business knowledge,” HR professionals need to spend time with other department heads getting to know the issues the company faces. A basic understanding of finance is paramount. HR should also take part in whatever analysis is done by the management or executive team to examine “strengths, weaknesses, opportunities, and threats” to the organization (usually referred to as a SWOT analysis).

HR Technology
This has become a necessary part of the workplace and is a vehicle for HR to deliver its services. HR professionals must be able to leverage the appropriate technology to provide faster service, reduce costs, provide centralized services and measure accomplishments.

In this competency, realize that technology can be a great asset to the HR function. As an example, how effective is your HRIS? These systems are a significant aid to HR in measuring many of its activities and maintaining good information about all kinds of employee activities (training, performance reviews, compensation increases, etc.).

As an HR professional striving to grow, discuss these ideas with senior management staff and ask for direction and input. Much of the learning process can take place within the organization if you ask the right questions.

Additionally, HR professionals should seek outside professional development, regularly network with other professionals and seek mentorship opportunities.

When an Employee Appears Suicidal

New Year’s celebrations bring times of joy, hope, family gatherings, reflection and resolutions. For many, however, the winter season carries reflection of past failures, loneliness, and anxiety – which may be accompanied by an unmanageable depression and lead to workplace stress.

Coping with stress (or the depression that may be causing it) during the winter and holiday season often compels employees to let their employers know that they are suicidal. Why? We may never be totally certain, but employers should realize that employees may associate their job as their main identity, and their coworkers and bosses, as their family.

According to a 2006 American Psychological Association (APA) survey, work is the number one cause of stress for Americans and almost one-third of Americans have trouble balancing their work and family lives.

Identifying a suicidal employee
Each year, more than 30,000 Americans take their own lives, and another 500,000 are hospitalized due to suicidal attempts and injuries. Many employers are uncertain of what defines a threat. It can be devastating to an organization if the employer is wrong. Conversely, the employer’s action could save a life if appropriate help is provided to an employee with emotional stress.

Employees are usually embarrassed to step forward and admit they are having trouble coping with undue stress due to public stigma attached to such confessions, or psychological barriers expressing themselves. The Americans with Disabilities Act (ADA) prohibits employers from discriminating against employees with mental impairment.

According to the Suicide Prevention Resource Center (SPRC) there are signs or “cries for help” that crisis is imminent if an employee does any of the following:

• Talks about suicide or death
  
  
• Makes statements like, “I wish I were dead" or “I'm going to end it all.”
  
  
• Uses less direct verbal cues, including “What’s the point of living?” “Soon you won't have to worry about me,” and “Who cares if I'm dead, anyway?”
  
  
• Uncharacteristically isolates themselves from others in the workplace
  
  
• Expresses feelings that life is meaningless or hopeless
  
  
• Gives away cherished possessions
  
  
• Shows a sudden and unexplained improvement in mood after being depressed or withdrawn
  
  
• Shows neglect of appearance and hygiene
  
  
• Exhibits sudden unexplained deterioration of work performance or productivity
  

Responding to a “cry for help”
So, what to do when you become aware that there is a cry for help from an employee? Many employers are not qualified to handle such a situation directly; therefore, employers should abstain from counseling the troubled worker, and seek professional assistance immediately.

Don’t be afraid to ask the tough questions. If you are comfortable speaking with the employee, according to the SPRC, it may be necessary to ask, “Do you feel like killing yourself” or “Do you feel like you want to die?” If you have a sense that the employee is having troubles, immediately seek outside assistance.

When speaking to the professional assisting you, identify the employee as “a danger to himself/herself.” This situation should be considered an emergency. Immediate action should be taken, such as:

1. Call 911 or other local emergency authorities.
   
   
2. Call 800-273-TALK (8255) the National Suicide Prevention Lifeline.
   
   
3. Refer the employee to your Employee Assistance Program (EAP) if you have one – and the EAP may also have suggestions for you in handling the situations.
   
   
4. Contact the Emergency Contact of the employee.
   
   
5. NEVER send the employee home, force the employee to take time off, and/or require a fitness-for-duty certification as a response.
   
   
6. Never leave the employee alone - or accompany the employee to the emergency room or crisis center.

Most importantly, the employer should focus on the pressing situation and secure the safety of the employee as well as the rest of the organization. Employers should not hesitate to make emergency calls when there is a threat and the worker is a danger to themselves or others.

What to do after suicide occurs?
Regardless, if suicide does or does not occur on the worksite, employers should seek grievance counseling without delay for all impacted employees. When a suicide or a suicide attempt occurs by one of your employees, it leaves a resounding impact on the entire organization. You may be faced with employees falling into deep depression, anxiety, or sorrow because of such an event. “Postvention” is the key to establishing or maintaining a healthy worksite. Employer’s EAP or health care provider offer mental health practitioners who are accustomed to providing immediate, as well as onsite assistance post-incident.

Best Practices
Make sure the employee returns to work with a fitness-for-duty certification. Educate your staff on anti-discrimination laws according to ADA. And, train your staff on emergency procedures and response.

Holidays and the winter season may bring about surprising responses and emotions from employees. Safeguarding your employees is one of the primary obligations of employers, as pointed out in Labor Code Section 6400, which indicates that employers must furnish a “safe and healthful” work environment. Being appropriately responsive and considerate can mean the difference between saving a life and making the wrong and devastating decision. Intervention and compassion should prove to be rewarding for your organization.