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Holiday Office Party – 2011

Monday, October 31st, 2011

Each year, we feel somewhat like the grumpy HR Grinch, ready to shut down your rollicking good time this holiday season. You know, the anything goes office party where your employees leave their inhibitions at the door. The celebratory occasion that provides months of post party gossip. However, we know that this time of year can leave you with more than a headache….a lawsuit that can be very costly.

Employers continue to evaluate whether to even have that party and associated expense. We recommend you reinvent the office party concept and try something new like a lunch event, group outing to an amusement park or volunteer activity with a local charity.

And the formal party isn’t always what employees enjoy the most. At YPP, the CEO’s have cooked lunch for our employees for the last several years, and that’s been just as much fun as when we did more elaborate evening parties – and far less risky since we don’t serve alcohol.

However you choose to celebrate the holidays with your employees this year, we want you to have a bright and “HR Safe” holiday season. We have a few tips to help our employers avoid the biggest holiday party danger zones, alcohol and sexual harassment.

Alcohol

The following tips were prepared by the U.S. Department of Labor, Working Partners for an Alcohol and Drug Free Workplace in an attempt to assist employers in minimizing negative consequences of alcohol consumption at their holiday parties.

Be honest with employees. Make sure your employees know your workplace substance abuse policy and that the policy addresses the use of alcoholic beverages in any work-related situation and office social function.
Post the policy. Use every communication vehicle to make sure your employees know the policy. Prior to an office party, use break room bulletin boards, office e-mail and paycheck envelopes to communicate your policy and concerns.
Make sure employees know when to say when. If you do serve alcohol at an office event, make sure all employees know that they are welcome to attend and have a good time, but they are expected to act responsibly.
Make it the office party of choice. Make sure there are plenty of non-alcoholic beverages available.

Eat…and be merry! Avoid serving lots of salty, greasy or sweet foods which tend to make people thirsty. Serve foods rich in starch and protein which stay in the stomach longer and slow down the absorption of alcohol in the bloodstream.
Designate party managers. Remind managers that even at the office party, they may need to implement the company’s alcohol and substance abuse policy.
Arrange alternative transportation. Anticipate the need for alternative transportation for all party goers and make special transportation arrangements in advance of the party. Encourage all employees to make use of the alternative transportation if they consume any alcohol.
Serve none for the road. Stop serving alcohol before the party officially ends. Employers are encouraged to review their company policies regarding alcohol consumption and furthermore, to enforce their policies at all company celebrations.

Sexual Harassment

With or without too much alcohol a holiday party or holiday events such as “secret santa” or gift exchanges can become the opportunity for sexual harassment claims. As a California employer you must know that State law forbids sexual harassment under FEHA and Government Code section 12940.

The California Fair Employment and Housing Commission (FEHC) enforces FEHA law and has found sexual harassment to include:

Verbal harassment, such as epithets, derogatory comments, or slurs;
Physical harassment, such as assault or physical interference with movement or work; and
Visual harassment, such as derogatory cartoons, drawings, or posters.

As an employer what can you do to help minimize the risk? The following tips can help you avoid holiday party harassment liability:

Remind employees beforehand that their liability for sexual harassment applies at all times, including during the party.

Make sure your supervisors’ sexual harassment training is up to date, and you may want to redistribute the company’s sexual harassment and substance abuse policies to everyone a week or so before the party.

If you know or suspect someone in your organization is putting you at risk for a sexual harassment claim take steps now to address it now, don’t wait until it is too late.

YPP HR Managers can help you in planning an “HR Safe” holiday celebration. We want you to enjoy the season knowing you have done everything possible to avoid a post holiday legal hangover.

Tags: Company Christmas Party, Party Policy
Posted by Lynn Fernbaugh in HR Policy | No Comments »

HR Recession Lessons

Tuesday, December 15th, 2009

2009 will go down as a year to remember but for many businesses the memories may be painful ones. As we move from depths of the recession into the glimmer of a recovery we have an opportunity to reflect on valuable HR lessons learned and use those lessons to become more resilient, to survive and thrive despite the inevitable ups and downs of a complex global economy.

The most recent economic downturn is still too fresh for us to have the full benefit of 20/20 hindsight but this is the perfect moment to start to analyze what worked, what got us into trouble and how we can more effectively manage, train and deploy our human capital resources.

Some companies gain market share during a recession and even during the Great Depression Kellog, Proctor & Gamble and Chevrolet all managed to grow. Google and Amazon showed it could happen during the 2000-2001 recession and continue to be resilient and successful even in the current troubled economy. These large companies are not alone. Many small and midsize businesses also have demonstrated a winning business strategy can work even in the midst of a raging economic storm and a major key to success is a focused, efficient and engaged workforce

So what are some of the “first glance” HR lessons from the current recession?

Head in the sand is not a winning strategy. Employees have powerful antennae that tell them when there is trouble in the company so don’t let the elephant in the room go unacknowledged.

Rumors and fear are costly distractions and will eat time and resources if not addressed. The truth is seldom as awful as the collective imaginations of your employees who hear doom and gloom on the nightly news and project it into the workplace.

Cutting your payroll too deeply can leave you without the talent necessary to respond to changing market conditions. If cuts are inevitable make them as strategically as possible because talent is expensive to acquire and train.

Outsourcing can maintain the key HR functions while controlling costs and minimizing risks. HR related complaints and lawsuits rise in seemingly direct correlation to worsening economic conditions.

Even in a tight job market talented employees have other options. If you cannot offer raises or other incentives to your superstars get creative about what you can offer. Your human capital investment may be your most valuable business asset when times are tough.

Focus on the positive and encourage innovation. Everyone wants to be part of a winning team and your talent in the trenches may have the fresh ideas or vision your company needs to succeed in challenging economic times.

The job market will improve sooner or later and employees will remember how they were treated during the difficult times. In many companies cutbacks were so extreme that the survivors are exhausted and unhappy. If your employees have been pushed to the breaking point and are poised to bolt at the first opportunity now is the time to begin rebuilding relationships.

Employees will want to be rewarded for their efforts as the economy gets better. Employers should plan to evaluate compensation and benefits as the economy improves in order to remain competitive when the job market opens up again but not at the expense of rebuilding capital reserves.

HR expertise is invaluable when addressing a complex and challenging employment landscape and bringing HR into the strategic process early can help avoid costly mistakes.

HR will play a vital role in the transition from recession to recovery, especially in companies where the economic crisis has been severe and survival mode has meant putting out HR fires but left little time or attention to strategic HR. A good look back gives us an opportunity to assess and reevaluate as we formulate new strategies that incorporate the lessons learned.

Posted by Lynn Fernbaugh in 2009 Recession, HR Lessons Learned | 1 Comment »

Employers Facing Social Media Policy Challenges

Monday, October 19th, 2009

“Social media is content created by people using highly accessible and scalable publishing technologies…” en.wikipedia.org/wiki/Social_media

Social media has expanded exponentially in recent years, leaving many businesses and their employees in uncharted territory. Facebook, MySpace, Twitter, LinkedIn, Blogs, Instant Messaging… and countless others means of humans interacting electronically. People are interacting in ways that did not even exist until very recently and creating serious challenges for businesses and their employees because there are no established guidelines, no one-size-fits-all policy and no slow down in sight. It isn’t just Gen Y either. My 80 year old mother regularly communicates with friends and family on Facebook so don’t assume your employees aren’t there or in countless other places in cyberspace.

Not very long ago if companies added computer, internet and email usage policies to their handbooks they could be pretty confident that their risk was minimized even if not completely eliminated. If the policies were properly communicated and enforced, in conjunction with solid non-disclosure rules, most employees would not breach company security, disclose proprietary information or waste their work hours playing video poker. With the addition of some basic monitoring of employee computer usage, a good firewall and sometimes more sophisticated surveillance it was relatively easy to control the electronic flow of information into and out of the company. Ah, the good old days.

Now, completely new electronic communication methods are leaving business owners and managers befuddled and frustrated in their attempts to address them in the work setting. Social media is a constantly moving target. It has incredible potential as a business development tool but also a much darker side. The potential to destroy reputations, put proprietary information in the wrong hands, and create legal and ethical complications create new challenges for businesses.

Challenging, yes, but as this new technology evolves it is possible to establish a workable Social Media Policy to help you take advantage of the upside and manage the downside of this technological evolution reshaping how we communicate and do business. Each business will need to design a policy based on their unique corporate culture.

So what exactly is a Social Media Policy? A review of more than 100 published policies showed that while they are very diverse, there are repeated themes such as common sense, good judgment, responsibility, confidentiality and staying within legal parameters. The other thing found was a tacit recognition of First Amendment free speech rights, carefully balanced against the rights of companies to protect their reputations and proprietary information.

This is a relatively new field of study but there is a large body of information already published, indicative of the vital importance this issue is taking on in the business community. A recent About.com article on developing social media policies quoted Shama Kabani, author of the Zen of Social Media Marketing and her 10 steps to developing a Social Media Policy, which are as follows:

Decide where your company stands with respect to their desired relationship with social media. You also need to decide where you stand relative to monitoring employee use of social media too.

Determine what constitutes social media.

As with any offline or online content written, used, received, developed or saved in company owned electronics provided to employees, clarify who owns what.

Keep confidential and proprietary information private. Respect the privacy rights of other employees and your customers.

Decide who is responsible for managing and participating in social media.

Establish ground rules for employee participation in social media.

While your employees probably already exercise good common sense while participating online, your social media policy must specifically address examples of taboo topics.

Create a system for monitoring the social media sphere.

Make training easily available for employees who want to participate in social media.

One of the other real risks inherent in social media is the instant nature of communication. Once the button is pushed the message is out there and it cannot be retrieved. As we all know, Google has a very long memory. Regularly review your policy and maintain an ongoing dialogue with employees so they know what the policy contains and what the consequences for violating the policy will be. It may be that there are already inadvertent policy violations you will need to address. For instance if your company has a policy that only human resources can give references and employees in your company are using sites like LinkedIn you may need to evaluate those LinkedIn recommendations within the context of your current policy.

Although there is no single policy that covers every conceivable issue, the Social Media Policy developed by IBM and published on their web site http://www.ibm.com/blogs/zz/en/guidelines.html offers a good look at the issues to be considered. IBM has more than a little experience in addressing the consequences of technology innovations and while they encourage employee use of social media technology they have also developed a very comprehensive policy to ensure employees follow company guidelines.

It truly isn’t a question of whether or not you need a Social Media Policy because if you have employees and they have access to computers, cell phones or other electronic communication devices you will be faced with these issues sooner or later. The question is really one of what to include and how much monitoring you are willing or able to ensure the policy works for you and your employees.

YPP can assist you with developing your social media policy, so contact your YPP HR Manager or sales@ypp.com.

Posted by Lynn Fernbaugh in Social Media HR, Social Media Policy | No Comments »

Emotional Intelligence: It Takes More than a High IQ

Tuesday, September 15th, 2009

“Emotional intelligence is the ability to sense, understand, and effectively apply the power and acumen of emotions as a source of human energy, information, connection, and influence.” Robert K. Cooper. Ph.D.

As Human Resource professionals we experience firsthand the complexities and challenges of managing people in organizations each day. We often find ourselves completely baffled when really smart people act very “un-smart”, sometimes sabotaging their careers and personal lives in ways that seem inconsistent with their IQ scores. The flip side of the coin is the individual with only average intelligence who consistently excels in their career and personal lives at a level far above what their IQ score would lead us to expect.

Could it be that IQ measurements are only giving us part of the picture or have we even been measuring IQ in a meaningful way? All of us have encountered high IQ individuals whose career/personal lives just don’t seem to jive with their high IQs. Obviously IQ alone isn’t telling the story. If it did then everyone with a high IQ would be a star performer in their professional and personal lives. We could just hire people with the highest IQs and all of those messy HR issues and performance problems would be a distant memory. We all know that just isn’t the case and as early as the 1970′s and 1980′s the theory of “emotional intelligence” began to be put forth as the missing link in the IQ puzzle. Daniel Goleman’s book “Emotional Intelligence: Why It Can Matter More Than IQ” was first published in 1995 and continues to be considered a groundbreaking work on the subject although the body of literature on the topic has become very substantial.

The true significance of the theory of Emotional Intelligence or EI really struck me recently when my nephew, a college psychology major, enrolled in a full semester course that uses Goleman’s book as a text. Our subsequent discussions have been enlightening as I’ve come to understand that Emotional Intelligence is now viewed as a mainstream concept and fully embraced by many in the academic and business communities.

So what exactly is Emotional Intelligence and what role can it play in your business life? The fundamentals of EI based on Goleman’s model are fairly straightforward: to be successful requires the effective awareness, control and management of one’s own emotions, and those of other people. Ok, so what if an employee lacks EI? Is it something we are born with or can it be developed throughout the course of our lives? The question has been studied and debated extensively. The definitive answer remains a work in progress because we are constantly increasing our understanding of human psychology and how the brain really works. For now we will leave the minutia to academia and focus on the question from a practical employee management perspective. The bulk of the available literature says yes, your employees and managers can improve their EIs.

Adele B. Lynn’s book “The Emotional Intelligence Activity Book” , offers the following five sets of talents as critical to EI development. I am including these in their entirety as a concise framework from which to begin examining EI:

Self Awareness and Control - This talent comprised two separate skills. The self-awareness component demands intimate and accurate knowledge of one’s self and one’s emotions. It also demands understanding and predicting one’s emotional reactions to situations. One who is emotionally competent at self-awareness is also fully aware of one’s values and core beliefs and knows the impact and effect of compromising these core components. The self control component requires full mastery of being in control on one’s emotions. Both positive and negative emotions are challenged in the most productive manner when one controls the emotion versus having the emotion control the person. The person with mastery and control of emotions can anticipate and plan emotional reactions to maximize effectiveness.

Empathy – empathy requires the ability to understand how others perceive situations. This perception includes knowing how others feels about a particular set of events or circumstances. Empathy requires knowing the perspective of others and being very able to see things from the value and belief system of the other person. It is the ability to fully immerse oneself in another’s viewpoint, yet be able to remain wholly apart. The understanding associated with empathy is both cognitive and emotional. It takes into consideration the reasons and logic behind another’s feelings or point of view, while also allowing the empathic party to feel the spirit of a person or thing.

Social Expertness – Social expertness is the ability to build genuine relationships and bonds with others that are based on an assumption of human equality. It allows people to genuinely express feelings, even conflict, in a way that builds rather than destroys relationships. Social expertness also enables a person to choose appropriate actions based on his or her feelings of empathy. The talent of social expertness allows caring, support, and concern to show for fellow humans in all of life’s situations. Social expertness also demands that one read social situations for readiness, appropriateness, and spoken and unspoken norms. Resolving conflict without compromising core beliefs or values is an important component of social expertness. High social expertness also allows for strong networks on both a professional and personal level that can be enlisted readily when needed for aid.

Personal Influence – Personal influence is the ability to inspire others through example, words, and deeds. It is the ability to lead others by way of social expertness. Personal influence is the ability to read situations and exert influence and leadership in the desired direction. It is also the ability to confront issues that are debilitating to relationships, goals, missions, or visions. Personal influence is, in addition, exhibiting motivation for one’s visions, missions, core values, and beliefs.

Mastery of Vision – Mastery of vision requires that the individual has the ability to set direction and vision guided by a strong personal philosophy. The ability to communicate and articulate with passion regarding direction and vision are also essential to mastery of vision. The talent serves as the inner compass that guides and influences one’s actions. This inner compass also provides resilience and strength to overcome obstacles. It is the inner motivator and the guardian angel of our purpose. Mastery of vision allows us to know who we are and what we are compelled to do with our lives. When our actions words are consistent with this personal philosophy, it is our sense of authenticity. When inconsistent, it is our sense of stress and discomfort.

So, you may be asking, why does any of this matter to me as a business owner or manager? For those of us who address HR issues on a daily basis it doesn’t require psychologists or academics to tell us EI is important. We seldom receive calls about employee issues that are rooted in a lack of IQ but each and every day we address issues with employees and managers that are EI based. Employees and managers with low EIs cost you time and money. High EI performers will quickly flee a situation where managers and coworkers are lacking good EI’s. A frustrated high EI employee may not know the technical term but will know the work environment is “off” and seek a more positive and constructive job opportunity.

The concept of EI and its relevance to work/life success has become integrated into the framework of even the largest corporations. “Interpersonal communication and other so-called soft skills are what corporate recruiters crave most but find most elusive in M.B.A. graduates,” says the Wall Street Journal. “The major business schools produce graduates with analytical horsepower and solid command of the basics – finance, marketing and strategy. But soft skills such as communication, leadership and a team mentality sometimes receive cursory treatment.” Wall Street Journal.

While you may not have the time to become fully conversant in the language of EI that doesn’t mean your company cannot derive benefit from the concept. You can easily implement some basic business practices that can help improve your company EI. For instance, when you are recruiting new employees include a few behavioral interview questions that will give you some indication of the applicants EI. As an example, ask someone about a work situation that was frustrating and listen carefully to how they respond. Do they have a balanced view or is their first response to lay blame or take all the credit for the solution? Another opportunity to up the EI in your organization is by consciously and consistently modeling communication and behavior that supports improved EI. It may be tempting to use some of the trendy pop EI assessment instruments you will find on the internet and in various popular books. While these can be a lot of fun and offer some personal insight we urge caution with these as hiring or promotion tools. Profiles International, the company we use for our psychometric assessment instruments has been working to develop a comprehensive EI assessment instrument for more than 5 years. The instrument is still in development and testing, since they have found it very difficult to develop a reliable tool that will meet validation standards, so if some of the best professionals in the world are proceeding cautiously we urge you to do the same.

As managers, if we can better maximize individual effectiveness we can achieve better organizational results. Working with our employees and managers to raise their EIs is an opportunity to improve the quality of their lives, their job performance, the work environment and ultimately your bottom line. So where to begin? In addition to the two excellent books cited here you can log onto www.eiconsortium.org and find a substantial number of recommended books and articles.

Posted by Lynn Fernbaugh in Uncategorized | No Comments »

HR Impacts – Healthcare Reform & Public Policy Mandates

Friday, August 21st, 2009

We are watching the health care reform debate with keen interest. Not from a political perspective, although like most Americans we have personal opinions and preferences, but from an HR perspective. Ours is a pragmatic view gained from more than twenty years on the front lines in HR helping businesses of all sizes address significant changes in public policy. This experience makes us acutely aware of the risks and the challenges dramatic public policy shifts bring including consequences both intended and unintended. All of this public policy change must be analyzed, managed and solidly integrated into the revised business model to minimize disruption and stay in compliance.

The current healthcare debate illustrates the turbulence significant policy changes bring. While the present debate rages on, it is important to put it into historical context. The history of how health care policy came to be so closely linked to employment is an interesting one. Even prior to the 1920′s there were proposals to enact some form of nationalized health insurance but the proposals failed for a number of reasons including low demand for medical care, low health care costs, and a medical community determined to avoid government intervention.

As medical care improved the demand for health care increased as did the cost. The first insurance programs were prepaid hospital plans, eventually leading to the formation of Blue Cross and later the Blue Shield programs in the 1930s. These early efforts required legislative changes to support their operation and much of the development of this private system was led by hospitals and physicians who wanted to avoid creation of a public insurance system. Insurance continued to evolve while remaining in the private sector, and Blue Cross and Blue Shield discovered they could address the issue of adverse selection by offering insurance to groups of employed workers. Thus the birth of the link between health care and employment that continued to evolve and grow stronger as public policy continued to support an employer-based health care system, including tax related financial incentives. Health insurance and HR remain firmly interconnected as a result and unless the entire employer-based healthcare system is completely eliminated and replaced by a public option that will remain true.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) first enacted in1985 was one such policy shift. COBRA was implemented to bridge the gap created when individuals and/or their dependents lose employer sponsored health coverage. Although COBRA policy is now well integrated into the fabric of our health care system it was a hotly debated public policy change when first proposed. Later a heated debate followed in California when CAL-COBRA brought employers with as few as two employees under the COBRA mandate. And again in 2008 we saw major COBRA change with premium subsidies mandated in response to the recent economic downturn.

Another major HR mandate created by a shift in public policy was the passage of the Americans with Disabilities Act of 1990. A direct descendent of the civil rights movement, this legislation had significant impact on employers as facilities, hiring and management practices underwent dramatic changes. Even after nearly 20 years we find organizations in need of guidance to ensure compliance with all of the complex regulations resulting from this public policy decision. Even when failure to comply is unintentional businesses can face serious consequences.

The creation of the Family Medical Leave Act of 1993 (FLMA) was a policy mandate that grew directly out of dramatic changes in the make-up of the workforce. Women often lost their jobs due to pregnancy and their role as caregivers had become increasingly complex as families struggled with challenges of protecting their jobs when faced with personal or family medical or care giving responsibilities. California and some other states also created programs supplementing or overlapping the Federal legislation, leaving employers faced with complex leave management issues. Again, a shift in public policy created complex challenges as organizations sought answers to a maze of regulations and YPP became the resource they relied on to assure they remained compliant.

These and many other public policy changes over the years have given YPP a great deal of hard earned expertise in implementing HR mandates created by public policy changes. Partnering with clients to manage these and other policy implementation challenges over many years has given us some insight on how an employer can best prepare to integrate policy changes with a minimum of disruption to the business.

So how do we navigate though the policy shift process? At YPP we take a multifaceted approach beginning with close attention to any policy debate that may impact HR. Such diligence ensures we have a comprehensive understanding of the issues and outcomes. Once we know a policy change is likely we perform a painstaking analysis to determine how clients will be affected. The final stage of the process is the development of an implementation strategy including procedural steps to incorporate the changes and timetables to ensure timely compliance. Policy development is never tidy, as the current healthcare reform debate demonstrates, and the target is always moving so we must be prepared to make many adjustments throughout the process.

Although the current situation is uncertain and the final outcome unpredictable we believe every organization can take steps to begin prepare for this or any significant policy shift to minimize disruption, especially during the implementation phase of the process.

Stay informed, for instance trade associations or other professional memberships will provide more relevant information than the talking heads on cable news.

Identify your team of experts and stay in touch. Their help with analysis and an implementation strategy will save time and prevent missteps.

Check in with your HR team and get their perspective

Know your current status, in this case your present health plan and what it offers.

Plan your resource allocation including people, time and money.

Consider outsourcing the transition so you can focus on the business of your business and minimize your risk of getting it wrong with the attendant penalties and frustrations.

Posted by Lynn Fernbaugh in employer, healthcare policy | No Comments »

Caution – Even Good Intentions May Violate Employee Rights

Friday, August 21st, 2009

Sometimes an employer’s best intentions will lead decisions or actions which unintentionally violate an employee’s rights and can even lead to discrimination charges.

We regularly see this happen when an employee returns from leave or notifies their employer of a pregnancy or other medical issue. Often the employer, either out of concern for the employee, business productivity, or company liability, wants to impose restrictions or limitations on an employee’s job activities beyond what their physician has outlined or what is legally permissible. Even, in very rare instances, an employer will want to terminate an employee who is pregnant or otherwise limited by a medical issue because they do not understand the legal protections afforded to their workers or find required accommodations inconvenient or too costly.

In the case of a pregnancy or other medical issue an employer cannot allow personal bias, business productivity or even concern for the worker or your business to overrule the legal protections afforded employees. Seek professional guidance before limiting an employee’s work activities or taking an adverse action against an employee who is pregnant or has a medical issue to ensure you fully understand the applicable laws and regulations. Sound advice can help you avoid unintentionally violating an employee’s legal rights and the serious consequences that may follow.

We recently received this from Shepard Mullin, one of the leading labor law firms and YPP’s employment law firm, illustrating just what can happen when an employer oversteps these legal boundaries.

Unsubstantiated Concerns Ruled Pregnancy Discrimination – A Cautionary Tale

The California Court of Appeal recently affirmed a decision by the Fair Employment and Housing Commission (“FEHC”) finding that an employer discriminated against a pregnant employee in violation of the Fair Employment and Housing Act. In SASCO Electric v. FEHC, an extremely experienced female who served as a second captain of a yacht was terminated shortly after she informed her employer that she was pregnant. Her employer was admittedly disappointed by the news because he believed that “mothers do not want to work in the boating business.” Moreover, he believed the employee’s plan to work as long as possible during her pregnancy was “cavalier.” Further, he had liability concerns (e.g., her exposure to chemicals and possibly falling on the boat which could lead to a miscarriage). These fears lead the employer to terminate her employment under the guise of a layoff.

The court held that the employer’s paternalistic assumptions took away the woman’s right to decide when during her pregnancy she should stop working and when she should return to work after her child’s birth. In addition, it held that the “reduction-in-force” reason for her termination was a pretext because when additional help was needed, the employer did not attempt to recall the plaintiff and instead hired less experienced individuals. Accordingly, the court affirmed the award to plaintiff of back pay, even for the period of time the plaintiff’s doctor would have restricted her work because the employer would have had an obligation to provide a reasonable accommodation (e.g., temporarily transferring her to a less strenuous or hazardous position). The court also affirmed the award of $85,000 for emotional distress damages and the FEHC’s decision to impose an administrative fine as there was clear and convincing evidence of oppression and malice.

The SASCO Electric case serves as a good reminder to employers to tread carefully when dealing with pregnancy issues. Employers must not impose their own views onto expecting employees and instead should work with them to explore reasonable accommodations in order to avoid allegations of discrimination.

Posted by Lynn Fernbaugh in employees, employers, workplace pregnacy | No Comments »

Stimulus Package More Than $…HR Changes Too

Tuesday, March 10th, 2009

There have already been countless laundry lists published of the HR tasks generated by the new economic stimulus package. HR departments everywhere are scrambling to make the nuts and bolts changes needed to comply. Rather than focusing solely on the new tasks generated by the stimulus package it may be the perfect time to step back and look at the bigger HR picture and how your HR professionals can make a more significant contribution to the management team. The economic stimulus package is ultimately about jobs and a more viable economy. With so much on the table and at stake this may be the perfect opportunity for an HR stimulus as well.

The urgency of the current economic situation means we must move the conversation forward and make our HR professionals much more than masters of the HR task list. Your Human Resource professionals need to assume a far more critical role, strategic management partner. When the economy is good and things are humming smoothly it is easy to for companies to let HR to fall into the role of compliance cops or worse, the equivalent of the shovel and the dustpan at the end of the parade. HR has much more to offer and they will never face greater tests or have a better opportunity to demonstrate their skills, resources and capacity to be key members of the management team.

Business owners, managers and employees are all stakeholders in the economic recovery and it is time for all hands on deck. The moment has come to strip away the endless TV commentary and politics surrounding the Stimulus Package to focus on the day to day work we all must engage in. HR has long held that they deserve a seat at the management table and in the current business climate HR professionals will have a golden opportunity take a seat and assume a meaningful leadership role. This means you should expect your HR professionals must to forth innovative ideas on effective human capital deployment and employee engagement which will bolster business survivability and success. In short, they must demonstrate the ability to be less transactional and more transformational. Only then will HR become your strategic management partner.

Jason Corsello recently wrote an interesting piece on the Human Capitalist Blog summarizing some key points made by Tod Loofbourrow, Chairman of Authoria, when he spoke recently at the Strategic e-HR Conference. He was talking about HR executives that “get it” and laid out the first three qualities summarized below. Jason added the fourth point. These thought provoking ideas put forth by Tom Loofbourrow’s and Jason Corsello are the perfect jumping off point to begin an HR stimulus conversation.

1. Business acumen. They have a true understanding of their own company, its business, the products and the industry it operates. Too many HR executives don’t even know the products their company sells and at what price or margin.

2. Analytical mindset. They think in numbers not emotions. They leverage data to make decisions and measure their business proactively.

3. Accountability. They are willing to make hard, critical decisions independently and will to put their proverbial “ass on the line”. Accountability also means they have a favorable reputation within the organization and can garner support throughout.

4. They know what they don’t know. This really means they know the right questions to ask and surround themselves with smart people, experts and knowledge.

And I would like to suggest another point for inclusion on the list:

5. They see HR as a fully vested member of the management team. They have a thorough understanding where HR fits in big picture of the management puzzle and understand why HR is vital to the success of the company.

So how do management and HR make such a dramatic shift and change the dynamic of HR as usual? In the next few months we will examine each of the areas on this list and discuss what owners, managers and HR professionals can do to more fully integrate HR into the management team.

Posted by Lynn Fernbaugh in HR Potential, Management, Stimulus Package, Strategy | No Comments »

Caution: Do Not Let Economic Stress Lead to Careless HR Practices

Monday, October 20th, 2008

Several months ago I wrote about the stresses employees may face during an economic downturn. Little did we know then just how much more dire the economic news would become. During these bumpy economic times employees and managers may be faced with complex HR challenges that require careful management to ensure best HR practices are maintained.

Layoffs
An economic downturn may mean layoffs but employers can minimize their risk of wrongful termination claims with good HR practices. The first line of defense occurs when the employment relationship is established. Ideally all new business should have employees sign an agreement that protects the at-will employment status. If layoffs are on the horizon it is time to standardize termination procedures and train supervisors on protecting the at-will relationship. Supervisors must also be clear on the importance of consistency when layoffs occur. Companies should have objective, nondiscriminatory criteria when selecting employees for layoffs. If the layoff involves a worker with an actual or perceived disability employers should seek the advice of an experienced HR professional or legal counsel. The same advice applies if an employee has recently returned from a legally protected leave or if the employee has made harassment claims or reported safety violations.

Proper handling of the layoff process is the best possible way to avoid messy and costly discrimination and wrongful termination suits. It is very important to give an employee accurate information about why you are terminating their employment. Do not tell an employee you are laying them off for economic reasons if the termination is due to performance issues.

Wage & Hour Compliance
A Stanford Law Review article by John Donohue and Peter Siegelman (The Changing Nature of Employment Discrimination Litigation, 43 Stan. Law. Rev. 983 (1991)) has interesting information with regard to the relationship between the economy and employment litigation. Recessionary economies mean increased employment suits and damage awards also increase.
To avoid wage and hour compliance complaints you must carefully track hourly employee’s time and accurately track and pay overtime wages. It is also important to enforce meal and rest break requirements. Be certain exempt employees are properly classified as misclassification is one of the most significant areas of employment litigation.

Workplace Violence
Times of economic stress may lead to an increased incidence of workplace violence. Employees may be coping with financial stresses at home and more demands at work as businesses seek to maintain productivity with a reduced workforce. A proactive approach can reduce your risk of workplace violence which can take both a financial and human toll.

Employers need a zero-tolerance policy that addresses violent acts and intimidation in the workplace. The policy should be communicated to all employees and must include reporting procedures as well as disciplinary action up to an including termination as a remedy.

Risk Management
Be particularly aware of risk management practices during an economic downturn. Stressed and overworked employees are less likely to carefully follow safety protocols which can lead to an increase in workplace injuries. Another serious concern is the potential increase in workers compensation claims as employees facing potential layoffs seek to replace their income. An economic downturn is also not the time to reduce safety training and equipment as a cost cutting measure because the long term consequences can be even more expensive.

Serious economic times call for sound HR polices and practices. A commitment to maintaining good HR fundamentals even when the economy is unsteady can help protect your assets and the human capital you rely on to keep your business on track.

Posted by Lynn Fernbaugh in Economy, Human Resources, Stress | No Comments »

The Economy is Bad so Why Are Employees Clamoring for More Money?

Tuesday, July 15th, 2008

For many companies business is down and costs are up.

As a manager you may be spending hours crunching the numbers to figure out where you can cut expenses and how much you can raise your prices without losing your customers. The last thing you are prepared for is employees to start demanding pay increases. Surely your employees realize times are tough and they should be grateful just to have a job, right? Careful, you may be in for a big surprise if you do not build salary increases into your planning scenarios.

There are some obvious reasons why your employees may be asking for more money. The same rising costs you contend with in your business are also hitting workers’ pocketbooks. Rising fuel prices impact all aspects of workers’ budgets, from daily commutes to increased food prices. You certainly didn’t tell your employee to go buy that big SUV but now that gas prices have surpassed $4.00 a gallon you still need them to get to work and in order to do that they must fill the gas tank, particularly in areas without adequate public transportation or other viable alternatives.

The housing crisis may be just a statistic on the nightly news to some but in many American households it is a very personal financial emergency. The complexities of the current housing crisis will be analyzed and argued about for years to come. The issue from your employees’ perspective is that wages have not kept pace with either home ownership costs or the rental market. According to June 2008 information published by the California Department of Housing and Community Development a worker earning minimum wage would need to work 120 hours per week to afford an average two bedroom unit at $1249 per month. The 2008 California Family Self-Sufficiency Standard estimates a single person in Santa Barbara County must earn a minimum of $13.86 per hour and in San Luis Obispo County a minimum of $11.52 per hour just to cover the most basic costs of living. In Los Angeles County the minimum is $12.51 per hour and in San Francisco it is $12.17 per hour.

Health care costs are also rising at an alarming rate both for employers faced with ever increasing costs to insure employees and employees who often must pick up a larger share and pay more out-of-pocket to maintain coverage. In a June 17, 2008 article the New York Times quoted Federal Reserve Chairman Ben Bernanke speaking before a Senate panel, “Improving the performance of our health care system is without a doubt one of the most important challenges our nation faces”.

There are also some less obvious but equally important reasons employers may find themselves facing more pressure to give wage increases to employees. Overall the demand for skilled workers remains strong. There are certainly downturns in some industries, most visibly construction and housing, however overall the unemployment rate remains relatively low in many regions. While the May unemployment data for California shows an average rate of 6.5% many areas still have very low unemployment rates. The unemployment rate for San Luis Obispo County in May was 5.2% and Santa Barbara County was 4.6%, both below the National rate of 5.5%. In San Francisco it was 4.9% with Los Angeles County coming in closest to the statewide average at 6.4%.

The labor pool is also changing rapidly. Baby boomers are set to retire in record numbers which will leave many industries scrambling to replace skilled workers. Estimates of the number of retirees and the associated brain drain from the economy vary widely. Most experts agree it will have a significant impact on the economy worldwide and for many industries a significant shortage of skilled workers is predicted. According to an April 2008 Sacramento Bee Article written by Daniel Weintraub,

“At times like this it can be tempting to conclude that California’s economy is falling apart, that all the good jobs are gone and our young people will be forced to fight over a few low-paying positions in the service sector. But as bleak as things look today, and they may well get worse in the months ahead, the long term is likely to be very different. Within a few years, in fact, the big story in California might be a shortage of skilled workers, not a shortage of jobs for them to fill.” Employers must maintain a long term perspective if they are to retain their most skilled employees who will be in ever increasing demand as the economy begins to recover. The Economic Research Institute notes that employers are expected to give increases for 2009 of around 4% but that rate may vary significantly depending on the industry and the demand for labor and skills within their industry.

Adding to labor market pressures, fewer workers are willing to relocate to new areas, particularly if they own a home they would need to sell in this uncertain real estate market. If you are in an industry that requires a skilled workforce you may face added wage pressures from headhunters calling on your employees with tempting offers. The Federal Reserve Beige Book for June 2008 acknowledged that wage pressures were limited in many sectors, “However, wage increases remained rapid for skilled workers in selected sectors, such as computer services.” DICE Holdings specializes in technology and financial service sector recruiting and CEO Scot Melland had this to say about the results of a recent DICE survey, “The weakness in the employment market is not impacting compensation. In many categories this is still a tight labor market and companies realize they have to pay competitive wages and take into account the cost of living.”

The experience of an economic downturn may be a new one for many workers who have never fully experienced a recession. Even average income working Americans have grown accustomed to a lifestyle that includes a lot of luxuries, both big and small. When everything from a fast food dinner to postponing the purchase of a new car begins to feel like deprivation employees will look to close the economic gap with higher salaries.

What does all of this mean for employers? First, be conscious of wage pressures so you understand what is happening in your industry. Don’t just assume your employees will be willing to stay put without raises, especially if they have high demand skills. Make sure any financial planning you do takes realistic wage increases in account. If raises are not an option it may be time go get creative. Companies experiencing financial strain may need to try other ways to help employees face rising costs and maintain employee morale. Perhaps employees can work a 4 day schedule to reduce commuting expenses or telecommute. (see article by Reed Jorgenson on the legal issues involved with alternative workweek schedules)

There is no set formula for addressing wage issues but a little research and planning are the best way to be prepared to address the issue with employees.

Posted by Lynn Fernbaugh in Business Costs, Salary Increases, Wages, employees | 1 Comment »

Boss or Team Coach?

Tuesday, May 13th, 2008

Say the word coach and virtually everyone will form a mental picture. It may conjure up an image of little league, your days as a high school athlete, the debate team or even the trainer you hired to help you get into shape. Most of us have been coached at some point in our lives with varying degrees of success.

In recent years, many of the concepts coaches use to develop winning teams are being translated from the playing field to the workplace. Coaching techniques are being employed as another tool employers can use to build a winning workforce and maintain a competitive edge in a tightening global labor market.

When working with an athlete to achieve peak performance coaches know they must find the right balance between challenging and nurturing individuals, often as they simultaneously attempt to create a winning team from disparate talents and personalities. The most successful coaches somehow manage to make that delicate balance look effortless. The workplace provides a similar set of challenges. For some managers coaching is an instinctive personal style that they fine tune through practice and experience. For many managers the concept of coaching will require a shift in how they view the management role and perhaps an adaptation of their instinctive personal style.

How do the skills coaches employ translate into the workplace? Coaches begin by first assessing the talents and skills of an individual and how those skills and talents fit into the big picture whether it is a team or an individual sport. Great coaches never stop there, they continue to evaluate, assess and review that initial picture as the individual matures and the needs of the team change. And a great coach recognizes and acknowledges the value of each member of the team whether they are the star quarterback or in a supporting role.

But can coaching skills work in the business world? Yes, but first you may need to shift your perspective. In a coaching focused work environment the old top down command and control view of management is passe.

The manager in a coaching work environment is not required or expected to play the role of the all knowing wizard, controlling every aspect of when, where and how the work gets accomplished. Freed from the need to control and fix everything that happens in the business, managers can focus on creating a more collaborative work environment. Well coached employees begin to assume greater responsibility for how their work contributes to the overall goals of the organization and are encouraged and expected to think and work more independently. When the approach is effectively applied the end result will be a more engaged, happier and productive workforce.

Sounds good but how to make it happen?

First, that shift in perspective. Start looking at your employees in a new way. Not as people who need constant management and control but as members of a team who are ready, willing and able to do a good job. Look in the mirror and ask yourself if your need to be in control has more to do with your own insecurities than employee lack of skill or willingness to do a good job. Remember, coaches know that once the players are on the field it is their skill and determination that determine the outcome and your job is to stand on the sidelines as head of the support team.

Look at each individual, not just what you want to accomplish. Every employee has strengths and weaknesses. It is the coach’s job to figure out how to capitalize on the strengths to the benefit of the organization and what training or development needs to happen to improve weaknesses. Coaches learn to look for natural talents and capitalize on them. Sometimes players get shifted around the field. At first glance your may see a poor performing employee but you may just have a terrific employee in the wrong position. A natural sales talent stuck behind a computer alone all day is not a winning strategy for the employee or the business.
Coaches know when and how to cut someone from the team. If the positions you have available just are not a good match for the individual and keeping them on the playing field is just too costly then let them go. Just because someone isn’t a star gymnast doesn’t mean they might not be a star tennis player. Give them the opportunity to move forward and shine in a different place. Be sure you do everything possible to maintain their dignity in the process.

People make mistakes. Good coaches recognize a failure can be the best possible teaching experience. People given the opportunity to make mistakes without fear of being berated or belittled are more likely to push themselves to grow and take on new challenges. Coaching means helping employees figure out how to fix things that go wrong so they can prevent making the same error again.

Give them the ball and make them run with it. Coaches know they cannot fix everything and cannot provide all the solutions. Watching someone struggle to master throwing the perfect pass takes lots of patience but if you grab the ball away each time a player falters then they will never develop the skill or confidence do themselves. If you create a work environment where you never let employees run with the ball then you will find yourself overwhelmed by the demands on your time by the very people you hired to relieve your workload. If there is constantly a line-up of employees outside your office door who are afraid to act without your direct input then it is time to look at the direct or indirect messages you are sending to your team. Stop making all the decisions and rushing to provide solutions to every problem for them. If you hired good people chances are you are surrounded by good ideas just waiting to be heard.

Which leads to yet another under appreciated coaching skill, listening. Coaches who listen to their players on small issues are less likely to find themselves with major issues that interfere with the goals of the team. Coaches know they need to listen to good and bad news and that shooting the messenger will guarantee no one wants to tell them the truth. Always remember your team is on the playing field where the action is. Your skilled and experienced players are looking at the game from the playing field perspective and just may have ideas and solutions you never thought of.

Make your feedback constructive. Coaches don’t just scream at their players that they are doing everything wrong and then walk off the field. At least not if their intent is to win the game. Be specific, offer suggestions and guidance and then give your players the opportunity to practice. What if the tennis coach said to a player that they swing the racket all wrong and then walked away? Nothing would be accomplished because without any feedback about what needs to change to improve the player’s swing and no opportunity to practice new techniques nothing changes. The result? Two frustrated people and no progress toward achieving the mutually desired result, winning.

If you have never considered a coaching leadership approach in place of your current management style you may want to give it some thought. Making a commitment to coaching can shift the tone of the organization. Think back to any experiences in your life when you were coached and then contrast that to times when you were being managed or bossed. Which was most successful? If you have the opportunity to observe a good coach in action consider how those same techniques may improve your organization. Of course, growing up as the daughter of a coach it made me a believer that good coaching skills build more effective teams, sports or business. Thanks Dad!