YPP California Human Resources Blog

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

noreply@blogger.com (Lynn Fernbaugh) — Tue, 15 Jul 2008 20:39:00 +0000

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.

Secret Ballots and Government Notification?: What Employers Need to Know About Alternative Schedules in California

noreply@blogger.com (Reed Jorgensen) — Mon, 14 Jul 2008 16:20:00 +0000

Gas prices continue to soar, and hourly employees are feeling the pain as more and more of their paychecks go right into their gas tanks. People are turning down positions 15 miles away from their homes, citing gas costs as the reason, and employers, also faced with rising costs of doing business in a down economy, aren't able to match candidate demands. Facing constant pressure to keep wages competitive and costs low, what is an employer to do?

Many companies are coming up with creative solutions to this problem, and are increasing employee loyalty and retention at the same time. Some companies have instituted free public transportation passes, or are even going so far as to coordinate carpools for employees. It used to be that providing paid parking was a benefit for most employees, but now the real benefit is the company that can help them get to work. Even for local employers on the central coast, where public transportation is very limited, companies might consider contracting with a vanpool service to provide additional commute alternatives to their employees.

Alternative schedules are another way of dealing with this issue, and one that employers are increasingly exploring. Alternative schedules include a 4/10 workweek (four, ten-hour days) or what is known as the 9/80 schedule, which allows employees to work a 9-hour day, and take every other Friday off. Employees reap the benefit of these alternative schedules in the form of reduced commute costs and more days off, and employers often see increased employee retention and satisfaction using these schedules.

However, instituting an alternative schedule requires more than just a decision. In fact, California wage & hour regulations require a very detailed, multi-step process involving secret-ballot elections and notification to the State of any alternative workweek. The detailed language of the requirements for alternative schedules can be found in the Wage Orders promulgated by the Industrial Welfare Commission. (As a reminder, too, every employer is required to post the applicable wage order for your business, so you should also be able to locate this information on the bulletin board with the rest of your required postings.)

A few of the basics that employers should be aware of is that an alternative schedule can be put in place for the whole company, or just a department or work unit. So for instance, you may find that an alternative schedule will really benefit your hourly manufacturing staff, but won't make much difference for your highly-compensated administrative staff. Because of the formality of the election process, make sure you survey your employees first and find out what will work for them, and what will work for your business needs. This saves the cost of conducting an election, and then having to re-do it because you've instituted a schedule that doesn't provide the staff coverage you need.

Prior to the actual election, an employer is required to provide a written disclosure to all the affected employees, "including the effects of the proposed arrangement on the employees' wages, hours, and benefits. Such a disclosure shall include meeting(s), duly noticed, held at least 14 days prior to voting, for the specific purpose of discussing the effects of the alternative workweek schedule." What follows is then a regulation-mandated election process, and then notification to the Division of Labor Statistics and Research of the new schedule.

Any employer considering implementation of an alternative schedule should walk through the process required by the Wage Orders, and should make sure that their HR department is involved in the entire process, to ensure compliance with the wage order and seamless integration with payroll and benefits.

Desperate times call for desperate measures, and even with the administrative burdens imposed by the State, many employers will see the benefit of instituting alternative workweeks. To make sure they're legal, though, companies must make sure to comply with the IWC regulations, or risk severe penalties.

National Weather Service Issues "Excessive Heat Watch"; State Officials Issue Heat Illness Prevention Alert

noreply@blogger.com (Reed Jorgensen) — Wed, 14 May 2008 16:54:00 +0000

The National Weather Service has issued Special Weather Statements in regards to heat and an Excessive Heat Watch onTuesday, May 13, 2008. Such is the statewide concern over the potential hazards to employee health and well-being posed by this heat wave, state officials from the Divivision of Occupational Safety & Health, Department of Industrial Relations, and the Labor & Workforce Development Agency organized a conference call and issued alerts to employers and other stakeholders.

Although all employers have a duty to provide a safe and healthful working environment for employees, Cal/OSHA regulations now require any employers with outdoor worksites to provide training and have a written program on Heat Illness Prevention. Because of statewide high and possible record-high temperatures expected in the short term, and probably all summer, various California state officials have issued an alert to employers to remind them of the duties to provide Heat Illness training. The regulations, originally issued in 2006, require all employers with outdoor worksites to:

1. Provide heat illness prevention training to all employees, including supervisors.

2. Provide enough fresh water so that each employee can drink at least 1 quart per
hour and encourage them to do so.

3. Provide access to shade for at least 5 minutes of rest when an employee believes he or she needs a preventative recovery period. They should not wait until they feel sick to do so.

4. Develop and implement written procedures for complying with the heat illness prevention standard

The Division of Occupational Safety and Health has also provided the following information to help employers comply with the regulations:

TRAINING
Before employees can work outdoors, employers are required to provide them with heat illness prevention training. This mandatory training for supervisors and employees under the new standard includes the following information:
-Environmental and personal risk factors
-Employer's heat illness prevention plan and procedures
-They need to drink water frequently throughout the day.
-Importance of acclimatization (allowing the body to adjust gradually to the work in high heat)
-Types of heat illness and the signs and symptoms
-Necessity of immediately reporting to an employer any signs or symptoms
-Employer's procedures for responding to symptoms
-Employer's procedures for contacting emergency medical services. This includes alternative modes of transportation
-Employer's procedures for emergency communications. This includes the emergency response procedures such as location, local medical services, and communication alternatives.

Adjusting to the heat
One training component for employees on heat illness prevention is the importance of acclimatization, or adjusting to physical activity in hot weather. The body needs time to adapt to increased heat and humidity, especially when one is engaged in heavy physical exertion. Typically, people need four to fourteen days to adjust fully to significant increases in the heat. Cal/OSHA data reveals that most workplace deaths related to heat illness that occurred last year involved new employees who were on the job only one to four days and were unaccustomed to working in hot or humid weather.

While the heat illness prevention standard calls for employers to train employees on the importance of acclimatization, it is up to employers to determine what acclimatization procedures they will use. The best strategy is to allow employees, and especially new ones, to adjust to hot weather by gradually increasing to a full work shift and pace. On very hot days, other good strategies include timing the shift so that more work can be done during the cooler parts of the day, increasing the number of water and rest breaks, and using a "buddy system" so that workers and supervisors can monitor each other. Also, employees should be reminded of the cooling benefits of wearing loose fitting, light-colored clothing and a wide-brimmed hat, when it's feasible.

SHADE

Recent safety and health data shows that all the surviving victims of heat illness had access to some shade during work periods, lunch, or at breaks. Under Cal/OSHA's new standard, an employee working outdoors who wants to cool off must be provided with shade for 5 minutes at a time. Shade for heat illness recovery periods must be accessible to employees at all times. In industries other than agriculture, employers may utilize measures other than shade to provide cooling if they can demonstrate that these alternative measures are at least as effective as shade.

According to the new standard, shade means blockage of direct sunlight. Shade is sufficient when objects do not cast a shadow in the shaded area and there is sufficient space for the employee to be comfortable. Shade is not adequate when the temperature in the shaded area prevents cooling. You must avoid sources of shade such as metal sheds or parked cars that are hot from sitting in the sun. Also, tractors and other machinery do not qualify as sources of shade and have the potential to create an even greater hazard. If you have employees who work outdoors, consider some easy-to-assemble portable sources of shade, such as umbrellas, canopies, or other temporary structures. Buildings, canopies, and trees all can qualify for shade as long as they block the sunlight and are either ventilated or open to air movement.

WATER

The third component of the new standard requires an employer to provide employees, working outdoors, one quart of potable, fresh and cool water per person, per hour. In last year's case studies, Cal/OSHA data revealed drinking water was present at all worksites, even though 78% of those who succumbed to the heat suffered from dehydration. Therefore, it is critical to keep drinking water accessible and remind your workers to drink it frequently.

WRITTEN PROCEDURES

The new standard requires an employer's heat illness prevention procedures to be in writing and made available to employees and to representatives of Cal/OSHA upon request. These written procedures must include:
-How an employer will comply with the heat illness standard requirements.
-How to respond to symptoms of possible heat illness, including how emergency medical services will be provided.
-How to contact emergency medical services, and if necessary, how employees will be transported to a point where they can be reached by an emergency medical service provider.
-How they will ensure that, in the event of an emergency, clear and precise directions to the work site can and will be provided as needed to emergency responders.
-Employers are encouraged to integrate their heat illness prevention procedures into their Injury and Illness Prevention Programs (IIPPs). All the elements of the Heat Illness Prevention standard must be implemented to prevent serious illness to your workers. By protecting your employees from heat illness, you promote a healthier and more productive workplace.

To learn more about the shade, water, written procedures and training requirements of the Heat Illness Prevention Standard, visit http://www.dir.ca.gov/.

Boss or Team Coach?

noreply@blogger.com (Lynn Fernbaugh) — Tue, 13 May 2008 16:03:00 +0000

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!

Complying with the American Disabilities Act When Hiring - Part I

noreply@blogger.com (Bob Dumouchel) — Mon, 12 May 2008 20:27:00 +0000

Job Applications
The American Disabilities Act (ADA) prohibits various types of questions of job applicants. Any inquiries on job applications or in interviews regarding an applicant's health or disabilities are illegal under the ADA, as well as other laws.

Prior to recruiting, the employer needs to determine the Essential Job Functions (EJF). When determining the EJFs you must ask yourself if each of the facets of the position are fundamental or integral to the job, MUST be done on a regular basis or on a rare occasion, or can this function be moved to another position without having a critical impact on this job, and the degree of expertise or skill needed to perform the function.

Skills Testing
Pre-employment tests that measure such things as sensory, manual, or speaking skills are permitted under the ADA if the skill being tested is necessary to perform the EJF's, meaning that the test is job-related, and if the tests have been validated to ensure that they measure what they purport to measure. If you are using un-validated skills tests, you are opening yourself to liability for discrimination.

The results of such tests may not be used to screen-out individuals with disabilities. Pre-employment tests should be administered with reasonable accommodations for those applicants who request accommodation.

Interviewing Don'ts
The ADA prohibits pre-employment inquiries about disabilities, whether overt, hidden, or assumed

There are certain questions that are regarded as disability-related, and therefore illegal to ask in a job interview or solicit in background and reference checks:

About physical impairments like scars, burns, or missing limbs.
If he or she has a disability, for how long, the nature or severity of it, or how it occurred.
About mental or physical impairments unless the applicant has disclosed it and the discussion is limited to determining if the person can perform the EJF's, with or without reasonable accommodation.
If ever been injured on the job.
How many days sick last year.
Been addicted, in counseling or treated for drugs or alcohol abuse.
Been treated for any other disease, medical condition, or disability, or on any medications.
Been in counseling or received psychiatric care, history of filing workers' compensation claims.
Whether there is any health-related reason the applicant may not be able to perform the job.

DO NOT assume that an applicant cannot do the job because of an apparent disability.
The applicant may be able to perform the essential functions of the job with or without reasonable accommodation. See next month's Challenge or contact Bonnie Royster, SmartSource Hiring System Manager at Your People Professionals 805.928.5725 for Part II Interviewing Do’s to Comply with the ADA.

SMALL COMPANY HAS BIG IDEAS ON GIVING

noreply@blogger.com (Bob Dumouchel) — Thu, 17 Apr 2008 18:21:00 +0000

"We're not a big company but we want to make a big contribution to our community" says Naomi Neilson Howard, CEO of Native Trails, Inc. at the kickoff meeting of the company's new Community Trails program that pays employees who contribute time to qualified San Luis Obispo county charitable programs. Employees can take paid time off to volunteer up to 16 hours a year, in lieu of doing their usual job.

"Native Trails has always been about making a positive contribution to the lives of our employees," says Howard, who started her business on her kitchen table while attending Cal Poly and feels fortunate to be able to live and work on the Central Coast. "Now we want to make it easy for each of our employees to make a contribution to their community."

The workers responded very positively to the chance to get involved. "I've met many people that have needed help. I always had it in my mind that if one day I could do something, I would. Well now it's my chance to do so," commented one employee, after learning about the volunteer program.

While the charities in San Luis Obispo County get much-needed volunteers, Native Trails expects the program to help build teamwork and a sense of community among its 32 workers.

The program was introduced this week at an employee luncheon that featured speakers from five of the area's leading community organizations including the American Red Cross, Food Bank Coalition, Woods Humane Society, American Cancer Society, and Hospice of SLO County.

Lydia Hunt, of the local American Red Cross chapter hopes it will encourage other companies to get involved. "I think it's very important for people to volunteer. It helps them to better understand their community and the services that are available, if they ever need them. Most of the employers in this area are smaller companies, like Native Trails. I hope this inspires them to do something like this."

Naomi Neilson Howard hopes so too. She's volunteered to share her experience with other local companies about how to implement a similar program.

In addition to supporting volunteers, the company also helps raise money for local charity groups by matching up to $500 a year in employee charitable giving through a payroll deduction program. In addition, each employee who contributes 30 hours or more a year can earn an additional $200 donation from the company for their favorite charity.

Native Trails is a privately-owned company based in San Luis Obispo. The company produces artisan crafted copper bath and kitchen fixtures using environmentally responsible materials such as recycled copper and reclaimed wood. Its products are sold throughout the U.S. and in Canada. For more about Native Trails, Inc. visit www.nativetrails.net

Recession - Keeping Your Business & Your Employees Moving Forward

noreply@blogger.com (Bob Dumouchel) — Wed, 16 Apr 2008 20:14:00 +0000

When you can't get through the evening news without hearing another commentator asking another expert if we are in a recession you can assume we are heading into, in the midst of, or on the way out of the dreaded abyss.

So what does it all mean for your business and your employees? Whether it is ultimately called a recession or something else, there are too many associated variables for anyone, expert or otherwise, to predict with certainty what will happen to you, your company and your employees. Take a deep breath, make a realistic assessment of your specific situation, develop a plan and keep moving. Fear and inertia are your worst enemies in challenging times. You don't control the nations' economy so leave the hand wringing to your competitors and focus on making the choices and changes necessary to ensure your company doesn't become a statistic.

This is the time to get an overall picture of your business and your industry. Know the current cash position of your business, sales trends in recent months as compared to prior years and the status of your economic universe, whether it is local, national or international. Getting a current picture is not the same thing as getting caught up in the paralysis of analysis. If you see red flags try to pinpoint the cause. Just because the buzz on the street is recession doesn't mean you should make excuses for a weak sales team or ignore an outdated marketing strategy.

Try to avoid the coffee shop blues. You know, where you sit around with your colleagues and complain about how bad things are out there. True or not, that time can be better spent on activities that support your business. Make a sales call, finish a proposal or visit a client.

Look for the opportunities because even in the worst of times there are success stories. The foreclosure market has spawned new marketing opportunities for those who took immediate action when they recognized the boom market was taking a turn in the other direction. A recent news story showed one entrepreneurial real estate agent who takes real estate investors on tours of foreclosures in a tour bus.

Negotiate everything. If you are in the market to buy a product or service this may be the best time to make your available resources go a little farther.

Evaluate your pricing strategy and your target market. Recessions don't last forever but if you make poor cost cutting or pricing decisions under pressure you may find yourself facing unintended consequences long after the economy picks up again. As things shift in the economy plan to make adjustments but maintain a long-term perspective too.

Keep marketing at the forefront. Business graveyards are littered with companies that took a short sighted view and pulled back on marketing to save money only to become a distant memory in the minds and wallets of their customer base. Rethink your marketing strategy, find ways to make every marketing dollar do more, but never abandon marketing in hopes that you will get back to it when things improve.

Spend your time on what matters most and what makes your business tick. This isn’t the time to start doing the filing yourself to save money if your strength lies in making sales. You will be costing yourself far more than you will save.

Employees are also a critical consideration when the economy is shaky. If business is affected then the economy is hitting individuals hard too. Just when you need your team at peak efficiency you may find yourself addressing issues with distracted or distraught employees. There are a number of proactive things you can do that may minimize the impact and keep things on target.

If your business is under financial stress be sure to keep your employees in the loop. Nothing will start people heading for the door faster than a sense of secrecy and fear. You may think you are hiding it well but employees know when things are off kilter. If the situation is challenging then engage your leadership team and other employees in the process. You might be amazed at the ideas that emerge when employees know you view them as keys to the success of the business. Make sure employees know the leadership team is looking forward and solutions oriented.

Be sensitive to employee financial challenges. Take a look at creative ways to provide support. Maybe you can offer an employee who has a long commute the option of telecommuting for one or more days a week. Be aware that younger employees have probably never experienced a real economic downturn before and may be anxious about the unknown.

If you have decided it is strategically necessary to downsize then take steps to streamline your operation. Fewer employees mean more opportunity for burnout among those who remain. Sometimes organizations cling to antiquated processes out of habit or simple inertia. Fewer people available to carry the load can create the opportunity to introduce more efficient methods. That can mean a leaner and more responsive organization.

Downsizing can also create an opportunity for businesses in need of additional talent. When other companies are forced to layoff talent you may find yourself in a position to reap the benefit.

Prepare your managers to expect employee stress to spill into the workplace. Be sure they understand the difference between being supportive and being overly involved. Offer them training on coaching employees who are facing stress.

If you know one of your team is facing a critical financial situation and you have an Employee Assistance Program be sure to steer the employee there for professional assistance. It can help take the pressure off of both of you to put some of the stress in professional hands.

Keep customer service a core value. When marketing dollars get tight your best source of referrals should be the happy customers you already have. Keep in touch and let them know you appreciate their loyalty.

Stay in touch with the business community. If you belong to business organizations stay active. It may be tempting to pull back when you are dealing with the challenges of a changing business climate but community and business associations can be an excellent source of support and referrals.

Finally, take the difficulties you encounter in an economic downturn as long-term lessons. It can be an opportunity to build your confidence in your ability to lead your company when you have successfully navigated through rough waters. A recession can be a great lesson in adapting to unexpected challenges and doing more than you thought possible with fewer resources than you thought you had to have. Who knows, looking back on it someday you may see it as the secret to your success.

Personality Alignment 101

noreply@blogger.com (Reed Jorgensen) — Wed, 02 Apr 2008 21:31:00 +0000

Workplace Personality Management Skills

One of the greatest challenges in management is how to get maximum production from the different personality types within the workforce. A manager needs to bring harmony to the chaos and what works with one personality type may totally alienate another. This article explores the latest tools available to help the manager understand their own style and the other personality styles within their team. These tools help the manager understand how to interact with the other personality types to create better business results. This creates a work place that is a more enjoyable for both the Manager and the Employee.

Have you ever had an employee who just didn't seem to click with you? Or perhaps you've been the employee, frustrated with your own supervisor's management style. It can be difficult to know how to overcome this barrier effectively.

In my role as a coach to managers and supervisors, I've noticed a basic assumption that most of them have, which is: "I should know how to do this." If you take a moment to examine this expectation, that two strangers brought together because of shared professional ability should immediately click and work well with each other, it's clear that it just isn't realistic.

Starting from the beginning then, how do you build an effective working relationship with the people you supervise? And does it really matter?

The quality of the relationship between Manager (executive, director, supervisor, team leader) and employee significantly impacts employee performance. Managers and employees who understand each other's style are highly productive and engaged. However, Managers who are "out of sync" with their employees often cause low productivity, dwindling morale and high excessive employee turnover.

*A significant factor that drives employee engagement and productivity is their relationship with their boss.

* Research consistently shows the primary reason employees leave a company is because of conflict with their Manager.

The more a Manager understands an employee, the more effective they can be. There are many ways to build a foundation of understanding. The first key is to understand yourself. Take a few minutes to make an honest assessment of your management style.

How do you communicate with those you supervise? Do you prefer email, phone, in-person? Do you like small talk and pleasantries, or do you get right to business?

What is your style of feedback delivery? Do you give ongoing feedback? Do you wait until something very positive or negative has happened to warrant an actual meeting or memo?

What are your expectations for updates on work duties? Do you expect regular status reports, or do you expect the employee to just get the job done when you assign them a task?

How do you respond to questions from employees? Do you like people to approach you as questions come up, or do constant interruptions just irritate you? Do you prefer to have questions emailed to you in one batch?

There are no right or wrong answers on these. The important thing is to understand your style, so you know your own strengths and weaknesses. From there, you can start to use these same questions to evaluate your employee's work style. These are just a few questions to get you started; there are many other things you can measure and assess in understanding your work and management style.

However, if you do have an HR Manager or other coach or mentor available, I highly recommend that after making your self-assessment, you then look at areas where you can refine your style to be more effective. Do you have an employee who loves to stop at your desk and chat about inane questions? If you prefer to be business-oriented and direct in your interaction, rather than just cutting the employee off, you may shift your style to meet in the middle. By asking a simple question, whether weather-related or weekend-plan related, and really listening for a minute or two while they answer, you can establish a relationship with that employee that's going to help them feel more appreciated and engaged.

Another valuable tool that YPP uses with its own corporate employees and with many of our clients is an assessment designed to measure this very issue. At YPP, we use the Profiles WorkForce CompatibilityTM, which is a valuable management tool that combines insight into the unique working characteristics that can impact the employee/manager relationship, along with actionable information on how the employee and Manager can best work together. Click here for more information about this assessment tool.

Every employee/manager relationship is unique and requires a different management strategy to achieve best results. For example, the relationship and management strategies between a highly decisive boss and a highly decisive employee will be significantly different than the relationship the boss has with a less decisive employee. The decisive employee thrives on quick decisions, while the other will be more methodical in their decision-making approach, potentially conflicting with the faster-paced Manager. A "one size fits all" management approach used for both employees will likely result in frustration for everyone.

There is no best-practices manual for understanding today's workforce, but understanding, knowing and tailoring corporate job offerings to a changing workforce puts an organization and its decision-makers in control in order to raise engagement levels.

Engaged employees are excited and enthusiastic about their jobs. They resist distractions, tend to forget about time and routinely produce significantly more than the job requires. They enjoy searching for ways to improve circumstances and volunteer for difficult assignments. They also encourage others to higher levels of performance. Finally, they are proud to be involved with their organization and are more likely to stay with the company. In the end, there are many benefits and advantages to understanding engagement levels. Companies with this knowledge have higher retention rates, superior customer service and realize enhanced bottom-line results.

By knowing your own style as a manager, knowing your employees' styles, and taking decisive action to bridge the two, you are actually contributing to the bottom line of your business. Whether accomplished by careful observation or assessment, the maxim "know thyself" is essential for every manager to follow.

Workforce Dynamics 3

noreply@blogger.com (Lynn Fernbaugh) — Wed, 12 Mar 2008 15:52:00 +0000

To date we have looked at four significant areas of Workforce Dynamics that will have a major impact on companies whose very survival depends on a stable and efficient workforce to achieve profitability. The first four areas we examined were workforce fluidity, Generation Y, employee perks and older workers. This month we will look at three key areas that have a great deal of overlap and interdependence; technology, globalization and skills gap.

Technology

No employer needs to be told that the emergence of technology is having an impact on the workplace. Although it would come as a total shock to your children it wasn't all that long ago that email and the internet did not exist. Today most businesses are dependent on that relatively new technology to perform the most basic tasks. Just look around any office when the computer systems are down to witness employees who can barely function without their computers for even a few minutes. This is an amazing impact for a technology that did not even exist when most of the workforce began their careers.

The implications of technology reach far beyond just email and the internet. The explosion of high tech is a double edged sword for employers and employees. For employees it increasingly means they can physically work anywhere and stay connected to the workplace. But this new freedom to roam changes all the rules of the traditional business office. Everything from how to measure productivity to labor law issues arise when employees no longer need to be physically present in an office to accomplish work tasks. As new workers enter the workplace the old rules requiring 8 to 5 office face time will no longer make sense to a generation that cannot remember not being able to communicate instantly with the entire world. Just watch the ease with which teenagers send text messages and you will see how rapidly new technology becomes integrated into our most basic daily activities.

The speed with which information flows can also be overwhelming to employees. Inbox fatigue can quickly set in when communication is instantaneous. Employers and clients may develop unrealistic expectations of how much work a single individual can accomplish in a reasonable work day. Quality may be sacrificed for quantity resulting in employee burnout, stress related illness and high turnover. As new technologies emerge companies must not only pay for the hardware and software to keep pace, they must also constantly train and retrain workers to keep up.

Employers trying to stay competitive with a lean workforce utilizing high tech solutions can find themselves coping with employees who feel isolated, alienated and overwhelmed by the very technology that was expected to solve problems not create new ones.

People and technology will need to be integrated in ways that offer employees the tools to make work more productive while maintaining a healthy work and life balance. Emerging software technologies will bring ever more sophisticated web based intranet and project management applications to the market. These new applications will enable employees to bring the scattered pieces of clients, projects and resources together for faster and more effective collaboration. The ability to manage email, fax, phone and mobile messaging with one integrated message system will soon be the norm. Recent developments such as the popular IPHONE show the market already exists for the next generation of communication devices.

Globalization

Technology has made dramatic changes in the workplace and more than ever before that workplace is global. Technology has not only given us the tools we need to communicate locally. We can now find anything we want anywhere in the world with the click of a few keystrokes. This means not only new market opportunities for many businesses but also the need to think and act with a global view. It may seem challenging to manage your own office team working collaboratively on a project. That challenge is exponentially multiplied if the team is scattered throughout the world. Factor in different time zones, different cultures, different languages and different laws and regulatory environments and you have a completely new respect for multi-national corporations. The Society for Human Resource Management, The 2007-2008 Workplace Trends List states it this way,

"Domestic is global and global is domestic."

The global business model will increasingly impact every employee and business, even those who only see themselves as local. Outsourcing and off shoring have become household words and the shrinking world isn't going to return to pre-technology business norms.

Skills Gap

Business will need a leadership seat at the education table to help plan and implement the training students will need to enter the workforce prepared to face the challenges of a different workplace than their grandparents or parents could foresee. Even jobs that were traditionally low tech have been touched by the technology revolution. Just ask a cross country truck driver about the high tech communications and navigation systems they employ to stay competitive.

A Princeton Brookings journal article on Economic and Labor Market Trends points to an ever increasing demand for high-skilled workers but points out that even traditionally lower skilled positions will require a higher level of technical skill than in previous generations. The US Department of Labor publication "America's dynamic workforce: 2007" has this to say, "Today, and increasingly in the future, a solid education foundation, including completion of post-secondary courses or degrees is needed to compete successfully in the job market."

Another real social impact will be the increasing gap between the wages of the shrinking pool of educated and highly skilled workers as compared to those who lack skills and education. According to the US Census Bureau, one of the largest and fastest-growing groups of young people in the United States are dropouts, rising to almost one out of three Americans in their mid 20's. This trend must be reversed because it cannot deliver the trained and motivated workforce necessary to compete in the global marketplace.

YPP will bring business owners and executives together on May 9 to further explore and discuss the changing dynamics of today's workforce and ways that businesses can adapt to maintain competitiveness.

Online Reputation Management, a Cautionary Tale

noreply@blogger.com (Bob Dumouchel) — Tue, 11 Mar 2008 20:49:00 +0000

Business owners are very careful about managing their reputation but for some reason they have not come to realize the risks involved in the Internet or more specifically what is called social media.

I would like to tell you the story of Kevin, and trust me there is a business story here, but let's watch the train wreck first.

Meet Kevin
This is a true story and an absolute Reputation Management Disaster. Kevin, who happens to be pictured here in a dress, carrying a wand and a fine malt beverage, lost his job and embarrassed his employer with a quick post intended for his friends and peers. Kevin was an intern at a large New York bank. He sent his boss an e-mail letting him know that he had a family emergency and would be out for a day or two. In reality Kevin blew off work to go to a Halloween party back home and take some unfortunate pictures. Wanting to share the excitement of his Halloween costume with his friends he posted the picture to the left on his Facebook Page. By the time Kevin got back to work the picture he posted had already made it to his boss' inbox. Kevin, as you would expect, got fired.

But our story doesn't end with the indignity of getting fired. Kevin's boss forwarded the e-mail exchange to a few people with the attached picture. It ended up making Kevin an overnight Internet sensation. Social bookmarking sites like Digg.com and Reddit.com picked up the story and it became a viral hit with hundreds of thousands of readers enjoying his pain.

Kevin went from being a guy with a bright future and a good internship to being famous for dressing like a fairy godmother, lying to his employer, and getting fired. Not exactly the legacy one would necessarily desire. Not to mention at this moment every Google search for his name is dominated by this story, and he even made the front page for his employer's name!

Anybody nervous yet? Is your mind racing wondering what your employees have ever done online? Or how that might play in front of the next big client proposal? Need to do a Google Search? It's cool I'll wait...

Now for the business angle... How would you like to be the business behind Kevin's story? Oh sure you would get lots of hits on your web site, but those would also be hits to your reputation. Managing your reputation online is serious business. Many prospects will do a search on your business name before they ever contact you and is a drunk kid with a wand the image you want to share with the world? Here are a just a few of the issues to discuss at your next management team meeting.

Do you understand what social media is?
What is your policy regarding posts in social media?
Have you trained all employees on this policy?
What if you hire the next Kevin and the story gets away from you?
Should you proactively manage your brand in social media?
What is the policy of employees using the business name/brands?
How should your business be represented in social media?
Are you leveraging social media or just watching the world go by?

In closing we recommend that you proactively manage your reputation or it will manage you. Things happen fast on the Internet and you need to stay ahead of the curve or you could be the next train wreck.

Rob Dumouchel
Systems & Marketing Solutions

About the Author: Rob Dumouchel specializes in online advertising and promotion with a focus on new media. Rob manages 50+ web sites for 30 clients generating over 5,000 sales leads or orders each month through Google Adwords.

Other references:

Rob's Internet Marketing Blog
www.myspace.com/adwords_expert
www.linkedin.com/in/robdumouchel

Cell Phones: More phones, more problems

noreply@blogger.com (Reed Jorgensen) — Tue, 26 Feb 2008 20:40:00 +0000

Last month we brought you guidance from Eric Schweffler of BLH&K on emerging issues with cell phones and the tax arena. Gauging from the response, it seems that cell phones are an area of increasing concern for employers.

Cell phones and PDA's, not to mention beepers and iPods, have brought a whole new bundle of issues to the doorsteps of employers. Some of these issues include overtime pay, horribly annoying rings, driving safety, employees taking personal calls at work, loss of confidential information (due to cell phone cameras,) and inappropriate material in the workplace (if you think there's any shortage of obscene or offensive cell phone screen backgrounds or ring tones, think again.)

Each of these issues is potentially a major problem, but my goal in this article is to hit a few high points for employers contending with a wireless workforce. Cell phones are actually at the intersection of a number of different policies, from harassment to confidentiality, so I'll highlight a few of those below.

We've all heard the ringtones in the office, from the country-western ballads to the heavy-metal version of Swan Lake (really.) Any good cell phone policy should include requirements of quiet, unobtrusive ringtones, if they are allowed at all. Because of the increasingly frequent disruptions, some companies require that all cell phones be turned to silent or vibrate during the workday, while others require that personal cell phones simply remain off except for breaks and meal periods.

One primary consideration in creating your cell phone policy is safety. Statistics have consistently shown that people using cell phones perform tasks less safely, whether it's driving or operating equipment. Many companies that require use of moving equipment, including construction, manufacturing, and others, have instituted policies requiring that personal cell phones remain in cars or lockers during work hours. Other companies limit use of cell phones while driving, and require people to pull over to make calls, or at least use hands-free devices.

As a reminder to everyone, hands-free devices are required by law for everyone using cell phones while driving as of 7/1/08, so all cell phone policies will need to include this at that time.

For companies with sensitive, confidential information, such as customer data, product designs, business plans, or anything else, it's wise to include cell phones and other electronic cameras or video or sound recorders in your confidentiality policy. This type of technology presents a serious potential for information loss by employers, so it's important to make sure that your policies are crafted to address this.

Aside from outgoing information, another primary concern with this technology is incoming material. Aside from ringtones, most cell phones now have customizable backgrounds and can store photos or videos. As one manager learned when opening an employee's cell phone to admire it, even cell phone screen savers have the potential to violate harassment policies. (This particular manager wasn't easily shocked, but said that in this case, she was shocked. The employee was told to ensure that anything she brings into the workplace is in alignment with the harassment policy, so the explicit video needed to be removed from her cell phone, since she had that out in her workspace.)

Harassment policies should make sure to address personal items in the workplace, such as cell phones, PDA's, iPods, screen savers, incoming emails, and personal laptops used in the workplace.

Another rapidly growing area of concern for employers is text messaging. How many times have you walked over to an employee's desk to find them silently texting away while you thought they were working? Some employers are more relaxed than others about this type of activity, but employers should recognize its potential (along with internet surfing) to be a time and productivity drain on employees. And because it's silent, you may not even know it's occurring. A well-drafted and even better-communicated policy is essential to make sure your employees aren't using your work time to text.

The last cell phone issue we'll look at in this article is the issue of overtime. For your exempt managers and executives, answering phone calls and emails from home is no issue, since they are expected to work the job, rather than the hours. For the non-exempt employee, though, who is checking their work email at home or answering or making cell phones calls outside of their normal work hours, overtime issues do arise. Since they are conducting business, you are required to pay those hours worked. However, if you have an employee working unauthorized overtime, you can approach that problem from a disciplinary standpoint.

Employers should make sure, though, that any hours worked (including on the phone from home or checking email remotely) are reflected on the timecards of non-exempt employees, even if the employee says they're happy to take a few calls at home. If it were ever to come in from of the Department of Labor Standards Enforcement, if the employer has no records, the employee's word on what they worked is often taken.

A well crafted, customized cell phone policy is now an essential in most businesses to address the growing issue of cell phones. Make sure it includes elements of when the phone can be on, can be answered, what the guidelines are for personal calls in general at work, appropriate material (including ringtones) on personal cell phones and PDA's, confidentiality of work material, safety, and any other areas that need to be addressed to protect your business.

FMLA: New Categories; More Time Off Work; More to Comply With

noreply@blogger.com (Reed Jorgensen) — Thu, 07 Feb 2008 00:35:00 +0000

On 1/28/08, the President signed a new law that expands the Family and Medical Leave Act (FMLA), providing leave rights for military families that is causing a new look at companies' FMLA policies. The law went into effect as of that date, so it's a mad scramble now as employers struggle to understand the policies they must now comply with.

As these new laws are not backed up by detailed regulation yet, the advice of a qualified HR or legal professional is essential ensuring compliance with the complex requirements of leave administration.

First, some employers are confused about the intersection of USERRA with these new FMLA leaves. USERRA is for actual deployed military members. The new FMLA leaves are for the people who stay back home, such as family members.

There are two new types of leave under the FMLA: "Qualifying Exigencies" and "Service member Family Leave." An employer is still required to cover health insurance, follow the notification requirements, and all the other current FMLA rules. The best way for an employer to think about this is that these are two new categories of leave under the current FMLA; in other words, these are amendments, not entirely new types of leave.

"Qualifying Exigency Leave" is for an employee whose spouse, son, daughter, or parent is on active duty or is called for active duty in support of a contingency operation. The Department of Labor has not issued regulations on the exact definition of "qualified exigency" leave yet, so until then the DOL is encouraging employers to provide this type of leave to employees even though they won’t be enforcing it until the regulations are promulgated. Probable examples of this type of leave would be a spouse taking leave to arrange for child care, to see a child off or welcome a child home, to attend pre-deployment briefings, to attend family support meetings, or to attend reintegration briefings. This is clearly intended to be a broad category of leave, so it's essential employers act in good faith and stay on top of the regulations as they are issued. In the meantime, make every attempt to accommodate this type of leave if it does arise before official guidance from the DOL is issued.

It's important to note that the definition of "son" or "daughter" in Qualifying Exigency leave conflicts with the existing definition of those terms in the current FMLA regulations. It's anticipated that the DOL regulations will address this discrepancy and provide guidance. The definition of parent is a biological parent or one who stood in-loco-parentis for the employee.

Active duty covers a broad array of potential military assignments during a war or national emergency, and this definition is governed by US code 101(a)(13)(B) of Title X. It covers assignments besides those which involve direct combat.

Qualifying Exigency leave is 12 weeks during a 12-month period, and is calculated the same way that any other FMLA leave is calculated by the employer: using the calendar year, roll-forward, or roll-back methods. Qualifying Exigency leave is integrated with all other FMLA reasons, so if an employee has taken 8 weeks of leave for a personal medical issue, and then requests Qualifying Exigency leave under the FMLA, they would have 4 weeks available.

Next of kin means the nearest blood relative of the Servicemember. This is likely to affect employees who are outside the traditional FMLA categories, such as brothers, sisters, aunts, uncles, and grandparents. Keep in mind that someone who qualifies under "in-loco-parentis" might qualify that employee under the "parent" category rather than "next-of-kin." The DOL may issue some further guidance on next-of-kin, as there is nothing in the regulations making a determination of that term. For instance, what if there are two brothers of a servicemember?

One way for employers to prevent potential abuse of the next-of-kin provision is to ask what brothers, sisters, aunts, uncles, grandparents are service personnel in advance of any requested leave, or to list servicemembers they are potentially next-of-kin of.

The definition of "serious injury or illness" is different under Servicemember leave than under the other types of FMLA, as it requires that the injury or illness must have occurred in the line of active duty.

Employers should remember that providing "psychological comfort" also qualifies as a reason for leave under FMLA, including Servicemember leave. For this type of leave, an employer can ask the employee to specify the type of care they will be providing for the injured Servicemember.

For intermittent leave, it's very important to get certification of the nature and schedule of the care to be provided, as the regulations seem to indicate that employees can take Servicemember leave on an intermittent basis as well.

Employers should immediately amend or supplement their FMLA policies. An employer is still required to give employees general notice of their rights under FMLA, so employers can post an updated policy on the employee bulletin board while we're waiting for official postings from the DOL. Handbooks should also reflect the revised policy.

Employers also need to determine if they will comply with the general provisions of the Qualified Exigency leave while the specific regulations are pending. Supervisors and managers will need to be trained on these new requirements, and employers will need to update their forms to reflect the new leaves, such as revising the questionnaire regarding covered family relations.

Until the regulations are finalized for the Qualifying Exigency leave, some very broad situations may fall under that type of leave, such as staying home to care for children after a spouse has been deployed.

Because of the new length of these leaves, it's possible that employers will face long-term employee absences, so cross-training employees in anticipation of such circumstances may benefit employers. There is no hardship or unreasonable provision of the FMLA that would allow a covered employee to deny the leave to a covered employee.

People on Servicemember leave in California may qualify for the Paid Family Leave program, which provides up to 6 weeks of salary replacement. But because few people can afford to take 20 weeks of unpaid leave, employers may want to consider adding a leave donation program as a way to support the family members of injured Servicemembers. Such programs can demonstrate the company’s solid support of our Servicemembers, and build morale and team identify by setting up a structure for employees to help each other.

Another wrinkle for California employers is the recent passage of a bill establishing leave rights for Military Spouses. This new leave will need to be integrated with CFRA and FMLA as well as PFL. So far 2008 has dramatically increased the complexity of leaves that California employers must contend with, and the advice of a qualified HR or legal professional is highly recommended in dealing with these complex situations.

Workforce Dynamics Part 2

noreply@blogger.com (Lynn Fernbaugh) — Wed, 06 Feb 2008 22:47:00 +0000

Last month we began the Workforce Dynamics series with two major workforce trends, workforce fluidity and Generation Y. This month we will take a look at two additional trends. Employee perks and the significant role they play in capturing and retaining talent in a competitive job market and a Workforce Dynamic that has grabbed media headlines, older workers and the vital resource they represent in our economy.

In the Spring of 2008 YPP will bring business owners, CEO's and top level managers together to further analyze and explore Workforce Dynamics and provide participants with practical tools to better understand and capitalize on these challenges and opportunities.

Employee Perks

There was a time when we thought of employee perks in the context of the rarified atmosphere of the Fortune 500 executive suite. To borrow a line from an old Dylan tune, times they are a-changing. In today's competition to hire and keep top talent virtually every employer regardless of size is expected to offer some level of perks.

Of course the spectrum is broad. At the top of the "Perks Peak" you have companies like Google where the sheer number and variety of perks are legendary. In an attempt to get an idea of how high Google has set the bar I googled "Google employee perks" and got 29,300 hits. No question there is a hyper-media buzz here but if you look deeper you will find some important lessons and employment trend information.

Our goal is to help employers better understand and effectively utilize employee perks as a recruiting and retention tool in the real world. The traditional purpose of perks is to make employees feel appreciated and increase their motivation to perform for the company. This remains the fundamental purpose although some companies, like Google, have made perks integral to the corporate culture as a means of building a work environment that blurs the lines between personal time and work time.

As an employer you need to look beyond the old standards of health benefits and pension plans. While these remain critical to most employees the increased competition for talent, especially for small businesses, means finding creative ways to reward your valuable workforce without breaking the bank.

The good news is most employees, when asked about the perks that matter most, are realistic in their expectations. One of the most significant trends is an increasing desire to achieve work/life balance. For instance some bonus time off after a big push to complete a demanding project would be a valued perk for many employees.

It is important that at least some of the perks you offer be rewards to recognize individuals rather that just the group. For instance buying lunch for everyone is appreciated but isn't necessarily a personal enough reward. Look at more creative options, such as letting employees work from home and skip the commute on certain days, a couple of family days to use when kids or aging parents have demands without eating into regular vacation time, flexible hours (within applicable wage & hour guidelines) if the standard 8 to 5 is more habit than necessity in your industry are just a few work/life balance perks that can pay off big in employee job satisfaction. On a lighter note some companies have instituted bring your dog to work days, employee car washes, health club memberships, group or individual outings to the movies or other entertainment venues.

The culture of your business, the make-up of your workforce and your specific industry will all be factors to consider in establishing employee perks. As an employer a fresh look at employee perks may give you a big payoff in loyalty and job performance and help cut down on the high cost of recruiting and training in a competitive market.

Older Workers

The Baby Boomers have made history from the beginning, first flooding schools, next making the 1960's a legendary decade of social and political change and later becoming the majority of the American workforce. The Boomer generation broadly encompasses people born between 1946 and 1964, roughly 76 million people. As this generation reaches retirement age it will mean a drastic shift in workforce demographics. In 1950 there were approximately 7 workers for every elderly person in the United States but by 2030 it is estimated there will be only 3.

Like many significant trends this one will present challenges and opportunities. The biggest challenge will be redefining the workplace and developing strategies to integrate older workers into the workforce as a means of expanding the pool of available workers and limiting the impact of what has been described as the single biggest brain drain to ever to hit the American economy.

Jeri Sedlar, the Senior Advisor to The Conference Board on mature workforce issues make it clear that this is a serious issue in a report on America's aging workforce. "...organizations that fail to understand the complexities or recognize the opportunities associated with an aging workforce may risk their ability to stay competitive. As more companies feel the pain of knowledge losses caused by retirements in key businesses or functions, those not planning ahead or leveraging their mature workforce will be scrambling."

The good news is that many baby boomers are willing and able to continue working and do not see age 65 as an automatic signal to stop working completely. Their reasons for wanting to continue participating workforce are often financial but many also just are too healthy and active to see themselves as retired in the traditional sense. What this means for employers is finding creative ways to utilize older workers as a valuable resource and develop jobs that will afford older workers scheduling flexibility, new learning challenges and the opportunity to continue making meaningful contributions. Companies that plan for this drastic shift in the workforce demographics will have a strategic advantage over competitors caught unaware and unprepared.

New business opportunities will also emerge as the aging population continues to need goods and services that address their specific needs. Once again the Boomers will be trend setters and challenge the status quo as they redefine retirement.

YPP looks forward to our Workforce Dynamics Seminar scheduled for Spring 2008 where we will work with business owners, CEOs and top level managers to map workforce trends and explore the important questions and strategies needed to stay competitive. As these trends ripple through the labor force it is critical that employers be prepared not just to cope with new challenges but seize the opportunity to capitalize on emerging opportunities.

Business and Personal Use of Cellular Telephones

noreply@blogger.com (Bob Dumouchel) — Wed, 06 Feb 2008 21:53:00 +0000

The Internal Revenue Service has recently been focusing their attentions on the taxation of business and personal use of cellular telephones to employees, resulting in additional taxable compensation to employees for income and payroll tax purposes. A summarized review of the substantiation requirements follows.

Cell phones are identified by the IRS as "listed property," which is property that by its nature lends itself easily to personal use. Listed property is subject to strict requirements substantiating business use, including the following:

1. Amount of expense;
2. Time and place of use;
3. Business purpose; and
4. Business relationship of the taxpayer to the person using the property.

If these substantiation requirements are met, then all business use of the cell phone is excludable from the employee's wages and income and payroll taxes as a working condition fringe benefit. Any amount of personal use (including the cost of each personal call along with a pro rata share of the monthly service charges) is required to be included in the employee's wages. When the substantiation requirements are not met, the value of the phone, along with charges for individual calls and the monthly service charges, are taxable to the employee as compensation. There are no de mimimis exceptions to the substantiation requirements.

To meet these strict requirements, it is advisable for employers to have a written policy requiring employees with company-owned cell phones to maintain the required records as listed above and submit copies of this documentation to the employer on a regular basis. If a monthly statement lists out the date, time, and phone number for individual calls, employees should document the business purpose of each call, along with any available supporting documentation, and the business relationship to the taxpayer. If an employee reimburses an employer for any personal charges within a reasonable time, then the value of the business use portion would not be taxable to the employee.

When the employee owns the cell phone, reimbursement of business-related calls should be made under an accountable plan in order to meet the substantiation requirements and be excludable from the employee's compensation and income and payroll taxes. An accountable plan requires that employees submit documentation substantiating business expenses and return any excess reimbursement to the employer within a reasonable time.

Pursuant to IRS Circular 230, the Internal Revenue Service requires us to inform you that any advice included herein is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. Additional issues may exist that could affect the federal tax treatment of the transaction on the matter that is the subject of this advice, and this advice does not provide a conclusion with respect to such issues. That said, please do not hesitate to contact us if you have any further questions regarding this matter.

Guest Blogger: Eric Schwefler, CPA, Partner, Barbich Longcrier Hooper & King Accountancy

Economic Outlook

noreply@blogger.com (Bob Dumouchel) — Sun, 27 Jan 2008 21:42:00 +0000

U.S. financial markets are responding to growing concerns over financial sector losses due to write-offs in the sub-prime lending business, as well as a growing concern of a general economic recession.

Financial sector losses primarily stem from defaults in the sub-prime mortgage market. In a process called securitization, mortgages are sold from a loan originator to an investment bank that then packages similar types of mortgages together in bundles based on risk. The investment bank then issues bonds which are backed by repayment from the mortgages. The riskiest mortgages result in the highest yield bonds. Securitization is far from standardized and many institutional investors do not fully understand the process and how risk correlates with return. An important feature of this process is that risk is spread from the mortgage markets to the bond markets.

As the Federal Reserve began increasing interest rates in 2004, it wasn't long before mortgage defaults began to rise. The mortgage defaults undermined the value of the bonds and losses for investment banks ensued. Although many people believe greed is the dominant motivating factor in the growth of securitization and the credit crunch we now face, many other factors also apply. The American Dream of home ownership for all classes of people as well as providing opportunities to help people rebuild their credit, are also contributing factors explaining why our economy embraced sub-prime lending.

Most U.S. businesses and households will be acting in a cautious manner with respect to spending in the near future. Federal Reserve estimates for industrial production and capacity utilization figures remain low for most categories (1.5% on average). Exceptions were construction, dropping 2.2% last year and utilities, which increased 6.9% in 2007. Consumer credit outstanding has continued to climb, up another $110 billion in 2007 to a total of $2.5 trillion. Consumers and businesses are also concerned with inflation. For the past three years, 2007, 2006, and 2005, consumer prices have risen 4.1%, 2.1%, and 4.0% respectively. The national unemployment rate rose in December to 5.0%, up from a year earlier measure of 4.4%. The most recent data (Nov. 2007) shows personal income up 0.4%, consumer spending up 0.5%, and personal saving down 0.5%. Concern over these figures is merited but the U.S. economy has faced similar economic challenges before.

The past two recessions were very mild and very short. At the end of 1990, the U.S. was involved in the first Gulf War and had been suffering for quite some time from a very sluggish economy. That recession lasted less than three quarters and saw the unemployment rate rise from 5.6% to 6.8% between 1990 and 1991.

The most recent recession began in 2000. It also lasted less than three quarters. The U.S. economy was in a period of transition due to a great deal of wealth disappearing due to the bursting of the dot-com speculative bubble. It is estimated that perhaps as much as $5 trillion of market value of technology companies was wiped out between March 2000 and October 2002. The unemployment rate increased from 4.0% to 4.7% between 2000 and 2001.

The daunting realities faced during those past two recessions are different from the specific facts observed today. Today, the U.S. is facing slower economic growth in a high-priced environment. Once again the resilience of our market economy is being put to the test.

The major equity indices in the U.S. (Dow Jones Industrial Average, S & P 500, and NASDAQ) are all down nearly 20% from their highs in October 2007. The U.S. fixed income markets have also been impacted. As fears of recession and the credit crisis spread, we are seeing a flight to quality. Money has flowed into fixed income instruments even as interest rates declined. In particular, we saw major inflows into high grade government securities. In 2007, U.S. government fixed income had a better total return than did investment grade corporate debt. Both of the aforementioned asset classes outperformed high-yield debt that barely showed a positive return for 2007.

At the time of this letter, we see U.S. stock markets responding to the concerns outlined above. Many investment banks and other financial institutions are re-evaluating their assets, writing down values, and reporting losses. This process will take some time. Additional volatility can be expected in equity and fixed income markets. In response, governmental authorities are actively engaged in addressing general economic conditions and working to dampen financial market volatility. The Federal Reserve cut interest rates by three-quarters of a percent on January 22 (the fourth cut since September 2007) and the Bush administration and Congress are poised to implement stimulus packages (approximately $145 billion) that include tax rebates. Both fiscal policy and monetary policy are being brought to bear in order to stimulate the sluggish economy and soothe fears brought on by skittish financial markets.

The U.S. federal government and the Federal Reserve are less concerned with inflation for the time being. These authorities are continuing to rely on domestic market forces to eventually bring food and energy prices down to more reasonable levels. These market forces are actively engaged in the process of identifying and securing the vital elements necessary to foster economic growth and price stability. High gasoline prices have served their purpose of preventing shortages at the pump. As alternative energy forms are explored, refined and adopted we can logically expect energy prices to mitigate. Many other prices, such as food prices can be expected to moderate as a result of that.

Abroad, financial market volatility represents a gauging process as those economies assess their overall economic fitness. This international volatility also reflects the importance of U.S. markets to the global economy. Our economy's ability to simultaneously thwart a credit crunch, stagnation, high prices, and a weak dollar is a testament to the strength and security our markets offer the rest of the world and ourselves. It is our opinion that prospects for the U.S. economy are bright. Short-term fluctuations are expected to give way to a more promising investing climate in the coming weeks. We believe in this prospect because the issues of slower growth and high prices are being addressed proactively by both the government and the marketplaces.

Nobody can know with certainty when the next (official) recession will be. Nobody can know whether the next recession will be mild and short. What we do know is that recessions as a part of business cycles are a reality. We also know that certain asset classes can display volatility as a result from downturns in the business cycle. One excellent way to combat this volatility is through asset diversification. Pension Consultants can help with asset diversification and other advice. We diligently monitor the performance of your investments and consider the risk and return results against the backdrop of overall economic trends. The current economic picture merits attention but not undue apprehension or brashness. As we keep alert in our observations, please let us know if you have any questions or concerns in which we can be of service to you.

Guest Bloggers:

Pension Consultants Inc.

Steven T. Petty, Ph.D.
Senior Research Analyst
Investment Services

David Richards, CFP
Manager
Investment Services

Brian D. Allen, CFP, QPA
President
Pension Consultants, Inc.

Workforce Dynamics

noreply@blogger.com (Lynn Fernbaugh) — Wed, 12 Dec 2007 18:37:00 +0000

The one constant in human resources is constant change. Employers and their human resources managers are continually challenged to respond to changes in what we call workforce dynamics. Gone are the days when people made permanent career choices at an early age and stuck with them until they received their guaranteed pension at 65. Just as businesses have been carried into the technology revolution they will also be swept into the workforce revolution.

Your People Professionals is in a unique position to track and evaluate the emergence of workforce trends and challenges. Serving as the human resource partner for hundreds of businesses and their employees over more than 20 years has given us the opportunity to constantly monitor changes in workforce dynamics and the impact on employers and employees.

This is the first in a series of articles on some of the most significant trends we see affecting workforce dynamics. Over the next several months we will give you brief summaries of some of the most compelling issues being evaluated by YPP's team of HR professionals. These brief issue introductions will culminate in the spring 2008 when YPP will host a Workforce Dynamics Seminar. We will bring business owners, CEO's and top level managers together to explore Workforce Dynamics and provide practical tools to better understand and capitalize on these challenges and opportunities.

We will begin the series with two of the major trends confronting managers, workforce fluidity and Generation Y.

Fluidity

If you are an employer dealing with workforce fluidity it may feel more like a very bumpy ride than a manageable employment trend. There was a time when employees were cautioned employers would view too many jobs or too many career changes on a resume as a serious negative. Often employees stayed at jobs just because they were afraid of looking like a job hopper.

Faced with the power of the Internet, fast-paced changes in technology, overseas outsourcing and a shrinking workforce, employees found themselves in uncharted territory. Many employees began viewing their careers from a new perspective. Not as a static choice to ride out to retirement but rather as a fluid ebb and flow with the opportunity to make adjustments as needed to best suit an employee's personal needs at different phases of their careers. These employee choices can leave employers coping with employees who do not hesitate to move on at the slightest provocation or when presented with even a marginally "better" opportunity. The advent of the internet means there is instant information access and entrepreneurial opportunities abound. Want to know what your counterpart in another city makes, or what benefits the company across town offers? Log on and chances are the information can be easily obtained.

Gone is the fear that too many jobs on a resume will doom employees to failure. On the contrary, some recruiters may view loyal and stable employees as too risk averse or likely to have dated skills. Every internet job search site abounds with articles encouraging employees to take charge of their careers and move on to better opportunities. Employees can even quit their jobs electronically, just go to http://www.iquit.com/ and someone will handle your resignation for you.

Challenging workforce dynamic for employers? Of course, but with some management savvy, employers can get ahead of the curve.

First, the obvious: make sure you offer salary and benefits in line with your local area and industry. Nothing guarantees constant turnover like below market wages and sub par benefits. It can be hard for employers to measure the real cost of high employee turnover, but factor in training time, customer service challenges, and recruiting expense and you will start to see your "salary savings" evaporate.

Second, no matter what the size, every business has a corporate culture. Make sure that you utilize every available tool to ensure that the employees you hire are a good "fit" for both the job and your organization. YPP recently introduced our innovative SmartSource Recruiting System to respond to marketplace conditions and employer needs. If you want improve your workforce stability you need to make the pre-hire investment to make sure the "fit" is right.

Over the next several newsletters leading to the Workforce Dynamics Seminar we will also explore some of the more creative employee perks and management strategies that can help stabilize your workforce.

Generation Y

We have all read the headlines about Generation Y moving into the workforce and the changes they will bring. Who are Gen Y workers? Definitions vary but essentially they are the more than 70 million Americans born from 1977 to 2002 and according to a recent USA Today article they are the fastest growing segment of the American workforce at nearly 32 million workers.

Watch out employers, Gen Y is rocking the workplace. These employees are often tech savvy, high performance and high maintenance. Often the product of a child centered household, they have a strong sense of their own self-worth and little tolerance for the status quo of business as usual. High tech isn't something new or challenging; it has always been part of their lives.

Y-ers are the first generation raised with the positive reinforcement and self-esteem building that became popular in parenting during their formative years. "Generation Y may need help with accepting constructive criticism and managing conflict," says Linda Gravett, senior partner of Cincinnati, OH-based HR consulting firm Gravett & Associates and co-author of "Bridging the Generation Gap" (Career Press, 2007).

Bruce Tulgan, of RainmakerThinking, considered one of the leading experts on Gen Y summarizes Gen Y workers as follows:
High Expectations of self: They aim to work faster and better than other workers.
High Expectations of Employers: They want fair and direct managers who are highly engaged in their professional development.
Ongoing Learning: They seek out creative challenges and view colleagues as vast resources form whom to gain knowledge.
Immediate Responsibility: They want to make an important impact on Day 1.
Goal-Oriented: They want small goals with tight deadlines so they can build ownership of tasks.

A recent survey conducted by careerbuilder.com in June of 2007, titled "Gen Y at Work", identified real generational gaps in communication styles and job expectations when they gathered data from more than 2,500 hiring managers and HR professionals across all industries. A startling 87% of all hiring managers and HR professionals say some or most Gen Y workers feels more entitled in terms of compensation, benefits and career advancement than older generations.

Another critical issue employers need to address when managing Gen Y workers is the concept of work-life balance. There is a much higher value placed on self-fulfillment. Corporate success at the expense of health, relationships, and quality of life just isn't their idea of what matters most. Career may be important but it does not define them or their self-worth.

There are a number of excellent books on emerging generational management issues. Managing Generation Y by Bruck Tulgan and Carolyn Martin is a good place to start if you are interested in a more in-depth exploration of this workforce dynamic. Gen Y will be a feature topic of YPP's Worforce Dynamics seminar next spring.

Next month we will discuss creative employee perks, sometimes called Lollipops, that employers are utilizing to help keep the talent they need to compete. We will also examine the other end of the employee spectrum, Older Workers and the expanded role they will play in the American workforce.

New Law Requires Employers to Send Additional Notification with W2's

noreply@blogger.com (Reed Jorgensen) — Tue, 11 Dec 2007 22:37:00 +0000

A new law, AB 650, which many employers are just finding out about, requires employers to send language out to all employees receiving W2's about their eligibility to file for Earned Income Tax Credit. The law is effective 1/1/08, and the notice must be sent out within one week of the W2 itself, and must include the following language:

"Based on your annual earnings, you may be eligible to receive the Earned Income Tax Credit from the federal government. The Earned Income Tax Credit is a refundable federal income tax credit for low-income working individuals and families. The Earned Income Tax Credit has no effect on certain welfare benefits. In most cases, Earned Income Tax Credit payments will not be used to determine eligibility for Medicaid, Supplemental Security Income, food stamps, low-income housing or most Temporary Assistance for Needy Families payments. Even if you do not owe federal taxes, you must file a tax return to receive the Earned Income Tax Credit. Be sure to fill out the Earned Income Tax Credit form in the Federal Income Tax Return booklet. For information regarding your eligibility to receive the Earned Income Tax Credit, including information on how to obtain the IRS Notice 797 or Form W-5, or any other necessary forms and instructions, contact the Internal Revenue Service by calling 1-800-829-3676 or through its web site at http://www.irs.gov/."

For YPP PEO and HR Services clients, we will take care of mailing out this new notice to employees and former employees receiving W2's this January, so if you are a current YPP HR client, there is nothing you need to do!

The Dark Side of Corporate Culture

noreply@blogger.com (Reed Jorgensen) — Tue, 11 Dec 2007 22:30:00 +0000

In a historic decision published today by the Ninth Circuit Court of Appeals, class status was granted to 1.5 million current and former female employees of Wal-Mart. In Dukes v Wal-Mart, Patricia Dukes and other similarly situated women are suing Wal-Mart for gender discrimination. While the merits of the case are still to be determined in the trial, this decision allowed the female employees to move forward with their class action suit. One of the primary arguments of the plaintiff was that because Wal-Mart has such a strong corporate culture, that anything the central office declares is policy is carried out by the individual stores. And because the plaintiffs are alleging that Wal-Mart's broad corporate policies discriminate against women, including paying them less than men and promoting them more slowly, that's bad news for Wal-Mart.

The message this case carries for employers, so far, is that despite all the hype and fads, a strong corporate culture isn't automatically a good thing. Make sure, with your executive team and including your senior HR executive, that your corporate culture is positive, equitable, and promotes compliance with the law.

You can read the actual decision and learn more about the case at: http://caselaw.lp.findlaw.com/data2/circs/9th/0416688op.pdf.

Holiday Office Party

noreply@blogger.com (Lynn Fernbaugh) — Fri, 09 Nov 2007 18:30:00 +0000

Employment Law Attorneys Love Them.......

I once heard an attorney during a presentation say that the fallout from holiday office parties is a very lucrative business, one that provides a handsome living to many of his colleagues. Oh no, watch out, here she comes, that grumpy HR Grinch, ready to shut down our 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.

Unfortunately the post holiday hangover may be yours if you are an employer. The gift you get in January and beyond may be hours spent huddled with your new best friend, an employment practices attorney. The attorney you hope can defend you against some very serious legal threats to you and your business.

We at YPP love to have a good time and we want our clients 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.

Reinvent the office party concept. Why have the typical office party? Try something new like an indoor carnival, group outing to an amusement park or volunteer activity with a local charity.

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 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.

EAP: Not as Boring as You Think!

noreply@blogger.com (Reed Jorgensen) — Tue, 06 Nov 2007 23:21:00 +0000

For most people, the acronym "EAP" is like valium for the ears: part of the 401(k), HSA, ADA, FMLA alphabet soup that seems to come with HR. Probably even reading that sentence made you a little bit drowsy, right?

But it's worth your while as a business owner or manager to prop your eyelids open and spend some time considering an Employee Assistance Program (EAP) for your business. You might find that the potential for cost savings, rising employee morale and retention, and a strengthened employment brand are enough to perk you right up.

What is an EAP? It's a program offered by employers to their employees as a confidential resource for employees with all different types of problems, whether with family, work, personal, relationship, financial, legal, childcare, adult-care, or others. The basic theory behind EAP's is that what you invest in providing these services will be returned to you (and more, hopefully) in the form of lower insurance premiums, lower workers' compensation claims, less absenteeism, less presenteeism (showing up for work but underperforming, a growing concern for many employers,) and less abuse of sick and PTO leaves.

According to Helen Darling, president of the nonprofit National Business Group on Health, about 217 million workdays are lost annually because of a lack of productivity stemming from mental health and substance abuse disorders, and those lost days cost U.S. employers $17 billion annually.

And EAP's are not just for the employee with a serious mental illness or drug addiction problem. How many employees are not at their best at work because they're distracted by childcare issues, marital problems, trying to find care for aging parents, financial concerns (including mortgage woes), or legal issues? By assisting your employees with these problems by providing an EAP (and a strong communication program to roll it out and continue ongoing education,) you may be strengthening your bottom line.

You can even gain national recognition as an employer of choice, as five firms recently did during the National Business Group on Health 2007 Joint Forum. Aetna, Cisco Systems, Delta Air Lines, GlaxoSmithKline, and Pitney Bowes all were recognized for their outstanding programs in wellness and employee assistance. In the era of a tight labor market, supercompetitors like Google, and the retirement of a generation, employers need to do everything they can to distinguish themselves as an enticing, strong, stable employment brand. An EAP, especially as part of a well-considered benefits package tailored to your demographics, can be a valuable tool in cementing your employment brand.

Because the return on investment for an EAP can be so significant, YPP recently added one for its employees. By adding a strong EAP to our established wellness program, and rolling it out with well-planned communication and education, we anticipate seeing a reduction in costs in many areas, and improved morale, retention, and productivity at our clients.
To learn more about the award-winning employer programs listed above, visit http://www.businessgrouphealth.org/.