TEA's Newsletter: Executive Update 6/26/08

An E-newsletter for TEA Members

Executive Update Header
June 26, 2008 - Volume 28, Issue 8

In This Issue

Reminder...Minimum Wage is Changing!

IRS Increases Mileage Rate Through Dec. 31, 2008

Organizational Development: Leaders Behaving Badly

Informational Services: Special Surveys for TEA Members

Selling in Tough Economic Times

Supreme Court Strengthens Age-Discrimination Claims

Coming Soon...

08 Fall Catalog cover

2008 Fall Catalog of Seminar & Certificate Programs...

Coming in late July! A few highlights:

· In the Quality arena we are offering several new programs: Basic Blueprint Reading, Root Cause Analysis and 8-D Corrective Action.

· We are pleased to offer a few programs in MIOSHA Construction Safety & Health. They are the 10-Hour MIOSHA Construction Course, Excavation: A Grave Danger and When MIOSHA Visits in Construction and Top 25 Serious Violations.

Please contact our Educational Services Department if you have any comments, questions or suggestions regarding our programs.

Golf Reminder...

There is still room for the AHRM/HRG/TEA Golf Outing on August 11, 2008 at the Watermark Country Club.

Registration form

TEA Holiday Schedule

4th of July Flags

TEA Offices will be closing at noon on 7/3/08 and will be open on 7/7/08.

Have a fun and safe 4th!

FROM THE PRESIDENT...CELEBRATING THE INDEPENDENCE OF SELF

by David J. Smith, CAE, President & CEO

We often find value in "what we do" rather than reveling in "who we are" when trying to identify ourselves. We forget the values that make us unique, however, when we define ourselves to others by what we do. As we celebrate this Fourth of July - the day our nation shrugged off the limitations of an oppressive past and began moving towards an unknown future - I would suggest we all take the time to acknowledge and celebrate the essence of our individuality. Immerse yourself within the potential of your capabilities - in what has yet to be done - rather than finding refuge in what has already been accomplished. Reflect upon the essence of your individuality - on "who" you are rather than on "what" you have (or have not) done, considering the following:

1) It's OK to make a mistake. It's NOT OK to repeat the same mistake. Making ANY intentional decision is better not acting at all BUT unless we learn from our mistakes and move on we cannot hope to accomplish greatness. Life is a continuum. Each of our successes is a stepping-stone along life's path. Our failures are foundations upon which our futures can be built.

2) Focus ONLY on those things that you ARE or can CONTROL. Should you be prevented from living life as you might envision it, identify the obstacles that are in your way, acknowledging those that are outside of your sphere of influence and actively seeking to eliminate the hurdles that are within your control. If you cannot change something in your way, seek the help of someone who CAN. Never lie dormant waiting for life to unfold before you. ACT to make life happen.

3) Lying, cheating, or stealing is intolerable. The values that lead you along life's journey are often more important than the final destination you seek.

4) Life IS NOT a democracy. While everyone should be able to speak, question, and have a voice in any decision, not all votes are equal. Input from others should be sought and treasured as a part of any decision-making process but, ultimately, individuals are responsible for their personal circumstances.

5) "I can't," "It's not possible," and other self-defeating attitudes are not acceptable. Intentional, deliberate steps (often taken painstaking slowly) towards the inevitable accomplishment of our goals help to establish "who" we are rather than "what we have done" in life.

As you prepare to enjoy the summer with family, friends or just relaxing by yourself, take time to be thankful not only for what you have accomplished and for what you might possess BUT ALSO (and more importantly) for who you are! Celebrate YOUR independence this July 4^th from the fear of failure and the oppression of doubt as you strive to be all that you can be by simply exhibiting all that you've become!

Welcome New Members

The new members listed below represent employers within the West Michigan area who have joined the ranks of those committed to strong, positive employee/employer relations. It is a pleasure to welcome these new members into our family:

*Behr Industry America, LP

*Girl Scouts of Michigan Shore to Shore

Call TEA First...

Hotline

or email tea@teagr.org

Providing practical solutions to Human Resource-related issues BEFORE they escalate into legal problems.

REMINDER...MINIMUM WAGE IS CHANGING!

by Maggie McPhee, PHR, Director of Information Services

It's time to take the next "step"! The step up to the next mandated Michigan minimum wage. Be sure your labor law posters reflect the change!

On July 1, 2008 the current Michigan minimum wage is increasing to $7.40 per hour. On July 24, 2008 the current Federal minimum wage is increasing to $7.25 per hour.

Due to the fact that the state minimum wage is higher than the Federal, the state rate supercedes the Federal minimum wage.

If you would like information on ordering new labor law posters, please contact Marla Holzapfel (mholzapfel@teagr.org) at 616-698-1167. We have the combined Federal and State All-In-One posters available. If you would like just the Michigan Minimum Wage poster you can print that from the following link.

IRS INCREASES MILEAGE RATE THROUGH DEC. 31, 2008

(IRS.com/Newsroom/Press Release 6/23/08)

IR-2008-82, June 23, 2008

WASHINGTON - The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes

Purpose

Rates 1/1 through 6/30/08

Rates 7/1 through 12/31/08

Business

$0.505

$0.585

Medical/Moving

$0.19

$0.27

Charitable

$0.14

$0.14

LEADERS BEHAVING BADLY

by Ellen Levey, Director of Organizational Development

Leadership doesn't just happen. It's definitely a process, a skill set and a set of behaviors. We often tend to focus on the process of developing a skill set, possibly doing some mentoring or coaching and adding more responsibilities without thinking about a mental picture, a vision, let's say, of what a leader looks like.

Leaders come from everywhere and can be developed in a variety of ways. We spot budding leaders on the plant floor, in the office cubicle maze, in retail and health care environments. We are drawn to their drive, vision and ability to bring others together to achieve common goals. We devise development or succession planning to capture and train the evolving talent in order to grow with our organizations in the future. However, this is not enough by itself.

Imagine this: Ralph Hawkins takes classes, does some cross training, has a few " stretch " assignments to demonstrate how he would function in differing situations and is quickly promoted to a greater leadership role. A few months pass and we see several looming problems from our former "star". His direct reports are not following his lead, his peers are giving him a wide berth and customers, clients or patients are complaining. It all adds up to a disaster in the making.

What went wrong? We spent the resources on training, offered cross training, mentoring and all of the other RIGHT things we were supposed to do but we forgot one very important factor. Professionalism! We might have taught Ralph how to create a motivational environment for his employees or how to problem solve but we didn't discuss dress or proper etiquette and behavior. A leader's speech, gestures, or loud voice do not convey respect for leadership no matter how many courses or hours of cross training and skill coaching are offered. We didn't talk about Ralph to Ralph.

That's the crux of the matter. We often see bright driven employees who might be good leadership candidates but their dress, mannerisms, or speech put us off. We might be uncomfortable addressing some of these topics but we don't do the Ralph's of this world any favors (nor our organizations for that matter) when we turn a blind eye to the less professional behaviors and actions. Someone's irritating speech patterns might be as offensive as another's lack of manners. We owe it to our employees (and our organizations) to discuss the lack of professionalism when it happens. Leadership demands a lot of work all the time.

In Ralph's case, a good mentor or supervisor could appropriately discuss the behaviors with him and help work out a plan to change them.

Do you have any Ralph's in your organization? If so, do what it takes to create a winning situation for all.

SPECIAL SURVEYS FOR TEA MEMBERS

by Maggie McPhee, Director of Information Services

TEA's hotline continually generates questions and discussions from member companies. Over the past few weeks several topics have come up repeatedly so the Information Services Department decided to conduct a short, quick survey for the benefit of the members. Remember, if your company would like to conduct a special survey TEA's Information Services would be glad to help you out! Contact Maggie McPhee (mmcphee@teagr.org) for special member pricing.

We surveyed 31 members and had 14 participants. The survey covered 5 topics, and consisted of 13 questions. The results are as follows:

1a. Are you considering allowing more employees to work from home due to the gas/energy situation?

29% said yes, they allow some employees to work at home. The decision depends on several factors, mostly the nature of their work.

1b. If yes, could you explain any stipulations you impose on them?

Their ability to attend meetings and that they are available for customer service related issues, if necessary.

1c. Any equipment you provide them?

Several would provide laptops (if employee doesn't have their own) and possibly cell phones.

2a. Are you considering changing your mileage rate reimbursement in light of gas prices?

Eighty six percent (86%) said no, they are not changing their mileage reimbursement.

2b. What are you currently paying?

Most said they are already paying the IRS rate for reimbursement (50.5 cents per mile). (Note: Effective July 1, 2008 this maximum allowable rate will become $0.585 per mile.)

3a. Do you provide tuition reimbursement?

Ninety three percent (93%) respondents said yes.

3b. If yes, do you have an annual cap - and what is it?

The range is $2000 - $5200 per year, no overall majority.

4a. Do you provide relocation assistance?

Most (64%) of respondents said they do (or would) provide relocation assistance, but most often only at the senior, or executive level.

4b. If yes, what company do you use?

Varies across the board.

4c. If you provide a flat dollar/percentage amount - what is it?

The fees are negotiated on a case-by-case basis.

4d. Does the company make the arrangements, or the employee?

The employee will make their own arrangements.

5a. What temp agencies do you use for hourly production employees?

Those listed include Manpower, Gill, Snelling, All Performance Staffing, Staffing Inc., Peoplemark, Express Personnel, and Specialized Staffing.

5b. What is your markup percent?

The average is 35% (only 5 responses).

SELLING IN TOUGH ECONOMIC TIMES

by Lynne Goede, Manager of Member Development

It's tough out there. Fuel prices continue to climb affecting profits. Housing is hurting. While interest rates have dropped for consumers, savers earn less on their investments. The stock market reflects consumer uncertainty with volatility. The media keeps us well informed of these and other economic indicators of a tough economy. So how does anyone sell in these difficult times? It's not a big leap to say "it's tough" or even "you don't". But go to any mall or big box store on a weekend and you will find people not only shopping but buying as well.

A professor of mine told a story about graduating from college with a teaching degree when teachers were not being hired. His fellow students bemoaned the lack of jobs. His attitude was "somebody is going to get hired - why not me". He was, then went on to be superintendent of schools. What makes this statement memorable is his belief in himself and his belief that he is responsible for influencing events.

Here are some ideas for selling in tough times:

1. Check your attitude

Like my professor, believing someone is buying and you're going to find him/her takes you a long way toward achieving sales.

2. Ignore the media

Reports about the economy can be misleading. Often they offer a national perspective - not a local one. Focus your attention on the excellent product or service you offer and focus on your sales goals.

3. People are still buying

Sales may be off but people and companies are still purchasing. Why shouldn't you be the one they purchase from?

4. There's almost always money available

When we hear "it's not in our budget" remember - if the offer is enticing enough, a company can and will find the money.

5. Remember why you got into sales

Selling is a people-focused endeavor. Selling involves helping people meet a need or want. Staying focused on the customer and what they want will keep you successful. Even if you don't make the sale, the customer will feel valued by you and when the time comes to purchase will want to work with you.

SUPREME COURT STRENGTHENS AGE-DISCRIMINATION CLAIMS

(National Association of Manufacturers, Manufacturing Economy Daily, 6/20/08)

USA Today (6/20, 5A, Biskupic) reports that the "Supreme Court enhanced the ability of older workers to bring job discrimination claims, in a decision Thursday that comes as the nation's workforce is aging and many companies are downsizing and laying off workers." In the case of Meacham v. Knolls Atomic Power Laboratory, the Court ruled 7-1 "that when a company asserts layoffs of older workers were based on factors other than the workers' age, the company has the burden of proving those factors are valid."

The New York Times (6/20, A15, Greenhouse) explains that the "case was brought by 28 employees who lost their jobs during cutbacks at a federal research laboratory in upstate New York." Of the 28, only one was under 40, "the age at which protections begin under the federal Age Discrimination in Employment Act." The Times notes that, "[f]rom a broader perspective, this decision, coming near the end of the Supreme Court's term, completed a five-for-five sweep for employees' rights in workplace discrimination cases that was little short of astonishing, given how far the court had appeared to be tilting toward business under Chief Justice John G. Roberts Jr."

This newsletter is published at 5570 Executive Parkway SE, Grand Rapids, Michigan as a general information service to all members and offers data from many sources. It is not designed to render legal advice or opinion. Such advice may only be given when related to actual situations. Our staff can assist you in interpreting and applying this information to your needs. For questions or replies to this newsletter, email pmollica@teagr.org.

NOTE ABOUT SAFEUNSUBSCRIBE: If your company is a TEA member and you unsubscribe, you will no longer receive ANY TEA e-communications. If someone else should be receiving this information, please email pmollica@teagr.org and we will update our records.