 An E-newsletter for TEA Members |
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EXECUTIVE UPDATE |
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January 5, 2012 | Volume 32, Issue 1 |
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Upcoming Programs
12 - ISO 9001 - Internal
Auditor Training (2
Thursdays)
13 - CPR Certification &
First Aid
17 - History, Roles & Laws
(First class in the HR
Master's Certificate)
18 - Coaching for Improved
Performance
19 - Core Leadership Skills
Certificate begins
20 - CPR Recertification &
First Aid
20 - Bloodborne Pathogens
25 - DiSC Behavioral Styles
26 - FMLA/COBRA/HIPAA:
Befriending the
Monsters in the Closet
Click on dates for more information or refer to the 2012 Winter/Spring/Summer schedule here.
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Core Leadership Skills Certificate - Holland Class

Holland Area Members:
We are offering this program in your area beginning January 13, 2012. Space limited - register today! Dates: Fridays, 1/13, 1/20, 1/27, 2/3 & 2/10/12 Time: 8:30 a.m. - 3:30 p.m. Location: Request Foods
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Our HR Master's Certificate can be the Key that Unlocks Your Potential
Test Your Knowledge
Review the attached questions that apply to our HR seminars. If you answered NO to more than 3, attend our entire HR Master's Certificate series and receive a discount! Looking for HRCI credits? Each program included in this certificate has been submitted to the HR Certification Institute for review.
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HRG January Meeting
Compensation - Beyond the Basics
Presenter: Denise Phillips, Ranir
January 26, 2012
(note new date)
Watermark Country Club 7:30 a.m. - 9:30 a.m.
More details to come.
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Stay Connected with Us!!
We would love to hear from you.
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From the President - Human Resource Predictions for 2012
West Michigan is recovering - but has not yet recovered. Unemployment rates are slowly falling - but new job creation has brought employees into our market so the number of unemployed has not changed significantly. If business is to meet its growth potential, the skill gap within our region must be overcome through adequate (and appropriate) training.
Beyond our regional challenges, international markets are a mess, we have a political "event" in November (that will probably distract us most of the year), and our "social support infrastructure" has been modified significantly. Healthcare costs are skyrocketing, doctors are retiring or merging practices (hinting of an upcoming physician shortage), and funding for public services is continuously threatened.
Thoughts and observations from "the sidelines" would include the following:
EMPLOYMENT
Employment will increase slightly during the first quarter of 2012, led by continued increases in traditional manufacturing, healthcare-related employment, technical/engineering occupations and "green" technology jobs. New construction will remain flat - holding down potential expansions within our office furniture industry (an industry that will never return to the strength once experienced within our region due to increased global positioning). During the second and third quarters we may see a pullback as organizations take a "wait and see" attitude towards the fall general elections. We should see a return to measured growth during the fourth quarter (once business realizes that "the sky is not falling" regardless of who wins, loses, is returned or is placed into office).
Smaller organizations will continue to thrive due to their ability to respond to supply and demand changes. New start-up organizations will draw upon (and stretch thin) our existing talent to the point that critical shortages may begin to adversely affect our ability to produce.
Health science jobs (nursing, eldercare, medical assistance, etc.), information technology specialists and engineers will continue to be in high demand. Business is gaining efficiency through technology and needs skilled individuals to make the transition. The reliance upon contingency workers hired through staffing agencies will continue as more companies enter the waters of growth. Workforce development agencies will continue to evolve as they seek to better link education programs with employer needs.
COMPENSATION
Employers feeling that "having a job should be enough" will continue to experience high turnover as the economy strengthens. Growing organizations seek employees that have requisite job skills to fill their needs. Dissatisfied employees in today's world are not as loyal to their job as they are to their own potential.
Providing "across the board" pay adjustments to all employees will de-motivate high achievers while encouraging "average" employees to continue their average performance. Adjusting employee pay equally may minimize internal friction but does not adequately address the variance of pay we see for different positions within the region. Most organizations will provide an "average" pay adjustment of around 2.5 to 2.8% during the year but "spot adjustments" may be required throughout the year as the market shifts and grows.
Organizations wishing to remain viable must provide competitive pay and benefits, good working conditions and include a "new breed" of worker in the decision-making process. They will struggle to attract or retain the high-quality workforce needed to remain competitive if they choose to mistreat or ignore their most valuable asset - their employees.
HEALTHCARE
Premiums will increase by nearly 25% during 2012 - much of the increase falling upon "small plans" as legislation has more severely limited how much money can be used to cover administrative expenses from large plans. More employers will offer WELLNESS DISCOUNTS to reduce insurance costs if employees participate in healthy lifestyle and exercise programs. Employees committing to wellness programs typically pay less or receive a "richer plan" than those who do not agree to a more active, healthy lifestyle.
IN GENERAL
The New Year will bring a slow rebound in the economy, measured and deliberate hiring activity (particularly within the manufacturing and healthcare sectors), an increase in temporary service-type work (more companies will seek to fill jobs in a more fluid manner than previously), and low to moderate pay adjustments. A mild stabilization will occur during the second and third quarters as we wait to see the direction our country will be going. A return to moderate growth should come during the last part of the year. Unemployment will continue to inch downwards (but the total number of individuals not working may not diminish significantly). Work SHOULD be available to those willing to invest the time to learn new skills AND seeking to utilize those skills to improve both themselves AND their organization.
Make sure you are ready for a truly Happy New Year - call us at The Association to help manage the talent you have in order to meet the needs you may not have yet identified!
Visit our BLOG (Dave's Deliberations) to view the recent post "Reflections on Career Advancement".
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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:
*Engineered Protection Systems
*MC Sports
*Michcor Container Inc.
*The Gremel Group
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Providing practical solutions to Human Resource-related issues BEFORE they escalate into legal problems.
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| NLRB postpones effective date of rights posting rule to April 30
The National Labor Relations Board has agreed to postpone the effective date of its employee rights notice-posting rule at the request of the federal court in Washington, DC hearing a legal challenge regarding the rule. The Board's ruling states that it has determined that postponing the effective date of the rule would facilitate the resolution of the legal challenges that have been filed with respect to the rule. The new implementation date is April 30, 2012.
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| IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July
The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile. more...
(source: irs.gov/newsroom)
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| Voluntary Benefits: Low Cost Ways to Make Employees Feel Valued
As we look ahead to 2012, one of the HR strategies we can expect to see for employers to explore low cost ways to placate and hopefully retain stellar employees who are frustrated by pay cuts, heavy workloads, high health insurance costs, and reduced 401(k) matches. I ran across a recent news item in USA TODAY that caught my attention with this headline: "Quirky perks for workers; Pet insurance, massages." The article went on to list a number of non-traditional employee benefits that are being offered, particularly by larger firms: discounted health coverage for workers' pets; at-your-desk meditation services; reduced price computers; cell phone plan discounts; at-work massages; funeral planning; adoption assistance; and free concierge services for workers to acquire theater tickets, drop off laundry and get restaurant reservations. Businesses are using these perks to make workers feel more valued as well as help them balance personal and professional needs.
It's no surprise that most of the companies offering these unique benefits tend to be located on the east and west coasts of the U.S., but eventually, are sure to become more popular in other areas, including West Michigan. Whether you offer more traditional voluntary benefits such as life and AD&D, long term disability, cancer and critical illness insurance, or add some of the more unique options listed above, there are certain steps that should be followed to achieve the desired outcome of making workers feel valued without gouging the corporate budget.
Here are 5 approaches for voluntary benefits success suggested by Longfellow Benefits, a Boston-based employee benefits consulting firm:
- Survey employee needs. A short, confidential survey asking about specific benefits will provide a good framework for structuring a voluntary benefits program that will impact a majority of employees. With almost all surveys, employees will assume that if the employer is asking, something will actually be implemented.
- Choose vendors carefully. Voluntary benefits vendors differ greatly. Some offer a limited product line. Some require one-on-one meetings with every employee, have different participation guidelines, or require certain coverages or benefit levels to be offered. Be aware of these differences and make sure that the insurance company has strong financial ratings, has a good history of working with employers of your size and industry, and provides support to your HR, benefits and payroll departments after the initial sale. Price, while important, is just one component of value.
- Understand benefits and limitations. One of the most frequent complaints with voluntary and supplemental benefits is that the member did not understand the available benefits and is disappointed when there's a claim. In order to keep voluntary benefits affordable, benefits are limited, with possible restrictions on the amount payable, for how long and for what. All employees should understand what is actually covered. A good employee communication plan, with real-world examples and case studies, is critical for employee understanding.
- Actively promote benefits. Employees need to know that the employer has made a commitment to the program and that it could be valuable to them. Incorporating the voluntary benefits program into the overall benefits strategy - and having the announcement of the program come from the president or CEO of the company - is an excellent way to demonstrate the employer's commitment to the benefit and to them.
- Don't skimp on core programs. Voluntary benefits should not be used as a replacement for a core medical, life or disability program. They can be used to supplement or complement the benefit offered, or to provide noncore benefits (for instance, home and auto insurance, legal services, identity theft coverage, additional life and disability insurance). Make sure employees understand the distinction between core and voluntary benefits.
When implemented successfully, voluntary benefits can be an effective supplemental benefit for both employees and employers. All parties must have a complete understanding of the programs offered, benefit and program limitations, responsibilities, and desired outcomes in order for the offering to be successful.
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| When Leaders Lead...Do Followers Follow?
Warren Buffett defined a leader as "someone who can get things done through other people". Not many would disagree. So if that is true, should we then ask the question "what makes people follow the leader"?
Gallup conducted a formal study from 2005-2008 to obtain the average person's opinion about leadership. 10,000 followers were polled with a key question: What leader has the most positive influence in your daily life? Then a follow-up question was asked: List three words that best describe what this person contributes to your life.
In tabulating the results, four basic needs followers want satisfied by their leaders emerged:
Trust
Compassion
Stability
Hope
Trust is closely linked to employee engagement. Common sense would indicate that an employee with a great amount of trust in their leadership is far more likely to be fully engaged in productive activities that help the organization. Trust also speeds productivity because people are less likely to protect their "turf" and more willing to collaborate. Trust is about honesty and transparency. People can spot deception.
Compassion is a trait great leaders exhibit to their followers. On employee opinion surveys a statement is posed "My supervisor, or someone at work, seems to care about me as a person." Studies have shown that people who responded positively to this statement:
- Are significantly more likely to stay with their organization
- Have much more engaged customers
- Are substantially more productive
- Produce more profitability for the organization
Stability is the feeling by employees that the workplace is secure and there is some amount of confidence that the business will be around for the foreseeable future. Employees who have high confidence in their company's financial future are nine times as likely to be engaged in their jobs when compared to those who have lower confidence about their organization's financial future. And nothing creates stability as quickly as transparency. Being open with employees about the financial health of the organization is crucial to creating and maintaining a feeling of stability.
Hope is present when employees feel enthusiastic about the future. When hope is absent, people lose confidence, disengage, and often feel helpless. Leaders who focus on reacting to the needs of the day instead of initiating for the future are failing to provide the hope employees look for in the place of employment. Leaders must continually balance their efforts on problem solving/execution and planning a bigger future. Leaders are looked to answer the question "where are we headed?"
Reference material: Strengths Based Leadership by Tom Rath and Barry Conchie.
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| It's Time to Get Serious...No More Excuses
Are you thinking about PHR/SPHR certification? Wondering how it will help you, and how to prepare for the examination? We invite you to attend a FREE 60 minute webinar to learn what it's all about.
Our "sister" association in Raleigh North Carolina is offering a highly interactive program that will explain the PHR/SPHR Certification Study Course offered as a webinar over several weeks that you can attend from the convenience of your office or home. Experience a sample of course materials from David Siler, PHR, SPHR, GPHR, and find out if an HR certification is right for you.
Some of the many questions answered in this session will include:
- How are PHR/SPHR/GPHR certifications useful for HR professionals?
- What are the benefits of achieving your HR certification?
- What are the eligibility requirements to sit for the exams?
- Who is David Siler, PHR, SPHR, GPHR, and what makes him the best PHR/SPHR study course facilitator in N.C.?
- What tools can I use to help me pass the exam?
- How are the final PHR/SPHR/GPHR exams developed?
- How rigorous are the PHR/SPHR and GPHR certification exams?
- When and where are the exams for PHR/SPHR/GPHR given?
- How do I maintain my certification once I earn it?
David Siler is the Managing Partner of Distinctive HR, Inc. He has over 25 years of experience as a senior level HR practitioner and consults with a variety of organizations on HR issues, including several Fortune 500 companies. He is an award winning lecturer to business and HR professionals on many HR related topics. He has developed and taught prep classes for the HR certification exams (PHR, SPHR, and GPHR) since 1994. David is certified as a "Senior Professional in Human Resources" (SPHR) and a "Global Professional in Human Resources" (GPHR) by the Society of Human Resource Managers. He holds a Masters degree in Psychology.
PHR/SPHR/GPHR Certification Study Course: What's It All About?
FREE Webinar:
January 20, 2012 - 11:00 - 12:00 EST
To register: Call 919-878-9222 and mention web search code: PS2HR
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Would Your Employees Risk Their Lives For Your Customers?
Many of you may remember the 2008 attack in Mumbai, India when terrorists stormed hotels and train stations, killing and injuring hundreds. What does that have to do with HR?
In a recent article in Harvard Business Review (December, 2011) the authors, Rohit Deshpande and Anjali Raina, detail the acts of heroism the Taj Group hotel staff conducted during that raid while sacrificing their own personal safety (and sometimes their own lives), and not being able to rescue their own family (in one case). Employees made sure to evacuate hotel guests first as fires were moving in and only after they were sure all were out and safe did they evacuate the building.
Behind the story of the terror is the story of the employee's selflessness and HR's role in supporting that attitude. The authors agree that customer centered culture involves unique recruitment, training, and a compensation system that encourages behavioral change.
The Taj Group recruits from high schools and colleges in smaller cities because they believe that is where they find people with the more traditional Indian values (respect for elders and teachers, humility, consideration of others, discipline, and honesty). They feel that the young people in the cities are becoming increasingly driven by money and may not be as loyal.
Recruiters look for three character traits when considering a candidate: respect for elders; cheerfulness; and neediness (how badly does their family need the income from a job). At the manager level the traits include integrity, the ability to work consistently and conscientiously, to put guests first, to always go beyond the call of duty and to be able to handle all types of pressure well. The Taj Group knows that to be successful in this industry one must want, above all else, to make people happy and these traits have proven necessary in successful candidates.
New employees are sent to training centers for 18 months where the company pays all living expenses and a small stipend (usually sent back to the family since all basic needs are met for the candidates by the company). Because these employment opportunities are coveted, most will work hard and demonstrate good values because they want to stay and build a career with the Taj Group.
Research shows that in any 24 hour stay there is an average of 40+ employee/guest interactions and employee must be trained to be sure that each one creates a good impression on the guest, meaning that the employee must have technical skills (know how to do their job); grooming, personality and hygiene skills; and customer handling skills.
Employees are trained to believe they serve the customer - not the company. Trainees are assured they have the support of the company (even the CEO) if their decisions are made keeping the satisfaction of the guest first and foremost and that the employee did all they could to make the guest happy. Employees are empowered to make decisions as agents of the customer. The senior VP of HR for the company believes that this energizes employees and makes them feel in command.
The Taj Group has created their own program (STARS - Special Thanks And Recognition) which accumulates points and is based on customer delight. Employees are able to accumulate points in three areas - compliments from guests, compliments from colleagues, and their own suggestions. This program has won the Hermes Award in 2002 in the category of best human resources innovation in the global hospitality industry.
Let's all take the opportunity that this fresh new year offers to take a hard look at our own training programs with a new eye. Are we training our employees the value of serving others - even if they are internal customers/guests? How much more could we accomplish if we stopped to ask our employees "what have you learned this week/month/quarter?" "How can we better serve the customer?"
Unsure how to start the conversation? Call TEA's training staff and we can help.
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| The Far Reaching Impact Social Media Has On Employee Relations
The National Labor Relations Board has issued some guidelines to help determine what employers can do to address unhappy employees that take their complaints on-line. Unfortunately, many issues have not yet been clarified by the courts nor addressed through policy. What we DO know includes the following:
- Workers can discuss each other's pay and working conditions on-line the same as they do face-to-face AS A GROUP ACTIVITY as such conversations (if one person publishes without receiving a response, is the activity protected?) is protected as being "concerted activity."
- Workers can call others names AS LONG AS the name does not involve any physical or verbal threat.
- Workers CANNOT gripe online without evidence or intent to encourage group improvement of working conditions.
- Employees MAY be disciplined for physically or verbally threatening another worker or manager online (or in person).
- Employers cannot maintain policies that restrict the ability of employees to discuss their wages, benefits or working conditions online.
- Employers cannot fire an employee for engaging in "protected concerted activity."
UNRESOLVED issues include:
- The NLRB has not identified the KINDS of names that, if used by an employee, could result in termination. It seems that each situation is different dependent upon a variety of mitigating factors.
- Is an employee posting negative comments FROM A WORKPLACE COMPUTER protected? Such a decision would depend upon your electronic media policy. Strong policies that are consistently enforced allow employers to do much in this arena.
No definitive guidelines have been established that protect employees NOR that provides insights to employers. Make sure you (and your supervisors) are aware of what they can (and cannot) do AND the repercussions of their actions. Give us a call if you need more information about this evolving workplace issue.
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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. |
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