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Author: Site Staff

Posted on February 12, 2004July 10, 2018

Mixed Reviews for Outsourced Training

Boeing and Bristol-Myers Squibb offerred two different views of outsourced training at a February 9 conference on training in Anaheim, California.

 
Lisa Swenson is a procurement manager in the shared services group at Boeing.  She said at the ASTD conference that she’s seen a triple-payoff from having outside firms like Intrepid Learning Solutions handle her company’s training programs.
 
The first benefit has been a decrease in the rate at which expenses are growing. Second, Swenson says, some of the training is of higher quality, since it’s done by firms whose sole expertise is training. The most interesting result, she says, is that it’s helped some employees focus on what they enjoy. When employees worked as Boeing trainers, they often found themselves handling project management duties and other work that wasn’t to their liking. Some employees have left Boeing to work at training outsourcers, but are still teaching new skills to Boeing employees. They’re happy spending all their time on what they love and less on what they don’t.
 
Steve Teal, director of global learning at Bristol-Myers, says he’s purposely moving very slowly when it comes to having anyone but his own employees do the training. “There are certain things I will not outsource,” he says. Teal’s more likely to have outside vendors do technical work that requires less creative knowledge and less of an understanding of his company’s culture.

Posted on February 11, 2004July 10, 2018

Retirement-Plan Shift Continues

A new Towers Perrin report finds “further evidence of the ongoing shift in corporate America from traditional pensions to hybrid plans and defined-contribution programs.”
 
The report finds that 29 percent of organizations with traditional pension plans (called “defined benefit” programs) have eliminated them for future hires. Another 27 percent of companies have reduced or frozen accruals for current employees.
 
Many organizations are considering hybrid plans, sometimes called cash-balance plans, which feature some aspects of a pension plan and some aspects of a 401(k). Still, the fate of these hybrid plans is in the hands of legislators and regulators in Washington. Employers want the U.S. Congress to lay out some rules as to whether hybrid plans discriminate against older employees.

Posted on February 9, 2004July 10, 2018

Deloitte Says Leave Program Will Pay Off

Deloitte and Touche will soon launch a pilot program aimed at making sure women who go on leave return to work, according to Business Insurance. The company says the program will pay for itself.
 
The initial test will involve 12 to 20 women, and include people who have left the workforce several years ago as well as employees who are about to take maternity leave. Each employee will be assigned a mentor. Also, Deloitte will try to match employees on leave with local training programs so that they can keep up with new developments while they’re out.
 
Sue Molina, a Deloitte partner in Pittsburgh, says that the training component will cost about $5,000 per employee. By comparison, the turnover of a new senior manager who earns $80,000 would cost the company about $120,000, she says. The initiative will be open to both males and females, but was aimed with women in mind, Molina told Business Insurance.
 
KPMG is considering whether to start a similar program.

Posted on February 5, 2004July 10, 2018

Dear Workforce How Do We Deal With An Autocratic Manager And A Frustrating Pay System

Dear Tension:



Your question deals with two different kinds of issues, both which can be approached in several ways. Let’s deal with the piece-rate pay system first.

There is nothing inherently wrong or unfair about a piece-rate system–one in which employee performance and pay is based on the number of items produced in a given period of time. Problems do arise when the production quota is set unnecessarily high, or when meeting the quota results in a decrease in quality or attention to safety, or when the pay for reaching each production standard changes without reason.

I would ask for a meeting with HR and with management to understand 1) what are the production standards and how were they set, and 2) why a piece-rate system is preferred over other methods of pay. Provided you can give management some level of comfort that productivity would not suffer (and may in fact improve) under a different pay system, you should be able to discuss alternatives to the existing pay system.

As for the autocratic manager, it’s unclear from your question whether he or she is your workgroup’s direct supervisor or someone higher in the organization. If you do not want to confront this manager directly, the best thing to do is approach your HR representative, one of the manager’s peers, or else the manager’s boss. Do it in as constructive a manner possible. Gather your facts, including specific descriptions of this person’s autocratic behavior. Be prepared to explain why that behavior is both demoralizing and a threat to the success of the organization. Most organizations have manager-development resources, including ways to assess and train managers in leadership. I would keep the pay and the autocratic manager discussions separate–the two don’t go hand in hand, even if this particular manager instituted or defends the pay system.

SOURCE: Frederick D. Smith, Buck Consultants, Detroit, Michigan, Feb. 12, 2003.

LEARN MORE: ReadWhen Fear Strikes the Workplace.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter
Posted on February 5, 2004July 10, 2018

Unlikely Offshoring Supporter

You may have seen the McKinsey Global Institute report that for each dollar the United States sends to India in the form of offshore jobs, the U.S. economy gains $1.14. A more unlikely voice in favor of offshoring arrived this week in the usually liberal magazine The New Republic. The New Republic article argues that “while offshoring may displace some workers in the short term, in the medium and long terms it represents a net benefit for both domestic businesses and their workers.” Both the magazine and McKinsey, as well as some economists from the Brookings Institution, the Institute for International Economics and others, want to require companies to buy insurance to help employees recover part of their salaries when their jobs are offshored.

Posted on February 4, 2004July 10, 2018

Borders Settling Overtime Suit

Borders announced on Thursday that it has reached a tentative settlement of an overtime lawsuit, which would result in a non-operating, after-tax charge of $2.2 million, or $0.03 per share. According to an SEC filing from December 10, 2003, the suit involves assistant managers in Borders superstores in California between April 10, 1996, and March 18, 2001. The employees allege that they “worked hours for which they were entitled to receive, but did not receive, overtime compensation under California law, and that they were classified as exempt store management employees but were forced to work more than 50 percent of their time in non-exempt tasks.”


 

Posted on February 2, 2004July 10, 2018

Nonprofits’ Untapped Resource

Nonprofits could take after universities and get more alumni to volunteer, share expertise and contacts, and even do staff work, according to a new McKinsey study. McKinsey says that alumni efforts are most successful when the nonprofit is selective; participants have a lot in common; and the program was lengthy and intense. The Girl Scouts, for example, could get the biggest payoff by tapping into the enthusiasm of their senior Girl Scout alumnae, because they have a closer bond to each other and to the organization than Girl Scouts in general. Also, the nonprofits that get a lot of value from their alumni, such as Teach for America and Coro Northern California, don’t skimp when it comes to allocating time and employee resources to alumni efforts.

Posted on February 2, 2004July 10, 2018

Auto Dealers Investing More in Training

America’s largest auto dealers, including AutoNation, Hendrick and Sonic Automotive, are placing a growing emphasis on employee education, according to Automotive News.

 
Hendrick Automotive, a large group of auto dealers with about 13,000 vehicles, has not only spent $1 million on a training center at its headquarters, but is spending another $1 million on regional training facilities.
 
What’s driving this investment is that a lot of new managers are good salespeople, but lack any experience or expertise at managing employees. Hendrick is teaching managers motivation techniques, meeting skills and other managerial necessities.
 
A lot of the training is being done by in-house trainers. At Sonic, for example, national training director Dan Hinic says he prefers to have “Sonic people” doing the instruction. “We believe that our people have a vested interest in effectively training the people in our organization,” Hinic says.

Posted on January 30, 2004July 10, 2018

Skills Needed by Call-Center Supervisors

In all too many situations, specific call-center training ends at the frontline staff level.



    In surveys done over the past couple of years, The Call Center School has found that over 80 percent of supervisors in call centers today were moved into their positions from frontline agent jobs. While most new supervisors receive training on general supervisory skills, only about 20 percent of these supervisors receive any additional advanced call-center operational training.


    Below is a checklist of the various knowledge and skills needed by supervisors in today’s call centers–in addition to general supervisory and leadership skills.


People Management

Operations Management


Organizational Structure/Teams:

Can they describe the different types of organizational options and team structures? These include options such as flat structures vs. more bureaucratic systems, as well as organizing staff by types of call, geographic coverage or skill levels. The point is whether supervisors know what the organizational possibilities are and what would work best for their particular kind of environment.


Call Routing and Reports:

Do they understand telephone system settings and how they’re used? Do they know what reports are available, and how to retrieve and use them?


Recruiting, Screening, Hiring:

Can they outline job descriptions and hiring criteria? Interview and screen effectively?


Call Forecasting:

Do they know how the forecast is created? Do they know what factors influence it and how staffing is affected by various factors?


Training and Assessment:

Can they effectively assess new and existing staff skills, identify gaps and recommend necessary training?


Staffing Calculations:

Do they understand the tradeoffs of service, productivity and cost when more employees are added to take customer calls?


Staff Retention:

Do they understand all the factors that lead to staff turnover and how they can contribute to improved retention?


Scheduling Solutions:

Are they aware of how schedules get created and what types of short-term and long-term solutions are available?


Setting Performance Standards:

Can they create/update qualitative standards that are measurable, objective and that can be used to track employees’ performance?


Call-Center Performance Measures:

Do they understand what call-center measures need to be in place to support corporate objectives?


Measuring and Diagnosing Performance:

Do they know how to objectively measure performance and how to diagnose problems to create improvement plans?


Call Delivery and Networking:

Do they know how things can go wrong in the network and how to react?


Coaching, Monitoring and Counseling:

Do they understand the difference between these three things, and can they apply proven principles of coaching and counseling for call-center issues?


Call-Center Technologies:

Do they understand how to use all of the center’s technologies to manage staff effectively?


Motivation Techniques:

Do they understand how to identify what motivates staff and how to implement motivation programs in the call center?


Call-Center Math:

Do they understand the numbers (the wide array of call-center performance statistics and reporting systems available) and how to apply them in managing service levels and staff performance?


Workplace Design:

Do they understand the basic elements of effective workplace design and how to make changes for improved productivity?


Staffing Alternatives:

Do they understand the various staffing options that may be used, such as outsourcing, telecommuting or contracting?


Source: Penny Reynolds, The Call Center School.

Posted on January 30, 2004July 10, 2018

Turnover in Supermarkets

The following charts from the Food Marketing Institute show:

    Turnover Among All Store Employees
    Turnover Among Full-time Employees
    Turnover Among Part-time Employees

    The data comes from supermarkets in the United States, generally defined as retail food stores with at least $2 million in annual sales.


Median of Average Turnover Rate for All Store Employees
  Median 25th Percentile 75th Percentile Number Participating
All Companies 47.4% 28.8% 67.8% 67
Annual Sales
Under $10 million 35.0 15.0  67.8  13 
$10.1 – $50 million 37.5 17.7  54.2  20 
$50.1 – $100 million  — —  —  3 
$100.1 – $500 million  48.7 40.4  58.0  14 
$500.1 million – $1 billion  47.5 44.8  78.0  7 
$1.1 – $5 billion  53.0 51.5  64.2  8 
Over $5 billion  — —  —  2 
Number of Stores Operated
1 Store 24.5  13.0  60.0  26 
2 – 10 Stores 52.8  40.0  77.2  14 
11 – 100 Stores 47.5  40.4  63.0  18 
101+ Stores 54.1  51.9  65.6  9 
Independents (1 – 10 stores) 40.0  20.2  68.7  40 
Chains (11+ stores) 51.9  44.0  65.6  27 
(–) Data for questions answered by three or less companies were deleted to ensure anonymity.


Median of Average Turnover Rate for Full-Time Store Employees
  Median 25th Percentile 75th Percentile Number Participating
All Companies 13.3% 5.1% 21.0% 62
Annual Sales
Under $10 million 7.0  0.0  12.5  12 
$10.1 – $50 million 13.7  5.0  22.0  17 
$50.1 – $100 million —  —  —  3 
$100.1 – $500 million 17.0  10.0  22.9  13 
$500.1 million – $1 billion 12.9  6.9  28.0  7 
$1.1 – $5 billion 18.4  13.5  31.5  8 
Over $5 billion —  —  —  2 
Number of Stores Operated
1 Store 9.0  0.7 15.6  25 
2 – 10 Stores  10.4  10.0 21.0  11 
11 – 100 Stores  16.0  11.4 28.0  17 
101+ Stores  17.7  12.7 19.1  9 
Independents (1 – 10 stores)  10.0  3.0 17.8  36 
Chains (11+ stores)  16.9  11.4 28.0  26 
(–) Data for questions answered by three or less companies were deleted to ensure anonymity.


Median of Average Turnover Rate for Part-Time Store Employees
  Median 25th Percentile 75th Percentile Number Participating
All Companies 58.0% 30.0% 82.3% 61
Annual Sales
Under $10 million  25.0 9.0  46.5  11 
$10.1 – $50 million  44.0 14.6  58.0  17 
$50.1 – $100 million  — —  —  3 
$100.1 – $500 million  63.0 53.2  90.2  13
$500.1 million – $1 billion  68.1 54.1  119.0  7
$1.1 – $5 billion  76.7 62.3  94.9  8
Over $5 billion  — —  —   2
Number of Stores Operated
1 Store 25.5   6.6 53.4   24
2 – 10 Stores 58.2   48.2 115.0   11
11 – 100 Stores 63.0   53.2 90.2   17
101+ Stores 82.3   70.9 84.7   9
Independents (1 – 10 stores) 44.0   19.0 61.6   35
Chains (11+ stores) 71.0   53.7 90.2   26
(–) Data for questions answered by three or less companies were deleted to ensure anonymity.

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