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Author: Site Staff

Posted on April 1, 1999July 10, 2018

WARN Act (layoff notice) Checklist

Counting Employees


  • Do you employ 100 or more employees who generally work 4,000 non-overtime hours per week?
  • Did you count employees who have worked less than six months in the last 12 months?
  • Did you count employees who work an average of less than 20 hours per week?
  • Did you count workers who are not entitled to WARN Act notice, such as business partners, to determine the number of employees?
  • Did you count workers who are on temporary layoff, vacation, sick leave, Family and Medical Leave Act leave, or are absent for any other reason?
  • Did you count U.S. workers at foreign sites?
  • Do you have any temporary employees?
  • Do you have any subsidiaries? Can they be treated as separate employers or must they be treated as part of the parent company?

WARN Act Exceptions


  • If you fit within an exception to the WARN Act, you may be allowed to give less than 60 days’ notice of an impending layoff or plant closing.
  • Is your company a “faltering company”? Have you been actively seeking realistic financing or business when the 60-day notice would have been required?
  • Do you reasonably believe that giving the required notice would prevent you from obtaining the financing or business?
  • Are there any unforeseen circumstances that would cause a plant closing or layoff? Has there been a “sudden, dramatic, and unexpected action or condition” outside your control?
  • Has there been a natural disaster, such as a flood, earthquake, or tsunami, that directly affects your business?
  • Has there been a natural disaster that indirectly affects your business—for example, a supplier has to shut down because of a flood?
  • Do you expect the layoff to be for less than six months?
  • Is the layoff or plant closing the result of a strike or lockout?
  • Are there other employees at the same site who are not involved in the strike or lockout?

SOURCE: The Reduction in Force Audit Guide is available by calling the Bureau of Business Practice at 800/243-0876, ext. 245.


Posted on April 1, 1999July 10, 2018

Reflexite’s Chart of Options Before Downsizing

Reflexite’s Business Decline Contingency Plan


DEFINITION

SYMPTOMS

ACTION TO BE TAKEN

EXPECTED RESULT

 

STAGE I:

Sales below budgeted sales but ahead of the same period in prior year.

  1. Bookings below plan for four weeks or more.
  2. Field reports confirm it.
  3. Backlog levels off.
  4. Large order levels fall.
  5. Book-to-bill ratio falls below 1.
  6. Profits below plan.
  1. Defer some budgeted hires.
  2. Defer some budgeted activities.
  3. Heighten awareness of current situation.
  4. Discuss at staff meetings.
  5. Monitor overall economic conditions.

Adjust revenue and expenses to meet plan. Preserve all jobs and expected future stock value.

STAGE II:

Sales and profits below prior year for a period of one quarter or more.

  1. Bookings below plan for one quarter or more.
  2. Profits below prior year
  3. Backlog declines 15%.
  4. Incentive pay on sales slips below plan.
  5. Larger customers’ businesses decline or develop credit trouble.
  1. Revise Selling, General and Administrative (SG&A) expenditures.
  2. Revise forecast.
  3. Solicit ideas to cut costs, improve productivity and efficiency from employees.
  4. Cut overtime.
  5. Cut discretionary spending.
  6. Redeploy sales force.
  7. Increase cold calls.
  8. Accelerate new product introductions.

Same as in Stage I.

STAGE III:

Business operates at break-even level or generates losses of less than $100,000 for a period of one quarter or more.

  1. Backlog declines 30% from previous high.
  2. Bank loans increase.
  1. Solicit ideas to cut costs, etc. from employee-owners.
  2. Voluntary leaves and furloughs.
  3. Voluntary leaves and furloughs.
  4. Hiring becomes the exception.
  5. More reduction of SG&A expenditures.
  6. Increase management attention.
  7. Monitor Stage II actions for results.
  8. Defer lower-priority capital items.
  9. Introduce a more aggressive revenue-generation strategy.
  10. Price cuts on specification items.
  11. Sales of obsolete inventory.
  12. Offer extended terms for new business.
  13. Accelerate new product introductions.
  14. Delay refilling of vacated positions.
  15. Accelerate capital work with less than one year payout.
  16. Defer raises.
  17. More rigorous performance reviews.
  18. Defer or reduce salaries for highly compensated employees.
  19. Reduce hours.

Revise plan to meet revenue expectations. Preserve jobs. Expected stock price above last year but below planned value.

STAGE IV:

Business generates losses for a period of two quarters or more.

  1. Lose customers.
  2. Lose technological lead.
  3. Core products lose market share.
  4. Banks look at loans’ status more carefully.
  5. Suppliers don’t send materials due to unpaid or late-paid invoices.
  6. Stretch out payments to suppliers.
  7. Lose good employees.
  1. Salary deferments or reductions for balance of exempt employees.
  2. Trim benefits.
  3. Early retirements.
  4. Voluntary resignation offering.
  5. Layoffs.

Downsizing required. Some loss of jobs. Stock price falls below prior level.

 


Posted on April 1, 1999July 10, 2018

Workplace Literacy Best Practices

Workplace Literacy is an individual’s ability to read, write and speak in English, and to compute and solve problems at the necessary levels. According to the National Workforce Assistance Collaborative, the most effective workplace literacy programs share the following characteristics.

  1. Training objectives are tied to company business objectives, and reflect company, employee, and customer needs.
    1. Human resource development is part of the company’s overall business strategy and links employees’ continuous learning with the company’s continuous improvement efforts.
    2. Training objectives are derived from the company’s overall performance objectives, workplace practices, and job requirements.
    3. Training gives workers the skills to continue their learning and transfer knowledge or skills from one work situation to another.
    4. Programs are developed with input from management, supervisors, employees, and, where applicable, union representatives.
  1. Workplace literacy training curricula, structure, and delivery methods reflect the workplace and its requirements.
    1. Training encompasses the basic and higher-order skills needed to meet company goals and customer needs and carry out company work processes and job tasks, including the skills needed to solve problems, work in teams, and make decisions related to products and processes affecting employees’ work.
    2. Training activities incorporate and draw on company work processes, tasks, and materials, and training media makes use of company technology and equipment.
    3. Training activities include regular opportunities to integrate the knowledge and skills learned into solving problems commonly encountered on the job.
    4. Training builds worker understanding that learning is an integral and ongoing component of successful work performance and fosters a desire for continued learning which can benefit other aspects of the learners’ lives.
    5. When possible, delivery links or integrates literacy skills training with other training required in the workplace.
  1. Workplace literacy training is tailored to trainee needs.
    1. Training is developed based upon an assessment of the target population’s knowledge, skills, abilities, attitudes, and behaviors.
    2. Training structure allows participants to learn at their own pace.
    3. Training uses a variety of instructional methods and media, allowing for differences in the learning styles and the ethnic, linguistic, and cultural backgrounds of individual trainees.
    4. Training meets individual skill development needs, as defined by each trainee’s own skill levels and training goals.
    5. Training success is tied to the attainment of learning objectives, not the amount of time spent in training.
  1. Assessment is customized to workplace requirements.
    1. Assessments used are valid for training purposes and reliable indicators of the literacy skills required in the workplace.
    2. Expected performance outcomes and assessment methods are clearly communicated to participants.
    3. Trainees are provided regular, ongoing feedback concerning their progress while in the training program.
    4. Each participant’s needs, interests, and abilities are assessed prior to training and inform the participant’s individualized training plan.
    5. Participants are assessed during training so that needed changes can be made in their training plans.
    6. Trainees are assessed at the completion of training to ascertain learning gains and overall program performance.
  1. Program delivery is flexible and encourages and facilitates employee participation.
    1. Marketing and promotion strategies are designed to help employees understand how the program will be implemented and to encourage and reward employees for participation and retention.
    2. Employees who complete training successfully are recognized and rewarded for their achievement.
    3. Training sessions are held at times and in locations convenient to employees.
    4. Training is modular so it can be adapted to workplace schedules.
    5. Confidentiality of employees’ assessment results and training participation is assured in order to limit any discomfort employees may feel about participating in literacy training and to avoid adverse employment effects.
  1. Staff involved in the development and delivery of programs are highly skilled and well trained.
    1. Staff have an understanding of adult learning, adult education principles, and literacy instruction.
    2. Staff, either singly or as a team, have skills in program administration, marketing/negotiating, literacy skills analysis, curriculum development and instruction, education counseling, assessment, and evaluation.
    3. Staff are knowledgeable about the corporate environment and how to work with individuals at all levels of the company.
    4. Staff are skilled in working with the various ethnic, linguistic, and cultural backgrounds of employees.
    5. Staff themselves are well trained through preparatory and on-the-job training, and continuous skills upgrading.
  1. Evaluation is used to assure training quality.
    1. Multiple evaluation measures are used to gauge participant satisfaction, performance gains, and the quality and effectiveness of the training process.
    2. Management, supervisors, employees, and, where applicable, union representatives participate in evaluating program effectiveness and its responsiveness to their needs.

Evaluations are conducted regularly to inform and revise the training program and to ensure that the training program is meeting its objectives.


SOURCE: National Alliance of Business and the National Workforce Assistance Collaborative, February 24, 1999. The Collaborative was established in the Fall of 1993 by the U.S. Department of Labor through a cooperative agreement with the National Alliance of Business and its partners.


Posted on April 1, 1999July 10, 2018

Skills Training Web Sites

Use these Web sites to start your online research.


http://www.ttrc.doleta.gov
This Web site is offered by the Training Technology Resource Center, and is sponsored by the U.S. Department of Labor, Employment and Training Administration. The site is easy to navigate, and includes a section that covers national and industry skill standards, international benchmarks and skills and training-related legislation.

http://vocserve.berkeley.edu/SkillsPage.html
The National Center for Research in Vocational Education (NCRVE) is based at the University of California, Berkeley. This Web page provides links to reports about vocational education. Also see the NCRVE home page (http://ncrve.berkeley.edu) to learn more about NCRVE programs and projects.

http://www.nbea.org
The “Curriculum Forum” section of the National Business Education Association (NBEA) Web site has information about business education standards and policies. In addition, find regional divisions of the NBEA and local workshops they offer. Or learn about the 71st International Society for Business Education Conference in St. Andrews, Scotland in July.


http://www.alx.org
If you need help finding information about providers of training, accreditation and licensing, this resource can help you find it. America’s Learning Exchange is a service provided by the U.S. Department of Labor, with a section for employers — including a searchable seminar database and a glossary.

Posted on April 1, 1999July 10, 2018

ADEA (age discrimination) Checklist

Recordkeeping Requirements


  • You must keep the following information for three years for each employee:
    • Name
    • Address
    • Date of birth
    • Occupation
    • Rate of pay
    • Compensation earned each week

  • You must keep the following information for one year for each employee—both regular and temporary workers:
    • Job applications, résumés, or other employment inquiries in answer to ads or notices, plus records about failure or refusal to hire.
    • Records on promotion, demotion, transfer, selection for training, layoff, recall, or discharge of any employee.
    • Job orders given to agencies or unions for recruiting personnel for job openings.
    • Test papers.
    • Results of physical exams that are considered in connection with any personnel action.
    • Ads or notices relating to job openings, promotions, training programs, or opportunities for overtime.

Waivers and Releases


  • Is the waiver part of a written agreement between the employer and the employee?
  • Is the waiver written in a manner that can be understood by the average employee?
  • Does the waiver specifically refer to rights or claims under the ADEA by name?
  • What consideration have you offered employees—in addition to anything of value to which employees are already entitled—for signing a waiver or release?
  • Have employees been advised in writing that they should consult with their own attorney before signing the waiver?
  • Have employees been given at least 21 days in which to consider the waiver?
  • If the waiver is part of an exit incentive program, have employees been given at least 45 days to consider the waiver?

SOURCE: The Reduction in Force Audit Guide is available by calling the Bureau of Business Practice at 800/243-0876, ext. 245.


Posted on April 1, 1999July 10, 2018

Preventing Age Discrimination

By the year 2005, individuals who are age 50 and over will make up 25 percent of the work force. As the workforce continues to age, discriminatory practices will tend to take on new meaning. Often, younger workers may not even realize that what they are doing can be deemed discriminatory. For example, the following are examples of activities that may now be considered discriminatory based on one’s age:


  • Making an older worker to choose between a layoff without health benefits and little chance or recall and early retirement.
  • Using financial incentives to lure older workers into retirement, regardless of their performance.
  • Re-deploying younger workers during times of layoffs and reorganization, while eliminating older ones.
  • Failing to offer older workers the same flexible work options that are available to younger workers.
  • Denying benefits to older workers.
  • Hiring younger workers to assume key responsibilities because the employer assumes the older worker will retire.
  • Failing to offer older workers equal job-related training and career development opportunities.
  • Leaving older workers out of key corporate activities.

Source: AlignMark, Maitland, FL, January 5, 1999

Posted on April 1, 1999July 10, 2018

Assess Your Skills Shortage

AchieveGlobal asked trainers and managers in a variety of industries why many of their workers do not have a knowledge of basic workplace skills and behaviors.


Among basic skills and behaviors that are lacking are the ability to manage interpersonal relationships and differences; communicate to co-workers, supervisors and customers; and maintain self-esteem and a work ethic. Overall, workers do not know how the workplace operates or what their employers’ basic expectations are.


The company then developed the following questions to ask supervisors, managers and HR professionals in order to assess your employees’ skill levels and the impact of that deficiency on the workplace.


  • What competencies and skills do you look for in hiring line and staff employees?
  • What role do fundamental workplace skills play in your hiring profile?
  • Do you have to make compromises in selecting job candidates or in expectations of job performance?
  • Do these compromises affect the length of time for the employee to become productive?
  • What impact does employee “ramp-up time” have on the performance of your organization or service?
  • How many line or staff employees do you hire in a year?
  • How is your retention of such employees? Are you hiring repeatedly for the same position?
  • What are the main causes of turnover in your organization?
  • What are the effects of turnover on productivity and on team morale?
  • What are the effects of turnover on your customers?
  • How much and what kind of training do new line and staff support employees go through?
  • How are your line and staff support employees’ listening skills? Ability to ask questions and clarify?
  • How do your line and staff support employees accept and learn new tasks?
  • How do your support employees handle problems with peers? With supervisors and managers?
  • How are your organization’s absenteeism rates?
  • Can your employees articulate problems and work with others in a constructive manner to solve them?
  • What role will your line and staff employees play in your organization’s growth?

What are some of the barriers you face to promoting from within?


SOURCE: AchieveGlobal, Tampa, FL.

Posted on April 1, 1999July 10, 2018

HRThe New Strategic Partner

If you keep your employees satisfiedmentally, emotionally and physically you’ll have a winning combination that will produceproduct faster and better than the competition. This new mantra is taking hold all acrossCorporate America. NuView Systems, Inc. understandsthis need and wants to demonstrate how using NuWeb Suite! can free employees frommundane tasks so they can tackle strategic decisions for their company.


Enter the new strategic partner from within — The HR Department.


Traditionally, HR has been a department thatprovided statistical data for accounting, payroll and legal departments. It has beenviewed as a necessary expense to satisfy the bean-counters and attorneys while providinggeneral service to employees. At many organizations, HR hasn’t been critical to thestrategic direction of the company, and rarely has had an impact on the overall bottomline. The challenge of the VP of HR has been to explain why his or her department isstrategically necessary to the company’s goal. Even when convinced, other VPsdon’t see why goals, employee morale and other intangible ideals take precedence overcost cutting, revenue generating strategies.


So how does NuView Systems, Inc.’sinnovative, scalable HRIS product lineincluding  self-service helpimprove the company’s bottom line, better use the creativity of the employees andboost morale?


ESS Expert Web — A Better Solution

  • Employee ownership of data
    Employees are presented with an opportunity to review, confirm and change anyinformation themselves. Information such as marital status, dependents, emergencycontacts, beneficiaries, etc. are personal — changing them is something employees wouldlike to be in control of themselves. It creates a sense of security of how the changeswere made.
  • Instant access anywhere and anytime
    Employees can get answers and review information when they need it.
  • An outlet for creative ideas, suggestions or complaints
    A primary aspect of employee empowerment is to provide a forum for expression.Expression may take the form of frustration on the job or a brand new idea to increaseproductivity. Self-service is an ideal environment that allows employees time to properlyform ideas and express them in a multimedia format. This allows the hidden cartoonist toblossom, or the poet to write company poetry or the digital-camera enthusiast to publishpictures from the last company picnic.
  • Rights of an employee in the company
    The policy and procedure manual, the summary plan descriptions for all benefits, rulesgoverning the workplace, company policy on sexual discrimination and other corporate rulescan be posted for instant and permanent access.
  • Benefits of being in the company
    Accessibility to the benefit statement, investments modeling, stock options and otherways the company is helping keep employees happy.
  • Instantly publish new forms
    Collect and disseminate information to employees by changing a few Web pages.Self-service can help make an announcement to a group or across the company.
  • The great equalizer; catering to the silent majority
    Self-service provides a forum for people who are naturally recalcitrant and shy.Self-service is anonymous and equal for everyone.
  • Corporate culture
    The soul of the company can be exposed for employees to see how to fit in and how tobehave. The goals, expectations and results it requires from its employees and theultimate mission of the company.
  • Environmentally friendly
    Since paper would be replaced by the self-service on a computer, the consumption ofpaper would be considerably reduced. In addition, reduced freight, courier andtransportation costs would save the company and the environment more.
  • Time and cost savings
    Each employee can spend time doing the work that makes him or her productive andprofitable, rather than spending the time requesting information, filling out forms andfollowing up after them.

Inaddition to the value of EmployeeSelf-Service, Manager Self-Serviceand Guest Self-Service, a Web-basedHRIS is critical to the success of multiple site companies. NuWeb Suite is based on NuView’sflagship HRIS, HR:Expert Suite andemploys the four modules that encompass the entire lifecycle of an employee — MatchMaker for applicant tracking andresume scanning, HR:Expert for humanresources and benefits information, TrainingExpert for training administration and Success Expert for succession planningand employee development. With all types of payroll interfaces included you have aglobally connected HRIS delivering true value to the employees and their company.


Hereare just a few of the features that set NuWeb Suite! apart from the competition:

  • Innovative NuNavigator for quick selection and easynavigation through system.
  • Web based — 3-tier client/server system
  • Web browser — Wide area access, thin-client,cross-platform. 500 concurrent users.
  • Employees enroll into benefits, request vacations,enroll in courses, see their own information; managers approve absence requests,performance reviews, timesheets and more.
  • Completely secure. Security for user, group,screen, records, reports, exports and topic.
  • Integration with corporate web site. Customized tolook like your web site.
  • Email-based work flow.
  • Instant updates. Changing objects and programs onthe server allows for instant system updates.
  • Payroll interfaces. Complete connectivity for datafeed from NuView Self-Service.
  • Easy interface with online help.

Success!


Today,business success depends more on quality employees than how many oil fields you own. Workethic and loyalty to the company goals is what the HR department is ideally geared tohandle. Areas of HR neglected by all except the Fortune 500 companies suddenlyare finding favor by companies of all types and sizes. Training administration andsuccession planning have become big goals to achieve. Performance review models, employeeand manager self-service, 360-degree training evaluations and the ability to conveycompany polices and goals in a organized and structured way are concepts that entirecompanies are embracing. Let NuView’s HR professionals provide needs-analysis foryour company and streamline your HR processes for the new millennium.


The race is on for the most efficientimplementation of technology to achieve these goals.


Here at NuView Systems, Inc., we’re excitedbecause we’re racing to anticipate what you need before you ask us for it. We have greatthings to show and share with you. Visit our web site at www.nuviewinc.com or call 800/244-7654 and ask aboutour City Tour in a city near you.Call us and you’ll find us prepared to listen — perhaps you’ll be surprised by what we’vealready achieved.

Posted on March 30, 1999July 10, 2018

Spouses Sue Employer for Misrepresentation of Company’s Future

Issue:
You interviewed four applicants whom you really wanted to hire. During the interviews, they asked about the company’s future growth. You told them that 20% growth was expected in the next year and that sales were up and were expected to increase. You were proud to say that the company was a stable one, with few downsizings and layoffs, and that you expected to be hiring more staff and creating new positions since the company was “ramping up.” Overall, you said, the future looked great for the company. You also told the applicants how desirable it was to live in the Oregon community where the company is located.


All four applicants joined the company and relocated after either quitting their current positions or passing up other employment opportunities. What they didn’t know at the time, what even you did not know, was that the company was going to close its Oregon facility. That decision was made at company headquarters, either before or after the four recruits relocated. Now the employees and their spouses are suing the company’s owner for fraudulent misrepresentation arising from the closure. The attorney says the company cannot be liable for damages on the spouses’ claims and that he will have them dismissed. Is he right?


Answer:
Not necessarily. While the employer was granted summary judgment in federal district court, the court of appeals in San Francisco reversed and found that there were genuine issues of material fact on whether the company made false misrepresentations and whether the employees justifiably relied upon them.


Even summary judgment on the spouses’ misrepresentation claims was reversed. The issue at trial will be whether the spouses can meet the Oregon test of misrepresentation. They will have to prove that the company made representations to their husbands under the circumstances that entitled the spouses to believe that the company had authorized the husbands to communicate the representations to them.


Family decisions?
The appeals court refused to hold that the spouses could not prove that, under these circumstances, misrepresentations occurred. After all, the court said spouses usually make decisions as a family unit, and “it is likely that the process of deciding whether to relocate for a new job involves convincing the spouse that the positive qualities of the new job outweigh the difficulties caused to the family.” A concurring judge emphasized that marriage is a partnership with major decisions made by the partners jointly. “Only a very foolish employer will try to persuade a prospective employee to relocate without addressing the concerns of the spouse,” he wrote. In dissent, however, another judge argued that to prevail the spouses will have to show that the company intended to make representations to the spouses.


What should HR do?
Although the appeals court’s discussion of family decisionmaking is not a binding interpretation of Oregon law, the end result is that misrepresentation claims by these employees and their spouses must still be defended by the employer. The spouses’ claims expose the employer to additional liability that could be significant in certain dual-career families. Here are steps HR can take to avoid making dangerous misrepresentations:


  1. Warn management.
    HR has to warn management about the dangers of concealing information or not being honest about plans. In Oregon, for example, employers have a duty to disclose material contingencies. This is particularly important when plant closure or layoffs are under discussion.
  2. Train.
    Training is necessary so employees know specifically what can and should be said during the recruitment/hiring process. It may be necessary to create scripts.
  3. Do not rely on employment-at-will.
    The employees in this case had signed employment-at-will agreements, but the agreements could not be used as a defense against the charge of misrepresentation.

Cite:Meade v. Cedarapids, Inc., (9th Cir 1999), 137 LC 58, 520.


Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online, and via the Internet.

Posted on March 30, 1999July 10, 2018

The Right People in the Right Position

Ron Rosenberg of QualityTalk tells this story about how he found what he liked and didn’t like to do:

How do you find your passion? How do your employees find theirs? Sometimes you find it by stumbling upon something you really love to do. But sometimes you can find your passion by a process of elimination.

When I was in college, I participated in a co-op program where we alternated quarters of school with quarters of actual work experience during the final two years of the curriculum.

One quarter, I worked in the research lab of a large company, designing a computer system to analyze the data from their research. It turned out to be quite different than I was led to believe during the interview.

The work was very basic and lacked any significant challenge. The environment was very theoretical with no real practical application in sight for any of the work being done. I was very bored. In retrospect, of course, I realize there were many things I could have done to make the situation more exciting and the work more interesting, but I was only 19. What did I know?

When I finished this co-op block, I returned to school and met with my advisor to review the experience. I complained that it was a complete waste of time. I could have spent the three months doing something I liked — something more similar to what I wanted to do after graduation.

He just smiled and told me that I’d probably just had the most beneficial co-op experience I would ever have. I found out in only three months what I didn’t want to do for a living. Had I not had this experience, I could easily have accepted a full-time position doing this kind of work, moved to a new city, and been at least morally committed to staying there for a reasonable period of time.

If you have employees that are under-performing, it may be that they’re not capable of working effectively in the organization. On the other hand, they may just be in the wrong position, or they may have been in the same position for too long. Looking at mismatches in this way can help you protect the investment you’ve made in your people while still maintaining the integrity of the team.

SOURCE:© 1998 QualityTalk. All Rights Reserved. Ron Rosenberg, President, QualityTalk, 800/260-0662, January 1999.

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