Author: Site Staff

As more litigants look to a company’s e-mail system as a source of discovery, a company must learn to monitor its e-mail system in a manner that will minimize the potential for exposing itself to liability.

One of the important safeguards is to implement a specific document-retention policy and consistently follow the policy. Companies must find a medium between the “save-everything” approach and the “save-as-little-as-possible” approach.

The former makes retrieval of messages time-consuming and increases the risk that an opponent will discover damaging evidence. The latter approach prevents the company from retrieving messages that may actually minimize liability if litigation ensues. Further, companies must recognize that destroying, or failing to preserve e-mail messages, may raise a problem of spoliation of evidence. The initial inquiry is then: Does the data that’s lying around in the first place have business value or is it being kept just for the sake of keeping it?

SOURCE: Heidi L. McNeil, a partner with Phoenix-based Snell & Wilmer LLP.

Workforce, July 1998, Vol. 77, No. 7, p. 38.

Here are some characteristics that distinguish informal learning from formal learning in the workplace.

Formal learning is of variable relevance to participants because it’s not economically feasible to tailor it to each individual.

Informal learning is need-specific and therefore highly relevant to the individual.

There’s a variable gap between what trainees know and what they’re to learn in formal learning sessions, depending on each participant’s experience and knowledge. Informal learning is more incremental, thus the gap is narrower.

Formal learning tends to be delayed. What’s learned informally tends to be used immediately.

Formal learning is scheduled; informal learning arises spontaneously.

Formal learning has specific outcomes; informal learning may not.

SOURCE: Center for Workforce Development, Newton, Massachusetts.

Workforce, June 1998, Vol. 77, No. 6, p. 32.

Wednesday, April 8

Charlottesville, Virginia—As Workforce journalists, we often interview our sources after a program’s proven success. Seldom have we had the opportunity to witness “works in progress.” Most of our interactions normally take place by phone, fax and e-mail. I was, therefore, delighted to hop on a plane to Charlottesville, Virginia—birthplace of several U.S. presidents, including Thomas Jefferson—to spend one day shadowing Donald R. Borwhat Jr., senior vice president of human resources and public relations for GE Fanuc Automation.

GE Fanuc, you may recall, was a Workforce Magazine Optimas Award winner for Partnership in 1997. Launched in January 1987, it’s a joint venture between General Electric and FANUC Ltd. of Japan. The company designs, manufactures and sells products (including industrial computers and software) and services for factory automation.

Borwhat and I met the day before my scheduled visit at the plant. He had offered to take me out to dinner—arriving somewhat apologetically in his son’s disheveled 1996 gold Buick La Sabre. “You’ve got to excuse me. I walked outside to the parking lot only to find that my son [a 25-year-old law student at Syracuse University] swapped my [cranberry Porsche] for his car. He wanted to impress a date in D.C.,” he says, chuckling at the pretensions of youth.

“How was your trip?” he asked.

“A bit bumpy on this tiny United Express airplane,” I replied. “Another passenger and I were sure we were going to crash.”

“You didn’t say you were a wimp!” he retorted.

I knew then that my visit was in good hands. Borwhat is flexible, confident, personable and direct. These were the qualities I observed in him from the moment I arrived—and admired even more by the time I said goodbye. Here’s a glimpse of an executive coach who knows how to listen, ask the right questions and keep his day—and those of others—from reeling out of control. (His day included no less than 12 meetings and one global telephone conference call to London—all pre-scheduled to run as briefly as 15 minutes and no longer than one hour.)

5:00 a.m.
Up before the sun.
Thomas Jefferson would have been proud of Borwhat. According to history and legend, our third president of the United States always rose with the sun. Borwhat awakens when the Blue Ridge mountains are still pitch black. He catches a local TV news program called “Sunrise”—only to find out that the New York Knicks lost to the Atlanta Hawks. Before driving off to work, he permits his three dogs (a golden retriever, German shepherd and Bernese mountain dog) to run around the five acres of land he owns in a suburb known as Western Albemarle—15 minutes from work.

6:00 a.m.
Checking e-mail.
He arrives at his office to check his e-mail before picking me up at 7:00. (Eleven e-mails arrived in his mailbox, including one from London, another from Singapore, two referring to sales staff and one about an upcoming business trip to Los Angeles.)

As we drive toward the headquarters, passing dogwood trees, lush with fresh pink blossoms, he points out the building’s resemblance to a college campus. “We wanted our employees to feel their work environment was a cool place.”

Inside, Borwhat’s office is decorated with miniature orange, blue and black model race cars. In addition, family photos, a Nerf basketball hoop, a DILBERT® calendar, certificates of appreciation from the local school district and a Japanese dharma adorn his workspace. His PalmPilot pocket organizer already is plugged into his office computer. “All of my staff have one,” he says. “But I tell them they don’t have to read the e-mails I send them late at night.”

His HR team includes seven individuals—all women—including an intern from Mexico who’s participating in GE Fanuc’s leadership program.

7:00 a.m.
School-business partnerships.
Borwhat meets with two HR staff members and a representative from Charlottesville Albemarle School Business Alliance. The joint venture serves as a clearinghouse to coordinate the needs of the schools with the community resources. Borwhat listens to their reports of a recent breakfast fund-raiser. When the staff suggests a better way to solicit larger donors, he quickly reacts, “Good idea!” and establishes it as an action item. He also suggests getting a mailing list from the local Chamber of Commerce and volunteers GE Fanuc to cover some printing costs.

8:00 a.m.
Career pathing an employee.
An employee wants more challenge. She thinks she would like to transfer to sales and marketing—job functions outside her current department. Borwhat listens: “So, you want a new job?” He re-serves his judgment until he has spoken to her supervisor, but offers the employee encouragement. “Wait about a month. We’re making a lot of changes in marketing. In the meantime, perhaps you can consider a cross-functional move instead of a job change. And let’s get your internal resume and performance appraisal up to speed.” (Within the last hour, he has received eight more e-mails.)

8:30 a.m.
Meeting with the HR team.
The main topic of concern is employee recruitment and retention. Borwhat’s staff discusses the relationship between the “critical-to-quality” (CTQ) needs of the company, such as engineering and software expertise, and the “key process input variables” (KPIV)—employee-driven factors that impact the CTQ items, such as job training, compensation, family, work environment, growth opportunities. Charlottesville, Borwhat explains, is one of the most family-friendly cities in the United States. Even so, GE Fanuc faces the challenge of keeping its employees—particularly the skilled engineers and sales reps—tracked in its “High Involvement Workforce (HIWF),” driven by HR.

9:45 a.m.
Manufacturing metrics.
Borwhat walks me to the shop floor, where he’s able to observe one of the teams review its ‘promises kept.’ Last year, GE Fanuc employees reduced its order-to-ship days from 22 to 11. Team members are able to produce their results on computers, read production charts and articulate their assessments with workers’ pride—an example of HIWF. On the way out, I notice a showcase against the wall, which displays awards given to GE Fanuc by former Secretary of Labor Robert Reich as a best-practices company in his Model Workforce Program and attention from President Clinton as a best-practices company in his Workforce 2000 initiative.

10:30 a.m.
Information technology.
Borwhat conducts a smaller meeting with his HR manager and a staff member from IT. They discuss two employees, including one who has ego problems and poor communication skills. He suggests crafting the job description more along the lines of the employee’s strengths while working on his weaker areas. As the two colleagues discuss the employees, Borwhat’s hand is clicking on his mouse while his eyes are focused on the computer screen. I tease him later, but he assures me, “You notice I didn’t respond to any e-mails during our meeting. I was listening the whole time.”

11:00 a.m.
Employee incentives.
As soon as he walks into the conference room, he announces: “I just want an overview.” He encourages colleagues to ask a lot of questions. “Argue with me,” he says. “I’m good at that,” quips Shelly Cerio, HR manager, sales and global locations. Apparently, HR is concerned about how to motivate its sales staff. They discuss what kinds of company bonus plans can be created that will still be aligned with new Department of Labor regulations about overtime and profit sharing.

Noon
Skip-level luncheon.
Once a week, a cadre of employees from various departments are invited into the executive conference room for lunch with the CEO. A month earlier, GE Fanuc hired Joe Hogan to replace former president and CEO, Bob Collins, who is retiring. Borwhat listens as the six employees explain their jobs and field questions from Hogan: “Do you like your job?” “What’s a normal day for you?” “What questions or concerns do you have?” At the end of the meeting, he asks, “Say, what do people in Charlottesville do for fun?”

1:30 p.m.
Manufacturing training team.
A dozen employees meet to discuss the qualifications for a training director. Borwhat sits along the edge of the room. His objective, he explains, is to simply listen. “I want to check out their framework for standardizing training throughout manufacturing.” HR may end up not hiring for the position, but Borwhat says the employees’ discussion will illuminate their needs. Then he can return with suggestions that might solve the problems without having to recruit another manager. “What are you looking for? Someone to do the training or to administrate? If you’re looking for a real trainer, that person may not want to do administration,” he cautions. “On the other hand, a person can be the best on process, but not be able to teach others.” All of a sudden, someone says, “We’re out of time.” And he’s off to another meeting.

Borwhat has already spent nearly eight hours on the job. He had to e-mail me the rest of his day because I had to catch a plane back to Manhattan. In a nutshell, he proceeded with a conference call to London to discuss HR issues related to a recent acquisition and attended two more meetings about distribution in California and business interests in China and Singapore.

At 6:30 p.m., he cleaned up his e-mailbox, returned his phone calls and met with Michelle Clatterbuck, HR manager, organization and staffing. Borwhat arrived home at 7:40 p.m. His wife, Margaret, had prepared a seafood dinner.

“It’s great to have a wife who lets me get away with these crazy hours,” he says.

9 p.m.
Outside for a cigar and time to play with the dogs.

Workforce, June 1998, Vol. 77, No. 6, pp. 84-88.

If your company spends money on employee tuition reimbursement, outdated policies may increase your costs. Typical policies are based on the traditional higher education system and fail to consider changes in technology that make nontraditional learning options both more available and more acceptable. It may be time to re-evaluate, if the following look familiar:

Employees select schools and programs with no guidance. While this policy allows maximum freedom to employees, few have the knowledge or the time to sift through the enormous variety of learning options currently available—telecourses, Internet, videotapes, credit for on-the-job training, testing programs, and so on. Many employees automatically will select the highest cost college in the area, mistakenly thinking that higher expense equals higher quality in education. Many courses are mis-selected or end up not being transferable. Providing guidance in house will result in cost and time savings as employees select coursework that’s appropriate for them and for the company.

Don’t assume that all necessary advising will be supplied by the college. College recruiters are knowledgeable about their campus and its programs and requirements, but can’t supply impartial advising that relates to all other local colleges or national programs.

Tuition reimbursement is limited to a few large, well-known traditional universities and colleges. The intense development of new options in learning over the past 20 years has happened largely outside the mainstream institutions, which continue to offer education designed specifically for the younger student, not for working adults. Because of innovative programming, many private universities cost less for the entire degree than state-aided campuses or even community colleges. Having greater variety to choose from means more people will be able to find a learning option that fits into their already busy lives, resulting in more committed and qualified workers.

Reimburse for tuition only, not fees. The lower tuition state-supported campuses usually charge additional fees, while the higher tuition private schools charge a single rate. Employees will pick the college with the single rate because, even though it may be the higher priced choice, it means less money out of their pockets.

Reimburse for traditional, classroom courses only. An increasing number of legitimate and regionally accredited colleges and universities offer courses through the Internet, computer and television, and grant credit for tests, corporate training, military training and other prior learning experiences. These options may cost considerably less than traditional coursework and may save an adult learner years in classroom study to complete a degree.

Provide no ongoing support for employees’ learning efforts. Studies show that companies realize a $10 return in productivity for every $1 invested in employee education. Yet, few companies provide continuing support or encourage those employees who seek higher education. Recognition through mention in the company newsletter or other nonmonetary incentives motivates employees with little cost.

The increasing pace of change in the world today indicates that employee education will continue to be an important function of business and industry. College tuition increases 11 percent to 14 percent annually, and sometimes semiannually. Adult learners represent 50 percent of the national college population. Increased use and increased expense mean corporations must pay attention to tuition-assistance plans. Companies must make sure they use all the resources available in higher education appropriately to ensure that the dollars spent on employee education bring a maximum return on their investment.

Source: Scottsdale, Arizona-based Educational Advisory Services Inc., the nation’s only educational brokering firm. Written by Dixie Darr, freelance writer and education consultant.

Workforce, May 1998, Vol. 77, No. 5, p. 104.

401(k): A savings plan that serves as a tax-deferred investment and personal pension fund for employees. (The name refers to the relevant section in the tax code.)

403(b): A tax-sheltered annuity that serves as a retirement plan for employees of tax-exempt organizations and public schools who aren’t able to participate in section 401(k) plans. It also is referred to as a TSA plan.

Asset allocation: The division of holdings among different types of assets, such as domestic stocks, international stocks, bonds, real estate and cash.

Bear market: A stock market in which prices decline over a prolonged period of time, producing losses for investors.

Bull market: A market in which stocks increase in price, thus producing gains for investors.

Employee stock ownership plan (ESOP): A qualified retirement plan designed to give workers an ownership stake in the company. Companies contribute shares of stock without requiring employees to invest their own money.

Employee stock purchase plan (ESPP): A plan established by a company that permits employees to buy company stock, usually at a discount.

Employer contribution: An incentive for employees to save for retirement. The employer typically matches a worker’s contribution, or a portion of it.

Guaranteed investment contract (GIC): An investment contract, funding agreement or guaranteed interest contract in which an insurance company agrees to guarantee a fixed or variable rate of interest or a future payment that’s based on an index or similar criteria. A GIC is payable at a predetermined date on funds that are deposited with the insurance company without regard to the continuance of human life.

Pension plan: A retirement plan offered by some employers that pays a set amount each year during retirement.

Qualified retirement plan: Any of several types of plans that have been approved by the IRS for tax-favorable treatment. These include: 401(k)s, SEPs, IRAs, Keoughs, SIMPLEs, defined benefit pension plans, defined contribution pension plans and more. Each plan has a different limit on the amount an employee and employer can contribute.

SOURCE: Quicken.com Financial Network

Workforce, April 1998, Vol. 77 No. 4, p. 76.

Here are some facts about 401(k)s:

• The average number of investment options has risen from 4.0 in 1991 to 8.2 in 1997.

• The most popular type of investment option is now equity growth funds, which 82 percent of all plan sponsors provide. That’s followed by balanced (78 percent), international equity (67 percent) and bond (67 percent). The least popular choice is company stock (23 percent).

• In 1990, 47 percent of all 401(k) assets were placed in guaranteed investment contracts (GIC). In 1997, the figure had dropped to 18 percent. During the same period, investments in equities grew from 11 percent to 44 percent.

• Most companies now provide at least a partial match for 401(k)s. Although only 1 percent of all companies provide more than a 100 percent match, 22 percent provide a 100 percent match; 8 percent offer a match of 51 percent to 99 percent; 52 percent feature a 50 percent match; 5 percent provide a 26 percent to 49 percent match; and 12 percent offer less than a 25 percent match.

• Employee communication is seen as a far less expensive way to build participation than increasing the matching contribution. Sixty-two percent of respondents say communication has resulted in higher participation; 67 percent say it has helped increase contributions; and 74 percent believe it has influenced employee investment allocations.
• Sixty percent of companies net the cost of investment management from investment returns; 34 percent absorb the cost; and 6 percent deduct it from employee accounts. The employer pays record-keeping expenses in 68 percent of plans; 23 percent deduct the cost from investment returns; and 9 percent take it from workers’ accounts.
• Fifty-one percent of 401(k) (kiosk) providers also offer a defined benefit pension plan covering all or most employees.

SOURCE: William M. Mercer, “Survey on Employee Savings Plans 1997”

Workforce, April 1998, Vol. 77, No. 4, p. 72.

A

SSESSMENT OF NEEDS:

HR professionals and software vendors alike agree that the first step in researching HR software is understanding your current processes, foreseeing your future needs and knowing what goals you would like to achieve with the software. Use the questions below to help with this process.

Bob Conlin
Director of Marketing, Cort Directions, Inc., Bend, Oregon

“The first question an HR professional should ask a software vendor is, ‘Do you understand our specific requirements and what it is we’re trying to accomplish with new software?’ You need to make sure the vendor is addressing specific needs, not showing you a laundry list of features and functions in which you may or may not have an interest.”

Paul J. Farr, Sr.
Director of Human Resources, Community Health and Counseling Services, Bangor, Maine

“Does the software meet the detailed performance specifications that HR has already developed through the input of all who will use the product?”

Althea D. Heyneman
Customer Relations, Technical Difference, (the creators of People-Trak ), Bonsall, California

“Can this software affordably meet all my HR needs? Some software limits the number of employees who can be entered, so HR needs to plan for growth.”

John L. Miller
Director of Marketing & Sales, Presenting Solutions, Oakland, California

“Will this software make or save us money?”

Bob Hampel
Human Resources Manager, Bexar County Government, San Antonio, Texas

“How well have you identified what your needs and wants are, and how well do you understand the current business processes? If you know the answers, then it would be just a matter of asking specific questions of the vendor.”

Carrie Ferrer
Director of Human Resources, Sage U.S., Inc. (Sage U. S. Inc. is part of The Sage Group plc., a PC accounting software publisher), Dallas, Texas

“HR has an important role within a company to be a leader in maximizing revenue and decreasing expenses. Ask, ‘How can this software help our company achieve these goals by helping us become more productive?’”

John Enyedy
President, !Trak-It Solutions, Citrus Heights, California

“Software is designed for a target-sized company with a particular set of features—one size does not fit all. So determining the target-sized company and the client’s needs is important in determining if a software product is right for your company.”

COMPATIBILITY:

There’s not much worse than investing time and money into new software, only to find out it doesn’t work with other programs you al-ready have in place. Following are questions software vendors and HR professionals suggest you ask regarding software compatibility.

Fred Giles
Vice President, Pinkerton Services, Charlotte, North Carolina

“Will the software work with my current hardware, network and data? This requires not only compatibility, but also the ability to be integrated into the organization’s mix of related programs.”

Wendy Wilson
Learning Facilator, Office of State Revenue (NSW Treasury), Parramatta, New South Wales

“What types of platforms can it be run on? Is it Windows 95 compatible?”

Carrie Ferrer
Director of Human Resources, Sage U.S., Inc. (Sage U. S. Inc. is part of The Sage Group plc., a PC accounting software publisher), Dallas, Texas

“Is our existing technology compatible or would we be required to upgrade our internal systems?”

Wendy C. Tiller
Human Resources Consultant and President, Employee Development Strategies Inc., Plantation, Florida

“Is the software platform/architecture compatable with your organization’s IS system?”

Bob Conlin
Director of Marketing, Cort Directions, Inc.,

Bend, Oregon

“How will the software interface with other business systems? Human resources is not a stand-alone function—it should interface on an enterprise level with other systems, like payroll, time and attendance, point of sale, and so on. HR should think big picture when evaluating new software.”

CUSTOMIZATION/UPGRADING:

Because no two HR departments are created equal, the consensus is that HR software must be customizable. Also, despite the best attempts at foreseeing future needs, HR requires software that can be upgraded as goals change. Here are questions to assess for these traits.

Jim Spoor
Founder and President, SPECTRUM Human Resource Systems Corporation, Denver, Colorado

“Explain to me what’s involved in adapting your software to fit my current business rules and methodologies. How easy is it to further modify the software as my business rules change?”

Ian Kessler
Manager of Human Resources and Staff Development, Investment Company Institute, Washington, D.C.

“How often do upgrades come out for the product? This may lead to trouble for customization that has been done.”

Gretchen Artig-Swomley
President, SoftLink, Inc., Maplewood, Minnesota

“Ask about the number of functional options offered by the software package. This is an important first step in deciding if it’s right for your company’s needs. Can the software do what you need it to do? How well? Will more functions be added in the future? These are all appropriate questions.”

Wendy Wilson
Learning Facilator, Office of State Revenue (NSW Treasury), Parramatta, New South Wales

“Can the system be customized to meet the organizational needs? Can we build and add new screens and fields? Are upgrades included in the annual maintenance contract?”

Carrie Ferrer
Director of Human Resources, Sage U.S., Inc. (Sage U. S. Inc. is part of The Sage Group plc., a PC accounting software publisher), Dallas, Texas

“We need to ask how HR can customize or integrate this software into existing programs (like payroll or HRIS) to further enhance our ability to positively impact the bottom line.”

Paul J. Farr, Sr.
Director of Human Resources, Community Health and Counseling Services, Bangor, Maine

“How easy is it to update the software when new releases are issued and can the source code be added to for customization at later dates?”

Joseph A. Orban, Ph.D.
Senior Director of Product Technology, Workforce Development Group of NCS, Rosemont, Illinois

“Is the software released and what’s the version number? This will help avoid vapor ware, a slang term for the promoting/advertising of software before it’s available for use. Also, how long has it been on the market in its current release?”

REFERENCES:

Software vendors and HR purchasers of software both agree that the company from which you purchase is as important as the product. Here are the questions they recommend you ask your vendors and their clients.

Scott Scherr
Founder, President and CEO, The Ultimate Software Group Inc. (US Group), Fort Lauderdale, Florida

“Ask who the people are behind the product. Who developed it, and who implements and supports it? Developing and maintaining reliable HRMS/payroll software requires highly specialized expertise and the ability to re-main abreast of frequently changing regulatory requirements. When the software vendor focuses on developing only HRMS/payroll functionality rather than on a broad spectrum of products, you have a much greater probability of accuracy, timeliness and depth in the software.”

John L. Miller
Director of Marketing & Sales, Presenting Solutions, Oakland, California

“Who else is using this software effectively, and what have been their results?”

Ian Kessler
Manager, Human Resources and Staff Development, Investment Company Institute, Washington, D.C.

“What’s the average size of customers? How many companies have stopped using the product in the current year?”

Mike Kovatsh
Human Resources Consultant, Kitchener, Ontario

“Who else is using the product? Get references. Check out their platforms. Go for site visits! Ask lots of questions!”

Gretchen Artig-Swomley
President, SoftLink, Inc., Maplewood, Minnesota

“It’s smart to ask other clients which aspects of the software they’ve found most helpful. Their experiences can help you learn more about the software and its features.”

Bob Conlin
Director of Marketing, Cort Directions, Inc., Bend, Oregon

“Can you show me your software performing the tasks we’ve described as essential? If you see the software doing the things you identify as essential, you’ll feel more comfortable purchasing and implementing the system. Buying software that you hope will work can leave you frustrated with both your vendor and your software decision.”

TRAINING/SERVICE/SUPPORT:

Software is useless if you don’t know how to use it—or fix it. Vendors and HR professionals suggest you ask the following questions to assess a vendor’s service and support abilities before purchasing the product.

Deborah I. Gosa
Administrative Secretary, Human Resources, Blackhawk Technical College, Janesville, Wisconson

“What’s the learning curve estimated to be, and what manuals are available for reference?”

Fred Giles
Vice President, Pinkerton Services, Charlotte, North Carolina

“How much will my staff have to use this software to become competent, and will special training be required? Also, evaluate their user-support capabilities to determine if your people will have access to live tech-support personnel, or be limited to e-mail support or even program documentation.”

Joseph A. Orban, Ph.D.
Senior Director of Product Technology, Workforce Development Group of NCS, Rosemont, Illinois

“Are there any resources available to help solve problems, such as technical support, help files, manuals and at-home service? Is the support free or is there an extra charge? For how long after the purchase does the support remain available?”

Wendy Wilson
Learning Facilator, Office of State Revenue (NSW Treasury), Parramatta, New South Wales

“What type of service and support are provided by the software supplier?”

Scott Scherr
Founder, President and CEO, The Ultimate Software Group Inc. (US Group), Fort Lauderdale, Florida

“Ask what the company’s turnover rate is. When turnover is low, you’ll find knowledgeable, consistent help when you need it. Ask to visit the vendor’s headquarters. See for yourself who will be supporting you.”

Wendy C. Tiller
Human Resources Consultant and President, Employee Development Strategies Inc., Plantation, Florida

“Does the vendor provide on-going technical support? If so, what is the annual maintenance fee and what’s included? If not, is there a third party that provides technical support? What’s the fee?”

John Enyedy
President, !Trak-It Solutions, Citrus Heights, California

“What do I do when I need help? The answer, in most cases, is to call tech support. The things to be aware of are: Is there a special pre-sales number that gets you faster response before you buy? Be sure to try out the normal number a few times to see how fast you get through and how helpful and courteous the Help Desk is. Remember, everyone has a bad-hair day, so don’t make a judgment until you call a few times at different times during the day.”

Gretchen Artig-Swomley
President, SoftLink, Inc., Maplewood, Minnesota

“Before you commit to a package, find out the extent of services the vendor offers to its clients. If they can’t be there when you need help running a report, you might need to find a third-party vendor who can.”

Paul J. Farr, Sr.
Director of Human Resources, Community Health and Counseling Services, Bangor, Maine

“What’s the remedy if we find that the vendor-supplied training is inadequate and not as agreed upon?”

HIDDEN COSTS:

Last but definitely not least, our vendors and HR professionals urge you to decipher all costs before committing to any software purchase. Ask these questions.

Mike Kovatsh
Human Resources Consultant, Kitchener, Ontario

“What are all the costs (up-front purchase/ lease costs, ongoing maintenance costs, and hidden costs of hardware/software upgrades, including staff to perform the upgrade)?”

John Enyedy
President, !Trak-It Solutions, Citrus Heights, California

“How much is it really going to cost me for installation and training to actually get up and running? Less expensive systems often are easy to install and use, and you can do it yourself, whereas some of the more expensive systems can require three to five times the license fee to actually get up and running. Be sure to check this out and include it in your budget.

“How computer/software literate are you and your staff? The more you can do for yourself, the less it will cost.”

Althea D. Heyneman
Customer Relations, Technical Difference, (the creators of People-Trak ), Bonsall, California

“What’s the cost of technical support and software updates?”

Jim Spoor
Founder and President, SPECTRUM Human Resource Systems Corporation, Denver, Colorado

“Ask the vendor to outline the total cost of ownership of your software for the first two years, including all costs for hardware and software acquisition, implementation, conversion, customization, maintenance, training, HR staffing and IT/IS support requirements.”

Workforce, April 1998, Vol. 77, No. 4, pp. 79-80.

For an agency to efficiently and effectively restructure and/or downsize, it is critical that three management tools be in place to allow for proper planning and personnel utilization. These tools are:

• Workforce forecasting
• Position management
• Skills analysis

Listed below is a glossary of options public agencies may consider when trying to downsize or restructure their workforce. While not all options will work for all situations, it is in the agency’s interest to exercise all feasible alternatives whenever possible before resorting to reduction in force procedures. When evaluating the options, agencies should focus on the objective(s) for the change because this will determine which options are most likely to yield the desired results:

 

Certification of expected separation:
This is an early warning signal to employees that they stand a strong likelihood of being separated from their job within the next six months. Receiving this certification allows employees to register in the Interagency Placement Program (which may result in outplacement to another agency) and the Reemployment Priority List (which may result in outplacement to another part of the agency in the local commuting area). Issuance of this certification also allows participation in the Job Training Partnership Act, administered by the Department of Labor, which provides a wide range of outplacement and retraining services.

 

Contracting out:
Non-critical or non-full time functions or services can be contracted out on an as needed basis. This would eliminate or reduce the need for additional full time permanent employees.

 

Discontinued Service Retirement:
This retirement authority applies to employees whose jobs are abolished and who face involuntary separation. These employees may be given an immediate annuity if they meet early retirement eligibility (i.e. 25 years of service at any age or 20 years of service and at least 50 years of age).

 

Freeze hiring:
Freeze hiring from external sources or freeze movement into impacted area. This allows vacancies to be ‘stockpiled’ which can be used to place employees before or during a RIF, thereby avoiding or at least decreasing the number of employees affected by a RIF.

 

Freeze promotions:
Freeze career ladder promotions and merit promotion actions. This normally is combined with a hiring freeze of impacted positions.

 

Furloughs:
Involuntary lay-offs without pay. The process used to furlough the workforce depends upon the length of the furlough. Furloughs if over 22 non-consecutive days or over 30 consecutive days require RIF procedures. Furloughs of less time fall under adverse action procedures (part 752). Furloughs are most appropriately used to meet a temporary fiscal shortfall rather than a permanent fiscal reduction.

 

Internal ‘stopper’ list:
A list of surplus employees who must be considered for positions within the organization before recruitment from other sources can occur. A qualified employee on this lisy may ‘stop’ management from filling this position from any other source.

 

Involuntary reduction of hours worked:
Management initiated reduction in the number of hours part-time and intermittent employees work. (note: this may require adverse action procedures if it was not part of the employment agreement.)

 

Job redesign:
Restructure the position to include new duties. Caution must be exercised if this restructuring results in grade level change. Job redesign may result in a need for retraining.

 

Job sharing:
Allows two or more employees to convert from full time to part-time and share the work of one or more positions. While the agency is responsible for the benefits package of each employee, the annual salary will be reduced by one position.

 

Management directed reassignment:
Reassignment initiated by management to a vacant position in another part of the organization or agency. This reassignment may be made to a position in the same or different commuting area and is not subject to RIF regulations as long as the employee is not reduced in grade. An employee who refuses this directed reassignment is subject to part 752 separation under adverse action procedures.

 

Non-permanent personnel actions and work schedule changes:
Avoid hiring additional permanent full time employees by using temporary and term appointments (whenever appropriate), details, temporary reassignments/promotions, or by increasing the number of hours part-time and intermittent employees work.

 

Optional retirement:
Encourage eligible employees to consider optional retirement although management must exercise caution between encouraging and coercing. Agencies may want to consider offering a decision making class on whether retirement is right for them at this time. Supplement the class with transition assistance services for those who opt to retire.

 

Outplacement:
A good outplacement program can contribute significantly to reduce staff levels. This program may be limited to employees occupying impacted positions or may include the entire workforce which may provide additional placement opportunities for those who want to remain at the agency. Outplacement programs may be directed to other parts of an agency, other Federal agencies, or to the public and private sector.

 

Overtime instead of hiring new employees:
A viable option when the work is not of a continuing nature.

 

Reduce overtime expenditures:
Allow compensatory time off in lieu of overtime payment or place severe restraints on the use of overtime.

 

Reimbursable details:
Detail employees outside of the organization to perform reimbursable work. Reimbursement may include not only the employee’s salary but also the cost of benefits and overhead.

 

Retained grade/retained pay:
Agencies have the authority to grant retained pay whenever the employee’s pay is decreased as a result of a management action (i.e. reassignment from a special rate to a non-special rate position). Agencies may grant grade retention to employees who are or might be reduced in grade as a result of reorganization or reclassification. This may be offered to the employee on a ‘voluntary’ basis when it is in the interest of management. The employee may decline the offer and later compete under reduction in force procedures if they are invoked.

 

Retraining:
Training employees for skills in non-impacted positions (i.e. for another part of the agency or another agency). Retraining generally refers to updating skills which have become obsolete or training designed to equip individuals with the necessary skills to enter another occupation. Retraining generally focuses on competencies needed in a new or redesigned job.

 

Separate temporary employees and re-employed annuitants:
Both groups of employees may be separated at the will of the appointing official.

 

Temporary help services:
Used to meet manpower needs during periods of peak workload.

 

Temporary hires instead of permanent employees:
Allows maximum placement opportunities for impacted permanent employees in the event of a RIF because temporary appointments may be easily terminated.

 

Training programs:
Formalized training programs (i.e. intern, apprentice, or upward mobility) develop the skills of an agency’s workforce to meet future staffing needs. These programs provide avenues for employees with surplus or obsolete skills to make positive career transitions.

 

Voluntary change to lower grade:
Initiated on the part of the employee. This may allow the employee to remain in the same line of work (or change the line of work if that is the employee’s preference) or at the same work location when the current position is subject to abolishment or relocation.

 

Voluntary early retirement:
This retirement authority must be requested through the agency’s chain of command and approved by OPM. This allows individuals to retire with reduced age and/or service requirements (and under CSRS with an annuity reduction as well). Again, agencies can encourage attrition through this authority by offering a decision making class and transition support. Voluntary early retirement coupled with a voluntary separation incentive payment may enhance the number of separations considerably.

 

Voluntary leave without pay:
A request initiated by the employee for time off from work without pay.

 

Voluntary reassignment:
Reassignment out of the impacted area to another part of the organization or agency. This may be done through one-on-one negotiations or through the use of an internal placement program (i.e. surplus list or ‘stopper’).

 

Voluntary reduction in hours of work:
Voluntary changes on behalf of the employee from full time to part-time or intermittent. Voluntary request by a part-time employee to change to intermittent or to reduce the number of part-time hours worked.

 

Voluntary Separation Incentives:
Cash payments made to employees who voluntarily leave the Federal government. Agencies must have Congressional authority to offer this incentive. Presently there is a blanket authority for all agencies through March of 1995 (some agencies, such as the Department of Defense have individual buyout authorities which go beyond the March 1995 deadline). At present, the incentive is limited to severance pay entitlement of $25,000 whichever is less.

 

Waivers or modification of qualifications requirements:
Agencies have the authority to waive or modify (other than positive education requirements) qualification requirements for in-service placement to vacant positions.

 

SOURCE: U.S. Office of Personnel Management

Following are portions of a handbook on the “Future Managers Program” (FMP) at the Metropolitan Transportation Authority (MTA) of New York. This portion describes the recruitment and selection process of candidates for the program. The FMP has prompted Workforce to give the MTA this year’s Workforce Magazine Optimas Award in the Partnership category.

Recruitment and Selection Process for the Future Managers Program
The selection process consists of five phases that take six to nine months to complete. All phases of the program are managed by the MTA’s executive and organizational development department. All candidates must be currently employed full time by either the MTA or one of its operating agencies. In order to qualify for the program, all candidates must have:

• An associate’s degree (bachelor’s degree is preferred)
• Three years or more of full-time work experience (two or more at the supervisory level is a plus)
• A record of achievement in the workplace.

The operating agencies determine the operating department (and/or specific position) the FMP participant will specialize in before recruitment. Usually, the participating department targets a position that the participant will be developed for. The operating agency may have additional qualification requirements, depending on the nature of the position. If so, these will be included in a job posting.

How To Apply
Internal candidates who meet the minimum qualifications should mail a resume to the address shown on the FMP poster and the job posting. The cover letter or resume must include the applicant’s name, address and daytime phone number. This information is crucial since the MTA will only respond to applicants by mail to inform them of their status. Because the selection process is lengthy and the applicants are many, it will take a few weeks before replies are mailed. No reply will be mailed prior to the application deadline date.

Selection Process
Phase 1: Recruitment Once the targeted departments/positions are identified, the MTA launches a recruitment campaign. The MTA advertises the program through written communications, distributed and posted throughout the agencies.

FMP Poster—A poster is distributed to the operating agencies stating the program requirements, application deadline, and instructions for applying. The posters are placed in visible areas throughout the agencies and at headquarters.

Job Posting—Along with the FMP poster is an agency-specific job posting describing the position for that agency. The style of the job posting for each of the operating agencies is similar; however, the content may differ slightly if the targeted department requires additional educational or technical skills from the potential participant. The application period for the FMP is one month.

Phase 2: Resume Review—The MTA reviews all resumes received by the deadline. Those individuals who meet the minimum qualifications receive a formal employment application, which must be completed and returned to the MTA. This application provides standard information that may have been omitted in the resume.

Agency Resume Review—Each operating agency selects several individuals to form a resume review committee to review the application and the resume of each qualified candidate. The MTA encourages a diversity in these groups. Usually they will be made up of the agency liaison, representatives from the operating department, and representatives from the EEO and Human Resources divisions. This committee will choose approximately 30 candidates to attend the next phase of the program, the Open House. Note: when a candidate applies to the FMP, he/she is applying to the program, not just to one agency.

Phase 3: Open House This phase consists of a one-on-one interview of about 30 minutes with each of the candidates. After the interview, the candidates are invited to a general session to hear more about the FMP and its requirements. The MTA coordinates the scheduling for the Open House and provides all the necessary materials and a location for the interview. IT is possible for a candidate to be invited to more than one Open House interview since each agency review team looks at all the resumes. Upon completion of this phase, the operating agency will complete reference checks and choose candidates who most closely fit the targeted department/position.

Phase 4: Assessment Center Following the Open House phase, each agency selects up to 12 candidates to attend their assessment center. This phase provides a fair and ethical approach to the final selection of candidates.

The assessment process is designed to measure the extent to which the candidates demonstrate certain managerial abilities and to provide objective data about the candidate. During the one day that candidates spend at the FMP Assessment Center, they participate in group and individual exercises, including paper and pencil tests, simulations, role playing and group discussions.

Each agency will assign personnel to act as assessors (one for every two candidates). The assessor pool is usually made up of the Agency Liaison, representatives from human resources/recruitment and training, FMP graduates and operating department designers who must commit four full days to the process. All assessors are given intensive training at the MTA to become familiar with the exercises in the Assessment Center.

The task of observing behavior and evaluating strengths and development needs of the candidate is a difficult one. The process is very objective since each candidate is evaluated by a different assessor during each of the various exercises. Based on the information gathered on each candidate (including reference checks, the initial interview, and the assessment center data), the assessor team makes written recommendations as to which candidates to send to the final phase, the Executive Interview.

Phase 5: Executive Interview An Agency Executive Committee meets to interview the candidates who were recommended. This executive-level interview may be a panel or individual interview, depending on the agency. The interview date, time and place are arranged with the candidates by the Agency Liaison. The final decision is made by the Agency Executive Committee and the results of each interview are communicated to the MTA. The operating agency notifies the candidate of acceptance and makes the actual job offer. Once an offer has been made and accepted, the MTA notifies the remaining candidates of their status.

SOURCE: Metropolitan Transportation Authority, Department of Organizational Development and Training, New York, New York. All rights reserved.