One of the questions I have received the most since the passage of the Families First Coronavirus Response Act is how employers claim the tax credit available under the Act for paid leave provided to employees.
Late on March 31, the IRS published a detailed list of FAQs explaining all of the mechanics of this tax credit. I want to focus on the key employment law piece of these FAQ, how an employer should substantiate its eligibility for tax credits, i.e., the documentation you need to keep.
The IRS discusses this important issue in Questions 44â46. Iâll break it all down for you here.
What information should an âEligible Employerâ (a business with fewer than 500 employees) receive from an employee to substantiate eligibility for the sick leave or family leave tax credits?
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The IRS says that an employeeâs leave request must be in writing and must include:
The employeeâs name;
The date(s) for which leave is requested;
A statement of the coronavirus related reason the employee is requesting leave and written support for such reason; and
A statement that the employee is unable to work, including by telework, for such reason.
Additionally, for a leave request based on a quarantine order or self-quarantine advice (the employeeâs or someone elseâs for whom the employee is providing care), the employeeâs statement should include the name of the governmental entity ordering quarantine or the name of the health care professional advising self-quarantine, and, if the person subject to quarantine or advised to self-quarantine is not the employee, that personâs name and relation to the employee.
For a leave request based on a school closing or child care provider unavailability, the statement from the employee should include:
The name and age of the child (or children) to be cared for;
The name of the school that has closed or place of care that is unavailable; and
A representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave.
Also, note that there is a cut-off age at age 13 for care during daylight hours. An employee unable to work or telework during daylight hours because of a need to care for a child age 14 and older must also provide a statement that special circumstances exist requiring the employee to provide care.
Additionally, for all paid leave under the FFCRA for which an employer claims a tax credit, the employer must also provide:
Documentation to show how the employer determined the amount of qualified sick and family leave wages paid to employees that are eligible for the credit, including records of work, telework and qualified sick leave and qualified family leave.
Documentation to show how the employer determined the amount of qualified health plan expenses that the employer allocated to wages.
Copies of any completed Forms 7200, Advance of Employer Credits Due To COVID-19, that the employer submitted to the IRS.
Copies of the completed Forms 941, Employerâs Quarterly Federal Tax Return, that the employer submitted to the IRS (or, for employers that use third party payers to meet their employment tax obligations, records of information provided to the third party payer regarding the employerâs entitlement to the credit claimed on Form 941).
Employers must keep these records for at least four years after the date the tax becomes due or is paid, whichever comes later, and should be available for IRS review.
I encourage all employers to have a conversation with their accountant and/or tax lawyer before filing your next quarterly payroll taxes to make sure you are claiming this exemption correctly.
One employer is an anomaly, two is a trend that must be stopped.
Last week, I nominated for the Worst Employer of 2020 an unnamed national restaurant chain that was reported to be stealing (the company called it âabsorbingâ) its employeesâ CARES Act stimulus checks by reducing their scheduled hours in a pro-rata amount.
Now, another employer has been outed with similar plans.
According to KXAN, an unnamed national company advised its employees that it would be preemptively deducting funds from their paychecks based on the amount each employee anticipated receiving in their stimulus check.
The agreement would put workers under a âtemporary compensation reduction that is in line with the assistance that it receives from the federal government related to the COVID-19 pandemic.â By signing the agreement, the companyâs employees would have their paychecks between April 6 and April 20 cut by 100% of any money received under the stimulus bill.
The company would also take half of the $500 stipend allotted for dependents under the bill.
As a result of the few inquiries we have this week, I wanted to make the following points of clarification with regard to the Employee Emergency Compensation Program that was announced and specifically for those employees who have not already sacrificed with immediate pay reductions.
First, the plan will not go into effect until the earliest of April 6th and, there will be no pay reduction for the paycheck received on that date.
Second, it appears that Congress is very close to passing sweeping legislation to provide relief to companies like ours and to individuals. ⌠If we can determine ways to minimize the amount of sacrifice that we have asked everyone to make, we will do so and amend the plan accordingly.
That last paragraph is his email is really important. The CARES Act contains key payroll and other relief to small and mid-size businesses, known as the Paycheck Protection Program. It allocates $350 billion to businesses with less than 500 employees through low interest (and, in some cases, fully forgivable) loans to help pay payroll, rent and utilities.
There are ways to keep your business operational and solvent without âabsorbingâ your employeesâ stimulus checks. They need that money to live. Moreover, in the very same Act that makes those stimulus checks available, the government also makes available for businesses Paycheck Protection Program loans. Use those loans to help your business stay afloat during these trying and difficult times. Donât absorb the money thatâs meant specifically for your employees. Itâs just plain wrong.
For more information on how your business can obtain funds through the Paycheck Protection Program, contact me and Iâll put you in touch with an attorney on our Coronavirus Response Team.
On March 26, the DOL published a second round of FAQs (numbers 15-37)Â answering more questions on the operation of paid family and sick leave under the Families First Coronavirus Response Act.
Hereâs what the DOL has to say:
Employers are entitled to require documentation from employees in support of their need for paid family leave or paid sick leave under the Act. This documentation includes a copy of the Federal, State or local quarantine or isolation order, written documentation by a health care provider advising you to self-quarantine, or a notice of closure or unavailability from a childâs school, place of care, or child care provider. Employers are also required to retain this documentation. Note, however, that the requirement of medical documentation is contrary to the CDCâs recommended best practices, for fear of overburdening our already stressed medical system and providers.
Intermittent paid family leave and paid sick leave are allowed under the Act in any increment, but only if the employer agrees and if the employee is unable to telework their normal schedule of hours because of one of the qualifying reasons for leave under the Act. Note that the DOL is encouraging âemployers and employees to collaborate to achieve flexibility and meet mutual needs,â and that it âis supportive of such voluntary arrangements that combine telework and intermittent leave.â
An inability to telework means a complete inability to perform the job remotely. If an employer and employee agree, for example, that the employee will work the normal number of hours, but outside of normally scheduled hours (for instance early in the morning or late at night), then the employee is able to work and leave is not necessary.
If an employer closes prior to April 1, its employees are not eligible for paid family or sick leave. Employers that close after April 1 are only required to pay employees for family or sick leave taken under the Act through the date of closure.
Employees on furlough or temporary layoff are not eligible for paid family leave or paid sick leave under the Act. Further, employees cannot use paid family or sick leave for hours not working because of a reduced work schedule.
Employees may not use their employerâs available paid time off to make them whole during a paid leave provided by the Act unless the employer expressly agrees. In other words, because FFCRA leave is capped, and may result in an employee receiving less than full pay, the Act does not permit employees to substitute other paid leave during FFCRA leave to make them whole.
Employers cannot require that employees use available paid time off to make them whole during a paid leave provided by the Act.
Employers are always free to provide employees more paid leave than the Act requires, but cannot claim any tax credit for the excess leave.
Itâs still not clear from yesterdayâs guidance who gets to make the ultimate call on whether the employee can telework and what happens if/when the employee objects to telework. We could use more guidance there.
What rules will DOL apply to exempt small businesses with fewer than 50 employees when the lawâs requirements would jeopardize the viability of the business? [Me: this is a biggie]
Will DOL give guidance to employers with fewer than 25 employees as to how they comply when they cannot return an employee to an equivalent position.
Iâll be discussing these FAQs, along with answering all of your coronavirus-related employment law questions live on Zoom, Monday from 1-2 ET: https://zoom.us/j/856368874.
There will be plenty of room for everyone, as Iâve bumped the capacity to 500. And donât forget, Norah promised sheâll drop by to share a song with everyone. Come for the info, stay for the music.
Thereâs some good news for hourly workers as worries escalate regarding the COVID-19 pandemic.
A new survey by Willis Towers Watson revealed that 72 percent of employers in North America are committing to pay hourly workers who test positive for the coronavirus.
The survey, which was released March 23, also stated that 54 percent of those employers agree to compensate hourly workers whose workplace experiences a mandated closure and 51 percent will pay those hourly workers who have a cold or flu-like symptoms and voluntarily stay home.
However, just 36 percent of companies will continue paying hourly workers when they stay home because they donât have child care.
According to the Willis Towers Watsonâs âCOVID-19 Hourly Employee Pay Practices Survey,â which was conducted during the week of March 16, most organizations that will continue to pay hourly employees plan to do so for 10 to 15 days. The average organization will do so for 14 days at 100 percent of their current base rate, the survey stated, adding that it will vary based on the circumstances.
Organizations agree to pay employees under these conditions:
For employees with a confirmed COVID-19 case, 87 percent will pay hourly workers 100 percent of their current rate.
For employees whose workplace experiences a mandated closure, 94 percent will pay them 100 percent of their current rate.
For employees with a cold or flu-like symptoms who voluntarily stay home, 92 percent will pay them their full pay rate.
Some 44 percent will pay employees who canât perform their duties at home but are involuntarily required to stay home due to quarantine at either 100 percent or less of their current rate without them having to draw from their paid time off, the survey stated.
Most employers (75 percent) donât have plans to provide special treatment to employees who report to work when other employees are required to stay away from work.
However, more than 10 percent of employers have plans or are considering a range of options to recognize these employees, including adjusted (situational) overtime, additional paid time off to be used after COVID-19-related disruption and other forms of recognition.Â
Of the 805 companies, 56 percent of which were multinationals, participated in the Willis Towers Watson COVID-19 Hourly Employee Pay Practices Survey.
It is clear that most employers are standing by their hourly employees, at least in the short term, said Adrienne Altman, managing director, North America lead, Rewards, Willis Towers Watson.
âWhile many employers are still working to determine their overall strategy for responding to COVID-19, we see consistency in how they plan to manage pay for the affected portions of their hourly workforce,â Altman stated in a release regarding the survey.
Offer: COVID-19 is rapidly changing how businesses operate. We recognize that organizations need an extra helping hand right now. So weâre offering our GPS clock in tool for free to new sign-ups over the coming months. Sign up today and our Workforce Success team will provide a personal, online walkthrough of our platform to help you get started. It can be fully deployed in 1-2 days.
I work in an administrative role at a national restaurant chain.
I just got off of a conference call with corporate in which they told us that if the U.S. government sends us the proposed stimulus checks due to Covid 19, they plan to absorb the money we receive by cutting our hours to reflect that amount. In other words, if each person receives a check for $1,200, $1,200 will effectively go back to the company. Is this legal?
Legal? Yes.*
Morally repugnant and disgustingly reprehensible? Also, yes.
There is no reason (other than flat-out greed and corporate gluttony) to âabsorbâ an employeeâs stimulus check by reducing working hours in a pro-rata amount. It is just the worst, given the current state of health and financial crisis in which we find ourselves.
If you know of an employer doing awful coronavirus-related things to its employees, please let me know by contacting me or by leaving a comment below. Iâd like to think that we are better than this, but sadly I know that many are not. And those that arenât should be held accountable.
* Note: Employers cannot dock the pay of exempt employees for hours not worked in a week without jeopardizing the employeeâs exemption, along with the exemption of employees in the same job classification working for the same managers (subject to limited exceptions).
From establishing clear expectations, setting a bigger purpose, building company culture down to fostering accountability, communication will always be at the core . Clearly messaged, trusted communication can either make or break operations and enhance employee engagement.
A study by The Economist Intelligence Unit shows how poor workplace communication is detrimental to an organization. Survey respondents say that communication barriers result in delay or failure to complete projects (44 percent), low morale (31 percent), missed performance goals (25 percent), and lost sales (18 percent). And it can be worse when a crisis such as the coronavirus pandemic hits.Â
Clear communication is crucial to stabilityÂ
Effective communication becomes even more critical during times of crisis and uncertainty.Â
Workforces globally are facing a massive challenge to their business operations with the COVID-19 pandemic. It has prompted businesses to take drastic measures to ensure the safety of staff and customers alike. Depending on the nature of the business, some have ceased operations or function under a skeleton workforce and limited hours, while other organizations have implemented work from home arrangements.Â
Effective communication can still bind your team together.
Given the shifting workplace situation, effective workforce communications are more critical than ever. A crisis, whether a natural disaster, a corporate meltdown or the outbreak of a disease affects employee morale. Effective communication can still bind your team together even during times of uncertainty. Leaders need to do their part to address issues promptly and clearly.Â
Itâs also important to note that social media and online platforms can turn employees into de facto spokespeople for your organization. Whatever they share on their platforms about working for your company will reflect how you communicate with them. Those communications â or lack of a clear, consistent message â can result in a better brand image or sprout into a new crisis.Â
So how can leaders effectively address their staff during a challenging time?Â
Act fast
When a crisis strikes, itâs essential to address employees as soon as possible.
Leaders might not have answers to some of their questions right away. In the case of rapidly developing situations, like the COVID-19 pandemic, this is understandable. But itâs crucial to let employees know that you are looking into the issue and finding solutions to their concerns. What matters is to give them the assurance that the organization is aware of the situation and that the welfare of staff is a priority.
Solidify the message
Consistent messaging is key. While different roles have different concerns, itâs essential to keep the overall message continuous and consistent.Â
Address all of their concerns and frequently asked questions. In the case of the COVID-19 pandemic, some of the questions will revolve around remote work, schedule changes, payment arrangements, leave management and other operational issues.
How you relay the message is equally important as how it is crafted.Â
Empathy is important during a crisis, but what if face-to-face communication is no longer possible?Â
Video conferencing or a recorded video message are viable options, but how do you let staff know about it? Email is a common communication channel for organizations, but itâs best to diversify delivery channels when the situation is urgent. In a 2019 survey by text-messaging platform SlickText of over 1,000 employees across the United States, 43 percent of respondents say that timely notifications and emergency alerts are best sent through SMS and not email. Chat platforms also are useful in this case as they can quickly disseminate information and concisely. Employees are likely to open chat platforms frequently, too.Â
Keep the feedback loop open
Effective communication to staff goes beyond issuing announcements or bulletins. Itâs about keeping communication lines open and soliciting feedback.Â
During a crisis, itâs imperative to open channels for discussions and to raise questions. Chat applications are suitable not just for discussing in groups but in one-on-one correspondence as well. Itâs more immediate than email too and helps pass information more quickly.Â
A good communication process is vital for any organization. Itâs important to equip a workforce with different ways to stay connected.Â
Thanks to technology, employers and staff can still stay connected. But a more effective approach is to keep all necessary communication in one place. A workforce management system provides crucial features to stay on top of operations and team communications.Â
For Workforce.com users there are features on our platform available to keep communication lines open during this difficult time. Chat with your staff, schedule according to operational changes, manage leave, clock in and out remotely, and communicate changes through custom events, among other things.Â
COVID-19 is rapidly changing how businesses operate. We recognize that organizations need an extra helping hand right now. So weâre offering our platform for free to new sign-ups over the coming months. Sign up today and our Workforce Success team will gladly provide a personal, online walkthrough of our platform to help you get started.
Under the Fair Labor Standards Act direction is this guidance:
Pay to Non-Exempt Employees During Business Closures. Under the FLSA, employers are obligated to pay non-exempt employees only for the hours worked, not hours the employee otherwise would have worked if the employerâs business had not closed. If telecommuting or working from home is provided as a reasonable accommodation, the employer must pay non-exempt workers the minimum wage, and at least time and one half the regular rate of pay for overtime hours, for hours telecommuting or working from home. For more information on this topic, please see our previous post on employersâ considerations in response to coronavirus (available here).
Kate Bischoff, a Minneapolis-based employment attorney and HR consultant, suggested that employers first must decide what positions are crucial to maintaining operations.Â
âThen, thereâs really no good way to go about it,â Bischoff said. âFairness would dictate that you furlough/lay off the part-timers first, then the least senior, but thereâs no good way.â
Other considerations include what to do about volunteers, she added, and those who may be in the high-risk groups (over 60 or with pre-existing conditions).
âBut make sure there isnât a disparate impact on any protected group more than others, like married people, minorities and women. Weâre in uncharted waters,â Bischoff said.
According to a spokeswoman for Portland, Oregon-based Think HR, employers and managers may offer paid time off to those employees who are unable to work due to a decrease in business, and they may select whom to offer this PTO to based on seniority, full-time status, employee classification, or job type.
âThere are no hard and fast rules for deciding what groups to include or where to draw the line on tenure,â she said. âEmployers, however, should take care not to violate (or appear to violate) anti-discrimination law, and they may want to consider how their decision will affect employee morale presently and in the future. Employers should also keep in mind that pay requirements may change as new laws are passed in response to the pandemic.â
Insurance and risk-management consultancy Gallagher just released its guidance onCoronavirus Pandemic Preparedness that includes five steps to minimize business disruption and safeguard employees.
âAs pandemics spread it is important now, more than ever, to have an actionable business plan in place to help guide your employees and your business through the uncertainty of pandemics,â the report states. Â
Cleanliness is a given.
If employees must clock in at the workplace,keep thekeyboard or time clock as clean as possible.Â
Employers working with Chicago-based employment law attorney William R. Pokorny are taking a variety of different approaches.
âThose that have some amount of paid time off or paid sick leave, either employer-based or as required by state and local paid sick leave laws, are for now having people use their available leave,â Pokorny said. âSome are extending additional leave â for example, 14 days â specific to the coronavirus situation. The leave is generally paid out based on the employeeâs regularly scheduled work hours, so someone who usually works 20 hours in a week would get 20 hours of sick leave for a week. It varies widely by employer.â
Bischoff added that even employers trying to do the right thing for their hourly workers may not be doing enough.
âTrying to do the right thing is hard at this point,â she said. âEmployers need to do what they can for their people.â
Equity derivatives clearing organization OCC named Carla Dawson as senior vice president and chief human resources officer. She reports to CEOÂ John Davidson. Dawson previously was first vice president, talent management, and was responsible for partnering with leaders across OCC to develop and implement comprehensive talent management and development strategies to support OCCâs business strategy. This included performance management, employee engagement, training and organization development, and change management. Before joining OCC in 2017, Dawson served for nearly 20 years in a series of roles at Driehaus Capital Management LLC, including as managing director, human resources, where she was responsible for developing and executing a human resources strategy in support of the firmâs overall business plan and strategic direction. Her efforts were focused in the areas of talent management, employee relations, communications, organizational development, compensation and benefits, recruitment and regulatory compliance. Previously, Dawson worked for two executive search firms â Heidrick & Struggles and Korn Ferry â as well as the financial services firm of Abaco De Bolsa. Dawson received a bachelorâs degree in industrial relations from Universidad Anahuac in Mexico, and a masterâs degree in organizational development from the Quinlan School of Business at Loyola University in Chicago.Â
Caroline Stockdale
U.S.-headquartered First Solar Inc. named Caroline Stockdale to lead human resources and communications, overseeing a global workforce of 6,500 employees. She replaces Chris Bueter, who is retiring. Stockdale has more than 20 years of operating experience in finance, human resources, business leadership and process excellence, ranging from large global companies to entrepreneurial startups. She most recently served as the CEO for First Perform, a provider of human resources services for a wide variety of customers from the Fortune 100 to cyber startups. She served as chief human resources officer for Medtronic and Warner Music Group among others, and as the senior human resources leader in global divisions of American Express and General Electric. She is also a member of several advisory groups including the Forbes Human Resources Council.
Carla Yudhishthu
HR risk-management company ThinkHR and Mammoth named Carla Yudhishthu as vice president of people operations. Yudhishthu brings more than 20 years of experience in human resources and talent acquisition to the role, where she will drive organizational and leadership development around the companiesâ people strategy. Yudhishthu previously was head of people and talent for BCG Platinion. She has also held leadership positions at Mars, W.L. Gore and Associates, Guidant Corp., and Arthur Andersen.Â
Traunza Adams
Health care technology company OODA Health named Traunza Adams as vice president of people. Adams previously served as chief people officer for Ginger, a provider of on-demand behavioral health coaching, therapy and psychiatry. Prior to Ginger, Adams led people operations at AppDynamics, an application performance management company. She has also held key human resources roles at UniversityNow, Salesforce.com, IBM and other companies. She holds a bachelorâs degree in French and sociology from Stanford University.
Ken Stelzer
Mobile commerce optimization platform Button named Ken Stelzer as chief financial officer. Stelzer will build a strategic finance function at Button to accelerate revenue and profit growth. He brings nearly 20 years of experience in finance and operations at both public and private companies. Most recently, he was the chief financial officer of Zocdoc. Before that he served as CFO of Bankrate and Integreon. He has significant expertise in corporate finance, executing growth initiatives and implementing operational efficiencies to drive profitability. Heâs also overseen M&A transactions valued at more than $6 billion and helped raise more than $4 billion in capital through debt and equity offerings.
Stephanie MardellÂ
Button also named Stephanie Mardell as chief people officer. Mardell will continue evolving Button into a place of admirable talent. She was previously vice president of people at Button. As the companyâs 14th employee, she built its people team from scratch through her meticulous, data-driven approach to people operations, garnering Button recognition as one of the best places to work year over year by Fortune, Entrepreneur and Crainâs. Before joining Button, Mardell spent more than a decade scaling teams during periods of significant growth while establishing operational best practices such as compensation and recognition programs, management training and development, and diversity and inclusion initiatives at Square, Airtime and Isaacson Miller.
Tracy FlynnÂ
HR technology company Eightfold.ai named Tracy Flynn as head of human resources. Flynn joins Eightfold.ai as an experienced global human resources veteran, having spent nine years at Visa as a member of the HR leadership team in roles including global head of talent acquisition, vice president of diversity recruiting, and vice president of executive recruiting. Flynn will now oversee all aspects of global people operations at Eightfold.ai. Flynn is a graduate of the University of California, Berkeley.
Celia PoonÂ
Eightfold.ai also named Celia Poon as chief financial officer. A seasoned finance executive with experience in both public and private fast-growing companies in Silicon Valley, Poon joins Eightfold.ai following a year in which the company opened two new international offices and reached over $55 million in total funding. Poon will lead all financial operations with a focus on building out financial functions. Poon brings broad finance leadership experience to Eightfold.ai, having served as chief financial officer at both Wag Labs Inc. and Highfive. Prior to her roles as CFO, Poon served as VP of finance at Twitter for four years as well as VP of corporate finance at Zynga, and VP of corporate finance and treasury at Yahoo. Poon graduated with an economics degree from the University of California, Los Angeles, and holds MBA degree from the Walter A. Haas School of Business at the University of California, Berkeley.Â
Gunnar KieneÂ
Recruitment marketing company Symphony Talent named Gunnar Kiene as chief creative officer for its U.S. operations. Kiene will be responsible for helping to set the creative vision for the organization and will oversee innovation, engagement and the creative direction for its clients. He will also lead Symphony Talentâs overall product experience. Kiene joins Symphony Talent with more than 20 years of experience in design and advertising. Kiene was executive creative director at Havas where he reinforced design thinking while leading a multidisciplinary team across design, UX and copy. Kiene also led the New York creative department at SapientRazorfish where he worked on accounts such as MasterCard, Lufthansa, Target and Verizon. Kiene began his career with agencies R/GA and AtmosphereBBDO.
That was the overarching message that I took away March 3 as I watched the opening keynote on day one of Ultimate Softwareâs Breakthrough Connections 2020 user conference in the cavernous Wynn Las Vegas and Encore Resort.
Less than two weeks into Ultimateâs merger with workforce management software provider Kronos Inc., the message of positivity was to be expected. And given Ultimateâs deeply ingrained people-first culture, maybe it wasnât such a big ask of employees to believe in the process.
Moving forward seems the simplest to accomplish. As I tried to put myself in the shoes of an Ultimate employee, I couldnât help but think, there isnât much choice but to push ahead. Because try as they might, things will never be the same as they were pre-merger.
I give credit to Ultimateâs Chief Relationship Officer Bill Hicks for addressing the merger head-on during the opening session because frankly, thatâs what most attendees wanted to hear about. Hicks, who has been an âUltipeepâ for 16 years, likened the post-merger atmosphere to that âawkward dating stageâ when you are trying to figure out where the relationship is going.
I think that crystallized as Hicks, who in years past would have handed the microphone to former Ultimate CEO Scott Scherr or outgoing CEO Adam Rogers, instead introduced Ultimateâs new boss, longtime Kronos CEO Aron Ain, to the Sister Sledge tune âWe Are Family.â It probably was asking too much to play George Michaelâs âFaithâ or Devoâs âWhip Itâ (with the lyrics âgo forward, move aheadâ).
Ainâs initial message to the assembled 4,500 combined Ultimate customers and employees preached the move ahead-faith-trust mantra. Ain, who became Kronosâ CEO in 2005, talked about his background, his philosophies and his legacy. âHow I want to be remembered is as a great father, husband and friend, not a CEO,â Ain told the crowd. Touching.
Still, there were a couple of moments during Ainâs 20-minute talk to ease his new customersâ angst that gave me cause to pause.
âYour investment is safe. You made the right choice when you chose Ultimate as your partner,â Ain reassured the assembled Ultimate customers. OK, got it.
Then he asked for one favor. âDon’t listen to people calling you up now,â a clear reference to the inevitable phone calls that come in after a merger or acquisition. Of course there will be concerns on the part of customers after their HR software provider merges. If Ultimate did their jobs properly â and it appears that they have â a request to ignore competitors is unnecessary. It seemed a bit perplexing to me, as if he didnât have the faith and trust in Ultimateâs sales and service teams.
And if we are being honest here, isnât that what any competitor worth its salt is going to do? I mean, this is business.
Why not put forth your faith in your new team and trust that the relationships built over Ultimateâs 30-year history will endure?
Then Ain took aim at pundits. First, who is a pundit in HR technology? Was he lumping analysts, the HR influencer community, bloggers and business writers into one big melting pot of pundits?
I personally did not see blowback written after the mergerâs announcement. Most of the experts and analysts I followed were taking the âwait and seeâ approach in their comments.
Yet Ain opted to tell us, âPundits, give me my strategy. ⌠They are not telling you the truth. They have another agenda, and look out for their best interests,â and added, âWe will communicate honestly, we will tell you whatâs going on. Trust is everything and makes everything else easier.â
He then curiously added, âDonât read all the propaganda about Kronos.â In the story I wrote about the merger on the day it was announced, I stated, âConsidering this is a merger of like organizations, the dreaded âduplication of effortsâ specter hangs heavy. Are layoffs, buyouts, rightsizing or downsizing in the future of this new marriage?â
I also pointed out, âWith the meshing of cultures, perhaps no department or staff member will be downsized. Maybe theyâll reskill portions of their workforce. ⌠For those of us who have been through a merger or acquisition, the reality is people leave. Some leave voluntarily because itâs not a good fit anymore, or theyâre simply laid off. ⌠I hope and pray that the people will retain their jobs and blend into one big, happy, 12,000-employee company with room to grow.â
I still stand by those statements.
The point was a bewildering dig at the media â sorry, the pundits â that we see all too often coming from this countryâs overly emboldened leadership.
Merging Kronites and Ultipeeps: A few uncomfortable chuckles broke out when Ain referenced what post-merger employees might be called. Ultimateâs employees are known as Ultipeeps, while Kronos workers are Kronites. He said he received a suggestion: âKronites and Ultipeeps ⌠Kreeps. I don’t think thatâs such a good idea.âÂ
Coronavirus concerns: Before introducing Ain, Hicks immediately addressed another pressing concern of attendees â the growing threat of coronavirus. He noted that hand sanitizers would be placed throughout the conference â which they indeed were. Hicks also said that even a traditional handshake is under the microscope now, so to speak. How did he plan to greet people? âSome people are huggers, some are fist bumpers. Iâll do whatever you want.â
Clearly the coronavirus is having a huge effect on travel and is taking a toll what is typically a busy time during conference season. SXSW shut down. Oracle took its conference online.
My Monday afternoon flight to Las Vegas was barely half full. I donât ever recall a flight where my row on both sides of the aisle was empty, as was the row in front of me.
And, word came during the conference that SAP Fieldglass canceled its mid-March user conference. This announcement came March 3 via Twitter:
âThe health of our employees, customers, partners and communities is our top priority. Due to concerns surrounding COVID-19, we are cancelling #SAPAribaLive Las Vegas 2020 and look forward to seeing you at our upcoming Ariba Live virtual experience.â
Whatâs in a name: A bit of a surprise that the merged organizations have yet to settle on a new name for the company. Attendees were informed that the new name will be revealed in the next three to six months.
One observer pointed out to me that it could come sooner, possibly during the annual Unleash conference in early May. It is beneficial to have an assembled audience that will include a bevy of analysts and influencers for such an announcement.
Just a guess here that the new name wonât be Kreeps.
Bakersfield Beat: In a week of ups and downs, country singer-songwriter Dwight Yoakamâs performance March 4 was a high point. Yoakam performed for over three hours straight without so much as a sip of water. His show at the Wynn Theater in the Wynn Hotel-Encore complex was not affiliated with the Ultimate conference and came as a welcome diversion as Yoakam took the full house on a 70-plus-year musical journey laced with plenty of anecdotes across Southern Californiaâs rich musical landscape.
Yoakam focused primarily on the legendary Bakersfield Sound that influenced so much of his own music. But his finale was a nod to Las Vegas (no, not a Brandon Flowers tune, although that would have been pretty sweet). âYou canât play Las Vegas and not play this one,â he said as he launched into Elvis Presleyâs âSuspicious Minds.â
Thanks, Josh Cameron. I really, really enjoyed the show.
As I search the online archives of Workforce.com for âJack Welchâ in the wake of his death today at age 84, I have come across literally seven pages worth of stories (about 20 stories on each page) that reference the business titan and former head of General Electric.
Thatâs not surprising, given his strong connection to championing the cause of human resources. In 2009, Welch, who in 2000 was named âManager of the Centuryâ by Fortune, was the opening keynote speaker at the annual Society for Human Resource Management conference in New Orleans. Before the conference opened, my former boss here at Workforce, John Hollon, summarized Jack Welchâs influence on theHR profession in a blog post.
To recognize Welchâs passing today, I wanted to share a portion of Johnâs thoughts on Jack Welch from 2009.Â
Hereâs a question you may want to ponder: How important is Sundayâs SHRM conference general session speaker, former General Electric CEO Jack Welch
Answer: Heâs probably the most relevant and topical HR thinker to address the conference in at least the last five years â maybe the most relevant one ever.
Hereâs just one example, from the BusinessWeek column he writes along with his wife, Suzy Welch: âHR should be every companyâs âkiller app.â What could possibly be more important than who gets hired, developed, promoted, or moved out the door? Business is a game, and as with all games, the team that puts the best people on the field and gets them playing together wins. Itâs that simple.â
Or this, also from a recent BusinessWeek column: âLook, weâve written before about HR and the game-changing role we believe it can â and should â play as the engine of an organizationâs hiring, appraisal, and development processes. Weâve asserted that too many companies relegate HR to the mundane busy-work of newsletters, picnics, and benefits, and weâve made the case that every CEO should elevate his head of HR to the same stature as the CFO. HR matters enormously in good times. It defines you in the bad. ⌠If there was ever a time to underscore the importance of HR, it has arrived.â
A 2005 âLast Wordâ column in Workforce Management put it this way, and itâs still true today: âIn Jack Welchâs world, HR is not only a key part of the business, but HR people in the organization need to have special qualities to help the managers throughout the organization build leaders and careers.â
Some might disagree with this assessment, because Welch is also known for creating the infamous 20-70-10 employee assessment plan (known by its critics as ârank and yankâ), where the top 20 percent of GEâs workforce each year got big raises, while the bottom 10 percent were shown the door.
But as critical as he can be, Welch also appreciates what HR means to a high-performing organization. Welch has said that HR leaders should not be âkingmakers or cops, but big-leaguers, men and women with real stature and credibility.â
He will undoubtedly have a message on Sunday that SHRM conference attendees really need to hear.