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Posted on August 31, 2008June 27, 2018

Expanding Globally Poses Recruiting Challenges

As Owens Corning focuses on continuing to expand globally, acquiring and developing talent at a rapid pace is a mounting challenge.


    “We are growing in Asia, Europe and Russia,” says Joseph High, senior vice president of HR. “Recruiting in those places can be a real challenge.”


    To address the issue, he and his team are making a concerted effort to find out which employees are interested in working abroad. Also, the company has changed its policy to allow employees to take short-term as well as long-term assignments abroad.


    “We are putting the word out that employees don’t have to commit for two years,” High says. “In some places, we have specific projects that might only take a few months.”


    Offering shorter-term assignments allows employees to get a feel for what it would be like to live and work abroad, he says. “And then those employees come back and share their experiences with others.”


    The company also is stepping up its communications about opportunities abroad. One approach is its “Lunches With Leaders,” at which employees are invited to hear the company’s country leaders talk about their businesses.


    “Many employees are resistant to working abroad due to the fear factor,” High says. The language barrier scares some people, he says. “They are afraid that if they get to China, they will say something wrong.” The lunches help to address some of those concerns.


    High also tries to address global issues in his monthly HR town hall meetings by inviting HR executives from different countries to speak.


    A recent town hall meeting focused on the importance of succession planning. The company’s goal is to have two solid candidates for every key leader within the company.


    And the challenges facing HR executives in attaining this goal are similar around the world, High says. To demonstrate that, he invited the HR leader from India to discuss the business challenges of developing talent within the country.


    “This is a North American, Midwestern kind of company, so there is a lot of education that needs to take place,” he says. “And people are really interested in hearing about others’ experiences in other countries.”


    Focusing on specific challenges that HR faces around the world helps HR managers to get a better sense of the global commonalities throughout the organization, High says.


    “It provided everyone with examples of things that worked well and things that failed,” he says. “Everyone could relate to the issues.”


    By highlighting their experiences, High hopes to show HR executives that no matter where in the world they are, the challenges aren’t that different.

Posted on August 29, 2008June 27, 2018

Employers to Offer Benefits to Offset Higher Fuel Prices, New Study Shows

Some employers plan to offer various benefits to employees to alleviate the impact of higher gasoline prices, including a compressed workweek and increased use of telecommuting, a new study has revealed.


Within the next six months, 22 percent of employers plan to offer at least some of their employees the option of a four-day workweek, and 24 percent plan to allow more employees to telecommute, according to Mercer’s 2008 Gas Price Impact SnapShot Survey.


The survey also found that two-thirds of the responding companies plan to increase mileage reimbursement amounts by as much as 20 percent for business-related travel, while 41 percent anticipate raising car-allowance provisions by as much as 20 percent.


Other findings indicate that organizations are considering creative steps to help employees offset gasoline prices, including organizing car-pooling programs and offering company-funded van services from bus and train stations. Some 30 percent of responding companies offer car-pooling programs, and 23 percent plan to implement them in the next six months.


Organizations are also offering prepaid gas cards for perfect attendance and subsidies for public transportation costs. The subsidies are provided by 20 percent of the respondents, and 8 percent plan to offer the option in the next six months, according to the report.


“These options are more practical than raising salaries to cover high gasoline costs because of the implications associated with increasing pay, such as employer taxes, 401(k) matches based on percentage of pay and bonus payouts that are a percentage of pay,” said Mitch Barnes, principal at Mercer in Atlanta.


“Making the most of creative alternatives to help employees save on commuting costs is good management practice, supports attraction and retention concerns, and doesn’t add significantly to corporate expenses,” he said.


Mercer surveyed more than 300 U.S.-based companies last month. The report will be available online in mid-September and can be accessed at www.imercer.com/snapshot.


Filed by Colleen McCarthy of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on August 29, 2008June 27, 2018

2008 Optimas Awards Winners

F or 18 years, the Optimas Awards have recognized workforce management initiatives that directly improve business results. And every year, the judges see themes emerge from the entries they read and the companies that Workforce Management reporters write about and offer as companies worthy of consideration.


    One thing that this year’s winners have in common is resilience, a unique ability to roll with the punches—a characteristic that will likely be put to the test now that all organizations are facing a worsening worldwide economy. 


    Every organization is different, but among the 2008 winners are stories of a hospital fighting its way back from bankruptcy, a technology company battered by turnover, a health care organization challenged to better respond to patient demographics, and a food and facilities management services company that suffered a massive failure in recruitment process outsourcing. In each case, the organization looked to its own most precious resource—its people—for a solution. The hospital involved its staff, from the lowest-level worker to the top executive, in its recovery. The tech company decided that trust was the key to retention and created a pay scheme that gave more income security to workers. The health care organization ramped up its cultural competency to better serve its community—and improved its market share in the process. The food and facilities management services company created its own internal talent team and put the process back on the right footing.

    It’s our pleasure to honor the achievements of the 2008 Optimas Award winners, and to share them with you.


GENERAL EXCELLENCE
Crouse Hospital,
Syracuse, New York
The hospital pulled itself out of bankruptcy and has established itself as a leader in medical services in a highly competitive regional market by using its reorganization not only to fix its finances but also to reinvent its corporate culture.
COMPETITIVE ADVANTAGE
American Express,
New York, New York
Two years ago, American Express began a journey in its U.S. customer care organization to define and deliver a new employee value proposition to drive world-class retention, enhance its talent pipeline and engage each of its customer care professionals so they could deliver extraordinary customer care. The results achieved include highly qualified candidates with enhanced early performance, a significant reduction in attrition and improved customer satisfaction.

ETHICAL PRACTICE
Kaiser Permanente,
Oakland, California
Kaiser Permanente has a 30-year record of exceptional compliance with the Office of Federal Contract Compliance Programs and has been recognized for its diversity management. But the not-for-profit health care organization went further by developing a strategic plan to ensure that diversity was expressed as a fundamental value of its corporate philosophy and behavior and was integrated into every aspect of its business.


FINANCIAL IMPACT
IBM, Armonk, New York
Applying the principles of supply-chain purchasing, IBM saved more than $1 billion with a workforce management initiative that cataloged the skills and experience of every employee worldwide into a searchable database. The end product has helped managers more easily find the IBM employees they need while also allowing the company to more efficiently hire contract workers.
GLOBAL OUTLOOK
ArcelorMittal, Luxembourg
ArcelorMittal is the world’s largest steel company, yet less than 15 percent of its 310,000 employees spoke the official corporate language—English. ArcelorMittal worked with GlobalEnglish, a company that specializes in online English-language learning programs, to implement a companywide English-learning initiative. So far, more than 5,000 employees have participated, with 500 new users added each month, opening avenues for employee global mobility and increasing productivity, thus saving the company more than $8.6 million annually.

INNOVATION
HCL Technologies,
Noida, India
HCL is one of the pioneers of the information-systems revolution in India, but it lagged behind competition in the IT services business, where it was a late entrant. HCL was confronted with the challenge of retaining people in the face of attrition that was much higher than its competition’s. HCL then embarked on its “Employee First” program, introducing several policies with a focus on inclusivity, teleworking, extended leave policies, flextime and a compressed workweek for female employees. All of these make HCL unique in its community and have helped it drop its attrition rate to below 15 percent as of July 2008.


MANAGING CHANGE
U.S. Department of Agriculture, Food Safety and Inspection Service,
Washington
The agency’s expanding role forced it to compete with other federal employers as well as those in the private sector for top talent in such fields as microbiology and risk assessment. But delays and inefficiencies in its HR systems affected the agency’s ability to perform. The department’s overhaul of its approach includes recruitment bonuses in hard-to-fill locations, efforts to address shortages in the veterinary field, a reduction in hiring delays, an increase in teleworking and other alternative work schedules, and efforts to link employee performance with the agency’s mission.
PARTNERSHIP
Metropolitan Development Association of Syracuse and Central New York,
Syracuse, New York
The association was formed by executives from more than 100 local companies in Central New York who realized they needed to stop the outflow of young talent from the area, which is home to 35 colleges and universities and has a workforce 20 percent more educated than the national average. It created the Essential New York Initiative, partnering employers and universities to retain students after graduation. The partnership is producing significant results, with regional employment reaching near-record levels in 2007.
SERVICE
Sodexo,
Gaithersburg, Maryland
Sodexo outsourced its recruitment process, but when that model failed, talent acquisition became the company’s No. 1 executive issue. The organization then created an in-house, best-in-class Talent Acquisition Group, with the goal of transforming Sodexo into a forward-looking recruiting powerhouse and magnet for top talent. As a result, the company’s retention rates for management and hourly workers are above industry norm, while customer satisfaction, client retention, employee referrals, quality of hire and college recruitment have seen significant increases.
VISION
Linn State Technical College, Linn, Missouri
A few years before the start of the energy crisis, Linn State began offering a nuclear technology program to train students for careers in nuclear energy. The two-year degree program attracts high school graduates and prepares them for careers with starting salaries around $55,000 a year in a field that is experiencing a resurgence but does not have enough trained workers to accommodate increasing capacity.

Posted on August 28, 2008June 27, 2018

Going From CEO to HR Minder at Kohl’s

At first blush, the move by retailer Kohl’s to replace chief executive Larry Montgomery and assign him functions including HR looks odd. It seems like a demotion, even, for the longtime executive.


But the recent shift, which included promoting company president Kevin Mansell to CEO, is likely a wise one in keeping with Kohl’s reputation as a talent management leader, observers said.


If anything, the fact that an ex-CEO is supervising HR at a major corporation may be a sign of how important human resource issues are becoming.


“In a lot of ways it makes sense,” said Anne Brower, senior partner at retail consulting firm McMillan Doolittle. “Talent and talent management are critical in a retail organization.”


Kohl’s announced August 21 that Mansell, who has been the retailer’s president since 1999, had assumed the role of CEO. The company said Montgomery, who became CEO in 1999, will remain chairman of the board and “will hold full-time management responsibilities for the organization’s strategic growth and talent management initiatives.”


Kohl’s said Montgomery would continue to manage the human resources, legal and real estate departments.


Montgomery made $2.8 million in total compensation during the company’s 2007 fiscal year. Mansell made $2.3 million.


Menomonee Falls, Wisconsin-based Kohl’s is a department store chain that operates 957 stores in 47 states. Like other retailers, Kohl’s has been wrestling with a sluggish economy. Its net income for the quarter ended August 2 dropped 12 percent, to $236 million, though its net sales rose 3.8 percent, to $3.7 billion.


Brower dismissed the idea that Montgomery’s new role is punishment for poor performance.


Kohl’s looks to be operating well “in a very difficult environment,” she said.


In its press release, Kohl’s portrayed the executive changes as well thought out.


“As one of the fastest-growing department stores in the country, a strategic, long-term succession plan has been integral to Kohl’s success,” the company said. “Mansell’s promotion is the most recent demonstration of this strategy.”


It’s not unusual for a CEO to want to stay involved with a company’s talent, said Jeffrey Cohn, a succession-planning advisor.


When a veteran executive coaches the company’s rising stars, he or she benefits as well. It’s a “way for them to cement their own legacy,” Cohn said.


Montgomery’s HR role is a natural for Kohl’s, he said. “It’s a great company for talent management,” Cohn said. “They spend quite a bit of time mentoring young talent.”


The management shake-up at Kohl’s comes as many companies are tapping business execs to take on HR. A quarter of the Fortune 1,000 have selected their HR chiefs from outside divisions, according to the Center for Effective Organizations, a research group.


Boston University management professor Fred Foulkes said that keeping and developing talent is a challenge for the retail industry. Montgomery’s new role could increase the visibility of the HR function at Kohl’s, he said.


Foulkes also credited Kohl’s for promoting from within to fill its CEO post. That reduces risk and sends the right message to employees moving up the ranks.


“It’s very motivating to the people coming along,” he said.


—Ed Frauenheim



Workforce Management’s online news feed is now available via Twitter.



Posted on August 27, 2008June 27, 2018

Diversity Challenges in Japan

It’s clear by looking at the demographics of Japan’s population that diversity initiatives aren’t just a “nice to have” for Japanese companies. They are a business imperative.

Twenty-two percent of the population in Japan is over the age of 65, according to the Central Intelligence Agency’s World Fact Book. At the same time, Japan’s birthrate is almost half of what it is in the U.S.—with only eight births per 1,000 people.

“Companies don’t have anyone to replace the workers who are retiring,” says Jan Combopiano, vice president and chief knowledge officer at Catalyst, a New York-based nonprofit that focuses on workplace diversity issues. “What many of them are trying to do is make up for decades of not having women in the workforce.”

Retaining key talent, regardless of their gender, has become more important for companies as Japanese workers have become more mobile, and thus more likely to job hop, says Akitsu Ito, a human capital consultant in the Tokyo office of Mercer Japan.

Also, as Nissan has noticed, women in recent years have become a dominant force as consumers, Combopiano says.

While Japanese companies have gotten support from the government, which has declared gender equity as a goal for all employers in the country, the main challenges these firms face is changing the culture of their organizations, consultants say.

Despite laws supporting gender equity, Japan still is a male-dominated culture, Combopiano says.

To address this, companies need to approach diversity initiatives as they would any type of change management program, Ito says.

This means the company’s top management has to be clear with its messages on the importance of diversity, he says.

Internal training needs to be part of these initiatives so that managers and employees throughout the organization understand why diversity is important and how it links to the company’s business results, says Kimiko Inoue, another human capital consultant in Mercer’s Tokyo office.

And it’s not just the male managers who need the training, she says. Women employees often need help understanding their opportunities throughout the organization, since this is a new way of thinking for many of them, she says.

However, to really get women employees understanding the potential for their careers at the company, firms need to have more female role models in top positions, consultants say.

According to a 2007 white paper issued by the Japanese government, female managers make up only 10 percent of all managers at Japanese companies.

“The lack of role models means there are a lot of women who don’t see any possibility for them to be managers,” Combopiano says. “Women are self-selecting out of the management track.”

But as more companies in Japan focus on these issues, progress is being made, consultants say.

“Diversity is a hot issue in Japan right now,” Inoue says. “Many companies have come a long way.”

Posted on August 27, 2008June 27, 2018

Elder Care Programs Take Center Stage as Baby Boomers Age

Five years ago, when Rose Stanley’s 81-year-old mother broke her hip while they were vacationing in San Diego, Stanley did what most people would do: She called 911.


    And then she spent the next several days on the phone with various hospitals and nursing facilities.


    Her mother needed major surgery. And after the operation, she couldn’t travel by plane or car back to her hometown of Chandler, Arizona, for six weeks. This meant that Stanley had to find a nursing home in San Diego where her mother could stay while she recovered. She also needed to find someone to help her mother get around the house when she returned home.


    “It was an extremely stressful time,” Stanley says.


    Stanley reached out to friends and family for help, and asked her supervisor for time off to deal with the situation. But it never occurred to her to call her HR manager and find out if her employer, WorldatWork, could provide assistance.


    “I was the typical employee,” she says. “At no time did I think of calling HR.”


    If Stanley had called HR, she, like many employees elsewhere, would have learned that her company’s employee assistance program offered information on elder care services.


    As people are living longer, many employees in their mid- to late 40s are finding themselves in Stanley’s situation. Many have young children, but they also act as caregivers for their parents.


    Despite this trend, only a small number of employers provide elder care services, experts say. Thirty-nine percent of employers today offer information about elder care services to employees. That’s an improvement over 1998, when 23 percent made such services available, according to the Families and Work Institute.


    Most of the employers offering elder care services do so as part of their employee assistance programs and don’t do enough to promote them, says Kathy O’Brien, senior gerontologist with the MetLife Mature Market Institute.


    However, this is starting to change. An increasing number of employers are recognizing the return on investment in these programs, experts say. Employers such as Baptist Health South Florida, the law firm of Bryan Cave and WorldatWork are launching or enhancing their programs to help employees identify and receive care for parents. Elder care assistance can range from simply providing employees with a referral service to companies contracting out backup care providers to help employees.


    During the first nine months of offering backup care to employees, Baptist Health has seen $65,000 in savings. The cost savings is a direct result of not having to replace employees who need to take days off. It doesn’t take into account productivity losses that have been avoided.


    “Part of the reason that I have so much enthusiasm for this benefit is the fact that it has such a significant hard-dollar ROI,” says Lil LeBlanc, corporate director of work/life effectiveness at Baptist Health South Florida, which launched a backup care program for its 12,000 employees in July 2007. “Very few work/life benefits yield this type of tangible savings.”


    And the business case behind offering elder care programs seems to be clearer every day, experts say.


    Thirty percent of employees expect to have some kind of elder or adult care responsibilities in the next five years, according to a recent survey of 10,000 employees conducted by Summa Associates, a Tempe, Arizona-based provider of backup care and referral services for employers. Twenty-four percent of respondents say they are affected by co-workers’ elder care responsibilities.


    MetLife estimates that productivity lost as a result of employees taking time to deal with elder care issues amounts to $33 billion annually.


    And this is just the beginning, says Carol Sladek, principal global leader of work/life consulting at Hewitt Associates.


    “Most of the employers that we work with are aware that it’s an issue, but haven’t felt the pain yet,” she says.


Not just another work/life benefit
   For several years, Baptist Health South Florida has provided employees with support groups for elder care issues, as well as information on where they could go for backup care. The health care provider introduced a formal backup care program for employees in July 2007, in response to employee demand. During the past few years, employees were increasingly stating in annual work/life surveys that they wanted more information on elder care services.


    Unpredictable absences can be extremely difficult for a health care provider to manage, LeBlanc says. But picking the right provider was also particularly challenging, given the fact that Baptist Health’s own employees are experts in providing care to the sick and disabled.


    “Our employees tend to be more attuned to ways of caregiving and have higher expectations,” she says.


    As a result, Baptist Health took a year to perform due diligence on backup care providers, talking to clients, checking references and visiting providers’ sites. In the end, the company chose Superior, Colorado-based Work Options Group.


    Under Baptist Health’s program, employees can receive up to 100 hours per year of care for loved ones at $4 an hour.


    “That fee covers the cost of one or three dependents,” LeBlanc says. “So it could be for a parent and two kids, for example.”


    From January through June, employees have used 5,052 hours of backup care—32 percent of which was specifically for caring for an adult.


    One of the main challenges employers encounter in offering elder care is making sure employees are aware of the program so they can take advantage of it when they need it, says Stanley, who is the practice leader of professional development at WorldatWork. It’s not like child care, she says, noting that employees are often reluctant to make public the fact that they are caring for a parent.


    WorldatWork, which has 150 employees, is working to consistently send out communications about its elder care services. The Scottsdale, Arizona-based organization has offered elder care information and support through brown-bag lunches and through its EAP for years.


    Two years ago, it contracted with Health Advocate, a Philadelphia-based company that provides employers with a referral network of backup care services, says Karen Rozanoff, benefits manager at WorldatWork. Employees or loved ones can call a number and get assistance on choosing a nursing facility or finding a respite care provider in their area.


    WorldatWork puts communications about the program on its intranet every other week and holds webcasts to further spread the word. The organization also hangs posters in break rooms at times when people might be thinking about their parents, such as Mother’s Day and Father’s Day, Rozanoff says.


    Communications also was a challenge at Baptist Health. Its employees are spread across five hospitals and 10 outpatient centers, LeBlanc says. The biggest hurdle is that employees don’t know that elder care benefits exist, she says. They tend to find out about them just as Stanley did—while in the throes of an elderly parent’s health crisis.


    To counteract that problem, LeBlanc made 34 presentations to employees. “I really felt that the opportunity to hear a personal explanation about the program really helped,” she says.


    Baptist Health also did a number of e-mail blasts and had many discussions with managers so they could discuss the benefit directly with employees, LeBlanc says.


    Communicating the benefits of an elder care program gets easier with time, she says. “The longer we have the program, the more employee testimonials we have,” she says. Word-of-mouth goes a long way with such a program, she says.


    The St. Louis-based law firm of Bryan Cave introduced backup care services in June and also has found communications to be a challenge, says Lori Johnson, chief human resources officer.


    Bryan Cave has signed up with Bright Horizons Family Solutions, a Watertown, Massachusetts-based provider of backup care services. Under the program, the law firm’s 1,882 employees in London and the U.S. have access to 20 days of backup care per dependent annually. Employees pay $4 an hour for the service.


    One challenge with such programs is getting people to sign up before they need backup care. It’s much easier if they pre-register and avoid having to do all the paperwork when they find themselves with a sick child or disabled parent, Johnson says.


    “When you don’t pre-register, you are kind of scrambling,” she says.


Elder care evolution
   As the need for elder care support increases, experts say employers are going to have to think hard about offering flexible work arrangements that complement their backup care programs.


    “Work/life flexibility is an untapped resource for elder care,” says Carol Sladek, global leader of work/life consulting at Hewitt Associates. “Employers can provide a lot with offering flexibility without spending a lot of money.”


    WorldatWork is discussing adding additional paid days off for employees who need to take care of sick children or parents, Rozanoff says.


    To get the full return on investment from elder care programs, companies need to embrace them as part of their culture, rather than just offer them as an ancillary benefit, gerontologist O’Brien says. For example, elder care issues could be a topic for manager training about generational differences in the workplace, she says.


    “This has to be part of the culture so that people are encouraged to use this benefit,” O’Brien says. “Employers can offer this benefit, but unless managers buy into it, it’s worthless.”

Posted on August 26, 2008June 27, 2018

Minnesota Follows the Lead of Bridges to Excellence

Bridges to Excellence’s pay-for-performance initiative in Minnesota served as the inspiration for health care payment reforms enacted this year by the state Legislature.

“The BTE presence helped bring to the forefront the need for payment reform in Minnesota,” says Charles Montreuil, vice president for human resources at Carlson Cos., based in Minnetonka, Minnesota.

Montreuil served on the governor’s health reform task force that wrote the legislation. Carlson and several other members of the Buyers Health Care Action Group, a Minneapolis-based employer coalition, have been participating in Bridges to Excellence for the past four years.

The initiative is “a very important component to the reforms in Minnesota. It’s a real cornerstone,” Montreuil says, adding that it is hard to divorce Bridges to Excellence and the Buyers Health Care Action Group from the Minnesota reforms.

“We looked at it as being transitional. First, let’s start paying for quality of care versus quantity of care. That’s Phase I. Ultimately, we want to create competition in the marketplace; we want providers bidding for the services of employees based on cost, quality and efficiency and creating outcomes,” he says.

In May, Minnesota Gov. Tim Pawlenty signed the Omnibus Health Care Bill, which would permit employers in the state to pay providers based on episodes of care rather than on a fee-for-service basis. Under the new law, for example, employers could pay providers a package price for a year’s worth of care delivered to a diabetic.

The measure also establishes a pay-for-performance program for Medicaid; establishes a certification program for medical homes, under which a single physician coordinates all the care for an individual; gives consumers online access to provider price and quality information; and requires that all prescription orders be made electronically by January 1, 2011.

The components of the legislation have different effective dates, beginning on January 1, 2009 and concluding on January 1, 2011.

Posted on August 26, 2008June 27, 2018

Studies Show Incentives Lower Overall Costs and Improve the Quality of Care

In a study of doctors participating in the employer-led Bridges to Excellence pay-for-performance program in Louisville, Kentucky, and Cincinnati, endocrinologists who were paid incentives had significantly lower average costs—$770 versus $1,140—for treating an episode of diabetes than those who were not paid incentives.


    Meanwhile, in California, physician groups’ clinical performance improved by 2.6 percent between 2005 and 2006, the latest year their performance was assessed, the Integrated Healthcare Association reported in February.


    Bridges to Excellence and the Integrated Healthcare Association are considered the two leading players in the pay-for-performance movement.


    Bridges to Excellence, which was started in 2003 by a group of large employers, operates in 17 states and has paid a total of $12 million in incentives to physicians since its inception.


    The Integrated Healthcare Association, which was created by California’s largest health maintenance organizations, has paid $210 million to physician groups in that state since the program was launched in 2003.


    Charles Montreuil, vice president of human resources at Minnetonka, Minnesota-based Carlson Cos., says Bridges to Excellence’s incentive payments to physicians and clinics treating his company’s employees with diabetes have led to 50 percent reductions in the cost of care for those employees.


    “We’ve seen lower overall costs in diabetes treatment,” he says. “We know on average it costs $8,000 a year for a Type 2 diabetic. That can drop to $4,000 a year by channeling our people to the right practitioners, getting them towards the best outcomes.”


    An analysis of the Bridges to Excellence program also found that when larger incentives are offered, doctors are more willing to participate, Bridges to Excellence CEO Francois de Brantes reported at a recent meeting of the Colorado Business Group on Health in Denver. However, the incentives have to be on par with the extra work that doctors are being asked to do, he says.


    For example, “typically, when the diabetes incentive was $2,000 per physician, we could get 10 percent to participate, but they’re usually those who are already doing well. But when you ask them to change a function,” such as meeting the requirements of Bridges to Excellence’s Physician Office Link, “the reward has to be much greater,” de Brantes says.


    Bridges to Excellence’s Physician Office Link focuses on the medical practice’s use of information systems to enhance quality of patient care. Its requirements range from using evidence-based standards of care to using electronic systems to maintain patient records and enter orders of prescriptions and lab tests.


    Doctors are “not stupid,” he says. “If you want them to spend $30,000 or $40,000 to transform their practice, $5,000 is not enough of an incentive. We need to lay out $30,000 to $40,000 in incentives.”


    A complete assessment of Bridges to Excellence’s first five years is available in a report that can be downloaded at no cost from the organization’s Web site.


    The Integrated Healthcare Association regularly reports its results on its Web site.

Posted on August 26, 2008June 27, 2018

AARP and RetirementJobs.com Announce Partnership

For anyone over 50 years old seeking an encore career or any other kind of job, the task may have gotten a little easier.

AARP, the advocacy group for 50-plus Americans, and RetirementJobs.com, a job board specializing in the working needs of the same demographic, announced a new partnership August 14.

“RetirementJobs.com is our exclusive job search engine on the AARP.com Web site,” says Deborah Russell, AARP’s director of workforce programs. “The relationship came about because AARP’s mission is to keep 50-plus workers in jobs as long as they want, and RetirementJobs.com’s mission is to help [50-plus] workers find jobs.”

When AARP members access it, they get more than a listing of jobs from hundreds of employers. They also benefit from RetirementJobs.com’s efforts to identify employers with an express interest in hiring over-50 workers.

“We have an in-house research group that evaluates employers to see if they’re going out of their way to recruit, hire and retain over-50 employees,” says CEO Tim Driver.

To receive RetirementJobs.com’s Certified Age Friendly Employer designation, employers that apply are evaluated in 33 areas, including training opportunities, health care offerings, elder care and engagement by a company’s leadership. Approximately 50 companies have been certified since the program began in 2006, and Driver expects hundreds more to be certified by summer 2009.

Jobs from certified age-friendly employers are highlighted on the job board. The RetirementJobs.com certification program complements AARP’s Best Employers for Workers Over 50 awards, which recognizes 50 companies each year.

Although RetirementJobs.com doesn’t focus specifically on encore careers, such positions are available on the board.

“Web visitors tell us repeatedly about not only supplementing their income, but giving back to society,” Driver says. “They’re looking for flexibility and a job’s give-back quotient more than at any other time in their lives.”

Driver cites tutoring positions, especially those involving teaching English as a second language, as examples of encore jobs found on the board. The Peace Corps also recruits through RetirementJobs.com.

“We are the single largest source for the Peace Corps in recruiting people over 50,” Driver says. Government agencies and a number of large nonprofits are among current applicants for the age-friendly certification. By using the job board, AARP members and others looking for encore careers will know if nonprofits or other organizations really want over-50 workers.

Age-friendly certified employers that advertise positions on RetirementJobs.com stand to benefit from the new partnership as well.

“It gives them a competitive edge in tapping into a workforce with the skills to do the job and demonstrates that their policies and procedures are friendly to mature workers,” Russell says.

The partnership extends beyond the job board.

“RetirementJobs.com will work with AARP in influencing employer policies and practices to meet the needs of 50-plus workers,” Russell says. “Members say that sometimes age is a barrier. This relationship shows AARP is working to find jobs for mature workers and meeting the needs of our members. It’s also good for the general public because it demonstrates that there are employers who value mature workers.”

Posted on August 25, 2008June 27, 2018

Corporate Governance, Retirement Reforms Seek Home on Democratic Platform

Reformers are licking their chops over the  Democratic National Convention, with high expectations to place on the party’s platform new corporate governance rules such as “say on pay,” higher taxes on hedge funds and private equity shops, and wider pension coverage.


“In many ways this is a unique moment in the corporate governance world,” said Daniel Pedrotty, director of the Office of Investment at the AFL-CIO in Washington. “There is an upbeat, hopeful mood in the investor community.”


While experts don’t expect the platform to clearly lay out a path to reform on each issue, they are confident Sen. Barack Obama, D-Illinois, is on board with their causes.


“He’s proven himself an advocate time and time again” on corporate governance issues, Pedrotty said, referring to Obama, the party’s presumptive nominee.


In addition to formally nominating Obama, delegates to the convention in Denver will adopt the party’s official platform on issues ranging from health care to immigration to foreign policy.


AFL-CIO officials are particularly keen to advance say-on-pay issues, which would give shareholders an annual nonbinding vote on executive compensation, and to provide shareholders access to the corporate proxy to nominate directors. They also want to limit the influence of Wall Street brokers over corporate director elections, preventing them from casting votes of shares they hold but do not own.


Critics say unions are backing these issues to advance labor’s agenda, rather than having the best interests of shareholders in mind.


Although most corporate executives think say on pay is “stupid,” they “expect it to become a reality,” said Geoff Loftus, vice president, Society of Corporate Secretaries and Governance Professionals in New York.


However, he doesn’t see an Obama victory as crucial to bringing about corporate governance changes. If the Democrats win a veto-proof majority in Congress, they would be able to push through changes even if Sen. John McCain, R-Arizona, the presumptive Republican nominee, were elected, he said.


“Right now this is about Congress and how much of a majority the Democrats will roll up,” he said. “If they get over the override threshold, they’ll use (McCain) for batting practice.”


Thomas J. Lehrer, director of public policy at the Washington-based Business Roundtable, disagreed. “Governance issues are not partisan issues,” he said. Changing policies “for the sake of change” undermines the efficiency of the business model, he said.


AFL-CIO officials also want to tax carried interest as regular earnings. This issue, advanced last year by Sens. Max Baucus, D-Montana, and Charles Grassley, R-Iowa, and Rep. Charles Rangel, D-New York, would change taxation on carried interest to an income tax levy, now at 35 percent, instead of the 15 percent capital gains rate. The move would affect all kinds of investment partnerships, including hedge funds, real estate and venture capital firms.


Mark G. Heesen, president of the National Venture Capital Association in Arlington, Virginia, said that boosting taxes on carried interest would be especially harmful to venture capital firms.


“Hitting venture capital with this is not what most people see as a good remedy,” Heesen said. “We believe [taxing carried interest] is not where this country should be going.”


However, he believes that Obama’s economic advisors understand the difference between investing in established companies and investing in startups. Heesen said venture capital could get a pass, even if carried interest taxes are upped.


“The devil is going to be in the details, and we’re not going to see the details until and if Obama becomes the president,” he added.


Meanwhile, Obama’s Web site calls for creating automatic individual retirement accounts in the workplace and expanding an existing tax credit for savers to match 50 percent of the first $1,000 saved by families who earn less than $75,000. Requests to Obama’s campaign staff for comment and further information were not returned.


“I think there is a lot of excitement that finally some significant progress may well be in sight on the retirement savings coverage front,” said J. Mark Iwry, a nonresident senior fellow at the Brookings Institution in Washington.


Iwry and David John, senior research fellow at the Thomas A. Roe Institute for Economic Policy Studies of the Heritage Foundation in Washington, co-authored the proposal, which enjoys bipartisan support. Iwry will speak at the convention as part of a roundtable symposium on retirement issues.


However, Obama’s retirement proposals could also cause concern for large pension plans, said Jan Jacobson, senior counsel, retirement policy, at the American Benefits Council in Washington.


ABC members are mostly plan sponsors of large corporate plans, so mandating an automatic workplace savings program with direct-deposit individual retirement accounts would not likely have a direct effect on them. But Jacobson wondered whether mandating expanded coverage could open the door for other government-required retirement programs.


On his Web site, Obama pledges to “require full disclosure of company pension investments” and states that “the lack of transparency [on pension investments] can make it easier for fund managers to make imprudent or even fraudulent investment decisions.”


“That might raise concerns of plan sponsors, which might see that as a first step of requiring types of investments in defined-benefit plans, or outlawing specific kinds of investments,” Jacobson said. “Are we going to get to the point that DB plans can only invest in what is politically correct at the time?”


Further details on Obama’s proposal were not available. But enhancing retirement security is a big vote-getter.


There’s little doubt that retirement security is an important topic for lower- and middle-income voters, whom Democrats typically draw, said Teresa Ghilarducci, the Bernard L. and Irene Schwartz Chair in Economic Policy Analysis at the New School for Social Research in New York.


She pointed to a poll by Lake Research Partners in Washington that asked workers what would make “the American dream more attainable.” A greater number of workers said preserving Social Security and ensuring all workers have adequate retirement benefits was more important to them than guaranteed health care or raising the minimum wage.


Expanding retirement coverage will come at a cost, and Democrats might look at reining in tax benefits of contributions to employer-sponsored plans and IRAs, which now cost the federal government $139 billion annually in lost taxes, one expert said.


“It is larger than home mortgages or charitable donations,” said Ann Combs, principal and head of the institutional strategic consulting group at Vanguard Group in Valley Forge, Pennsylvania. “I think it will definitely come into play, especially if [Democrats] have new proposals to expand coverage.”


Filed by Drew Carter of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Workforce Management’s online news feed is now available via Twittter


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