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Posted on February 27, 2007June 29, 2023

The Skills That Separate People Who Perform From Those Who Don’t

Ram Charan
Business advisor and author


In his new book, Know-How: The 8 Skills That Separate People Who Perform From Those Who Don’t, Ram Charan defies traditional notions about leadership. It’s no longer enough for leaders to be charismatic and courageous to be successful, he says. Instead, they need to hone their skills to address the needs of their organizations. Charan recently spoke to Workforce Management staff writer Jessica Marquez about his perspective.


Workforce Management: What is new about your perspective on leadership?


Ram Charan: In the past, most people have talked about personality when they talk about leadership. They think that leaders are born. My view is that once you are 22 or 23 years old, you have a basis of who you are, but you don’t have the skills yet to be a leader. Many leaders today are great communicators and are charismatic, but that’s not enough. If they can’t perform, they are out. To learn how to perform as a leader, they need to practice through real-life experiences.


WM: How does one “practice” leadership skills?


Charan: You practice the ability to handle diverse experiences. You move from one business to the other and develop your skills as you move along. You learn how to work in a team and how to create change.


WM: In your book, you talk about the importance of leaders understanding social systems. Why is that so important?


Charan: Most people just talk about organization and structure and designing incentive systems. Now, you can have those and they become a staple within the organizations. But the work gets done from a meshing of the parts of the organization. When people work together, that is by design a social system. Leaders need to understand these relationships and how people communicate—they need to understand the social systems. If you don’t know how they work, you can’t be successful. That’s new to the 21st century. That’s why Peter Drucker didn’t pick up on it. For him, a leader was about command and control.


WM: But in today’s environment, which focuses so much on real-time results, do CEOs really have the luxury of time to do all of that?


Charan: It’s like understanding a trade. If you have the know-how and have learned the tools to really dig into a social system, it shouldn’t take too long. Terry Semel [chairman and CEO of Yahoo] changed the social system, and now he is doing it again.


WM: So how long should CEOs give themselves to understand the social systems of the organization?


Charan: You have to diagnose the social systems in the first 90 days, and then you have to make the changes.


Workforce Management, February 12, 2007, p. 8 — Subscribe Now!

Posted on February 27, 2007July 10, 2018

Mixed Outlook For Genetics, Card-Check Bills

The fates of the two workers’ rights bills that passed a House committee this month could be headed in opposite directions.

The Genetic Information Non-Discrimination Act sailed through the House Education and Labor Committee in about 30 minutes. A Senate counterpart committee approved a companion bill on January 31.


In contrast, the bill that would make workplace organizing easier, the Employee Free Choice Act, took more than seven hours and has drawn a presidential veto threat.


The bill would allow the formation of a union if a majority of workers sign cards authorizing one. Under current law, the so-called card-check process can only be used if an employer agrees to it. A company can insist on a secret ballot.


“It should be the employees’ choice, not employers’, and that’s really what the heart of this bill is all about,” said Rep. George Miller, D-California and chairman of the House labor committee.


Tensions emerged as Democrats defeated, mostly on party-line votes, a dozen GOP amendments—including one that would have mandated that union votes occur only by secret ballot.


Cingular Wireless, Costco, Harley-Davidson and Kaiser Permanente have allowed card-check union formation. Cingular says it has increased employee engagement.


During the hearing, Democrats asserted that unionized workers have higher wages and benefits. If more Americans could join unions, they asserted, it would bolster the middle class. They said secret ballot voting fosters coercion by employers.


Republicans countered that the card-check system would subject workers to intimidation from unions because they would be forced to make their preference known to their co-workers. In addition, they said union politics is driving the Democrats.


“Supporters of this bill see the card check as a silver bullet through which organized labor will reverse their recently sagging fortunes, because relying on the time-honored private votes of workers hasn’t given them the results they’ve sought to maintain power,” says Rep. Howard “Buck” McKeon, ranking Republican on the labor committee.


About 12 percent of the workforce is unionized, a proportion that has been steadily declining.


The bill, which already has 234 co-sponsors, is likely to be approved by the House. Its fate in the Senate, where it has to garner 60 votes in order to avoid a filibuster, is much more uncertain.


Washington that the bill violates workers’ rights to a secret ballot. Business interests also are mounting a fierce campaign to defeat the legislation.


The genetics bill, meanwhile, is cruising along with bipartisan comity. In the House hearing, Republicans praised Democrats for working with them to ensure the bill cannot be used as a federal mandate for insurers and employers to cover genetic-related conditions. Other changes targeted the definition of a family member and record-keeping procedures.


Employer groups have said that the lack of genetic discrimination suits under current state laws demonstrates there is no need for a federal bill. But there is broad support on Capitol Hill for research.


“There is a clear need for us to pass a law to protect genetic information from discriminatory uses,” Miller said. “We all suffer if fears of lost jobs or health insurance stifle these scientific advances.”


—Mark Schoeff Jr.

Posted on February 26, 2007July 10, 2018

Judge Says Cash Balance Plans Not Age Discriminatory

Cash balance pension plans do not discriminate against older employees, a federal judge has ruled.

Judge E. Richard Webber of the U. S. District Court of the Eastern District of Missouri last week dismissed age discrimination charges against U.S. Bancorp of Minneapolis, noting that the benefit and interest credits provided to plan participants did not discriminate on the basis of age.


Judge Webber rejected plaintiffs’ argument that the plans are age discriminatory because the same benefit provided to an older employee as a younger employee will result in a smaller retirement annuity to an older employee.


That result, Judge Webber ruled, is not because of age discrimination, but occurs because of the “time value of money, a characteristic correlated with age, but not age itself.”


The cash balance plan involved in the litigation was set up in 1998 by Mercantile Bank of St. Louis, which was later acquired by Firstar Corp. Firstar later bought the majority of stock of U.S. Bancorp, with U.S. Bancorp being the surviving entity of the merger.


The ruling is the first since a second circuit court-the 3rd U.S. Circuit Court of Appeals-ruled last month that the plans are not age discriminatory. The 7th U.S. Circuit Court of Appeals, in a widely publicized decision, ruled last year that cash balance plans in general and IBM Corp.’s in particular, are not age discriminatory.


Of the seven lower court rulings since the IBM decision, five have rejected age discrimination charges, while two courts have said the plans violate age discrimination law.


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on February 26, 2007July 10, 2018

Can a Nap at Work Save Your Life

Harvard University gave workers the excuse they were looking for last week when they said a nap after lunch may reduce the risk of heart attack.


But time-conscious managers may have a rebuttal: Though much forgotten in the press, another Harvard study, published several years earlier, made its own news splash by arguing that naps are associated with a higher incidence of heart attack.


So, who to believe?


The most recent article, published in the Archives of Internal Medicine, studied 23,000 Greek men and women ages 20 to 86 for an average of six years. After controlling for differences in body size, diet, exercise and smoking, subjects who napped three times a week for half an hour had a 37 percent lower death rate from heart disease. The effect on men was more pronounced than on women.


The conclusion seemed to contradict a study published in 2000 in the Journal of Epidemiology by a researcher in the department of nutrition at Harvard’s School of Public Health. That study compared approximately 500 Costa Ricans who had survived heart attacks with a nearly equal number of healthy people. Those who suffered heart attacks were 50 percent more likely to have taken a daily siesta.


Parsing the two contradictory conclusions, Martin Moore-Ede, a physiologist and the chief executive of Circadian Technologies, a research firm specializing in managing shift workforces, says: “Napping is a great solution if you are energetic and active and if you have adequate exercise during the day, but it’s not a great solution if you are a couch potato.”


Moore-Ede says the research done on the Greek workers was more thorough, especially since it followed them over time rather than retroactively determining what caused the Costa Rican subjects’ heart attacks.


Whether or not napping reduces the risk of heart attack, during the past decade some employers have started promoting napping. This trend will only accelerate, Moore-Ede says, as the number of people with flexible work schedules who work on the road and who work outside the normal 9-to-5 hours increases. Nearly one in four workers, or 24 million people, fall into this category.


“If you have an active lifestyle, whether you’re running through airports or digging ditches, then napping is a good solution,” Moore-Ede says. “Sleep deprivation itself is associated with cardiovascular risk.”


Jeremy Smerd


 


 

Posted on February 23, 2007July 10, 2018

Dear Workforce What Is the Distinction Between Coaching and Mentoring

Dear Confused:



It is easy to become confused about coaching and mentoring. To add to the confusion, it is important to distinguish between coaching as a management skill set and professional coaching performed by a professional outside your company.

The similarities have more to do with the required skill sets that mentoring and coaching share. Both the mentor and coach use strong interpersonal and communication skills as well as intentional coaching skills. The objectives of the mentor and coach can be similar–to increase personal work-related effectiveness within the work/organizational culture. Both are organizational resources that can greatly enhance one’s professional and personal learning and development and achievement of goals.

Characteristic Mentoring
Coaching
1. Primary location Internal Internal or external
2. Primary role Senior-level in authority or expertise within the company. Longer-than- average tenure in company. Can be on technical track with an interest in coaching or a management track with an interest in helping develop talent for his/her organization. Professional coach with specific training applicable to professional coaching. Certified in the use of work-related personal assessment tools.
3. Experience and knowledge required  Broad organizational perspective around the company’s structure, policies, processes, politics
 Similar future career direction

 Has broad, multiple work experiences related to person’s interests
 Past successful business experience
 Formal education/experience in organizational psychology and coaching

 Certified in the use of personal work-related assessments (behavioral, personal values, soft skills, job competencies, etc.)
4. Goals  Support success and advancement
Support and advise on career development

 Serve as a personal advocate

 Advise the person on best ways to maneuver the political waters of an organization and open doors

 Provide advice about strategies for best way to accomplish work goals
 Support success and advancement
 Create greater self-awareness around strengths and weaknesses and opportunities for learning and development

 Help people identify personal goals that support work goals

 Maintain focus on desired areas/objectives

 Help people accomplish personal development faster than if left on their own
5. Methods  One-on-one face-to-face meetings, lunch or dinners
 Casual setting

 Knowledge sharing

 Tells, advises, suggests, instructs
 One-on-one phone or face-to-face meetings
More formal structure with informal conversational tone

 Measurable goals established

 Personal talent/personality/soft-skill assessments

 Periodic meetings with boss

 Use of provocative questions to expand the person’s universe
6. Involvement of others May be directed to others to accomplish work Typically includes boss of person being coached to articulate work-related goals and key accountabilities
7. Scope Organizational and career maneuvering within context of current job and future potential Personal and professional development within context of current job and future potential

Using a combination of mentoring and coaching can be exponentially more rewarding to both the individual and to the organization over using just one or the other strategy. For more on reasons for employing a coach, please Why Employ a Personal Coach.

For more on mentoring, please seeMentoring Matters.

SOURCE: Carl Nielson, principal, the Nielson Group, Dallas, April 24, 2006.

LEARN MORE: An outline of eight steps in the coaching process is found here. Also, some companies are finding that group mentoring can be a cost-effective alternative to the old one-on-one style.

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

Ask a Question
Dear Workforce Newsletter
Posted on February 23, 2007July 10, 2018

Dear Workforce We’re Getting Resistance From Employees About Our Rotational Assignments for Managers. How Do We Win The

Dear Defusing:



Communicate, communicate and communicate. Explain to the employees in each department that your company has instituted a rotation development program, and it’s here to stay on behalf of improving overall management today and into the future. Recommend to your employees that this is a time and a chance for the department to exert influence over the future leaders of the company. Resenting the manager and not being cooperative can really impair the current business as well as future plans.

Most of the work that should be done, though, is with the managers themselves as they attempt to lead these various departments. Managers need to be open and ask more questions, rather than making quick decisions. They should be reaching out to employees instead of trying to impress them with their managerial skills.

In essence, managers should express the fact that they’re learning from the employees what the key challenges are for each department, as well as how those departments could be properly supported with resources in the future.

By communicating these intentions and expectations, the rotating managers and the human resources department can play a major role in smoothing out the concerns of employees in various departments.

If possible, it should be explained to the employees what the time frames are for the rotation and what is expected of the employees during that rotation. An idea would be to have regular focus groups meet at various times during the rotation assignments to see how people are feeling about the performance of the manager. These would be something akin to a 360-degree feedback experience (which the mangers surely could utilize), while giving employees in the department a sense that their concerns are being heard and heeded.

On a final note: Provide managers who are actually in the rotation program with coaching about how to conduct themselves, so that they don’t attempt to manage the department (as compared to leading the department during the rotation program). One lesson that most leaders learn: It is the employees of the department who actually operate and, in most cases, manage the department. Leaders help set the vision, the pace and the expectations, but employees achieve the results. Of course, this should be one of the learning experiences for the rotation manager.

All in all, it is the managers who must make a trust relationship grow between the employees and themselves. In fact, it is one of the objectives of the rotation assignments to see whether managers can, in fact, create this trusting atmosphere.

SOURCE: William J. Morin, chairman and CEO,WJM Associates Inc., New York City, April 26, 2006.

LEARN MORE: Please read the role human resources should play in executive development.

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

Ask a Question
Dear Workforce Newsletter
Posted on February 23, 2007July 10, 2018

Hewlett-Packard Phasing Out Pension Plan

Hewlett-Packard Co. is phasing out its defined-benefit pension plan, completing the process it started a year ago when it closed the plan to new and younger employees.

After December 31, plan participants no longer will earn benefits in the DB plan. Instead, they will be eligible for an enhanced 401(k) plan match.


HP’s action is the second step the Palo Alto, California-based technology giant has made to wind down the plan. In January 2006, HP closed its pension plan to new and younger employees and offered those individuals a beefed-up 401(k) plan in which the company matches 100 percent of employees’ 401(k) salary deferrals up to 6 percent of pay.


Employees whose combined age and service were at least 62 remained in the DB plan and a 401(k) plan in which HP matches 100 percent of employees’ salary deferrals up to the first 3 percent of pay and 50 percent of employees’ pretax contributions on the next 2 percent of pay. Starting January 1, 2008, those individuals will move to the enhanced 401(k) plan.


HP said the changes are “consistent with actions being taken by many of HP’s industry peers and other large corporations.”


Other companies that have deployed a two-step approach to phase out their defined-benefit plans include IBM Corp. of Armonk, New York; NCR Corp. of Dayton, Ohio; and Sears Holding Corp. of Hoffman Estates, Illinois.


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on February 23, 2007July 10, 2018

Pfizer Overhauls Talent Strategy

Pfizer has long been praised by HR experts and academics for its commitment to training and developing employees. But con- fronted with an increasingly challenging market, the New York-based pharmaceutical company is changing its approach.


Even before January’s announcement that it was laying off 10,000 of its 100,000 employees worldwide, Pfizer had begun to shift its hiring and employee development strategy, says Chris Altizer, vice president of global leadership and talent development.


In the past, “Pfizer was not focused on managing the external environment,” he says. The com­pany would plan for what kind of talent it believed it would need dur­ing the next 10 years and develop that talent from within.


But that’s not an option for Pfizer and other pharmaceutical companies anymore, experts say.


Not only are such companies subject to the expiration of a popular drug’s patent, which opens the market to ge­neric competition, but smaller bio­technology firms are able to produce new drugs more quickly, making it crucial for big pharmaceutical companies to have a continuous stream of promising drugs in the pipeline.


Wharton School of the University of Pennsylvania. “But in this case, the pipeline of drugs that companies must develop is difficult to anticipate.”


To address this, Pfizer, whose drugs include Lipitor, is now focusing more on hiring and developing employees who can jump from one position to the next, Altizer says.


In recruiting, this means Pfizer, which used to hire candidates according to job descriptions, now evaluates what competencies the candidate demonstrates, he says.


Previously, if Pfizer was looking to hire a country manager, “the interview would be, ‘Tell me about your experience in your past jobs,’ ” Altizer says. “Now, I’m going to be more explicit about what I’m looking for. I want to know if they have the skills to manage a product launch.”


Similarly, Pfizer is focusing on developing employees based on competencies rather than grooming them for a specific role, he says.


“You can’t train someone who isn’t a chemist to be one,” Altizer says. “But you can take someone with project management skills and move them from manufacturing to research.”


This kind of competency-based training is necessary for Pfizer to get through the tough times it is confronted with and create a truly flexible workforce, says Bill Craib, vice president at the Human Capital Institute, an international professional association dedicated to strategic talent management.


“They need a person who can switch from working on a heart disease product to one that helps people stop smoking,” he says.


Ultimately, however, Pfizer may need to alter its hiring strategy even more to hire talent as it needs it, Cappelli says.


By having a “just in time” approach to talent, Pfizer can be flexible and respond immediately to market changes, he says.


But Altizer says that’s not part of Pfi­zer’s plans right now.


“We believe this approach to employee development will allow us to reach out to someone within our workforce at a specific time as we need it,” he says. If Pfizer finds itself in a position where it has to hire people from outside, then the company’s training program clearly isn’t doing its job, he says.


—Jessica Marquez

Posted on February 23, 2007July 10, 2018

Demon Speed The Danger of Hidden Methamphetamine Use

The 30-something Oregon woman was highly sought after, ranked by an interviewing panel among the top 10 employees hired for a new shift at the forest products plant.


    She passed the pre-employment drug screening and assumed her assembly line position. Nine months later, her supervisors were far less enthralled.


    “She was hard to get along with,” says Jerry Gjesvold, manager of employer services at Serenity Lane Treatment Center, a residential drug facility in Eugene, Oregon. “She was moody and snapped at co-workers and her supervisor, and didn’t take directions well.”


    Finally the woman’s supervisors asked for a drug test, citing “for-cause” or reasonable suspicion of drug use. The results: overwhelmingly positive for methamphetamine.


    Was she hooked when she landed the job offer? Gjesvold, whose facility handled the woman’s treatment assessment, says the high levels of meth in her system point to a chronic addition. Even more so, he says, her story illustrates how the stimulating drug can be driving some seemingly—at first—outstanding employees. And identification can be surprisingly thorny.


    A recent analysis by national laboratory company Quest Diagnostics provided some encouraging news on the meth front, with results showing that the percentage of U.S. workers testing positive for amphetamines, including meth, declined 10 percent during the first five months of 2006 compared with the same stretch in 2005, reaching just 0.43 percent of all drug tests.


    But not all data is so glowing. Federal statistics show that meth treatment admissions are on the rise. Meanwhile, drug intervention experts worry that several factors muddy a clear view of employee usage. Meth-infused energy and productivity can mirror ideal employee behavior, rather than addiction, they say.


    And drug testing is not foolproof. The stimulant remains in the body only a few days. Further, employers must confront the employee in the first place, a stressful and not always desired option in fields or regions of the country with a tightening job market.


    “Some employers will say, ‘I don’t care how the hell they get the job done. I just need the job done,’ ” says Tim Dimoff, president of SACS Consulting, an Akron, Ohio-based firm that specializes in high-risk business issues, including drug use and workplace violence. “The employer initially turns their head because they don’t see any whirlwind effects—yet.”


    The whirlwind effect, as Dimoff dubs it, occurs when productivity degenerates into a hurried and sloppy working style.


    “The right word really would be careless,” he says. “[Meth] stimulates them in such a way that they will be reckless.”


    A super-ego, “Superman” persona also can create havoc. Safety, legal and customer service consequences may not be far behind, he says.


    An analysis published in 2004 by the University of Arkansas’ Sam M. Walton College of Business identified six ways that meth can cost employers, including increased absenteeism, increased employee theft and lost productivity. The drug’s economic impact on employers in just Benton County, they found, was slightly more than $21 million annually, including $47,500 for every one of the estimated 446 meth-using employees, with 50 percent of the cost due to absenteeism and another 32 percent due to lost productivity.


Stimulating effects
   From 2002 to 2004, the number of meth users seeking treatment increased 25 percent, according to data released in April 2006 by the Substance Abuse & Mental Health Services Administration, the most recent available. Nationally, 8 percent of treatment admissions were due to meth addiction.


    Hot spots persist, according to federal officials and other data sources. In seven states, including Arkansas, California and Nevada, at least 20 percent of treatment admissions were due to methamphetamine, according to the federal substance abuse administration data. In a survey of the Portland Human Resource Management Association published in 2005, methamphetamine was ranked as the top substance abuse concern by 22 percent of 141 members surveyed, with only alcohol garnering a greater response (44 percent).


    Methamphetamine is far cheaper than cocaine but has a much longer high, making it attractive to all economic levels. Users may smoke the stimulant, swallow it in pill form or inject it. Early on, users report stratospheric highs in emotion and energy. Over time, those highs can become overshadowed by intense lows and long-term brain effects including paranoia, aggressiveness and hallucinations.


    As of November 2006, 42 states had passed some type of measure restricting over-the-counter sales of pseudoephedrine, a key component in methamphetamine’s manufacture, according to the National Alliance for Model State Drug Laws, a nonprofit coalition based in Alexandria, Virginia. Drug traffickers from Mexico and elsewhere, though, are starting to fill the supply gap created by the shutdown of homegrown labs, drug intervention experts say.


    The stimulant is not only seductive for blue-collar employees pulling double shifts, but also for go-go professional types. A late November 2006 bust of nine meth labs in the New York City area rounded up 10 defendants, including a corporate executive, an automobile mechanic and a university teaching assistant.


    “We see a lot of people in the financial world, because it’s so competitive,” says Jim Geckler, director of professional services at Addiction Intervention Resources, a consulting company based in St. Paul, Minnesota. He also sees it in “real estate markets where you have to be self-motivated.” Lawyers who use meth, he adds, are striving to cram in more billable hours.


    “We do see more of it [meth use], and I don’t know if it’s because of heightened awareness or more use,” he says.


Identifying signs
   At first, a meth user can seem like a dream employee, Geckler says. “At the beginning, you’re able to focus greatly” and can multitask, he says. “You accomplish a lot because of the energy. People work longer hours. Your appearance and demeanor improve—people look better when they start using meth. You lose a little weight. You’re in a good mood all of the time.”


    He speaks from personal experience. When Geckler first sampled meth in his 20s, his sales career soared. He assumed regional sales responsibilities. “I would be able to party all night and go to work,” he says. “I felt amazing. My production went up. My career improved. My relationship with co-workers improved.”


    That is, until meth’s hangover kicked in. Geckler developed paranoia. “I was convinced people were talking about me—I could hear voices.” He started taking more days off.


    Now drug free for more than 15 years, Geckler advises supervisors to pay attention to abrupt changes in behavior. Ray Pohl, a shift supervisor for a Georgia Pacific plant in Wauna, Oregon, agrees, ticking off meth warning signs that he’s witnessed. “Absenteeism. Losing a lot of weight. Being paranoid. Always thinking someone is looking over their shoulder. Talking fast. Not completing sentences.”


    Dimoff recalled one situation in which a delivery person’s efficient style started unraveling. Complaints from customers picked up.


    “The guy would load up his dolly,” Dimoff says. “He would get in there really quick and throw the boxes around. He wasn’t cordial to the client.”


    In another case, a computer programmer felt stretched to the limit while juggling several products with pressing deadlines. When counseling employers in how to head off meth problems, Dimoff advises them to keep a lid on unreasonable hours, making sure they don’t persist week after week.


    “In order for employees to do the impossible, they are going to need a little extra help,” Dimoff says. “And meth is one of the first things they are going to run to today.”


Intervention strategies
   Where meth is concerned, scheduled drug testing may only serve as a partial deterrent, given its limited detection window, says Mike Lehman, general manager at Cardinal Services, which provides staffing services in Oregon.


    “We don’t think we are seeing as much meth [in drug test results] as probably is out there,” he says.


    The woman on the assembly line, for example, likely only cleaned up for the interviewing process, Serenity Lane’s Gjesvold says.


    “She had probably used that day,” he says, based on her test results. “If not, no later than the night before.”


    About a year ago, the Georgia Pacific plant where Pohl works started performing random drug tests. Even with his skill in detecting meth use, Pohl says he’s been surprised by some of the employee results that came back positive.


    When Pohl does approach employees about drug testing, he emphasizes safety concerns—to themselves and fellow employees.


    “These people are working around equipment where, if they put their hand or part of their body in the wrong place, it could injure or even kill them,” he says.


    Still, do some employers prefer to adopt a “Don’t ask, don’t tell” stance? Gjesvold, clearly frustrated, believes that competitive staffing concerns are eroding drug testing interest, despite Oregon’s worries about methamphetamine.


    So does Lehman.


    “We have encountered clients who have come to us and said, ‘I want to stop drug testing,’ ” he says. “They say, ‘I’m losing too many applicants. I can’t fill these spots.’ “


    A 2006 survey of Oregon businesses conducted for Workdrugfree, an Oregon group that assists businesses to become drug free, found that 25 percent of 1,366 employers surveyed conducted random drug testing. Thirty-one percent did pre-employment screening and 42 percent tested employees based on for-cause or reasonable suspicion.


    Oregon officials also have gotten involved, taking steps to squelch the drug’s local manufacture. In 2004, the governor enacted an emergency rule to put all pseudoephedrine products behind the pharmacy counter. In mid-2006, the state began requiring a prescription as well.


    Grant Beardsley, manager of drug testing services at Oregon Medical Laboratories, says that recent employee testing results indicate some progress. Just 0.7 percent of employees tested positive for methamphetamine during the first 11 months of 2006, according to the results from about 40,000 employee tests. That represents a decline from 1 percent in 2005, the first drop in recent memory, Beardsley says.

More information:
University of Arkansas study, “The Economic Impact of Methamphetamine Use in Benton, Arkansas“

12 Steps Every Company Can Take to Deal With Addicted Employees

Posted on February 21, 2007July 10, 2018

Survey Slow-Starting Roth 401(k)s Could Pick Up

U.S. employers plan to offer Roth 401(k) savings plans, only a small percentage of employees now in the plans are making contributions, according to a new survey.


Currently, just 22.4 percent of employers have added a Roth feature to their 401(k) plans, the Profit Sharing/401(k) Council of America found in its survey of 429 employers. Such contributions are made on an after-tax basis, but the contributions and investment income are not taxed when distributed so long as certain conditions are met.


Roth 401(k) plans were authorized under a 2001 law that allowed companies to offer them starting January 1, 2006, but also barred new contributions after December 31, 2010. Initially, companies held back on adding the feature until Congress made the plans permanent, which legislators did last year as part of a broader pension funding reform bill.


Now, though, 61 percent of employers that do not offer a Roth feature in their 401(k) plans are either considering or are planning to do so, according to the Chicago-based Profit Sharing/401(k) Council of America.


Among those employers with a Roth feature in their 401(k) plans, just 7.9 percent of eligible employees made Roth contributions in 2006—the first year such contributions were allowed.


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Related article:


Few Employers Set to Launch Roth 401(k)s

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