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Posted on December 26, 2001July 10, 2018

Dear Workforce How Do I Retain Workers Whose Salaries Are Low And Who Don’t Qualify For Benefits

Q Dear Workforce:


Most of my employees are dissatisfied because of low salaries. In addition,leave and medical benefits are provided to a limited number of employees. Whatcan I do to retain them and keep them content?


– Needing to be resourceful, supervisor, services, Hyderabad, India.


 A Dear Resourceful:


In today’s world, you must be competitive in your compensation package toattract and hold quality employees. “Package” refers to pay, whichcannot be too far off the mark. If you need to keep salaries low, can you offerbonuses for achieving certain specific goals? Tie the bonuses to generatingadditional profit: This tells employees “you help the company make more,we’ll pay you proportionately.”


“Package” also refers to a wide variety of creative benefits: timeoff, etc., to make the employees’ lives easier. This might include flexibleworking hours, free lunch, or soft drinks.


Ask what it would take to make it worthwhile to work for you? Listen to theanswers. Then do what you can. Consider ways the haves can help the have-nots.


SOURCE: Roger Herman, The HermanGroup, Greensboro, North Carolina, author of Keeping Good People, July 20, 2001.


LEARN MORE: Read an article describing how NuCor Corp. uses weeklybonuses to compensate for paying lower base wages.


The information contained in thisarticle is intended to provide useful information on the topic covered, butshould not be construed as legal advice or a legal opinion. Also remember thatstate laws may differ from the federal law.


Ask a Question


Dear Workforce Newsletter


Posted on December 19, 2001July 10, 2018

Dear Workforce How Can I Help Employees Get Feedback Following Interviews

QDear Workforce:


I am coaching our laid-off employees in the area of job hunting. The questionthese people ask most often is how to get honest feedback following aninterview. HR rarely provides this to candidates for a variety of reasons. Doyou have any ideas that I could share with these employees?


– Trying to help, Director of HR, software/systems, Chicago, Illinois.


A Dear Trying to Help:


Interviews are a mutual exploration to discover if there is a fit betweenwhat you want and what your potential employer wants. They are a series ofconversations in which you have the opportunity to gain an understanding of thecompany values, culture, and business issues you can handle for them. Thecompany, on the other hand, can gain insight into the benefits you could bringand whether you would fit in their culture.


Following an interview, people are often interested to know immediately:”What did they think of me?” One effective way to get honest feedbackfrom an interviewer is to ask for it. At the end of an interview, your closingquestion should be: “Do you have any concerns or hesitations about myability to do this job successfully?”


Because this is a question that most people don’t think to ask, you can catchthe interviewer off guard and get a very honest response. If they do haveconcerns, you have the opportunity to refute them on the spot and relieve anydoubt immediately, or you can address them in your follow-up letter (whichshould always be sent within 48 hours of the interview). If the interviewerdoesn’t have any concerns, you can say “Great, then what are the nextsteps?”


This type of discourse with the interviewer puts you in a position ofconfidence, one that assures the interviewer you understand that an interview isjust a conversation in which you are both searching for the right fit.


Another effective way to get information from an interviewer, if you havenetworked into the meeting or gone through a search firm, is to ask yourthird-party connection if they have received any feedback about you. Theinterviewer might hesitate to tell you anything directly, but may be moreinclined to tell the person who connected you.


If you went through the interviewing process and didn’t get hired for theposition, you can call the interviewer and ask directly what you could have donebetter. Or you can write a letter thanking the interviewer for taking time withyou, and stressing that you value his or her input on how you could havepresented better and improved your interview technique. Then say that you willcall in the next week for recommendations.


Post-interview analysis is important in assessing your need for furtherpractice or training. Not only should you seek advice from the interviewer, butalso you should be honest with yourself and ask yourself what you feel went welland what you would do differently or could improve on. It is possible to investmonths in interview preparation and sacrifice the job in the interview. Learnfrom each experience and use your cumulative learning to continuously improve your interviewing skills.


SOURCE: Leslie Bonagura, managing consultant, Drake Beam Morin, Stamford,Connecticut, July 24, 2001.


LEARN MORE: See “What to Do if You’re Out of aJob“


The information contained in thisarticle is intended to provide useful information on the topic covered, butshould not be construed as legal advice or a legal opinion. Also remember thatstate laws may differ from the federal law.

Ask a Question

Dear Workforce Newsletter

Posted on December 14, 2001July 10, 2018

A Hiring Process Spun Out of Control

This is a true story and almost stranger than fiction. A nightmare of the first order for the human resources professional for two reasons: For more than twenty years I have been helping companies through large-scale organizational change, mergers, acquisitions, and downsizing.


Consequently, I think I have sensitivity for the financial and legal landmines organizations in transition face. I usually know something is wrong long before it blows up in my face. Secondly, and more importantly, this was my experience; it happened to me and what you can learn from it.


After two months of preliminary interviews with the recruiter and the employer, my wife and I were being flown to the international headquarters of a $500 million well-known company for final interviews. We had no indication anything was amiss. The first clue came when I finally saw the itinerary. I was to be interviewed by nearly two-dozen people in two days. When I inquired as to why so many I was told, “We are a family here. We use consensus management. Everyone has to like you.” Sounded more like management by committee to me, but I held my tongue.


On they came — individuals (some more than once), groups, and conference calls! Because I know people — even myself — can have convenient memories, I took copious notes.


Here are a few statistics. Only four people had my resume with them during the interview. Eleven people indicated they had not seen my resume. No one had the job description with them and most had not reviewed it before the interview. One interviewer confided they had no idea why they were interviewing me since they did not get a “vote.”


No one from Human Resources was on the schedule, and when I inquired about this, I was simply told they did not need to interview me. Two people on the schedule blew off the interviews and failed to show without explanation. Several times on both days, I had to wander the building alone attempting to find out either where I was supposed to be next, or whom I was supposed to interview with next. The schedule had already changed and a number of the interviewers were working off a schedule I had no copy of. One interviewer expressed outright resentment regarding the intrusion of my interview into their schedule.


However, that is not the worst part. Eight people asked me questions that were either unprofessional or illegal. “How old are you?” “How old is your wife?” “Do you have any children?” “How old are they?” “How old are your grandchildren?” “How did you meet your wife?” “How long have you been married?” “How do you feel about Asians?”


During one interview with a man and a woman, the gentleman mentioned he had just purchased a home in the area. Logically, I asked, “What is the housing market like here?” The woman evidently took silent offense to this but was not so silent in her commentary to others after the interview. What got back to me was, “Why didn’t he ask me? Doesn’t he think I know anything about the housing market? He must have a problem working with women.” This, of course, sparked a few more follow-up questions addressed to me that were equally inappropriate.


Later I heard that some of the interviewers thought I was a little reserved and it was therefore difficult to get a read on my personality. Gee, I wonder why?


The answers I got to my questions were equally revealing. There appeared to be as many expectations for this role as there were interviewers. There was absolutely no consensus on the job description, or at least what was perceived to be the job description. There were almost as many agendas, ranging from shameless territorialism to ‘how am I going to fix the problems here’ (most of which were outside the purview of the job description in the first place).


Those that this position was subordinate to very clearly wanted to see a breakthrough, doing things differently in the sense of better. Others that support this position or partner with it made it very clear — don’t make waves. Less than five percent of the staff is outsiders, brought in within the last few years. They had introduced a new concept: performance measurements. There was a great deal of unresolved anxiety regarding metrics and measurements, and they asked how I felt about this? Well, I really couldn’t answer with any specificity. The finance, business, and marketing jargon I was exposed to were in vogue ten or fifteen years ago, and so was their performance-management system.


Well, we went home disappointed. Competing expectations, multiple agendas, turf-guarding, inappropriate interviewing, an environment characterized by anxiety, and differing job requirements — if the position was not designed to purposefully remedy these things, who would want to work there? I try not to burn bridges, so I just waited to hear. Four business days after the interviews, I received an unsigned form letter informing me I was no longer a candidate. In the letter they mistakenly cited a position I had not been interviewing for. When I called the recruiter to get clarification, they rushed into an explanation of why they had not heard anything yet and it would take a few more days. I didn’t tell them about the letter.


By the tenth working day after the interviews the recruiter did have some third-hand information. I was no longer under consideration. Why? I was “too professional” and evidently intimidated a number of people. I indicated to the recruiter they didn’t need to press for more information or a first-hand report. I never told them about the letter either. Incidentally, though the company did pick up the airline tickets, rental car, and hotel, they never offered or provided reimbursement for meals, gas, or parking.


If you want to avoid this kind of nightmare, and the potential lawsuits that go along with it, here are some tips:

  1. Get consensus on the job description. Different interviewers need to have the same end goal in sight. Screen candidates by resume first, then move on to telephone screening interviews to identify a small number of candidates to bring in for further interviews.

  2. Choose the interviewers carefully, including a select group of superiors, peers, and subordinates, usually no more than six to eight, and often less. Multiple interviews are fine. Sometimes a follow-up interview is needed. However, try not to bring anyone back more than once.

  3. Train the interviewers to interview based on the job requirements and the candidate’s experience. Give them written guidelines regarding taboo subjects. Provide them sample questions as well. Discourage the “first impression syndrome,” have them take notes, and don’t gang up on the candidate. In other words, no more than three interviewers at a time if you can help it. A professional interview is an art, not an accident. In much less than an hour, you can determine what this candidate has done, if it is what you are looking for, and what the chances are they can do it for you as well.

  4. Assign someone to manage the candidates’ schedules. It is not the candidates’ responsibility to find out where they are supposed to be and when. Once they are inside your front door they are your responsibility.

  5. Provide the candidates with any necessary information and forms related to employment, expenses, related company policies, or other pertinent material up front. Usually this will include information about the company itself as well as the job description. Don’t assume the recruiter has taken care of this.

  6. Have a plan for the candidates’ spouses if they are accompany the candidate. Are they interviewing with anyone? Do they need to take a look at the area? More than one viable candidate has turned down a good offer simply because their spouse was not treated with dignity and respect.

  7. Begin and end with an HR interview; first to brief the candidate on the schedules, personalities, and to conduct your own assessment and obtain any forms you require, and last to debrief the candidate.

  8. Obtain written comments from the other interviewers for your records. Usually, a simple form is helpful. On one hand, you want documentation. On the other, you do not want anecdotal comments out of context that may suggest regulatory compliance problems.

  9. Dig a little deeper with interviewer perceptions that are overly positive or negative and determine if further conversation or clarification with the candidate is warranted.

  10. Ask for and address any concerns the candidate may express.

The employer is virtually unencumbered in the hiring decisions they can make. However, most lose sight of the reality that the employment process, from recruiting to selection to interviewing to actually extending an offer and hiring, is a highly regulated contractual process fraught with legal implications. Look at it this way: You can do anything you want. You just can’t do it any way you want to. Do it the right way.

Posted on December 14, 2001July 10, 2018

The Benefits of Post-Job-Offer Medical Exams

Increasingly, employers are recognizing the benefits of incorporating a pre-placement examination into their employment process. A pre-placement examination provides employers with information that helps them to place employees in appropriate jobs.


How this came to be
In the past, prospective employees underwent a pre-employment exam, which was done before the person was hired. If the exam was not passed, then the applicant wasn’t hired.


With the passage of the Americans with Disabilities Act, pre-employment examinations became illegal. Hiring decisions couldn’t be made on the basis of physical limitations or disabilities.


The pre-employment exam was replaced by the pre-placement examination, also called the post-job-offer medical evaluation. This exam is performed after the offer of employment has been made. It’s designed to determine if the person can safely perform the job without putting himself or others at undue risk of injury. In addition, it’s designed to determine if the person will need accommodations to perform the job.


Why should I do pre-placement exams?
Most employers consider pre-placement exams a type of insurance. The vast majority of people sent for pre-placement exams are physically healthy and pass without problems.


However, a small number of people have medical problems that would interfere with their ability to safely perform their job. The exam should find them.


Establishing an examination program
Setting up an efficient and cost-effective program requires planning and thought. The examination should give you the information you need to make proper placement decisions, while still maintaining the examinee’s privacy and medical confidentiality. The exam must also be cost-efficient.


Finding the right doctor to perform your examinations is critical to the success of your program. You need a physician who fully understands the examiner’s role in the process. The doctor must realize that she is working primarily for you — the employer — and not for the person being examined.


The doctor’s job is to find any physical and medical problems that would interfere with the person’s ability to safely perform the job or significantly increase the risk of injury. Sometimes the problems are obvious; other times they’re very subtle.


The employer must provide the physician with information about the jobs and their physical demands. It’s imperative for the doctor you select to come to your workplace and see the physical demands of your positions. If the physician won’t do this, then it’s best to look for another doctor.


What information do you want?
What you’re really concerned about is whether the person can perform the tasks of the position. You have no need for, and really don’t want, all the details of the person’s medical history, a list of medications being taken, or the nitty-gritty details of the examination.


Actually, receiving detailed medical information might cause you problems. There are all sorts of rules and regulations concerning confidential medical information that you will have to follow. The information must be separated from other personnel information, and must be kept in a locked file with limited access. You can be liable if unauthorized people see the data.


All you really want is the doctor’s opinion on two questions. First, can this person safely perform the essential tasks of the job without putting himself or others at an increased risk of injury? Second, does this person need any special accommodations?


What should be checked?
It’s important that your examinations are comprehensive enough to find out what you need to know without going beyond that. Many employers include blood work, a urine analysis, an EKG, and other tests in their examinations.


But is there really a need for all this? In almost all cases, these tests aren’t necessary and won’t provide you with any useful information. For example, a person’s cholesterol level has no impact on his ability to perform a specific job safely. Even if elevated, it won’t affect the decision-making process. The same goes for other blood tests, urine tests, EKGs, X-rays, etc.


What should be in the physical examination process?
There are really six different components to the pre-placement examination process: the history, the examination, laboratory and imaging studies, special tests, the physical-capacity evaluation, and the summary letter from the physician. To have an effective and cost-efficient program, you must carefully consider each.

  1. History


    A well-written history form is critical to the success of your pre-placement examination program. Many physicians consider the history — medical and occupational — to be the most important part of the entire process. Things that have happened before tend to happen again. For example, someone who has had back problems in the past is at an increased risk to have them again. A person with a history of respiratory problems is likely to have them again, particularly if exposed to respiratory irritants.


    In addition to the general questions, the history should be customized to address the special circumstances of your company. Respiratory exposures, hazardous materials, or carcinogens, for example, and their consequences must be included in the history.


    Having a comprehensive history form is useless if it’s not completed accurately by the examinee and carefully reviewed by the examiner. One way to know if the doctor looked at the form is to see if she commented on any of the positive answers.

  2. The examination


    The goal of the physical examination portion of the process is to detect problems that might interfere with the examinee’s ability to safely perform the essential tasks of his job without putting himself or others at undue risk of injury and without significant accommodations.


    Most examiners follow the same steps for all pre-placement examinations. Special attention should be paid to the examinee’s movements, muscular strength, coordination, and overall physical condition. While listening to the heart and lungs is important, it rarely adds much to the final determination of fitness for duty.


    It’s important for the examiner to know the requirements of the job, particularly if there are any special physical demands. In many ways, the examination itself is the least significant part of the process.

  3. Laboratory and imaging studies


    In most cases, you won’t need any blood or urine tests. The exception is if the position requires biological monitoring. If the position poses a risk of lead exposure, then you’ll need baseline studies: a lead level, a zinc protophorphyrin, and a complete blood count looking for anemia. Other exposures require different base studies. Other than baseline studies, there’s really little reason to order any blood work.


    In the past, many companies ordered back X-rays, hoping to find potential back problems before they occurred. This has been proven to be a total waste of money. There’s absolutely no correlation between what’s seen on back X-rays and the likelihood of sustaining a back injury. As with lab tests, the only reason to order any X-rays is to obtain a baseline for screening programs.

  4. Special tests


    In this category, I put audiograms, pulmonary function tests, specialized vision testing, etc. In most cases, these studies are required as part of a company’s monitoring and surveillance programs. If your workplace noise levels exceed the safe levels, then you’ll need a hearing-conservation program. A baseline audiogram is then essential.

  5. The physical-capacity evaluation


    A physical-capacity evaluation is designed to determine whether the examinee is physically able to perform all the tasks of the job. For example, if the job requires lifting 25 pounds and carrying it for 20 feet, the evaluation would include lifting 25 pounds and carrying it 20 feet. Not all tasks are as easy to simulate.


    Frequently, these evaluations are performed by a physical therapist or a PT aide. Many believe that this is a more valuable form of screening than a physical examination.

  6. The summary letter


    Once the history is reviewed, the examination is completed, the results of all studies — if any — are back, and the physical-capacity evaluation is completed, then the physician must pull all this data together and give an opinion on the examinee’s physical fitness. The doctor can tell you if the examinee has any physical limitations or requires any special accommodations. It is not the physician’s role to tell you whether to put this person to work or not. That’s totally up to you.


    Most employers want only the summary letter and not copies of the history, examination report, and most of the lab and imaging studies. You don’t need that data and, as explained above, it can increase your liability risks.

Summary
A well-designed pre-placement physical examination program will result in fewer injuries and accidents and, in the long run, save your company money.


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 federal law.

Posted on December 12, 2001July 10, 2018

Dear Workforce How Do I Tie Orientation Programs To Measurable Metrics?

QDear Workforce:

 

How can I link the value of new-hire orientation programs to their impact onsatisfaction, productivity, and retention numbers? I am looking for aquantifiable analysis of the relationship and any metrics to support the value.

– Needing research, Associate Consultant,publication/communications/advertising, New York, New York.

A Dear Needing Research:

How many new employees are leaving within the first 30 days? The first 60?The first 90? Record these numbers along with any input you may get fromsupervisors about the productive output of the new folks.

It might be interesting to document some statistics about who comes to workand leaves within just a few days. See what folks have to say in exitinterviews.

Now strengthen your orientation process and see if you get different results. You’ll be able to create your own metric. Clarify expectations and encouragesenior managers to be out on the floor.

SOURCE: Roger Herman, The HermanGroup, Greensboro, North Carolina, July 19,2001.

LEARN MORE: Read read about OptimasAward winner First USA Bank’sprogram to help employees advance their careers.

The information contained in thisarticle is intended to provide useful information on the topic covered, butshould not be construed as legal advice or a legal opinion. Also remember thatstate laws may differ from the federal law.

Ask a Question
Dear Workforce Newsletter
Posted on December 12, 2001July 10, 2018

Copy of A Hiring Process Spun Out of Control

This is a true story and almost stranger than fiction. A nightmare of the first order for the human resources professional for two reasons: For more than twenty years I have been helping companies through large-scale organizational change, mergers, acquisitions, and downsizing.


Consequently, I think I have sensitivity for the financial and legal landmines organizations in transition face. I usually know something is wrong long before it blows up in my face. Secondly, and more importantly, this was my experience; it happened to me and what you can learn from it.


After two months of preliminary interviews with the recruiter and the employer, my wife and I were being flown to the international headquarters of a $500 million well-known company for final interviews. We had no indication anything was amiss. The first clue came when I finally saw the itinerary. I was to be interviewed by nearly two-dozen people in two days. When I inquired as to why so many I was told, “We are a family here. We use consensus management. Everyone has to like you.” Sounded more like management by committee to me, but I held my tongue.


On they came — individuals (some more than once), groups, and conference calls! Because I know people — even myself — can have convenient memories, I took copious notes.


Here are a few statistics. Only four people had my resume with them during the interview. Eleven people indicated they had not seen my resume. No one had the job description with them and most had not reviewed it before the interview. One interviewer confided they had no idea why they were interviewing me since they did not get a “vote.”


No one from Human Resources was on the schedule, and when I inquired about this, I was simply told they did not need to interview me. Two people on the schedule blew off the interviews and failed to show without explanation. Several times on both days, I had to wander the building alone attempting to find out either where I was supposed to be next, or whom I was supposed to interview with next. The schedule had already changed and a number of the interviewers were working off a schedule I had no copy of. One interviewer expressed outright resentment regarding the intrusion of my interview into their schedule.


However, that is not the worst part. Eight people asked me questions that were either unprofessional or illegal. “How old are you?” “How old is your wife?” “Do you have any children?” “How old are they?” “How old are your grandchildren?” “How did you meet your wife?” “How long have you been married?” “How do you feel about Asians?”


During one interview with a man and a woman, the gentleman mentioned he had just purchased a home in the area. Logically, I asked, “What is the housing market like here?” The woman evidently took silent offense to this but was not so silent in her commentary to others after the interview. What got back to me was, “Why didn’t he ask me? Doesn’t he think I know anything about the housing market? He must have a problem working with women.” This, of course, sparked a few more follow-up questions addressed to me that were equally inappropriate.


Later I heard that some of the interviewers thought I was a little reserved and it was therefore difficult to get a read on my personality. Gee, I wonder why?


The answers I got to my questions were equally revealing. There appeared to be as many expectations for this role as there were interviewers. There was absolutely no consensus on the job description, or at least what was perceived to be the job description. There were almost as many agendas, ranging from shameless territorialism to ‘how am I going to fix the problems here’ (most of which were outside the purview of the job description in the first place).


Those that this position was subordinate to very clearly wanted to see a breakthrough, doing things differently in the sense of better. Others that support this position or partner with it made it very clear — don’t make waves. Less than five percent of the staff is outsiders, brought in within the last few years. They had introduced a new concept: performance measurements. There was a great deal of unresolved anxiety regarding metrics and measurements, and they asked how I felt about this? Well, I really couldn’t answer with any specificity. The finance, business, and marketing jargon I was exposed to were in vogue ten or fifteen years ago, and so was their performance-management system.


Well, we went home disappointed. Competing expectations, multiple agendas, turf-guarding, inappropriate interviewing, an environment characterized by anxiety, and differing job requirements — if the position was not designed to purposefully remedy these things, who would want to work there? I try not to burn bridges, so I just waited to hear. Four business days after the interviews, I received an unsigned form letter informing me I was no longer a candidate. In the letter they mistakenly cited a position I had not been interviewing for. When I called the recruiter to get clarification, they rushed into an explanation of why they had not heard anything yet and it would take a few more days. I didn’t tell them about the letter.


By the tenth working day after the interviews the recruiter did have some third-hand information. I was no longer under consideration. Why? I was “too professional” and evidently intimidated a number of people. I indicated to the recruiter they didn’t need to press for more information or a first-hand report. I never told them about the letter either. Incidentally, though the company did pick up the airline tickets, rental car, and hotel, they never offered or provided reimbursement for meals, gas, or parking.


If you want to avoid this kind of nightmare, and the potential lawsuits that go along with it, here are some tips:

  1. Get consensus on the job description. Different interviewers need to have the same end goal in sight. Screen candidates by resume first, then move on to telephone screening interviews to identify a small number of candidates to bring in for further interviews.

  2. Choose the interviewers carefully, including a select group of superiors, peers, and subordinates, usually no more than six to eight, and often less. Multiple interviews are fine. Sometimes a follow-up interview is needed. However, try not to bring anyone back more than once.

  3. Train the interviewers to interview based on the job requirements and the candidate’s experience. Give them written guidelines regarding taboo subjects. Provide them sample questions as well. Discourage the “first impression syndrome,” have them take notes, and don’t gang up on the candidate. In other words, no more than three interviewers at a time if you can help it. A professional interview is an art, not an accident. In much less than an hour, you can determine what this candidate has done, if it is what you are looking for, and what the chances are they can do it for you as well.

  4. Assign someone to manage the candidates’ schedules. It is not the candidates’ responsibility to find out where they are supposed to be and when. Once they are inside your front door they are your responsibility.

  5. Provide the candidates with any necessary information and forms related to employment, expenses, related company policies, or other pertinent material up front. Usually this will include information about the company itself as well as the job description. Don’t assume the recruiter has taken care of this.

  6. Have a plan for the candidates’ spouses if they are accompany the candidate. Are they interviewing with anyone? Do they need to take a look at the area? More than one viable candidate has turned down a good offer simply because their spouse was not treated with dignity and respect.

  7. Begin and end with an HR interview; first to brief the candidate on the schedules, personalities, and to conduct your own assessment and obtain any forms you require, and last to debrief the candidate.

  8. Obtain written comments from the other interviewers for your records. Usually, a simple form is helpful. On one hand, you want documentation. On the other, you do not want anecdotal comments out of context that may suggest regulatory compliance problems.

  9. Dig a little deeper with interviewer perceptions that are overly positive or negative and determine if further conversation or clarification with the candidate is warranted.

  10. Ask for and address any concerns the candidate may express.

The employer is virtually unencumbered in the hiring decisions they can make. However, most lose sight of the reality that the employment process, from recruiting to selection to interviewing to actually extending an offer and hiring, is a highly regulated contractual process fraught with legal implications. Look at it this way: You can do anything you want. You just can’t do it any way you want to. Do it the right way.

Posted on December 11, 2001July 10, 2018

Think Twice Why Senior Citizens Should Fly

We all talk about passing the workforce torch to an older generation — thegrowing numbers of senior citizens in the workplace. If our society is going toreally accept that fact, let’s start by allowing senior citizens to be in chargeof our lives when we are the most vulnerable. Let’s let them fly airplanes.


    You see, people over 60 aren’t allowed to pilot commercial planes. It’s arule that hasn’t been updated since 1959.


    “It’s long overdue, of course,” Dallas pilot Bert Yetman tells me.Yetman, 68, is suing the FAA for not letting him and 68 other pilots fly. Eachof the pilots has received a “superphysical” from a panel of doctors,and a clean bill of mental and physical health.


    I think Yetman’s right, and here’s why.


    A different era. Spokesperson Alison Duquette tells me the FAA has no plansto change the Age 60 Rule. “However, the agency is always open to any newscientific research.”


    Here’s some, Alison: In 1960, the average life expectancy at birth was only69.7 years. By 1998, life expectancy had risen to 76.7 and 60-year-olds wereexpected to live another 21 years.


    Medical advancements are enabling younger pilots with serious medicalproblems — from multiple bypasses to alcoholism — to fly planes. Are thesepeople any healthier than the 61-year-old who almost beat me in a half-marathonlast month? Heck, John Glenn has been studied more than almost any other humanbeing on earth, and NASA sent him into outer space at 76.


    Experience counts. I recently flew from Orange County, Calif. to Cincinnati,and the plane ran into turbulence (that’s a scary storm to you and me). Let’sthink about who I wanted in the cockpit. Some doofus I went to college with adecade ago who’s been flying commercial jets for two years? Or a captain mymother’s age, who’s been through 250 storms worse than this one? Judgmentcounts, baby, especially when my life is in your wings.


    Plenty of tests. To fly a commercial plane, you have to get a physical eachyear. And then another. You have to conduct a simulator ride. And then another.On top of that, the government occasionally does spot checks, showing up at thecheck-in line to join you on the flight. If we need more proficiency tests,let’s add them. But chronological age shouldn’t be one of the criteria.


    A labor shortage. You may be thinking, “Is the lack of employees (inthis case, pilots) really a good enough reason to compromise safety?” Thinkagain. The lack of employees has been exacerbated by the Age 60 Rule. Thisforces airlines to lower their standards by more quickly promoting inexperiencedpilots to the captain position.


    Experts from every continent have expressed at least some support — eitherwritten or oral — for raising the age limit. Even the Civil Aviation MedicineAssociation, which the FAA has licensed to give physicals to pilots, hasexpressed support for a change. So has the EEOC, AARP, and the NationalInstitutes of Health.


    So who in tarnation is left on the side of the Age 60 Rule? You guessed it –the union.


    The Air Line Pilots Association, which once favored higher age limits, nowdoesn’t want to tinker with the Age 60 Rule. The group believes that legislationwould cramp the opportunities for rapid promotion to captain for its youngermembers (the median age is 42). In Washington, D.C., the pilots’ union shellsout a lot of dough. It spent $400,000 lobbying in 1999, and in the 1999-2000election cycle forked over at least $870,000 in political donations. It wields alot of power.


    The balance of power is going to have to change. After all, we’re soon goingto have to meld the workforces of two very different generations.


    We’ll never get there at this rate if we are more comfortable putting ourlives in the hands of inexperienced employees who happen to be 30. I’ll take ahealthy and wise pilot twice that age any day.


Other columns by Todd Raphael:

  • OnGore and Bush
  • TheYear HR Became Cool
  • Thoughtsfor the New Leaders of the New Dot-coms
  • LetRocker Talk
  • To:All E-mailers From: Todd
  • Holidays:Some Minor Revisions
  • WeWish You a Merry Winter
  • Whata $252 Million Contract Means to You
  • Walkin Her Boots, Mr. President
Posted on December 11, 2001July 10, 2018

Formulas For HR’s Effect on Business Results

The formulas below offer a set of quantitative macro metrics linking humanand financial variables.


  1. Human Capital ROI
    This measures the return on capital invested in pay and benefits. The formulais:


    Revenue – Nonhuman Expenses
    Pay and Benefits


    Pay includes all money spent on regular and contingent labor.


  2. Human Capital Value Added
    This uses a similar formula to Human Capital ROI but divides by the number offull-time equivalent employees (FTEs). The formula is:


    Revenue – Nonhuman Expenses
    Full-Time Equivalents


    This yields a profit per FTE. These two measures are views of theprofitability attributable to human effort.


  3. Human Capital Cost
    This is simply the average pay per regular employee. The formula is:


    Pay + Benefits + Contingent Labor Cost
    Full-Time Equivalents


    It can be augmented by added in contingent labor. In that case, we would taketotal labor expenses, including benefits costs, and divide by FTEs, includingcontingents.


  4. Human Economic Value Added
    This is net operating profit after tax, minus the cost of capital divided byFTEs, including contingent labor. The formula is:


    Net operating profit after tax – Cost of capital
    FTEs



  5. Human Market Value Added
    This divides market capitalization by FTEs, including contingents. Theformula is:


    Market Capitalization
    FTEs


 


SOURCE: Reprinted from “The E-Aligned Enterprise: How to Map and MeasureYour Company’s Course in the New Economy,” Copyright © 2001 Jac Fitz-enzPublished by AMACOM Books, a division of American Management AssociationInternational, New York, NY. Used with permission. All rights reserved.


Readers of this publication are granted permission to make one copy of thecontent containing this material and agree not to reproduce, retransmit,distribute, disseminate, sell, publish, broadcast or circulate this materialwithout prior written permission of the copyright owner (AMA) with this oneexception:


Users may, on an occasional basis, include insubstantial portions of thecontent in reviews and articles, but only if such materials are distributed ormade available for non-commercial use. All such materials must include allcopyright and other proprietary notices for the information used from theoriginal publication, original attribution, and the phrase: “Used with thepermission of the American Management Association.” Users are prohibitedfrom republishing any of this material without permission.

Posted on December 11, 2001July 10, 2018

Formulas for Quantifying the Value of a Training-Technology Investment

Here are four formulas for calculating the return-on-investment intechnology-based training (TBT):


Cost Savings


instructor-ledcosts – technology training costs=TotalCost Savings

Break-Even Analysis for TBT


Step 1:


TBTdelivery costs
# students
=Per-StudentDelivery Cost of TBT

Step 2:


instructor-ledtraining delivery [ILT]  costs
# students
=Per-StudentDelivery Cost of ILT

Step 3:


(TBTdesign / development costs – ILT design / development costs)
(step 1 – step 2)
=Break-EvenPoint

Cost-Benefit Analysis 


financialbenefits
cost of training
=Cost/BenefitRatio

ROI Calculation


(totalbenefits – total costs) * 100
(total costs )
=ROI (%)

Excerpted from “What Smart Trainers Know,” by Lorraine L. Ukens, Copyright 2001 by John Wiley & Sons, Inc. This material is used by permission of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc.


Posted on December 10, 2001July 10, 2018

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