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Posted on July 1, 1998July 10, 2018

Making Dollars and Sense Out of Employee Self Service

Elaine Davis knows a good thing when she sees one. Three years ago, after Glaxo Holdings merged with Boroughs Wellcome, employees at the new company found themselves swimming in organizational charts and company directories. “Trying to find an employee and figure out who he or she reported to was impossible,” explains the director of human resource services. That prompted human resources to use a Web interface and a company intranet to post current information so that employees could find it on their own.

At the time, Glaxo Wellcome found itself venturing into uncharted territory. It used a development tool kit and its own information technology (IT) staff to create the firm’s first generation of self-service offerings. Although the company carefully designed an implementation strategy, it never conducted a cost-benefit study, it didn’t run a return-on-investment (ROI) analysis, and it certainly didn’t determine how much staff time the project would require. “We just knew we needed to find a way to get people to communicate. We recognized that it offered a significant value for everyone, including human resources,” says Davis.

Over the months that followed, as HR added a series of employee self-service (ESS) capabilities, the value of the technology became abundantly evident. Nevertheless, Davis and her staff aren’t a whole lot closer to understanding the underlying costs associated with the entire self-service program. They know they’re reducing paperwork, they recognize that they’re re-deploying staff to function more strategically, but getting a handle on the financials is as elusive as ever. “Today, this is simply the way to conduct business. There are no alternatives,” she explains.

It’s difficult to measure the cost and value of ESS.
In today’s rocket-paced world, Davis has plenty of company. At a time when most organizations scrutinize costs the way a forensic expert surveys the scene of the crime, ESS technology remains one of the final unexplored frontiers. It’s not so much that senior executives wouldn’t like to know how an implementation will play out, it’s that the costs and benefits are difficult to measure and even more challenging to understand. “Self-service is not a technology, it’s not a tool, it’s a behavior,” states Jerry McLaughlin, CEO of Enwisen Inc., a Novato, California company that sells employee information systems software.

For Windows-based client/server solutions or Web-based software, $100 or more per employee is fairly typical. Factor in maintenance, upgrades and training, and the figure easily can jump by another 30 percent to 40 percent. And all this is assuming the hardware is in place.

When The Hunter Group, a global information management-consulting firm based in Baltimore, Maryland, examined the topic, it found that the majority of companies — particularly those in the high-tech arena — didn’t conduct rigorous cost justification before implementing self-service. Most organizations justified the technology as a way to serve a growing population of workers with no increase in HR staff, reduce the cost and cycle time for processing transactions, improve access to data, and raise the overall level of satisfaction with human resources. A few felt that self-service was inexorably intertwined with their image as a progressive company — regardless of the cost.

Of course, all this isn’t to say that companies should avoid looking at costs as well as capabilities. “Return on investment is an issue that can’t be ignored,” says Alexia Martin, a management consultant who conducted the survey of 25 companies for The Hunter Group last September. Yet understanding the cause and effect of today’s ESS technology is a mind-bending task. And one that must transcend the sphere of IT professionals. “In order to build a successful HR department, it’s necessary to use self-service technology to maximum advantage. It’s the future,” states Eric Gelman, director of marketing for PDS, an HRMS vendor headquartered in Bluebell, Pennsylvania.

Take a look at the big picture.
Merely looking at the price tag for a self-service system can certainly cause a case of sticker shock. When Martin examined what companies are paying to implement systems — either Windows-based client/server solutions or Web-based software — it became clear that $100 or more per employee is fairly typical. Some companies spend as much as $300 per employee to install the required software and integrate everything into a total solution. Factor in maintenance, upgrades and training, and the figure easily can jump by another 30 percent to 40 percent.

And all this is assuming the hardware already is in place. The equipment needed to build a network — servers, routers, PCs, kiosks and more — can add another $100 to $200 per employee. At one 20,000-employee company that Martin studied, the cost of implementing a system initially ran $890,000, and the total cost over five years exceeded $6.5 million. And that didn’t include maintenance and upgrades to the core HRMS. “Every module you install and customize adds significantly to the cost,” Martin explains. In fact, customizing a module to fit the exact needs of the company — a necessity for most organizations — can tally 60 percent of the software’s total cost.

Some vendors, such as Lawson Software, offer highly integrated Web-based ESS applications built into the core HRMS. Others, such as PeopleSoft, ESSENSE Systems, SAP, ADP, Oracle, J.D. Edwards, Lotus Development and PDS, are rapidly adding powerful functionality. And still others, such as Edify, NetDynamics, TALX and Seeker Software, are serving up components that can run on top of other HRMS systems. To be sure, there are plenty of different approaches to take — all designed to let managers and employees control their own data, including employee records, banking information, benefits, travel expenses, timesheets, electronic pay stubs, salary verifications and more.

Finding the right mix of hardware and software often has more to do with a company’s unique needs than cost. An organization with a large base of professional employees sitting at desks might turn to a Web-based self-service solution, while an organization with employees primarily on the factory floor might require kiosks and an interactive voice response (IVR) system. Yet, beyond that, it often comes down to how systems mesh with existing work patterns, and what software can deliver the biggest returns. It’s also a question of whether an enterprise has the expertise and resources to handle a project internally. Turning to an outside designer and integrator can ratchet up costs still more.

Make ROI a priority.
Early on, Glaxo Wellcome realized that it would have to build its own self-service components on top of a PeopleSoft system running an Oracle database. “When we began in 1995, there were no commercially available self-service software programs. It came down to doing it ourselves or not doing it at all,” says Davis. And because the pharmaceutical giant already developed the systems to build its own ESS modules as needed, it continues to do so using software from NetDynamics. The system allows workers to update employee records, emergency contacts, educational information and a Web-based company directory. It also features the schedule for shuttle buses, information about discount programs and health screenings, and even the menu for the company’s employee cafeteria.

And that’s paying handsome dividends. Although Glaxo Wellcome hasn’t conducted a formal analysis of costs and benefits, Davis estimates that self-service programs running on the corporate intranet have cut some transaction costs by 50 percent or more. Processes that used to take two or three days now are completed in a few hours. Across the entire department, about 10 percent of HR’s work now is transactional in nature, compared to 60 percent to 70 percent only two years ago.

At Pacific Bell in San Ramon, California, ESS will soon become the way that nearly all employee transactions take place. Today, employees can obtain employment verification via faxback by using the company’s intranet or an IVR system. The existing legacy system, which is more than two decades old, also allows employees to update W-4 data and make changes in their withholdings. Newly installed SAP software, which will be fully operational by 1999, will let employees handle myriad functions online using a Web browser: expense reporting; direct deposit updates; pay stub viewing; annual bonus information; employee records updates; emergency contacts; and attendance and time records, including overtime. Employees who don’t have access to a PC will be able to use many of the same features through an IVR system powered by Edify software. “The goal is to empower employees and cut costs,” says Burke Fong, a manager of human resources and a senior systems analyst for the 45,000-employee firm.

In fact, when Pacific Bell pulls the plug on nearly 60 legacy systems it now uses to handle HRMS and ESS, it will slash well over a million dollars a year in expenses. By reducing hardware, consolidating software into a single system and reducing support staff, the telephone service provider projects that it will recoup the total cost of the investment within three years. And it will eliminate a Year 2000 problem, while providing employees with far better service. The Web site will be available more than 20 hours a day, seven days a week — almost double the number of hours employees have access presently. “We looked at costs and ROI from the beginning,” says Fong.

And that’s a solid, if uncommon, strategy. Experts say a well-designed ESS solution typically can pay for itself within a year or two. In most cases, the return is approximately $35 to $50 per employee per year at a large company and as much as $100 per employee annually at a small firm. “It reduces costs on many levels,” says Gelman. For example, at a large United States oil company with 9,000 employees, Web-based self-service — handling only benefits statements and electronic pay stubs — slashed $368,000 in the first year alone. Approximately $108,000 of the savings came from eliminating paperwork and postage; $260,000 was cut by a reduced need for staff to handle the transactions over the phone and in person.

Achieving results with ESS is about dollars and sense.
When it comes to employee self-service, not all costs can be quantified in dollars and cents, and returns aren’t only a measure of money saved. As Davis puts it: “There are tremendous opportunity costs associated with a self-service program.” In many cases, improving the quality of service HR provides can go a long way toward raising satisfaction with the entire organization. It can also help human resources become more strategic — either in the way it handles transactions or by having the time and tools to analyze data and provide top management with a better understanding of staffing needs.

Yet, tossing together a system simply to join the self-service bandwagon can create an endless series of headaches. Without a highly integrated solution that offers scalability and flexibility, all the technology in the world can’t make employee self-service succeed. Enwisen’s McLaughlin believes a company that rushes into self-service risks failure. “Ultimately, it costs the same to build an outstanding system as one that’s poorly conceived and badly designed,” he says. “More than anything else, an employee self-service solution has to be intuitive, useful and convenient. It has to provide advantages for those using it in order to benefit the organization.”

At a time when cutting costs and eliminating unnecessary work has become a corporate religion, self-service is finally serving the organizations that truly understand its value.

Workforce, July 1998, Vol. 77, No. 7, pp. 67-69.

Posted on July 1, 1998July 10, 2018

Microsoft 2000 Program Leads the Way

The Microsoft 2000 program is one of the most ambitious corporate-educational partnerships in the country. The program’s far-reaching initiatives, implemented by the Redmond, Washington-based software giant, provide exemplary ideas for other companies that are eager to promote the growth of information technology. Some of Microsoft’s groundbreaking initiatives include:


  • The development of a new re-cruitment video designed to dispel myths about the IT profession, and to encourage people from various backgrounds to join the profession.
  • Technology training program for Microsoft Authorized Academic Training Program (AATP) instructors at high schools, colleges and universities across the country.
  • Co-sponsorship (in conjunction with Servus Financial) of low-rate loans for technical training at Microsoft Authorized Technical Education Centers (ATECs), and AATP institutions.
  • A joint effort with The Monster Board, a major recruitment advertising agency, to furnish an employee-recruitment solution via the Internet to Microsoft Certified Solution Provider (MCSP) companies. Employment opportunities can be listed by MCSPs on-line, and prospective employees can apply online.
  • An online career aptitude tool at http://www.microsoft.com/skills2000/jobs.htm is available for the benefit of those considering a career in information technology. Questions help visitors recognize their own work-style preferences and abilities in eight different career categories. The tool also provides a technical training road map.
  • Sponsorship of career expos in 16 cities in an effort to show MCSP companies better ways to attract more IT professionals.
  • Sponsorship of the “Making College Count In-School Presentation Program.” The 1998 program will acquaint 50,000 high school seniors at 250 schools with ideas for success in college, and in the business world.
  • A $350,000 donation to Green Thumb Inc., a nonprofit organization, to develop IT training programs for qualified unemployed workers, senior citizens or disabled people for such jobs as help-desk support specialists and network administrators. Green Thumb will be assisted by Productivity Point International (PPI) Inc., a technical education center that is authorized by Microsoft. The Green Thumb organization also works with various private industry councils in implementing training programs and in placing the eligible graduates.
Workforce, July 1998, Vol. 77, No. 7, p. 54.

Posted on July 1, 1998July 10, 2018

Don’t Forget the Hidden Costs of Employee Self-Service

In addition to the more obvious direct costs, there are several indirect costs you may not immediately associate with implementing an employee self-service system. Be sure to factor in all of the following as you evaluate return on investment:

  • Windows-based client/server software or Web-based software
  • Hardware, including the equipment needed to build a network: servers, routers, PCs, kiosks
  • Customization
  • Consultants to help with system design and integration
  • Installation
  • Training
  • Maintenance
  • Upgrades

Workforce, July 1998, Vol. 77, No. 7, p. 69.

Posted on July 1, 1998November 26, 2018

Ten Best Ideas in Communicating Rewards and Recognition

rewards and recognition

Advice from experts on recognition and rewards.

  1. If you’re using a monetary rewards approach, such as stock options or profit-sharing, don’t apply a top-down formula (executives rewarded first; line workers last) but instead focus on rewarding key positions—positions in which having an excellent person makes all the difference.
  2. When deciding how to reward employees, think about what makes them happy. It sounds basic, but it’s an approach all too often ignored.
  3. Consider having a departmental approach to rewards and recognition. This allows each area to tailor goals specifically to its business. Tighter, well-defined goals are easier for employees to achieve than broad “help the business” goals.
  4. Don’t restrict the company to the formal program. Encourage managers to give spot bonuses—cash, dinners and the like—for individual or team excellence in specific projects.
  5. Before rolling the program out, conduct a few focus groups to ensure employees are primed for a new form of recognition. If they seem cynical, you need to know so you can address it in the presentation.
  6. Creativity in communication is fine, but make clarity the top priority.
  7. A mediocre program well communicated is more useful than a great program poorly communicated.
  8. When you pick winners, make sure to communicate exactly what they did to win—clear examples are helpful to the rest of the workforce.
  9. Consider e-mail and voice-mail updates—on the program, on the nomination process and on the selection of winners. This keeps the program’s goals foremost in employees’ minds.
  10. Follow up. Talk to employees. Ask them how they think the company is doing. If they give solid answers related to the program’s goals, you’ve succeeded. If not, something’s wrong.

 

Workforce, July 1998, Vol. 77, No. 7, p. 32.

 

Posted on July 1, 1998July 10, 2018

The Truth of Workplace Romance

Signs in New York’s Times Square flash, “Zippergate.” Electronic banners in London’s Leicester Square guffaw “Ovalgate and Oralgate.” Radios and televisions blare interviews and commentary as sophisticated as teenage locker-room jokes. Rapid-fire e-mail messages around the globe share lewd digitally altered pictures of a lecherous chief executive and his naughty playmate.


Welcome to Workplace Romance of the 21st century, where the global village looks suspiciously like a 1990’s Melrose Place gathering of co-workers gossiping at the water cooler. Where people from all walks of life are captivated by the clandestine meetings of the CEO of the most revered workplace in the world.


Yet, while Larry King, Rush Limbaugh and the Washington Post revel in increased revenues, HR pros know they’re watching a dramatic display of the dangers of office liaisons—threats to worker competence, lowered productivity, demoralized co-workers, secrecy, potential conflict-of-interest, and worst of all, claims of invasion of privacy and sexual-harassment lawsuits. We may titter, but even with all of the problems, we also know it won’t go away. People will continue to meet and date at work.


Predictably, because of the glitz and visibility of recent cases, there’s a rush to prevent similar bad outcomes throughout every level of society. Predictably, they’re often fear-based, knee-jerk reactions that seem as serious as David Letterman’s Top Ten Lists. Scurrying to protect themselves, senior executives have attorneys draft agreements for their potential paramours to sign, stating that quarreling lovers will submit to binding arbitration rather than the 90s version of kiss-and-sue. A software firm has a product that offers drop-down lists of choices for HR’s preferred responses to office romances. One city agency in California requires disclosure before the first kiss. And rumor has it that a Midwest firm prohibits eye-to-eye contact with the opposite sex for longer than 30 seconds!


Maybe someone at the cosmic water cooler ought to explain that we don’t need more rigid policies. Legislating romantic interludes only drives them underground. And, word-on-the-street says about 50 percent of all relationships begin in the workplace. Balancing the individual’s right to privacy with protecting employees from sexual harassment and the company from conflict-of-interest isn’t a situation for which strict policies are called for. It is a situation that calls for careful consideration, communication and common sense guidelines to make the difference.


Workplace romance: Older than drive-in movies; as popular as “Titanic.”
Workplace romances are nothing new of course. Just ask Abigail Van Buren, the woman who has been offering advice for more than 40 years through her Dear Abby column. Here’s one of her earliest letters:


DEAR ABBY: We work in a large office. Our office manager, I’ll call him Marvin, is a middle-aged family man. The boss’ secretary, I’ll call her Sissy, is a shapely young divorcee. Since Sissy came to work here, she and Marvin have been spending a lot of time together in the file room with the door locked. What they do in there is their own business, but we’re tired of covering up for them when the boss comes looking for Sissy. What do you suggest?


— THE OFFICE GANG


DEAR GANG: Next time the boss comes looking for Sissy, tell him to look in the file room under ‘Marvin.’


Says Abby in an interview with Workforce: “Office romances have occurred ever since men and women have been thrown together in the workplace.” Indeed, people haven’t changed. Their stories still run the gamut from happy long-term marriages to tearful endings and ruined careers. No, people haven’t changed, but the workplace has. Employees are working longer hours in environments that encourage teamwork and familiarity. And as work becomes increasingly intense and time-consuming, individuals find themselves with less leisure time for outside activities where they traditionally meet new people. In addition, women are 46 percent of the workforce, according to the Bureau of Labor Statistics. And many of them occupy visible and powerful positions. All of these factors have transformed the workplace to a meeting den. DILBERT™ creator and workplace observer Scott Adams had this to say about it in a May issue interview in Playboy: “People always wonder why employees at companies like Microsoft work ungodly hours. It’s not why you think. If you’ve got a good mix of the sexes at the office, you have about the same odds or better of scoring at work as you would if you were to go home…. Similar-minded people of mating age are consciously being brought together in a large community.”


And the general consciousness seems to be approving of workplace liaisons. Indeed, according to a 1994 survey conducted by New York City-based American Management Association, 30 percent of managers responding acknowledged having at least one office liaison of their own; 74 percent approved of dating co-workers, and 21 percent approved of dating subordinates. (AMA Overnight Fax Poll, Exclusive to Money Magazine: “Office Romance”). Most recently, a survey called Love@Work (of nearly 7,000 subscribers of America Online in its Business Know-How Forum, February 1998) revealed similar findings. Fully 71 percent of respondents had dated someone at work, and 50 percent of the managers said they dated subordinates.


Managing the situation is better than ignoring it.
Although workers’ attitudes lean toward acceptance, workplace policy tends to lean the other way. That’s because the results of an acrimonious ending are far more consequential for the company today than ever before. The Anita Hill/Clarence Thomas hearings changed gender relations forever because they brought forth sexual harassment as a workplace issue, catapulting common sense rules of decency, courtesy and etiquette into the legal arena.


Since then, as stated in the February 4, 1998, Wall Street Journal, there has been a change in attitude by companies regarding workplace romances. A double standard used to prevail that officially forbid relationships, yet didn’t interfere unless forced to do so (even if it was between bosses and supervisees). Usually, it was the woman who brought it to the attention of the company—after a sour break-up—and, most often because of the power-differential, she was the one who was fired or quit her job.


Times are different now, and companies are rethinking their positions. They’re opening their eyes to the truth—that people meet life partners everywhere—and organizations are better off if HR manages the situation, rather than ignores it. For one thing, employers risk losing valuable workers if they do otherwise. Also, the stronger the prohibition, the more likely people will keep these relationships secret. And the employer who doesn’t know about these relationships runs a greater risk of sexual-harassment complaints if the romance turns sour.


“For years, some companies have said, ‘This is none of our business; this is a privacy issue.’ And others said, ‘we must prohibit it in some form or another.’ Given the complexity of human behavior in business, neither approach makes any sense,” says Freada Klein, a Cambridge, Massachusetts-based consultant who’s a noted authority in the field of sexual harassment. “The idea isn’t to get the right rigid or formulaic approach; the idea is to get the right principles in place.”


What’s the current status in companies? According to a 1998 Workplace Romance Survey conducted of its members by the Alexandria, Virginia-based Society for Human Resource Management (SHRM), 72 percent of HR respondents say they don’t have a written policy, although 14 percent of them have an unwritten understanding. Thirteen percent have written policies. Of the 27 percent with either a written or unwritten policy, 55 percent permit consensual dating relationships, but discourage them. Consequences include transfer within the organization (42 percent), termination (27 percent), counseling (26 percent), formal reprimand (25 percent) and demotion (7 percent).


And the reasons given by respondents for having such policies? Potential sexual-harassment claims (88 percent); potential retaliation if the romance ends (75 percent); concerns about morale of co-workers (60 percent); concerns about lowered productivity of those involved in the romance (46 percent); and romances at work are viewed as unprofessional (38 percent).


Let good judgment drive reasonable policies.
Why is it so troublesome for employers to work out a sensible framework? “Part of the difficulty is looking at office romance as a separate issue instead of part of a web of an organizational culture,” says Klein. “If you deal with office romance in isolation from sexual harassment and other diversity/respect/privacy issues, you’re going to cause confusion, and maybe outright contradiction.”


Klein, who conducted a 1988 landmark study of sexual harassment for the Fortune 500, [Sexual Harassment In The Fortune 500 or the 1988 Working Woman Sexual Harassment Survey], believes the problem is “… more rules, more rules, more rules, instead of backing up and asking, ‘What are our values, our principles, our approach?'”


A good place to begin is to be sure the practice matches the corporate culture. Says Cara Finn, vice president of employee services for Silicon Valley-based Remedy Corporation, “Trying to regulate where people meet potential life partners is nonsensical. People at Remedy work long hours. We have an informal, friendly atmosphere, so we’ve upped the ante on the chance factor of two people meeting each other. We can’t regulate if this happens, but when and how it happens.”


Workers are a close-knit group at the eight-year-old software maker’s offices. In the spirit of Silicon Valley openness and looseness, it’s not unusual to have lots of small parties among the 700 employees. Groups go to Disneyland, play miniature golf, even attend slumber parties. “We work hard and we play hard together,” says Finn. “These outside activities help people let off steam and also establish a new level of communication within the group. But it does rev-up the possibility that two people are going to find a synergy between themselves professionally and personally; and then, you’re off to the races.”


Remedy has a very brief, but written statement regarding romance between co-workers, which was established early in the company’s history. It’s not a formal, strict business environment, so the practice mirrors the corporate culture. “We put a great deal of value on the company principles. We articulated them in a simple set of tenets to help us make decisions as we go forward,” says Finn. Building on these principles, sweethearts can’t be in the same reporting structure, and one can’t have undue influence over the other’s career. That’s all. Furthermore, since communication is so highly valued in the company, individuals are encouraged to be open about their relationships, and company celebrations frequently herald a new wedding or engagement among co-workers.


The policy fits the personality of the group. It also recognizes the complexities of relationships by not over-regulating situations that can’t be anticipated. “You can’t legislate love or emotions. They just happen—whenever and wherever,” says Finn. “I feel very strongly about not having rules you can’t enforce. You shouldn’t try to control things you can’t control.”


Remedy employees come forward all the time with news of co-worker relationships. They usually tell their immediate managers first. Neither individual would be reassigned unless they were in the same reporting structure or had influence over each other’s career. It hasn’t happened yet, but if it does, the managers and employees would handle the transfer situation collaboratively as in any work condition in which an individual believes it’s no longer conducive to continue in the same department. The well-conceived policy also is designed to avoid the perception of favoritism and bias, and the way it’s communicated encourages forthrightness.


“I believe very deeply that if you give people an environment in which they can be their whole selves, you get more. But if you invite them to be their complete selves, then you’re going to get the whole package—and that means people will bring their extracurricular life and their home life, but you’ll get some wonderful creativity with it,” says Finn.


Anticipate conflict-of-interest and sexual-harassment claims.
One of the reasons Remedy’s romance policy works is because the organization also has a clear, firm policy regarding sexual harassment. The company has had very few complaints, but takes immediate action when it does so the situations don’t escalate. Both managers and employees are taught that one of the best ways to prevent any sort of harassment is to articulate the discomfort to a supervisor promptly. The underlying philosophy assumes everyone is adult and can be honest and forthright.


Not so everywhere.


“A lot of sexual-harassment complaints result from consensual relationships that went bad,” says Christine Amalfe, a director [read as partner] at the Newark, New Jersey-based law firm of Gibbons, Del Deo, Dolan, Griffinger & Vecchione, who specializes in employment law. “If romances are prohibited, the employer doesn’t really know what’s going on. And a year after a consensual relationship breaks up, some woman walks into the office and says, ‘I’m being sexually harassed by my superior.'” For this reason, the more enlightened employers are creating policies that allow for consensual relationships, but require the most senior person involved in a relationship to disclose it if it’s between superior and subordinate.


Amalfe’s 300-person firm is a good example of an organization that tries to avert disasters by avoiding unreasonable practices. Its romance guidelines, which don’t prohibit romantic relationships, are part of the overall diversity policy (although Amalfe says the guidelines could fit under the nepotism section as well). The policy, which is always communicated upon hiring, reads: “Those who engage in those [consensual] relationships should be aware that concerns may later arise regarding the actual freedom of choice of one of the parties, particularly when a superior/subordinate relationship exists between them. In these cases, the firm requires the senior-ranking person in the relationship to disclose the relationship to the co-chairs of the Diversity Committee.”


Disclosure serves two purposes. One: “We can confirm with the participants of the relationship that it is, in fact, consensual; that there’s no intimidation or pressure on the junior person,” says Amalfe. “If the relationship ever goes bad, no one can say he or she was forced into the relationship by the person in the more senior position.” The second reason is to be sure that the supervisor has no input into the junior person’s workload and raises. As in the case of Remedy, either the reporting structure would alter or one of the individuals would change departments. The policy also requires employees to notify the co-chairs if the relationship terminates or no longer is consensual. “I can’t tell you how many times I have served as counsel and start investigating a plaintiff’s claim for sexual harassment and find that the plaintiff and the alleged harasser were previously involved,” says Amalfe. “One of them decides to break it off. The other continues to pursue and it becomes something other than consensual, and the person claims he or she is being sexually harassed.”


Protect competence, productivity and morale.
As worried as managers are about sexual-harassment litigation, the more frequent culprit is lost productivity, lowered morale and loss of valuable workers whom the company values and has expended time and money training. “Companies should always keep in mind the possibility of a sexual-harassment suit and take precautions to protect themselves, so in case it occurs, they have a defense,” says Amalfe. “But the bigger expense to employers is people leaving the workforce because they’re unhappy that they work alongside someone who’s being favored because she’s having an affair with the boss.”


This usually happens when the lovers are in a reporting relationship, and not when they’re peers. Thus another reason for policies to focus on relationships in which power is an issue. “What you’re trying to do as an employer is to manage these relationships in a way that maintains a productive, happy workforce on the one hand, and doesn’t overly intrude into the employee’s private life on the other hand,” says Michael Karteles, partner and head of the Employment Law Group at Chicago-based Goldberg, Kohn, Bellblack, Rosenbloom & Marin. “Employers can legitimately be concerned that there’s not going to be an objective evaluation process if the supervisor is personally involved. Co-workers know about these things and get worried about favoritism.”


Certainly a drop in morale and retention of workers in the same work unit as a person having a workplace romance is an issue. It’s also an issue when it comes to the lovers themselves—even if it’s not a romance between boss and subordinate. Many times a relationship will start, and as it sours, one or both of the individuals can become distracted, highly emotional, depressed—and eventually, even decide to leave his or her job.


What’s acceptable? What’s not?
Consider the case of Deana and Nicholas (not their real names). Deana is a 30-year-old PR professional who lives in San Francisco. Her heady love affair with a handsome colleague started simply enough when they went out for drinks with others after work. Next, he sent e-mails to which she responded. The relationship became more and more intense. They were both happy.


At first, it was uncomplicated because they worked on different floors of the building and had different clients. But six months into the romance, it became tense when Deana wanted to move in together, and Nicholas did not. The flurry of e-mails from Nicholas dwindled, but Deana continually checked for them. When they weren’t there, she’d become upset and distracted. Her work suffered. Then, his division moved to the same floor as hers. She began to use the stairs and avoid the elevator because it was near his desk. She would ruminate over looks he cast her way. She’d worry that he could hear her on the phone.


“Even things like making a trip to the bathroom became uncomfortable be-cause I’d have to walk past him,” she confesses. “I’d think, ‘I don’t want to see him.’ I would definitely go out of my way to avoid seeing him,” she says. “If we broke up, I don’t think I could work in the same place.”


No one could have stopped Deana from falling in love with Nicholas. Indeed, love can’t be regulated. Yet, nor should it be ignored. HR can create policies that assure work is being accomplished, co-workers aren’t being adversely affected and conflicts aren’t taking place. The policies for one company can’t be lifted and completely adopted by another because they must be tailored to the type of employees and the corporate culture. And once reasonable guidelines are created, they must be communicated clearly, and frequently, to the staff.


Perhaps love is blind passion. But for the workplace to survive employee romances, HR must take a deliberate, reasonable approach in defining what’s acceptable and what’s not.


Workforce, July 1998, Vol. 77, No. 7, pp. 42-50.


Posted on July 1, 1998July 10, 2018

Create an E-mail Retention and Purge Policy

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


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


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


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

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


Posted on June 1, 1998June 29, 2023

Employers Are Getting Smarter About Handling Sexual Harassment Issues

Reports of sexual harassment are becoming more common. According to the Equal Employment Opportunity Commission (EEOC), there were 6,000 cases of sexual harassment in 1990. By 1996, 15,000 cases were filed.


However, according to twin studies on sexual harassment complaints at 900 firms by the White Plains, New York-based law firm of Jackson, Lewis, Schitzler & Krupman, the number of human resources professionals surveyed that had handled at least one such complaint a year dropped 22 percent, from 92 percent in 1995 to 70 percent in 1997. According to Greg Rasin, managing partner of Jackson Lewis, “There’s been a fundamental shift in employer attitudes about sexual harassment in just the past two years. With keener awareness and sensitivity, smart companies are developing more aggressive approaches to preventing the occurrence of sexual harassment. They’re learning how to limit their vulnerability to sexual harassment suits.”


One reason for the drop in complaints could be manager training on the topic. The survey indicates that in 1997, 62 percent of companies polled had provided sexual harassment training for supervisors versus 34 percent two years earlier. “When it comes down to it, a company can’t control every manager and every hire. But, a company can take preventative measures to have more control,” says Rasin.


While U.S. businesses may be a long way from being harassment-free, human resources managers are getting smarter about handling it.


Workforce, June 1998, Vol. 77, No. 6, p. 42.



Posted on June 1, 1998July 10, 2018

The Dumbest Questions Employees Have Asked

A couple of you allowed that “there are no dumb questions,” but many of you were more than happy to volunteer some of the doozies that have been put to you. We have to agree—most of them are pretty dumb. Here are some favorites—and some thoughts on how we might respond to them:


  1. Does sexual harassment really happen? Yes, but only in the White House.
  2. Will I be fired if I get caught taking money? Yes.
    What if I offer to put it back? We’ll take it.
  3. Why can’t we hire young, good-looking women? Because they’ve all refused to work with you.
  4. Why can’t I have a blind employee work with chemicals? Hmmm let me see .
  5. Do I have to turn on the computer every time I want to use it? No, only when you want to save the work you’ve done.
  6. Do we close for Lent? Yes, for all 40 days.
  7. Do I have to go to the mandatory meeting? Only if you want the mandatory paycheck.
  8. How do I apply for a job in another company? Let me just get that application form for you.
  9. What if I keep missing and can’t pee in the little cup? Can I take the drug test another time? Yes, as soon as you’re sober.
  10. Is my job hard? Yes, almost as hard as breathing.

Workforce, June 1998, Vol. 77, No. 6, p. 90.


Posted on June 1, 1998July 10, 2018

When a Lawsuit Has Your Name on It ..

It’s an uncomfortable thing to have your company named in an em-ployment lawsuit. It’s an even more uncomfortable thing to find your name on the list as an individual defendant. More and more, that’s just what’s happening to supervisors and HR professionals. Larry C. Drapkin, partner in the labor and employment law department at Los Angeles-based Mitchell Silberberg & Knupp L.L.P., explains what happens when a supervisor is named, and offers possible defenses.


Is the naming of individual supervisors a recent trend?
It isn’t brand new—it’s been happening a number of years now. There are a number of reasons for it. Of course in some instances there’s a perception by the plaintiff that these supervisors are legitimate defendants who’ve done something to contribute to the problem.


But also I think there’s a philosophy among some plaintiffs’ counsel that the more defendants the merrier, because that’s more likely to force a larger number of attorneys to get involved, and higher costs will be associated with the case and perhaps that will force the defendant into settlement. So there’s an economic-pressure issue. Moreover, I think the perception is that it gives managers a personal interest in getting the case done with because now they not only have to deal with defending a case on behalf of the company, but they have the added pressure and personal upset of being named as a defendant.


Also from a strategic point of view, naming an individual supervisor can sometimes help a plaintiff to keep a case out of federal court. Sometimes a case can be removed by the defendants to federal court—if, in a company with [national offices], the plaintiff is from one state, the defendant from another. Sometimes supervisors in the plaintiff’s state are added as defendants so the case will stay in state court, because the perception is state courts apply the law in a way that’s more plaintiff favorable. There’s a way to challenge that—bringing a motion to dismiss on grounds that this is a sham defendant.


Is there a type of case in which individuals tend to be named?
You see it more in the discrimination arena. But we’ve seen it in cases that don’t involve discrimination also—in cases where the plaintiffs alleged that somebody caused them emotional distress or other issues not related to discrimination.


When a person is named individually, what should he or she do?
First, just like any defendant, the person needs to have the best representation possible under the circumstances, and should take it very seriously because they could potentially face legal liability based on the strengths of the claims. They need to coordinate a defense with the employer. Oftentimes there’s the possibility of a joint defense with representation by a company’s attorney. Of course, if a supervisor is accused of personally having done some bad acts, there’s a strategy question of whether there should be joint representation. Then there are issues of insurance coverage and practical issues of cost. In most cases those issues are worked out cooperatively with the company being involved in the process.


Can an individual supervisor be found guilty and the company not be found guilty?
There are some circumstances for which that could happen, depending on the state. In some harassment cases that could happen if the supervisor is the one being sued for harassment. Some states have strict liability doctrines when a supervisor is sued; others look at where the conduct occurred—in the workplace or in someone’s home on the weekend—because if the conduct is outside of the scope of the supervisor’s employment, the individual could have personal liability and it is possible the employer wouldn’t be liable. But in the garden-variety case, when a person doesn’t like the decision the supervisor made—”He terminated me because I’m a woman”—that kind of claim, if successful, leads to employer liability.


What are defenses for individuals?
There’s a growing body of case law that, depending on the state, suggests that a supervisor would have a defense to certain claims that are based on normal personnel decision-making. In California there’s a case pending before the state Supreme Court that will address whether an individual can be sued for discrimination when alleged discriminatory action arises out of personnel decision-making as opposed to intentional conduct outside of the management function. For in-stance, direct sexual harassment by a supervisor isn’t part of the normal decision-making process. Distinguish that from a situation in which someone says “I was discriminated against because of my age or sex. They kept someone who’s male and let me go because I’m female.”


In these types of cases a growing number of federal and state courts have held that the individual supervisor can’t be sued. There’s a defense of manager’s privilege that essentially acknowledges that managers can’t perform their jobs without engaging in decision-making that might be second-guessed by a court. [That privilege maintains] that when they’re acting in the realm of normal management function, supervisors should have protection against personal liability because they’re acting on behalf of the employer. The employer bears the liability if managers aren’t performing their jobs well. So that’s the type of defense that would help a manager. It’s a defense that should always be considered.


What else should be considered?
Because there are a number of defenses available to managers who are sued in their managerial capacities, it’s very important to explore whether they could get out of a case on an initial motion. The question is whether [the attorney] can look at the allegations in the complaint and analyze the law and say, “No, this is precluded by the manager’s privilege” or “This is precluded because you can’t sue an individual for discrimination under this state law or Title VII.”


What’s an example?
On discrimination, the law varies from state to state as to whether an individual can be sued. In California, there’s a significant case, Janken v. G.M. Hughes Electronics, that stands for the proposition that [complaints] arising out of the personnel functions aren’t actionable under state discrimination laws. Like-wise, a number of federal circuit courts have held that under Title VII an individual supervisor can’t be sued.


Oftentimes [the attorney] can get an individual [removed from a case]. When I litigate one of these cases the first thing I do is try to weed out as many of the defendants as I can. Oftentimes it’s by negotiation with the other side: I let them know why as a matter of law they can’t maintain a claim against the individual. Sometimes it’s as easy as that.


What can supervisors do to safeguard themselves?
In the workplace, supervisors can never do their jobs too well. That’s not the only reason they get sued, and some people will get sued despite doing excellent jobs. But if you want to talk about the first way of preventing a personal lawsuit, people need to do their jobs in the best way possible. They should know what to look for and how to handle themselves as supervisors; they should make sure they’ve received all the appropriate training on sexual harassment and workplace discrimination issues; they need to make sure they know how to identify and investigate complaints and do so in a timely fashion. HR should make sure managers know how to identify problems before they fester. These things will help managers maintain a better rapport with individuals as opposed to them being seen by the plaintiff as the cause of the problem. That’s important because the workplace relationship has an emotional component—always has, always will.


Workforce, June 1998, Vol. 77, No. 6, pp. 119-122.


Posted on June 1, 1998July 10, 2018

What Are the Merits of Informal Learning

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


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


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


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


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


Formal learning is scheduled; informal learning arises spontaneously.


Formal learning has specific outcomes; informal learning may not.


SOURCE: Center for Workforce Development, Newton, Massachusetts.


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


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