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Posted on April 1, 1997July 10, 2018

At Eddie Bauer You Can Work and Have a Life

Make no mistake about it, Eddie Bauer Inc. expects its employees to put in a day’s work for a day’s pay. But the Redmond, Washington-based casual-lifestyle retailer also believes its associates shouldn’t confuse having a career with having a life.


Balance between home and work is a part of the corporate culture at the company, a division of catalog giant Chicago-based Spiegel Inc. At a time when many corporations are downsizing and shaving employee benefits, Eddie Bauer uses its work/life programs to help associates lead more productive and balanced lives. The company encourages its workforce to enjoy mental and physical fitness through programs big and small.


HR at Eddie Bauer has carefully assembled a benefits package that covers both the routine and nonroutine challenges of work and home. The investment more than pays for itself, because many of the programs result in lowered health-care costs. But the programs also help associates be more focused and productive at work knowing that resources are available to help make personal needs manageable.


Small touches yield big payoffs.
Sometimes mere words can demonstrate an attitude shift. For instance, several years ago, Eddie Bauer began referring to its employees as associates. “The focus is on the individual, not rank and Social Security number,” says Sue Storgaard, director of work/life services. Secondly, Eddie Bauer purposely calls its associate program a work/life program. The distinction is made between work and life, two equally important elements. In fact, Eddie Bauer prefers the work/life title to “family friendly” to place the emphasis on the individual.


Many of the company’s benefits are simple programs—relatively easy to execute—that recognize people sometimes need to take a break. In January 1996, for example, the company introduced Balance Day—a sort of free day intended for associates to schedule a “call in well” absence. All employees are entitled to one Balance Day annually, in addition to normal time off, accrued vacation, three personal holidays, national holidays and sick leave.


Eddie Bauer personnel welcome the bonus day, using it to run errands, attend to children or pursue hobbies. “We value the commitment our associates make to Eddie Bauer, and conversely, we realize that they have another life outside of work that’s important to them,” explains Storgaard. “Through carefully researched programs, we’re offering our associates—whether they’re single, married, parents or nonparents—an environment that reduces their stress at work and gives them more flexibility in their personal lives.”


Since 1994, Eddie Bauer has introduced more than 20 new programs, from onsite mammography to emergency child-care services.


Eddie Bauer’s HR professionals started to develop the specialized work/ life benefits plan by asking themselves: What do our employees really want, and can we afford to give it to them? Often the company can. Eddie Bauer has a strong track record when it comes to employee benefits. The company offers the usual array of benefits and services common to many companies, including various group insurance and savings programs.


Other extras include a casual dress code for more than a decade, subsidies for liberal paid parental leave and alternative transportation options such as preferred parking for carpools and a 40 percent subsidy for vanpools. And under its Customized Work Environment program, instituted in 1994, the company offers such options as job sharing, a compressed workweek and telecommuting.


The company always looks to do more
Since 1994, Eddie Bauer has introduced more than 20 new programs, from onsite mammography to emergency child-care services. That’s not easy for a company as big as Eddie Bauer, which employs approximately 12,000 people who work to distribute products in the company’s 450 stores throughout the United States, Canada, Japan, and Germany, and operate a global mail-order catalog business representing 30 percent of the company’s revenue.


Storgaard says Eddie Bauer’s success in implementing new work/life programs at such a rapid pace can be attributed to two elements: total support from upper management and the ability for Eddie Bauer’s HR and work/life services professionals to set up the program administrative component themselves, cutting out the middle man. Storgaard says most large companies have separate information services departments through which all new programs must travel before services are available to employees.


It was 1993 that the HR department began seriously examining what more it could do for associates. It wanted to create a flexible work environment plus offer an exceptional benefits package. The ultimate goal: Make Eddie Bauer a highly desirable place to work—an employer of choice. A series of focus groups involving corporate and retail-store associates provided a road map for the company’s executives. Clearly evident was the need to address dual-parenting roles, the increase in working mothers and the maturation of the baby-boomer market. In addition to their jobs, Eddie Bauer associates were juggling a lot of personal responsibilities.


To address a large part of the issue, an employee assistance program and a Child and Elder Care Consulting and Referral service provided by Working Solutions—whose response and service area is nationwide—were both implemented in 1994.


The employee assistance program offers a confidential assessment and referral program for personal problems such as family and work relationships, mental and emotional difficulties, alcohol and chemical dependency, loss and grief, stress management and depression. Legal and financial assistance is also available through the program, and is offered to associates as well as family members for no fee. Eddie Bauer’s employee assistance program arranges up to three visits with a professional counselor to assess a situation and determine the necessary resources that should be tapped.


HR at Eddie Bauer intentionally selected a professional service provider that has a broad range of resources, counseling and educational services. Associates can call a toll-free, confidential hot line 24 hours a day, 7 days a week, including holidays.


Eddie Bauer included elder care in response to statistics: According to the American Association of Retired Persons (AARP), the over-65 group is expected to grow to 35 million by the year 2000. This number will have a considerable impact on the workforce, which increasingly is sandwiched between the demands of caring for children and elderly parents.


Eddie Bauer recognized the development of an elder-care program as meeting a need that was imminent. Under the elder care resource-and-referral program, the company assists associates in a variety of ways—from housing concerns to issues for caregivers. More than 170 associates used the service last year.


Associates also can access books, articles and videos on gerontology-related issues. Trained professionals provide individual guidance and counseling on what to look for in a caregiving situation and how to address specific health problems. They also are versed in a wide range of topics and service areas, including the aging process and medical issues, stress reduction, respite, bereavement and grief. They’re coached on the elements of family dynamics, intergenerational communications, caregiving at home, managing long-distance caregiving, financial planning and in-home support.


Storgaard has firsthand experience with the value of elder-care support. Her mother was diagnosed with cancer three years ago and Storgaard found that the program provided her with valuable resources and saved her a lot of time. Without a comprehensive elder care consulting-and-referral service, Storgaard says she would have been hard pressed to manage both caregiving and work responsibilities.


Although the EAP and elder-care programs were major projects, dozens of other new programs have popped up. “A lot of our programs offer a great convenience to our associates and cost nothing to implement, except for staff effort in programming the computer systems,” says Storgaard. “Associates pay the entire premium to vendors when they need the service, reducing any impact on the company’s bottom line.” Examples include group auto/homeowners and group legal plans, dry cleaning services that pick up and deliver at the associate’s place of work, and onsite massages.


Eddie Bauer’s commitment surfaces in many areas.
In early 1996, the company added several programs to its work/life benefits package. The Eddie Bauer package now includes Home and Healthy Postpartum Visits, adoption assistance and a plan that allows associates to enjoy group buying power through arrangements for mortgage loan discounts. “These programs were relatively easy to implement and have been well-received by Eddie Bauer associates,” says Storgaard. In fact, Storgaard already has answered calls from other companies inquiring about these programs.


The Home and Healthy Postpartum Visits program is one particularly groundbreaking benefit. Hospitals are under continued fiscal pressure from third-party payers to reduce spending. As a result, many women find their hospital stays following delivery rushed. “Because of the shorter length of stay, mothers feel they and their newborns require more attention to follow-up care,” says Michelle Hoeft of the Association of Women’s Health, Obstetric and Neonatal Nurses.


Addressing these routinely short hospital stays, in 1996 Eddie Bauer developed its Home and Healthy program with Pediatric Home Care (an affiliate of Seattle-based Children’s Hospital and Medical Center). A registered pediatric nurse is sent to the home of the new parents—whether it be an Eddie Bauer female associate or the wife of a male associate—within 24 to 72 hours of hospital discharge.


The postpartum visit includes an in-depth physical assessment of the infant as well as a physical examination of the mother. The registered nurse answers questions on infant hygiene, normal newborn behavior and bonding. In addition, there are discussions about breast feeding, incontinence and postpartum depression. “It was tremendously helpful for me to have a professional nurse come to my home and answer questions about baby care,” says Judy Zall Neuman, director of electronic media, of her postpartum visit last year. “There are so many care issues that develop, especially when you’re a mother for the first time. You need expert advice on matters you might not realize until the moment comes, and it’s just you and your baby at home.”


The Home and Healthy program has caught the attention of nurses’ associations, doctors and other companies. “Since potential long-term problems and identifiable risks can often be detected in the first days after birth, Eddie Bauer is making a valuable contribution to the well-being of the baby and the new mother,” says Nancy Swanson, marketing director for Pediatric Home Care. “Eddie Bauer is the first company nationally that we are aware of to offer this type of fully paid postpartum program.”


The Association of Women’s Health, Obstetric and Neonatal Nurses supports the idea that mothers, newborns and families need professional nursing care during the early postpartum period. Therefore, this organization advocates the development of comprehensive maternity-care programs that include creative methods to deal with fiscal issues, while addressing the physical, educational, and emotional needs of the mother and new baby.


So far, 35 associates have used the program, which costs less than $4,000 a year. Two women were referred back to their primary-care physician for a follow-up visit, and two babies were provided with a test for jaundice. “The Home and Healthy program more than pays for itself if just one condition is caught early, saving a trip to the emergency room,” says Storgaard.


Work/life values have support from the top.
Much of the success of such progressive work/life benefits can be attributed to the support of Eddie Bauer President Rick Fersch who human resources professionals say has encouraged change with literally no bureaucratic red tape. “He recognizes the intrinsic value of these programs to our associates as well as the company,” says Storgaard. “We believe our work/life programs lead to fewer sick days, less absenteeism, and lower health-care costs.” Eddie Bauer’s culture doesn’t demand cost-justifications for such programs, but Storgaard says she knows they’re working and saving the company money. Consider when a mammogram detects a lump early, a flu shot prevents illness, or the Child and Elder Care Consulting and Referral service saves an associate considerable time in research by providing a quick day-care referral.


Although Eddie Bauer initiated many benefits on its own, it recognized the need to turn to outside experts for certain programs. The company’s key has been to select providers that represent quality programs and expertise in specific fields. “Finding the right provider is critical to the quality of the benefits program,” says Storgaard. In the case of Eddie Bauer, HR sought trained specialists in child-care services, obstetrics and postnatal care, gerontology and mental health.


Eddie Bauer associates receive work/life program information upon hire in conjunction with their benefits orientation. As new programs are added, HR provides updates in an internal newsletter, by company e-mail and in-store bulletin boards. New programs are often supplemented with articles and brochures. Eddie Bauer’s work/life area has become so extensive, human resources is currently developing a 100-page handbook that will be distributed to all employees.


“Eddie Bauer is regarded as a vanguard nationally in areas that affect individual and family standards,” says Hoeft of Women’s Health, Obstetric and Neonatal Nurses. “We encourage the type of comprehensive benefits programs the company has implemented.”


As for the future, the company is not easing off. “We continue to listen to our associates for ways we can keep a level of balance high in their lives—both on and off the job,” says Storgaard. “We want everyone at Eddie Bauer to feel they’re working at the best employer in the country.”


The message to Eddie Bauer’s associates is clear: “This is your work/life program, make it work for you.” And they do.


Workforce, April 1997, Vol. 76, No. 4, pp. 83-90.


Posted on April 1, 1997July 10, 2018

Royal Caribbean Managing Employees as Smoothly as a Cruise

With ship names such as Song of Norway, Legend of the Seas and Sun Viking, who could possibly resist the idea of a luxury cruise? While it promises sunshine, relaxation and dancing for guests, it means work for 8,000 shipboard employees of Miami-based Royal Caribbean Cruises Ltd. Managing an international pool of land and predominantly shipboard employees is unique, according to Tom Murrill, vice president of HR. Unlike land-based operations, however, those on a ship must serve clientele 24 hours a day, seven days a week—without any physical separation from the guests for days at a time. Here are some of Murrill’s HR insights on his unique job.


How did you end up with this particular job in this industry?
I’ve been in the service business for 20 years. I started in California with Burlington Air Express—a cargo express company. I was the senior vice president and general counsel as well as the one responsible for human resources. I’ve always focused predominantly on the HR area. Then I worked for Ecolab—a provider of cleaning and sanitation products. This was also in the service industry. Then I was recruited from Columbus, Ohio, where I was working for an Ecolab division, to work for Royal Caribbean. That was two years ago.


What are the biggest challenges of your industry?
The biggest challenge is managing the growth in our industry. We’re adding two new ships this year and another one in 1998. With the growth, it means we have to continue to find, train and develop the best employees in the vacation industry. One of the complexities is that as [global] economies improve, foreign nationals find more job opportunities in their own home countries.


So we reengineered our recruitment process two years ago when I came. We developed a network of 20 staffing partners around the world and identified job profiles for all the positions we require. We also have an onsite training and orientation process with the hiring partners to screen all employees and make them fully aware of our job expectations.


What are some of the stresses for shipboard employees?
The biggest stress factor is that shipboard employees are away from home. Some may come from India or Europe—and end up sailing on a ship cruising to the Caribbean or Asia. That’s the main change for most individuals. Most people work in their own communities. On a ship, they move to a new community. So one of our challenges is to welcome and make them comfortable and ensure they’ll be successful on the cruise ship.


Shipboard employees have a rotating schedule, so depending on their schedule, they can get from a half to a full day off in the various ports. But of course, the majority of their time is working to service the guests.


We also have a medical staff with physicians on every ship. And our captain and his staff (staff captain, hotel manager and chief engineer) are the four senior positions on the ship. They spend a great deal of time providing mentoring, leadership and assistance to our employees.


What’s unique about the customer service required for ship guests?
When guests are on a ship, they never go home. Customer service has to be provided 24 hours a day, seven days a week. Unlike a hotel, where guests spend many hours away from the site, we have cruise guests seven to 14 days, 24 hours a day. This is why we have a high ratio of 1 employee for every 2.7 guests; we have to provide world-class service on a 24-hour basis.


Is retention an issue?
Like all service businesses, retention is an issue. Since our employees are away from home, some [prospective] staff think they’d like being shipboard but later decide it’s not for them. So we try to address these issues through such programs as our Royal Recognition Club, through mentoring and compassionate leaves for those with family emergencies. I think the vacation industry recognizes the need for flexibility in order to manage change.


We also have a wonderful cruise program for our shipboard and shoreside employees. After one year, all employees receive one free familiarization cruise. Now, for shipboard employees, that’s only appealing when they can bring their families. Family members get significantly discounted, almost free cruises. And for more distant family members, we even provide discount cruise options. This is a strong benefit that shipboard and shoreside employees enjoy.


How is HR viewed at Royal Caribbean Cruises Ltd.?
Shoreside, human resources is one of the seven pillars of our company’s strategic plan. We have a high profile and commitment to the training and development of our employees.


Shipboard, HR comes about in many ways. The purser’s office is there to address such concerns. The crew relations purser [employees] are those who handle things behind the scenes, such as administrative and financial matters. And the captain has regular meetings with the staff and employees to update them on what the company is doing.


Are all of your captains male?
Currently, all of our captains are male. The majority are Norwegian and Swedish. Overall, however, we have a broad diversity not only in terms of nationality, but in gender as well with men and women in all other positions. But the marine side has traditionally been a male-dominated culture. And we’re cracking that. One of our targets is to broaden our diversity.


Is your customer base changing?
Yes. The cruise industry is experiencing a shift from the traditionally [older, retired] cruiser toward families and younger, first-time cruisers who see cruises as a viable vacation option. We’re competing against Las Vegas, resort hotels and entertainment theme parks. One of the biggest changes in the industry is in the design of our ships and the amenities. On one ship, we even provide 18 rounds of miniature golf. Cruising is one of the best pampering experiences one can have.


How would you define the culture of your organization?
Our corporate culture is one of high customer satisfaction and one that promotes diversity. Shoreside, for example, 53 percent of our employees are Hispanic and 57 percent are women.


Moreover, all of our employees must speak English because there are strong international safety standards. But many of our employees are bilingual. On each ship, we have a cruise director and an international host/hostess who are multilingual. If our non-English-speaking guests require services, there’s always somebody on ship who speaks the language of the guest. We have bilingual staff from many countries.


Do you get to travel very much?
I don’t get to cruise that often. But when I go on a ship for training, I must admit, it’s certainly nice to be visiting ships in beautiful waters of the world.


Workforce, April 1997, Vol. 76, No. 4, pp. 91-92.


 


Posted on April 1, 1997July 10, 2018

Destination USA

Everyone knows the U.S.A. We export our culture everywhere in the world. From blockbuster movies like “Forrest Gump” and “Terminator 2” to music legends like Madonna and Michael Jackson; from the O.J. Simpson trial to Seinfeld; we advertise our personalities—and culture—via satellite to anyone wishing access. The Big Mac (R), fries and Coca-Cola (R) are staples from Australia to Zaire, and Levi’s denim jeans are a virtual uniform across the globe.


So, people know the American culture. With this type of exposure, the United States should be easy to adapt to when coming here on an international assignment. Right? Wrong.


People come to the United States with visions that are partially correct and partially incorrect. Fears, apprehensions and half-truths accompany their impressions that we’re outgoing, friendly, strong, beautiful and happy. Besides that, Americans are familiar with the idea of diversity and have a long history of integrating immigrants. It often makes us all believe that “foreigners”—no matter where they come from and no matter why they’re staying in the United States—will adjust easily.


The reality is, the United States is as foreign and strange to international assignees as other countries are to Americans. Sound simple? Sure, but we forget it all the time. Although the United States may be an easier destination to integrate into than some other countries because of its notoriety, HR professionals are well-advised to remember that assignees feel like travelers to another world. “We, as a country, need to be more outward-looking than we are,” says Jill Terry, principal human resources representative from Solar Turbines Inc., who manages a range of people—Germans, Chinese, Indonesians, French. Thinking about our country as a “foreign business destination,” however, is a fairly new role for us and requires a new mindset. Unlike the situation when we welcome immigrants and expect them to assimilate, being a host to foreign nationals requires we do just that—be hosts. Doing so means dealing with many of the same issues we must handle for our own expats. The most important issues are preparing the incoming workers for the differences in the cultural and business climate and providing them the support they need to be comfortable enough in our “home” so that they can perform the jobs they were brought here to do.


“I think (Americans) can’t understand the vacation policy. It seems to bother them because companies give them only a week after so many years, and maybe after five years they get three weeks. In Europe, and other parts of the world, people get a month of vacation. They get paid for 12 months for 11 months of work.”
—Michel Mamoui (from France), General Manager of Food and Beverage at the J. Paul Getty Center, Los Angeles.


Global managers play a central role in helping to demystify the experience. Managing expectations and paying attention to timing in key areas such as immigration and education help expatriates adjust. They depend on HR to help them with an array of new experiences: language acquisition, cultural orientation, securing credit and bank accounts, gaining insurance and access to medical services, and understanding how the medical system works in the United States. Incoming expats must learn about transportation—whether they’ll be driving or using public modes of getting around. They need help anticipating what they’ll find in accommodations; parents require assistance with schooling and day care for their children. Spouses and accompanying partners need special attention, too.


The huge influx requires a new way of thinking.
Nearly 90,000 foreign nationals annually are brought to the United States by their American employers, according to the U.S. Immigration and Naturalization Service. American companies are acquiring international businesses or going into joint ventures, making it imperative to bring key individuals to the United States to help transfer corporate cultures. In addition, many U.S. firms, such as those in the high-tech fields, have an insatiable hunger for individuals who possess skills not readily available in the United States.


“We’re definitely experiencing a big change in the volume of people coming to the United States,” says Sharon Richards, of the Business Practices Network at Santa Clara, California-based Intel Corp. “We’re not only bringing more people to the United States, but we’re seeing that the people who are coming have a wider variety of backgrounds. For example, we’re seeing people who come for a particular training assignment as well as those who fill the usual high-level, global-manager positions.”


American firms aren’t the only ones bringing foreign nationals to the United States to work. The Christian Science Monitor estimates that approximately five million workers in the United States are employed by foreign-owned firms. And these companies have $60 billion in direct investment in the United States, says the United Nations Conference on Trade and Development. With this type of foreign investment in the United States, it represents an enormous market for foreign companies to both produce and market products, thus creating a need to send their expatriates.


Fortunately for these incoming expats, the United States is possibly one of the best places for an international assignment. It has one of the highest standards of living in the world and a lifestyle that’s considered unequaled. Yet, the cost of living is affordable by many nations’ standards, making the United States an attractive and cost-effective place to bring—or send—expatriates. Still, that doesn’t mean it’s simple for foreign nationals to come to the United States and integrate into its workplaces. Like our expats going abroad, incoming expats must first weather culture shock.


Prepare for culture shock—U.S. style.
The fact that foreign nationals come with expectations of American culture actually can make their assignments harder, not easier. “The United States is so well-known around the world via movies and television that people tend to have a lot of assumptions,” says Richards. “They assume they know us. Some of the information they bring is accurate, but some is inaccurate.”


Therefore, setting realistic expectations is one of the most important aspects of preparing an incoming assignee. One of the most difficult adjustments for non-Americans has to do with socializing and community. “Americans appear extremely friendly on the surface,” says Terry. “We talk about getting together for lunch or for dinner, yet we don’t follow through. People in other countries frequently form friendships in the workplace that transcend work and cross into other parts of their lives. When [personal bonding] doesn’t happen in the United States, this may shock them and can create hurt feelings.”


But, more problematic than simply hurt feelings, this could lead to a sense of isolation which may cause withdrawal and depression. This can have serious implications for business. “Initially they may go to the workplace and believe that they will have real relationships and friendships with Americans,” says Sondra Thiederman, president of San Diego-based Cross-Cultural Communications. “When that doesn’t occur, they may begin to cluster: They form groups among themselves and are reluctant to socialize with native-born Americans because they don’t understand them.”


“You have so many options for anything you want to do. Anything you want to buy, products or services. You go to the supermarket and find 50 different types of yogurt. There’s so much choice; it’s almost bewildering.”
—Guthakrishnan (G.K.) Kannan, (from India) Regional Director of Therapeutics, Asia-Pacific Region for Allergan, Irvine, CA.


Another false expectation incoming workers may have is the concept of a “typical American,” being someone like John Wayne. You can imagine the shock when the reality hits. Not only is John Wayne a dated icon that sets ups incorrect expectations, but he certainly doesn’t illustrate the variety and diversity of the general population. Greater mysteries yet: Americans don’t even speak the same dialect, and sometimes not even the same language. “[Assignees] may have learned English in their home country, but if they’re put in a living environment in which they listen to Asian or Southern accents, it complicates the process further,” says Intel’s Richards. The incoming expats need to be prepared for the demographics of the location in the United States they’re going to live in as well. Albuquerque is not Seattle and is different again from New York City.


At Intel, all incoming expats receive pre-departure training in their home country to address these types of issues. Typically those that surface have to do with safety—Is it safe to walk on the streets; where can children play? Oftentimes Intel moves large groups of employees from one country to another. In these instances, Richards and a staff of experts present a “Road Show.” They gather the group and talk about all the relocation issues at one time—covering taxes, policy issues, housing, education and all of the relocation questions the expats will be facing.


Country-specific cultural values comprise one large component of the training during which Intel includes the expats’ partners and older children. Richards says: “We’ll ask them, ‘What are the Irish cultural values; what are the Malaysian cultural values?’ And then we’ll compare the similarities and differences with the American cultural values.” As Richards points out, it’s important to know both the written rules and the unwritten cultural ones. For example, when interacting with a police officer, it’s critical to know the proper way to conduct oneself. If assignees naively start to get out of the car or reach for something, they could find themselves in a dangerous situation.


Another part of Intel’s training focuses on expected workplace behaviors—behaviors dictated both by culture and by law. People unaware of our laws and expectations surrounding sexual harassment, for example, may find themselves in trouble simply by doing what is culturally correct in their own countries.


Intel addresses these issues head-on in several ways: education, mentoring and training. Richards has created a booklet called, “Things You Need to Know About Working in the U.S.A.” that talks about sexual harassment, recognition of gay and lesbian rights, and Intel’s expectations about behavior. All incoming expatriates receive a copy.


In addition to this type of preparation given to the assignees, Intel trains receiving managers to work with groups of people who are coming in from other cultures. The managers learn how to integrate new team members from a work perspective. As one example, the managers may design a buddy system so incoming foreign nationals have partners from whom they can learn the ropes.


“The rewarding thing at Intel,” says Richards “is that managers now are requesting cultural training. They know it’s important because people have different communication styles, different values, different behaviors. The question is how we can understand and work with them effectively. It’s learning both ways, what I call closed-loop training.”


Support incoming expats.
Recognizing—and more importantly, addressing—cultural differences the way Intel does, is crucial. Successful assignments require careful planning—from the selection process through support systems.


Los Angeles-based California Commerce Bank and parent company, Banamex USA Bancorp, epitomize the way in which U.S. global managers can think creatively to help people succeed in the United States—and be cost effective at the same time.


“We strive for excellence in our expatriate assignments (both incoming and outgoing)—by employing people who will deliver almost from Day One,” says Dennis Campos, senior vice president of human resources for California Commerce Bank and instructor for the University of California at Los Angeles Extension Program. The array of incoming expats—corporate bankers, marketing officers, foreign exchange traders—mostly from Mexico, come to the United States because many of the bank’s employees must be bicultural. Customers of the bank are both U.S. corporations and multinationals that have a business relationship with the parent bank, Banamex USA Bancorp, in Mexico City.


The thoughtful nature of the assignment process is apparent from the beginning of selection all the way through the support of expatriates during their stay in the United States. Selection starts with the nomination of a candidate from the parent firm based on the person’s technical quality. It continues with cultural and personal assessments, interviews (with the family as well) and several visits to the United States, during which time Campos and his staff hold a series of meetings with the candidate to decide whether or not he or she will do well in the U.S. company’s corporate culture. One of the major concerns is the ability to thrive in the multicultural environment of the California bank.


Once both sides decide the assignment is a good match, the expatriate makes another visit. Home finding and orientation with the U.S. staff come next. Expats meet with HR, their soon-to-be supervisors, relocation experts and tax consultants. The bank doesn’t follow the pack in many of its approaches and is quite progressive. Compensation is designed so expatriates can live at least the type of lifestyle they did when they were in their home country. The bank recently redesigned the compensation package so that expatriates are treated like U.S. locals. They get a salary that incorporates their special needs as expats, but they pay their own U.S. taxes. For example, although private schooling isn’t usually included in the package, exceptions to this rule are given as part of the salary, not as an education allowance.


“This is very different from what most people are doing,” says Campos. “We take advantage of the U.S. tax laws. A few years ago we followed the expatriate standard package of the parent corporation. It didn’t take anyone much time to figure out that we were simply paying a lot of taxes to the U.S. government needlessly because we were paying expats on a net basis and grossing the salaries up, indemnifying the expats for retirement in Mexico and also indemnifying them for fluctuations in currency.


“We redesigned our plans. Now because we treat them as locals, if they’ve had one year of service, they can participate in our retirement plan,” says Campos. “When they hit the States, they’re in the 401(k) plan and our pension plan. We’ve found it to be much cheaper than indemnifying them on any lost retirement they would’ve had if they’d remained in Mexico.” They return to Mexico with two qualified retirement plans that continue to grow, tax-free, until retirement.


This international approach to compensation, retirement benefits and medical coverage requires planning and coordination with the non-U.S. division or affiliate. It also requires sensitivity to the assignee’s individual needs. For example, when there’s a working spouse, that’s factored into the package so the family doesn’t suffer a decrease in lifestyle because of the lost income. Home travel is frequent when there’s an extensive nuclear family because of the importance of those relationships.


With the great influx of expatriates to the United States, it’s critical to lessen the mystery. We may be a foreign destination, but we don’t have to be as mysterious as the moon. With the right processes in place, adequate planning and time, expats won’t feel like they’re stranded on a strange, foreboding planet.


Global Workforce, April 1997, Vol. 2, No. 2, pp. 18-22.


Posted on April 1, 1997July 10, 2018

Global HR Doing What’s Important—First

Frank O’Connell explains: “I have a sign posted on my office wall, so I look at it when I look up from my desk.” The sign says: Keep the perspective without losing the focus.


As the vice president of human resources for Gillette International based in Boston, O’Connell knows that keeping perspective and focus isn’t easy to do when the job, literally, spans the globe. “As HR professionals, particularly in the international area, we tend to get so caught up in our fast-paced world, that we may neglect some of the important aspects of our jobs and lives,” says O’Connell, who has had 17 years of experience in international HR. “Because everything is moving so fast and changing so rapidly, and this electronic age is making communications that much more instantaneous, what it does is it brings the problems to you quicker.” He adds: “[For situations in which] I might have had to wait for the overnight courier [a few years ago], now I know about a significant crisis on the other side of the world in as little as 15 minutes after it has happened.” It makes planning your day very challenging.


There’s an old saying: “If you fail to plan, you pretty much can plan to fail.” This is particularly true for international HR professionals because often you may feel like the world is on your shoulders. And that may, in some cases, be true. One minute you’re taking care of details regarding several expatriates’ returns, the next minute you’re getting an urgent call that an employee has been kidnapped in Iran or that there’s a strike happening at one of your facilities in Scotland.


The global HR job is filled with many challenges—not the least of which is trying to prioritize your schedule. If most days you feel like your schedule prioritizes itself for you, instead of the other way around, you’d likely benefit from some expert advice.


Focus on leadership.
Roger Merrill, co-author with Stephen R. Covey and Rebecca R. Merrill of “First Things First,” and a founding vice president of Provo, Utah-based Covey Leadership Center (which announced in January a merger with Franklin Quest, to be finalized later this year), has some good ideas on how you can stay focused on what’s important when everything and everyone around you vies for attention. With 30 years of experience as a line manager, a senior executive in HR, a trainer and a consultant, along with education in the area of professional and personal effectiveness, Merrill is convinced that HR professionals should first focus on the role of leader. “Your job as an HR executive is to integrate the needs of people with the mission and strategy of the business in a way that is win-win,” says Merrill.


Leadership, he says, comes down to character and competence. “The degree to which people at all levels in the organization—from top management down to individual employees—have trust in you to help accomplish the corporate mission and solve problems, is one of the great challenges of the HR professional,” says Merrill. “Often, as HR professionals, you’re seen as nice people and competent in solving a few problems, but the key is: Are you really competent in strategic thinking?” And, although strategic thinking about your leadership role and priorities is a somewhat nebulous concept, it can be broken down into concrete steps—if you know where to start.


Mission/vision statements.
First, Merrill suggests, think about your leadership role and what you want to accomplish. Write a mission or vision statement that will guide you in strategically focusing on your major goals. Some questions to ask yourself might be: What am I trying to accomplish in this job or role? What are the significant roles I must play within that main role to accomplish my objectives?


Second, sit down at the beginning of each week (or once a week) and review your mission statement. From there, prioritize your goals for that week. “I suggest always starting with the single most important thing you need to accomplish that week in each of your strategic roles,” says Merrill. Then look at your week (with your best gut feeling and inner wisdom) and figure out when, realistically, would be the best time to get at that specific goal—and block out time for that most important goal before doing anything else.


Next, fill in everything else you want to do during that week based on your priorities. “If you have filled in the most important stuff first, what it does to your thinking is as important as what it does to your schedule,” says Merrill. It focuses you each week on your most important goals.


Finally, look at your priorities at the start of each day. “Because things change so rapidly, there’s no easy way around doing some daily organization,” says Merrill. You’ll probably end up shifting tasks during the week. That’s inevitable. But if you’ve planned ahead for the important things, you’ll have a better chance of achieving your vision as the days, weeks and months go by.


Merrill emphasizes that what’s important is that you start seeing your work as a function of importance, instead of as a function of urgency. “The degree to which urgency takes over is the degree to which we don’t have a clear focus on what’s important,” Merrill adds. The key is learning how to know what’s important.


Keep a journal.
So that you can capture all the great insight you have in your job and role, Merrill suggests you keep a journal. Don’t stress yourself out by thinking it has to be elaborate. Just keep a separate record for what you learn each week, how you think about your role, what issues and challenges arise and how you solve them. From there, you can begin to find patterns in how you work and how you think about how you work.


“In a fast-moving, complex job, your perspective can be so [blurry] that you don’t see the patterns amid the complexity,” says Merrill. “By keeping a journal and looking back at it every week or two, you get a perspective that allows you to see patterns and directions that give you a real capacity to be on target.” In the end, it allows you to see the big picture—both for your company and for your own role as an international HR professional. After all, you do have control over much of the writing that’s on the wall. Shouldn’t it have your own signature?


Global Workforce, April 1997, Vol. 2, No. 2, pp.14-15.


Posted on April 1, 1997July 10, 2018

Alternatives for Finding Temporary Workers

Here’s how you can help generate more temporary workers for your company and staffing suppliers:


  • Set up an internal temporary referral program with your regular staff for temporary candidates. Share the list with your supplier of choice.
  • Contact qualified excess candidates who’ve submitted resumes and ask if they want their names passed on to your staffing supplier for temporary work.
  • Establish an intern program with local colleges and training centers. Work with your staffing supplier to groom individuals for future temporary work-the service can provide software training and your company can provide experience through a mentoring or shadowing program.
  • Use your Web site and Internet capabilities to post both regular and temporary opportunities. Pass qualified temp candidates on to your preferred supplier.

Workforce, April 1997, Vol. 76, No. 4, p. 80.


Posted on April 1, 1997July 10, 2018

International HR Policy Basics

It has finally happened. Your company is venturing out. It opens operations in Belgium in six months, and you’re responsible for drafting the international HR policy that will carry the first team of expatriates overseas and back again. You know that to achieve and retain a competitive edge in a world market this policy needs to support your company’s global business strategy. You know that it shouldn’t be too restrictive or too vague, and that it should reflect local customs of the host country. And because you know all of this, you’re feeling a little nervous.


But there’s no need to worry. When you break down policy development into it’s basic components, it’s less overwhelming. Let’s take it step by step. First we’ll identify the objectives of a global HR policy.


State policy objectives.
Regardless of the corporate business strategy unique to each company that will drive the specifics of an IHR policy, there are certain objectives that any effective IHR policy should aim to accomplish. The policy should attract and motivate employees to accept international assignments. It should provide competitive pay plans to ensure the assignee can maintain his or her accustomed lifestyle. It should promote career succession planning and include guidelines on repatriation and additional overseas assignments. It should facilitate relocation between home and host locations. And finally, it should be cost-effective, understandable and easy to administer.


To meet these objectives, you must have internal or external systems or programs functioning to handle the following six areas.


  1. Candidate identification, assessment and selection.
    In addition to the required technical and business skills, key traits to consider include: cultural sensitivity, interpersonal skills and flexibility.
  2. Cost projections.
    As the average cost of sending an expat family on an overseas assignment is between three and five times the employee’s pre-departure salary, quantifying total costs for a global assignment is essential in the budgeting process.
  3. Assignment letters.
    Document and formally communicate the assignee’s specific job requirements and associated pay in an assignment letter.
  4. Compensation, benefits and tax programs.
    Identify the compensation, benefits and tax approach that meets company objectives. Some common approaches to pay include: home balance sheet, destination-based, net-to-net, flexible and lump sum. Tax equalization, tax protection or laissez-faire policies also may be incorporated.
  5. Relocation assistance.
    Assist the assignee with disposition or management of home and automobiles, shipment and storage of household goods, visas/work permits and pre-assignment visits.
  6. Family support.
    Provide cultural orientation, language training, spousal support, education assistance, home leave and emergency provisions.

Include key elements.
When developing an international human resources policy, the following points are usually addressed:


  1. Purpose and other general information
  2. Relocation preparation
  3. Relocation to host location
  4. Allowances to maintain standard of living
  5. Leaves
  6. Education allowance for dependent children
  7. Benefit coverage
  8. Tax policy
  9. Repatriation (or succession plan)
  10. Termination agreement.

This is by no means an exhaustive list of items to include. It should be considered the minimum guideline, however, when developing a table of contents.


Administer the policy.
Administration of an IHR policy can be an important determinant of its ultimate success. The proper channels and workflow should be clearly delineated and well communicated. You need to decide which tasks and activities will be administered internally and which will be outsourced. An assessment of the knowledge, skills and cost required to perform


critical functions should be gauged for both internal resources as well as outside service providers. Many multinationals currently outsource certain functions—including relocation, culture/language training, payroll, government reporting, income tax and immigration.


Technology can also facilitate policy administration and should be utilized to help reduce costs, improve efficiencies and improve service quality. In the short term, technology can improve operational efficiency by automating certain manual processes or providing an improved platform for transactions.


Regardless of which feasible solutions you choose, solving specific goals of the company’s globalization strategy will be critical. Top priority always must be given to continuing excellence in client service to the international assignees. The ultimate value of a well-designed IHR policy and program is that it allows employees to stay focused on their business priorities and continue contributing to the financial success of the organization.


To retain the value of the human resources function in the ever-changing global business climate, you need to take proactive measures to ensure the growth of your company in this ever-shrinking “small world.” It will be the company (regardless of size) that will leverage both knowledge and advanced technology and will take advantage of the overwhelming global business opportunities that await now and in the 21st Century.


Global Workforce, April 1997, Vol. 2, No. 2, pp. 29-30.


Posted on April 1, 1997July 10, 2018

Employees Seek Pastoral Advice. How Do You Answer

Yes, I know my work hasn’t been up to my usual standards. But I’m having a very hard time concentrating. The truth is that … well, you’ve heard about that gang activity in town lately, the drug dealing? I hate to say this, but I think my child may be involved, and I can’t decide whether to turn her in. What do you think I should do?


If you heard an explanation of diminished job performance like this from an employee, what would you do? You know there’s a work-related problem in there somewhere, but the employee has framed it as an urgent moral issue requiring spiritual guidance or pastoral care, rather than management intervention. What’s more, the employee has confided private family business to you, even though as an employer you have no real need to know. And to top it off, the employee wants your help in solving the problem.


You’re at a crossroads: How do you determine whether this is a concern a human resources person should get involved in helping solve? Is this a situation in which an HR professional should give direct advice, refer the employee to someone else (like a spiritual adviser) or tell the employee it’s his or her own problem and must seek out his or her own resources?


More and more, employee problems that seem to cross the lines between the spiritual, the personal and the professional are knocking at HR’s door. In a more secular age, in a more diverse workplace, HR professionals face complex personal issues far more often than before the recent waves of downsizing increased the long, intense hours at work among the “survivors.” The line between employees’ professional and personal lives has blurred—and HR seems to be caught in the middle. And HR professionals are wondering: Why are these problems coming to us? Are they problems we should be solving? Or are they employees’ responsibilities? Where should we draw the line between being a spiritual counselor, a benevolent paternal figure and a work facilitator? It’s a complex problem requiring various strategies in different cases. Understanding why it’s even an HR issue is the first step in identifying, understanding and solving the problem.


What’s the source of the problem?
As Lisa Carp, director of human resources for Talbot Agencies Inc. in Riverside, California says: “The number of people having problems has escalated. Job loss, single-parent families, taking care of elderly parents, drug abuse—they’re all increasing. ‘Leave it at home’ is the old school of thought, and it doesn’t work now.”


Indeed, according to some experienced human resources professionals, more problems are now coming to the HR department that, in the past, employees might have taken to a minister, priest, rabbi or imam (a Muslim spiritual leader). Why? There are many reasons. In a post-downsizing environment, many employees now live their lives in only two places: home and the workplace. Time they once spent in community activities has been consumed by work demands. Sometimes people in a work group can behave like sequestered jurors, making the workplace their whole world.


Fran Sussner Rodgers’ experience as CEO of Work/Family Directions in Boston—which helps employers maximize employee health and performance by eliminating the barriers workers face managing work and life responsibilities—has shown her that for many, the workplace has become like a close neighborhood or the support system that extended families once provided. As the workplace absorbs more roles in employees’ lives, including becoming the primary source of affiliations and friendships, it carries the pressure of those roles.


A woman was in tears because someone had affirmed her worth at 19 cents more an hour.
—Ted Karpf, National Episcopal AIDS Coalition


Rodgers believes another factor contributing to a dependency on the workplace to solve personal problems is the diversity of the working population. “What the men [who represented the workplace of previous generations] brought to work when they were from similar backgrounds was different from what we have today. Diverse populations have different issues that they consider related to work, such as dealing with family situations at the workplace. Even 10 years ago, that would have seemed odd. Now there are a greater variety of things that people see as related to getting the job done.”


One example Rodgers states is how people from different backgrounds respond to reengineering of the workplace, a process HR usually manages. There are cultures in which the shame or the fear of losing one’s job prevents the person from talking about it at home, yet those feelings can certainly have an impact on job performance. Is that a work-related issue? A private, family issue? A cultural issue? Or is it really all three? If we’re out of touch, Rodgers insists, we tend to think of some single norm as the expected response to reengineering.


Work validates people’s lives.
Still another factor affecting the rise in workplace support of personal issues is that a growing number of people receive their full self-worth from their jobs. As a priest who has been a manager in a secular workplace, the Rev. Ted Karpf sees more people now developing a more intense relationship to the workplace. He worries that how people feel valued at work can become their whole sense of self-worth. Karpf has seen this trend increasing the complexity of the HR professional’s role. Before his current work as executive director of the National Episcopal AIDS Coalition in Washington, D.C., he managed a group at Aspen Systems Corp. which fulfilled Aspen’s contract with the Centers for Disease Control and Prevention’s “Business Responds to AIDS” program. “Invariably, if you saw low performance, you were looking at a whole complex of family issues as well. We had no employee assistance program. The health plan allowed for six counseling visits only, so managers and supervisors ended up doing counseling. Outside business hours, I ended up sitting and listening, asking the appropriate questions.”


Karpf says he believes that in most workplaces, “The only HR professionals whose work experience prepared them for dealing with the range of employees’ problems are benefits specialists, who can spot certain kinds of dysfunctions faster than anyone. They know how many times you’ve seen the doctor lately; they know how often your family members have been hospitalized.” Many benefits specialists spend more time with the employee than anyone else does in the workplace, explaining benefits and hearing about the employee’s problem in the course of that conversation.


When employees draw most of their identity from the workplace, the distinction between job-related issues and pastoral issues blur, not coincidentally, but because of the intense workplace focus. Karpf recalls a data processor in her late 50s who worked at Aspen. Although she didn’t report to Karpf, she approached him one day in tears, explaining that she tried hard to be valuable to her employer but didn’t feel valued. Under Karpf’s questioning, she explained that she had been promised a wage increase eight months previously, but the increase—from $7.40 an hour to $7.59 an hour—had yet to appear in her paycheck. Karpf asked about her situation in the next management meeting and found that she was one of eight people who hadn’t yet received a promised increase. When her next paycheck reflected the new hourly rate, she came to Karpf in tears again, saying, “Thank you for valuing my work.” Karpf explains, “For the first time, I understood what the American workforce is up against. I have worked much of my life in the church. Much of what I get paid for is intangible. I had never had the value of my life reduced to 19 cents an hour. This woman was in tears because someone had affirmed her worth at 19 cents more an hour.” Karpf saw that in this data processor’s eyes, her employer had become the key arbiter of her worth; this wasn’t just a paperwork hassle to her. As employees invest so much time and draw so much of their sense of worth from work, Karpf believes that HR professionals will confront more pastoral issues, not fewer.


Start with a “customer-driven HR” strategy.
Talbot Agencies’ Carp says that today, employees need to know they can come in and talk to HR about personal issues that may be affecting their work, that HR is a good place to blow off steam. “I keep books they can read. When I counsel employees, I try to get past the symptom that brought them in and get to the problem so that we don’t lose them,” says Carp.


In her previous position as HR director for Bird Medical Technologies in Palm Springs, California, Carp referred employees to the company’s EAP and worked to retain them. “If we did lose an employee, at least we knew we did our best. If we let the person go, we allowed a continuing relationship with the EAP. Every case was dealt with individually.” Carp says it’s more important than ever today to provide a support system for employees so they can do their jobs better.


Jan Iannessa, vice president for corporate HR at Universal Studios in Universal City, California, agrees: “We need to provide some support simply because the workplace has changed so much. Not responding can cost us a lot in lost productivity.” But does the company’s response sometimes create confusion about entitlement? Will an employee who receives help from an employer in solving a personal problem that affects the job feel that the job belongs to him or her no matter what? For some, it does, says Iannessa. “I see a sense of entitlement mostly when employees don’t take responsibility for getting to work on time or doing their jobs effectively. For some, once they’re hired, they feel entitled to their jobs. If they’re challenged, it’s not their fault; it must be their manager’s fault. Someone doesn’t like them.” Jackie Kittaka, senior vice president and director of HR for First Federal Bank of California in Santa Monica, says she believes “[employees] are confused between entitlement, a word we use loosely, and laws or regulations. There needs to be some clarity to employees, and communicating that is the responsibility of the employer. For example, employees need to know they have a right to overtime pay if they work a certain number of hours, but they don’t have a right to be promoted.”


Rodgers, in contrast, emphatically doesn’t see an increase in employees’ sense of entitlement; she sees a decrease. People are aware that they’re lucky to have a job, she explains. What’s being called a growing sense of entitlement is actually employees trying to tell the employer what they need to be productive, Rodgers insists. “It’s customer-driven HR: it’s HR’s job to figure out what people need to get the work done; and if they tell you, it’s not fair to call that a sense of entitlement.” Rodgers hears many pleas for work to be different so that employees can perform optimally. She explains, “Big companies have changed in what they say they can guarantee the employee. When they change the rules, they have to do three things: adapt to the changing labor force, provide services to employees to help them manage the transition, and invest corporate dollars in community-based organizations that provide support services such as child care and adult day care.”


These issues may sound pastoral, they may even sound like entitlement, but Rodgers insists that if HR can’t figure this one out, “Then they may as well stay with downsizing and administrative work. Human resources work is about motivation, figuring out how to meet people’s needs so that they can free up that motivation.”


HR needs to look for red flags.
After 20 years in the field, Lark Baskerville believes that employees have brought a full range of human concerns to HR professionals for a long time, but not to the extent that she sees now. As vice president/director of HR for Rubin Postaer and Associates, a Santa Monica, California, advertising agency, Baskerville is convinced that someone new to the field would need professional HR mentoring to establish a sense of when to deal directly with the problem and when to refer it to other resources. She offers practical advice to HR professionals by identifying several “red flags” in employee behavior that can alert a manager or a human resources person to problems that are best solved by resources outside the company.


Here’s one scenario: The employee seems depressed, even desperate. The employee tells you that you’re the only person she or he can tell. If it’s a business issue, that may be true, Baskerville notes. If it’s a personal issue, she recommends suggesting a relative, a best friend or a counselor.


In addition, if an employee’s absenteeism has increased, Baskerville suggests this is a major red flag, a behavior that’s certain to have consequences in the employee’s performance.


Kittaka adds to the red-flag list: When the employee shows evidence of being a danger to self, co-workers or others.


Obviously, if an employee isn’t functioning properly, there could be a variety of reasons why. Red-flag behavior should be a signal for the person’s manager or HR that someone should investigate further—without invading the employee’s privacy—and be helpful where indicated. After all, employees are investments. Just as a company would try to get to the heart of a machinery failure problem, it should also view employee failure in the same light. It often just takes a lot more finesse to diagnose and solve the problem.


What HR can do.
To the question of how an HR professional learns to do this, Carp has two guidelines: the Golden Rule and a mentoring system. Consider this dilemma: “Yes, I know my work has been falling, but it’s hard to work at maximum performance in the middle of this awful divorce. My life is a wreck. My kids need better child care and I can’t find it. I just can’t cope anymore. I guess I’m going to have to quit my job.”


Carp treated this employee the way she would want to be treated herself in that situation: She helped the employee restate the problem in manageable terms, then negotiated a one-week leave so that the employee could find better child-care arrangements. It worked. The employee’s sense of despair evaporated when she had the time and encouragement to find a solution to a problem that affected both her personal life and her work life. Carp managed the “pastoral” issue by helping the employee restate the problem so it was less overwhelming and by providing her adequate time to resolve it.


Such pastoral issues can overwhelm the inexperienced human resources person. When a new HR professional in Carp’s department found herself becoming deeply involved in employees’ personal problems, Carp provided her with an experienced mentor. According to Carp, preparation for this kind of decision making isn’t part of the curriculum in programs that prepare HR professionals; it has to be learned on the job.


We need to provide some support because the workplace has changed so much. Not responding can cost us a lot.
—Jan Iannessa, Universal Studios


Is it personal? Or is it professional?
Universal Studio’s Iannessa says she acquired some of her skills in figuring out what’s personal and what’s professional when she worked with hearing-impaired children. “You need to get all your senses working. You need to have developed your ‘sixth sense,’ that sense you’ll use in recruiting, hiring and in all the HR functions.” Iannessa defines the skill as learning to separate the emotional issues from the professional issues. “We always operate between the employee and the corporation, so people don’t always tell us right away what’s wrong. We need to have our sixth sense out there. Suppose an employee comes in complaining of being picked on at work, claiming that life is miserable. Something else is going on here, something the employee isn’t revealing. Being totally empathetic often isn’t the helpful response.”


What will be helpful to the employee and help the company maximize its investment in the person? First, focus on performance issues. Second, identify the appropriate referral for the personal issues that are affecting performance. Third, limit the time the employee has to improve the situation. Iannessa explains, “Until there’s a threat to their jobs, people often don’t get the help they need. We need to tell their managers, ‘Look at the job performance.’ [If there are problems,] then we find referrals for the personal issues. In the entertainment industry, that referral is EIRAC [Entertainment Industry Referral and Assistance Center], the industry’s own EAP.”


To illustrate the problem further, Iannessa talks about another recent job experience where the line separating personal and professional issues blurred completely for a while when there was a shooting incident at her company’s office building. Knowing that dealing with such strong emotions among the employees was beyond her professional expertise, she contacted a counselor who specializes in “post-traumatic stress disorder” and set up a crisis-intervention group meeting the next day. She scheduled times with the EIRAC counselors for a week and didn’t stop offering the sessions until people stopped coming.


Even after that experience, she explains, she has reached the point at which she understands the need for a daily balancing act between employees’ personal and professional issues as “part of the cost of doing business.” She adds: “You’re dealing with these kinds of significant things in people’s lives every day if you’re out there where you should be.” Iannessa believes that in the current business climate, it’s easier for employees to come forward than it once was. “Companies now are offering enough alternatives, whether it’s access to an EAP, to an employee-relations person or another resource. Both parents now often work; the number of single-parent families is increasing; we’re seeing women trying to deal with ‘having it all.’ Companies, in response, understand that these are productivity issues.”


Dealing with pastoral issues: guidelines for HR.
Beyond responding to these pastoral issues with the finely-honed sixth sense that Iannessa describes, there are guidelines that human resources professionals can use in dealing with them. These suggestions—from experienced HR professionals—may help you navigate the storm of employee problems for which they may ask for help:


  • Encourage employees to build networks at the workplace to replace what used to be available in other places in their lives.
  • Accept that for some people, there is a greater level of community and intimacy at the workplace than in any other place in their lives. Respond to their problems and complaints accordingly.
  • Be a sounding board: Acknowledge feelings and act as a listener, but don’t try to solve a pastoral problem. Refer.
  • Learn your limitations. Learn to say that the person needs more help than you or the company can offer. Once again, refer. (Even pastors must learn to do this when they confront problems outside their training.)
  • Develop a file or a database of referrals that includes well-regarded spiritual leaders or organizations in the faiths represented among your employees. Under duress, an employee who hasn’t been active in his or her faith of choice since childhood may derive great benefit from reconnecting with one’s spiritual roots.
  • Present employees with alternatives (or pros and cons), then encourage them to make their own decisions.
  • Drop the phrase, “Deal with that on your own time,” from your vocabulary. Replace it with a referral from your well-developed collection of community resources.

No one’s predicting that this “pastoral” role of the HR professional will diminish in the near future. Employees who lack other deep roots in the community are likely to continue bringing to HR professionals problems that call for a pastoral response. But the well-prepared professional can avoid the pitfalls of this pastoral role and handle its responsibilities with skill and grace.


Workforce, April 1997, Vol. 76, No. 4, pp. 44-51.


Posted on April 1, 1997July 10, 2018

Integrate HR Can Be a Model of Balance

Welcome to the second installment of “Heart & Soul,” Workforce’s newest column. This month I’m focusing on an important concept for human resources professionals—integrate. It’s certainly something that we preach to our workforce—to balance work and personal life—but we don’t always practice it ourselves. For a few minutes, let’s contemplate how integration can contribute to our own lives.


Keep the balance between work and the rest of your life.
Integrate means: that ability to combine or meld things; to assimilate different parts, roles or factions into a framework that works as well, if not better, than the old way; that ability to harmonize different factions so that the music from them is sweet and balanced.


As an HR professional, ask yourself, “How integrated is my life and is it possible to work and to still have an integrated life?” To integrate oneself, a structure is needed—some scaffolding or a form that will comfortably hold all of the pieces. This frame needs to be dependable, supportive and solid, yet tolerant and flexible. We’re out of balance or not integrated when our lives are lopsided or rigid, when we fall over at the first breeze, incapable of handling another thing.


Additionally, we need a picture, an image or a way of knowing that all of the pieces are there, just as in working a puzzle. With a puzzle, we have the picture in front of us, and we start to fit the pieces together—many times struggling to find just the right ones. One piece looks right, yet when it’s put in, we have to force and push to get it into place. As soon as that happens, we know it’s the wrong piece. Yet many times we try it just one more time, just in case we were wrong. Usually after two tries, we know we were right the first time, and we look for another piece.


For many HR professionals at work, when we try to solve a problem, we find a solution and put it in place like a piece of the puzzle. But maybe, it really doesn’t fit. So we push and shove, then force it into place saying, “There, it’s working now.” Sound familiar? Sometimes it just seems easier to give in, to let go, to quit trying and pretend that everything is integrated. What does the puzzle of our work life look like? Are we happy with the picture? Do we like the structure? And how are we doing at achieving or being integrated with the image? Are we in balance?


Be an inspiration.
As HR professionals, we’re always modeling behavior. It’s one of our key responsibilities. Hopefully, we exhibit desirable behaviors within the framework of an integrated life for employees to emulate. And yet, sometimes I wonder. For example, take the number of hours that we spend at work. Yes, there’s a lot of pressure at work today. And yes, there’s much work to do. Yet, how balanced is it to work 10 to 13 hours a day consistently? Does this create the life that we want? Could we work better if we had more peace in our lives and decided not to engage in much of the drama? And do we want our employees working these hours on a regular basis? What happens to the quality of life? I know the material and financial value of work, yet if we’re so out of kilter, how do we enjoy our lives? I’m reminded of the song recorded by Peggy Lee, “Is That All There Is?” Possibly, part of our lifestyle at work is to keep up with the culture—to prove that we’re as driven and as busy as the next person, as we take ourselves too seriously in our need to be seen as a driving force. Are we sure that work today requires excessive hours on a regular basis? Perhaps we’ve become so bottom-line oriented that we’ve added more and more work to a downsized staff that must make do with less and less. There’s no sense of integration in this kind of life.


We need to rethink how we live our lives, because life without any downtime to integrate the various aspects of who and what we are won’t be rewarding. Goal attainment or success doesn’t in and of itself bring fulfillment. There’s more than just having a work life.


Examine four areas of your life.
How do we get balanced? It begins by taking small steps. It begins with our being willing to look at our lives, to examine and explore the four areas that support or make up a life: health, finances, relationships and self-expression or career (your work). These are the foundation and the structure for an integrated life. Think of them as legs on a table and then visualize how your table would look if its legs were different sizes. How stable, flexible, rigid or out of balance are you? If you resemble a lopsided table, then begin to change. You can already see what part is in need of strengthening. Perhaps it’s your family time, time for yourself or time to pursue a creative outlet. Just notice and observe. As you do, begin to picture how your life might look if the legs were the same length. Would you be happier? Less stressed? We must remember that for things to change and to be different, we must change and be different. It doesn’t mean you need to quit your job. It means to integrate your life into one of wholeness, peace, fulfillment.


We work in a field that’s as rewarding as any I know. We have an opportunity to make a difference with people every day, to use our creativity and our softness as well as our logic and our drive. Let sweetness come back into your life. Spend some time focusing on the magnificence of you. Perhaps our continual focus on problems could just fall away for a few moments as we look at how terrific we really are, and how terrific our company is and our employees are. Integrate. It’s worth it.


Workforce, April 1997, Vol. 76, No. 4, pp. 107-108.


Posted on April 1, 1997July 10, 2018

401(k) Conversion It’s as Easy as Riding a Bike

In late 1995, Atlanta-based Vinings Industries was divested from a manufacturing group owned by a British firm. As a consequence, the manufacturer of specialty chemicals for the pulp and paper and water-treatment industries had to reconfigure its benefits and establish a new 401(k) plan to replace the one sponsored by the previous owner.


“There’s a big learning process involved in putting in a new plan,” says Debbie Parkes, human resources manager for Vinings Industries. “I didn’t have these responsibilities before, and I had to add them to my role.”


Parkes is right. If you decide to go with a new provider of office supplies or long-distance telephone service, it’s a simple matter of closing your account with the old provider and starting to do business with the new one. Changing 401(k) providers, however, isn’t quite that straightforward. It involves more than HR simply selecting a provider that might give one’s employees more or better services at a better price. The conversion process is cumbersome, requiring transfers of data from one record keeper to another, reconciliation of individual employee accounts and effective communication with employees to let them know what’s happening during the process—which can last up to six months. What really happens when you change 401(k) plan providers? Here are some HR benefits issues to be aware of before making that move.


Why change vendors?
Changing 401(k) providers is a grueling venture, so be clear about your reasons before you take the plunge. Vinings Industries didn’t have an option. Its old plan was going away, and the company needed a new one. Other companies change 401(k) providers for other reasons. And in today’s competitive 401(k) industry, it’s a buyers’ market. “[Company benefits specialists] are reviewing their plans at least every four years and looking at investments even more frequently,” says Maureen Phillips, managing director of Putnam Investments’ 401(k) Group. “Among large plans, about 95 percent of new business is takeover business”—an existing plan converting to a new provider, rather than the start-up of a new plan.


The 401(k) industry has evolved dramatically in the last 10 years. Features that once were unusual, such as daily valuation, now are considered standard. If your provider hasn’t kept up with this evolution, that may be one reason to change. Two other common reasons to convert are to broaden the investment selection and to obtain a higher level of support in employee education and communication. Cost comes into play, too, but it’s usually lower down on the list of reasons. “What we find is that employers getting into a 401(k) plan for the first time usually are price buyers,” says Jane Stalnaker, director of implementation for Fidelity Investments in Covington, Kentucky. Then [after the plan has been in place awhile,] they start looking at the service component. That’s when they start thinking about making a change, she says.


“Companies aren’t always dissatisfied with their current providers,” adds Mary Corbett, director of special projects for Moosic, Pennsylvania-based Prudential Retirement Services. “The desire to enhance services to participants is the most common reason to change. Or perhaps their current 401(k) plan isn’t packaged to be user-friendly to participants.”


That was the case for Sales Mark, a merchandising wholesaler based in Little Rock, Arkansas. “We had a local plan administrator and were relying on quarter-end and month-end valuations,” says senior accountant Kathy Meadows. “We decided we wanted daily valuation and other features.”


Think ahead.
Assume that you’ve considered the options and have decided to change providers. Before selecting the new provider, HR needs to determine what employees want in the new plan. Now is the time to add the features that will bring the plan up-to-date. Be clear about what the company wants before beginning discussions with a new provider. Select carefully, because the company won’t want to go through this process again any time soon. “We were looking for a leader in record-keeping services and fund management,” says Vinings Industries’ Parkes. “We wanted a provider with good, solid experience in retirement planning.” Having these criteria in mind helped Vinings Industries make its selection. The key here is to think through what your company’s needs are before making your selection.


Be prepared for the task.

When you change plan providers, expect lots of things to happen simultaneously. Moreover, a lot of people will be involved and there will be many decisions to make. Some of the activities that occur during a plan conversion include the following:


  • Participant records will move from one record keeper to another. Those records will include all the different kinds of contributions that were permitted under the former plan: pretax, after-tax and employer matching contributions.
  • Account balances will move from the former plan’s funds or custodians to the new ones.
  • Plan options and investments may change.
  • Loan balances must be accounted for and transferred to the new record keeper.
  • Guaranteed investment contracts (GICs) may be maturing and their balances transferred.

Participants must be kept informed about what’s going on. Plan participants, of course, are among those who will be involved in the conversion process. They also must be re-enrolled so they can indicate to which funds they want their contributions allocated under the new plan. Others involved in the conversion process include current and future record keepers and company management representatives.


Before selecting the new provider, human resources needs to determine what employees want in the new plan.


Then there are the decisions HR needs to make. Will the specific provisions of your 401(k) plan be revised? Where will plan assets reside during the conversion—in a money market fund or in the new provider’s funds that are most like the old investment options? How will data be supplied by the old record keeper? HR also will need a communication strategy and a projected time line for the conversion. Be prepared for the process to take up to six months. “Make sure you have a provider with experienced people on the conversion/ implementation team,” cautions Sales Mark’s Meadows. “We needed [the expertise of the provider’s staff] to help us set the schedule. I never would have guessed how much time it takes to do some of these things.”


Create a communication strategy.
One of the first parties to communicate with is the old provider—the one that’s losing the business. “Companies used to let their old providers know at the last minute they were leaving,” says Corbett. “But they should be timely informed. Usually, the outgoing provider will respond professionally. In fact, outgoing record keepers usually are cooperative because it pays them to be. One day, the shoe may be on the other foot, and they’ll be the ones asking for data. But the most important people who need to be kept informed are your plan participants. A sound communication strategy can ease the transition, increase employee enthusiasm for the plan and boost participation and contribution rates. How will you communicate the changes in your 401(k) plan to the participants? This issue should be addressed in the initial planning stages of the conversion. Prudential suggests beginning with a detailed letter to participants well in advance of the actual conversion, spelling out why the plan is being changed and what employees can expect.


The letter also serves as the first notice of the dreaded blackout period. This is the period between the date of the final valuation of accounts by the prior record keeper and the date the plan goes live with the new record keeper, typically ranging from six to 10 weeks in duration. During that time, records and assets are transferred, reconciled and set up on the new record keeper’s system. The only account activity that can take place during the blackout period is the receipt of regular payroll contributions and direct rollovers. All other activity (loans, hardship withdrawals, exchanges between funds, requests for distributions) is suspended.


Participants should be given adequate notice of the blackout period so it comes as no surprise and creates no financial hardship. Following the introductory letter, Prudential suggests a pre-enrollment communication campaign tailored to the needs of the specific company, followed by enrollment meetings at which participants make their investment selections under the new plan.


Handled properly, this process can serve to stimulate interest in the 401(k) plan and encourage employees to participate in and/or increase their contributions to the plan. “Communicate, communicate, communicate,” says Corbett. “That’s the only way to prevent the conversion process from becoming a nightmare.”


Anticipate some problems.
Good planning and good communication can ensure a smooth transition, but the potential for problems always exists. Sometimes the challenge is built into the process because converting plans can be like converting apples to oranges. For example, the old plan may be unbundled, valued quarterly and contain company stock of more than one class. If the company is converting to a bundled provider offering a specific set of investment options and daily valuation, the transition may take some time.


Phillips advises HR to keep these factors in mind:


  • If the old plan provided for participant loans, and if loan records haven’t been reconciled by the prior record keeper, it can take time to bring those records up to date.
  • A company that has grown by acquisition may replace several existing plans with a single, consolidated plan. The change will impact both record keeping and communication.
  • Special problems also arise if the old plan contains company stock of more than one class (such as common and preferred stock) or stock of a privately held company.
  • A company with several divisions or locations may work with more than one payroll vendor. The new provider will need to coordinate with each of those payroll vendors to ensure timely receipt of information, especially if the plan is going to be valued daily.
  • Many 401(k) plans offer a stable-value alternative in the form of guaranteed investment contracts that are subject to a maturity date and aren’t easily liquidated or daily valued.
  • Although the company may convert to a bundled plan, it may still want to retain a popular investment alternative that was available under the old plan.
  • If your company has unionized employees, there may be a collective bargaining agreement with a date certain for implementation of the conversion. If so, the new provider needs to know that as soon as possible.

In addition, differences in operating systems may make it difficult for the new provider to receive usable data from the old provider and necessitate several additional testing and trial data transmission steps. “Plan sponsors often don’t understand the complexity of the conversion process until they get into it,” Phillips says. “It can be difficult to manage everyone’s expectations.”


Some problems are self-imposed. Sales Mark, for example, gave employees an extended period of time to move their money out of the old plan’s stock funds and into the new funds. “We wanted to give employees every opportunity to make the switch without losing money,” says Meadows.


And there are surprises. “We were surprised to learn that our former provider didn’t have information we needed about hardship withdrawals,” says Meadows. Phillips adds that some problems are carried over from the administrator that preceded the old plan’s current administrator, further complicating the process of reconciling records. “There are always glitches,” adds Parkes. But with planning, glitches can be kept to a minimum.


Workforce, April 1997, Vol. 76, No. 4, pp. 64-70.


Posted on April 1, 1997July 10, 2018

Things To Consider In Choosing a Staffing Supplier

How to forge a successful working relationship.

  1. Make sure the staffing company has the resources to meet your needs.
    Ask about its recruiting program. Does it have a staff or department dedicated to bringing qualified applicants through the door, or does it rely solely on the newspaper and phone directories to recruit new candidates? (This could represent a very limited pool of candidates.) Does it have multiple branches in locations close to your company? If not, temporary workers may have long commutes, increasing the likelihood of absenteeism and broken commitments.
  2. How large is the firm’s applicant pool in your required skill area?
    How many applicants are currently available? How does the company maintain its files? (Make sure it has a computerized system to keep track of its temporary workers.)
  3. What is the company’s screening-and-testing process for applicants?
    It should at least conduct an in-person interview, check references and have applicants complete computer or paper-based tests depending on their skill sets. (Some services use behavioral type testing to uncover attitudes related to work ethic and productivity.) If your service uses backup suppliers to fill difficult orders, does the subcontractor adhere to the same testing-and-screening standards?
  4. How does the staffing service treat its temporary workers?
    Does it have employee-oriented programs that reward and recognize good performance? How often does it actually meet with its temporary employees? Research indicates temporary workers want to feel like they’re more than “just a commodity.” More contact generally leads to stronger loyalty, positive morale and ultimately better on-the-job performance.
  5. Does the staffing company have an internal service-quality program or special certification (ISO 9000, for example)?
    This would indicate a commitment to making ongoing improvements in both its internal and external systems.
  6. Ask to meet not only with the sales person handling your account, but also with the individual who is actually making the match on your assignments.
    It’s important the person assigning temporary workers has a good understanding of both your skill requirements and your organization’s climate and culture.
  7. How is the turnover within the staffing company itself?
    Is it a revolving door with new sales and placement contacts moving in and out every few months? Or is there a level of stability that supports a high-quality service-delivery system?
  8. Does the staffing service offer its temporary workers a competitive pay and benefits package?
    Where does it place its pay rates in comparison with the market (low, mid-level, high)? Does it offer health-insurance options and paid time-off benefits? Most services pay temporary workers 7.5 hours of vacation pay for every 300 to 500 hours they work, which can cover vacation days or be taken as bonus pay.
  9. Does the staffing service have a backup system in place for last-minute sick calls or broken commitments?
    Many services have evening and weekend staff in place to respond quickly to assignment glitches. If yours is a particularly important assignment, let the service know and request the firm have someone on call if possible, to fill in if any last-minute problems arise.
  10. Ask temporary workers which service they prefer.
    Word travels fast within the local workforce about how different staffing services treat their employees.

Workforce, April 1997, Vol. 76, No. 4, p. 78.


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