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Category: Workplace Culture

Posted on February 9, 2011August 9, 2018

Workplace Guidance Remains Elusive After Facebook Posting Case Is Settled

Employees may be rejoicing, but some legal experts are disappointed that the National Labor Relations Board reached a settlement on Feb. 7 with a company that fired an employee for bad mouthing her boss on Facebook, dashing hopes for a legal precedent to guide employers’ social media policies.


Dawnmarie Souza, an emergency medical technician with ambulance service company American Medical Response of Connecticut, was fired in 2009 after criticizing her supervisor on Facebook. Her case was scheduled to be heard before a federal labor board judge in Hartford, Connecticut, on Feb. 8.


“I had hoped we would get an administrative law judge’s decision on this issue,” said James Hays, an employment lawyer who is a partner in the law firm Sheppard Mullin Richter & Hampton in New York.


In the settlement, American Medical Response agreed to “revise its overly broad rules” to ensure that employees’ rights to discuss working conditions are protected, according to an NLRB written statement. Souza was fired for violating a policy that prohibits employees from depicting the company “in any way” on social media sites on which they post a picture of themselves—a policy that the board asserted was too broad. Additional details of the settlement are confidential.


“Did her comments meet the criteria for protected concerted activities or did it amount to water cooler talk? We don’t know,” Hays said. “The company made modifications to its policies, but what are they and what in the policy was problematic to the board? Unless they issue a copy of their revised employee handbook and someone gets a copy of the old one and does a comparison, we’ll never know.”


This was the first NLRB complaint involving an employee terminated for comments made on a social media site.


The settlement means that employers are still without a legal precedent to guide their decisions when it comes to employee speech on social media sites such as Facebook, LinkedIn and Twitter, but Hays said it won’t be long before another case emerges.


“We’ll have to wait for the next case where it goes a bit farther in the legal process,” he said. “I wouldn’t advise any client to say, ‘Well, that case got settled so we don’t have to look at this for a while.’ It’s just a matter of time before the next one comes along.”


The NLRB is an independent federal agency whose mandate is to uphold the National Labor Relations Act of 1935, which gives workers the right to form unions and protects their right to discuss working conditions, regardless of whether they are in a union. The NLRB complaint alleged that Souza, who was a union worker, was illegally denied her request for union representation in the matter.


Lewis Maltby, president of the National Workrights Institute in Princeton, New Jersey, an offshoot of an American Civil Liberties Union workers rights task force, sees the settlement as a win for unionized workers but says it probably doesn’t mean much for nonunion employees, who are typically employed “at will,” meaning an employer does not need to show good cause for firing an employee.


“In reality, it means that people belonging to a union can complain about their boss on a social network site, but it doesn’t do much for the 90 percent of workers who don’t belong to a union,” he says. “If you’re fired because of your race you know that you should go to the EEOC [Equal Employment Opportunity Commission] for help, but most nonunion workers have probably never heard of the NLRB.”  


Rita Pyrillis is Workforce Management’s senior writer. To comment, e-mail editors@workforce.com.


 

Posted on January 20, 2011August 9, 2018

Managers List Their Most Embarrassing Moments at Work

Falling asleep while interviewing a job seeker and sending an offer letter to the wrong candidate are among managers’ most embarrassing moments at work, according to a survey by OfficeTeam, a division of Robert Half International Inc.


The survey included more than 1,300 senior managers at companies with 20 or more employees in the United States and Canada.


“Nearly everyone has had an embarrassing situation at work,” said Robert Hosking, executive director at OfficeTeam. “Although these moments can be awkward, it’s best not to dwell on them, or you risk drawing more negative attention on yourself.”


Other embarrassing moments listed include answering the phone using the wrong company name, falling off the stage while speaking during a business event, getting locked in the office and inadvertently sending the boss a personal voice mail from a spouse.


Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail editors@workforce.com.


 


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Posted on January 16, 2011June 29, 2023

The Degeneration of Decorum

Lynette Spicer always considered herself polite and respectful of others—until she got a rude awakening at a seminar on workplace civility several years ago. She was struck by what an uncivil person she could be at times.


Spicer, then a communications specialist at Iowa State University Extension in Ames, realized she sometimes exhibited the inappropriate behaviors pointed out by the trainer. For example, she often failed to greet co-workers when she arrived at work; she frequently failed to lower her voice while on the telephone; she sometimes failed to acknowledge people who sent her information that was useful in her job; and—horror of horrors—she only occasionally sent handwritten thank-you notes.


Although those relatively innocent failures weren’t acceptable, her office eventually went from mildly uncivil to almost unbearable. Spicer decided to bring some of the ideas about civility from the seminar out in the open. She started a blog, Civility in the Workplace, and encouraged co-workers to contribute ideas and resources.


“The office atmosphere was a good stimulus,” recalls Spicer, who stopped posting new blog entries and retired at the end of 2009. “There was bullying by administrators who didn’t want to hear anybody’s opinion. The blog post that everybody thought I’d get fired over was called ‘Don’t Shoot the Messenger.’ The head guy, if you gave him a report that he didn’t like, even if it was accurate, he’d fire you.”


The workplace Spicer retired from—and from which the bullies eventually departed—suffered from the unfortunate effects of verbal and emotional abuse: crying, resentment, loss of interest in work and an unwillingness to perform well on the job. Spicer had moved a long, hard way from her minor lapse of manners in not greeting all of her co-workers every morning to dealing with regular incidents of abuse. The stifling atmosphere of exclusion and hostility that she witnessed is what experts call “workplace incivility.”


Stress and lost productivity related to incivility result in a multibillion-dollar annual hit to the U.S. economy, according to Christine Porath, an assistant professor of management at Georgetown University’s McDonough School of Business and co-author of the 2009 book The Cost of Bad Behavior: How Incivility Is Damaging Your Business and What to Do About It.


Porath knows her topic firsthand. She was driven out of her first career, sports management and marketing, by workplace incivility.


“It drove me to graduate school,” Porath says. “And it gave me a passion to study it and try to document the costs, because that was really the way to drive home that there should be change.”


Porath endured almost two years of rude and demeaning workplace incidents before she switched careers. She recalls that the top leader in the agency she worked at was horrid—barking orders, belittling staff—but junior managers weren’t much better because they modeled their behavior after the leader’s.


When Porath began her research, she set out with the intention of identifying triggers of workplace homicides because she assumed that workplace slayings would be a common consequence of unrelenting incivility. But lethal responses turned out to be rare.


“It can happen, but it often doesn’t spiral that out of control,” Porath explains. “Despite that, workplace incivility is so costly. And you never want to take that risk because it pushes people to be violent, to go postal, and you’re putting your company at risk that way. In the meantime you’re losing out because of the costs of loss of performance, loss of creativity and a lot more turnover.”


In polling thousands of managers and employees about the effects of incivility, Porath and her co-author found that after being the victim of on-the-job rudeness and hostility, two-thirds of employees said their performance declined. Four out of five said they lost work time worrying about the unpleasant incident, while 63 percent wasted time avoiding the offender. More than three-quarters of respondents said that their commitment to their employer had waned, and 12 percent even quit because of the bad treatment.


Research also reveals that incivility’s tentacles are longer than previously thought. Simply witnessing incivility toward others or overhearing angry outbursts causes people to suffer.


“It turns out that people just don’t like to witness others being mistreated,” Porath says. “People don’t concentrate as well, they don’t remember as well, they don’t focus after they see this kind of thing or they hear about it. And when customers witness this, they respond very negatively.”


Porath says several restaurant owners told her they were sure that diners could actually taste discord in the kitchen when food was served from a dysfunctional workplace. If that’s the case, the amuse-bouche that New York Times financial columnist Ron Lieber ate before a chef threw him out must have tasted awful.


Lieber famously wrote in the Times’ Diner’s Journal blog about his response to a chef’s meltdown, which was overheard by all of the restaurant’s customers. His May 11, 2010, post caused a sensation among readers nationwide, most of whom hailed Lieber for his defense of the beleaguered waiter.


Lieber described how he and his three dining companions grew more and more uncomfortable as they heard the chef screaming in the kitchen. The object of the abuse was their waiter. When the waiter made his next appearance at the table, to serve the amuse-bouche (the complimentary appetizer from the chef), he was obviously rattled and completely incoherent. When the waiter returned to the kitchen, the chef picked up the high-volume abuse exactly where he’d left off.


At that point, Lieber entered the kitchen to inform the chef that his disruptive behavior was ruining everyone’s appetite. The chef told Lieber that he had to scream at the staff to ensure that everything was “perfect” for his customers. And that’s when he kicked Lieber and his friends out of the restaurant.


It was bad manners in a restaurant that got Lewena “Lew” Bayer into the civility business. Now the president of the Civility Experts, a Winnipeg, Manitoba-based training company, Bayer previously worked as director of operations of a large hotel chain. With some indigestion, she remembers her last day on the job: “I was taking a corporate client to lunch. He didn’t like the soup so he poured it back into the tureen, he called me ‘Cookie,’ and when the meal was done, he plucked a hair from his scalp and flossed his teeth with it at the table.”


As if in a vision, Bayer saw her future calling as a teacher of table manners. She quit her job the next day. Her new etiquette business quickly mushroomed into a civility training operation with offices on nearly every continent. “People are rude wherever you go,” she says.


“Now I don’t care what fork you use as long as you make an effort to be civil, show up on time, make an effort to dress nicely and be in the room with me. If you eat with your hands, I probably won’t notice if everything else is up to par.”


Bayer says that it’s important to imbed civil language and practices into every level of an organization, including job descriptions, hiring practices, training policy and the day-to-day code of conduct. “It has to be mixed right in there to have a positive impact,” she says. “You can’t just ice the cake with civility. You want it right in the batter.”


Incivility tends to rear its ugly head in organizations that have distinct pecking orders, Bayer says, where people are separated by rank, “like a high school lunch room.” Top-down bullying becomes an issue in such situations.


And, yes, bullying’s the name for it, according to Gary Namie, who, with his wife Ruth, founded the Workplace Bullying Institute, which is based in Bellingham, Washington.


“It flows down,” Namie says, noting that a study by Zogby International for the institute found that 72 percent of bullies are bosses.


And he is not impressed with efforts to combat what is termed incivility. “Incivility is what the corporations want to call it so it sounds like we’re having trouble supping tea this afternoon,” Namie says. “But workplace bullying is a form of abuse that rivals domestic violence. Incivility does not trigger PTSD [Post-Traumatic Stress Disorder]. Incivility does not cause 64 percent of the people to lose their jobs after they’re targeted.”


Namie knows that for a fact. His wife was subjected to verbal abuse from her supervisor while employed as a clinical psychologist. Her boss was a “buzz saw,” as Namie describes her. He says that the supervisor would often angrily criticize his wife in front of other employees—to the point where she began to doubt her abilities.


A former social psychology professor, Namie helped his wife pick up the pieces after the “buzz saw” broke her down. Then Namie quit his management consulting job to work with his wife, helping people in predicaments similar to her own. Since the late 1990s, they’ve offered counseling to thousands of people, whom they call “Targets”; since 2008 the Namies have been training new counselors through the Workplace Bullying Institute University.


Where is bullying most prevalent? Namie says most of their clients are in education and health care, where the abuse comes from the top down and leads all the way to the school playground or the operating room.


A recent client was a woman who lost her job at a medical school after her boss loaded her down with excessive work, belittled her in front of others and neglected to inform her of important meetings so she would miss them and be faulted for it. That was after she had been transferred out of an equally abusive situation and ended up with a new boss who happened to be a golf buddy of the old boss. In the client’s eyes, she was the victim of a conspiracy. The woman had been terminated from the second job, so she went for counseling to the bullying institute where she was given tips on mastering her situation.


Bullying and incivility in health care situations are especially dangerous, points out Pier M. Forni, a professor at Johns Hopkins University, and they can be a matter of life and death.


“ICUs in hospitals that are known for a culture of incivility have a higher mortality rate,” Forni says. “That is because the physicians don’t talk with the nurses, the nurses don’t talk with the rest of the personnel, and therefore the patients do not receive the best treatment and the therapeutic outcome suffers.”


Forni, after teaching Italian literature at Johns Hopkins for 20 years, founded the Civility Project in 1997 as a clearinghouse for information on proper behavior. He has since written two books, Choosing Civility: The Twenty-Five Rules of Considerate Conduct and The Civility Solution: What to Do When People Are Rude, and has helped launch civility projects in communities across the country.


Forni boils down the basic elements of civility into what he calls the “Three R’s”: respect, restraint and responsibility. This is part of what Joan Wangler, a master certified executive coach, shares with workers at NASA’s Goddard Space Flight Center in Greenbelt, Maryland. Wangler created the Civility Collaborative as a means to teach employees better communication and interpersonal relation skills. She says the results are obvious in terms of heightened productivity and creativity.


“Civility is part of the foundation for bringing out people’s brilliance,” Wangler says. “If you want to touch people’s smartness and bring out their brilliance, then you need to be able to create a space where people feel safe enough to speak, to listen to one another, to be heard, to offer support, to coach one another.”


The onus for creating such a workplace lies with the organization’s leader, Forni says. The leader’s attitude has a trickle-down effect in the workplace and on customer service.


“The attitude of the leader is going to be the attitude of the manager or the superior officer in any given situation,” Forni says. “It has an enormous impact on the overall climate of that workplace and therefore on the quality of life of those working in that workplace and therefore on the quality of service they are going to provide.”


Forni applauds programs such as Civility, Respect and Engagement in the Workplace, or CREW, developed for the Veterans Health Administration, the hospital arm of the Veterans Affairs Department. Linda Belton, who administers the program and is director of organizational health for the VHA, says that in five years CREW has been presented to more than 900 work groups averaging 20 to 30 people each. The positive changes appear to work virally, “infecting” other work groups who come into contact with those practicing newfound civility skills.


Over a six-month period, members of various work groups travel to Cincinnati, where CREW is based, for three 1½-day meetings. They learn about the benefits of civility training, such as cost savings from polite communication and problem solving in lieu of filing formal complaints, increased productivity and greater patient satisfaction. Then participants buckle down and learn some basic communication skills. The goal is to help them work together in a more productive, trustworthy fashion.


“It’s a simplistic formula,” Belton says. “It’s just: How do we want to treat each other? How can we have honest but difficult conversations with each other to resolve issues and situations when they arise?”


Belton says that through CREW the traditionally contentious relationship between nurses and lab workers has been all but erased at the VHA. Even more satisfying to her is the effect on support personnel.


“They come to me and say, ‘I’ve worked here for 30 years and this is the first time anyone’s ever asked me what I think,’ ” Belton says. “I talked to a housekeeper who said he mopped the floors. After CREW, he said, ‘I help to keep an infection-free environment.’ This person now knows what his contribution is to the organization. He understands his personal connection to the mission of patient care.”


Some companies have developed programs to encourage mutual support among their employees. Ed Mathews, marketing coordinator and human resources assistant at Englewood (Florida) Bank, says that, from his office’s vantage point, he has witnessed numerous episodes of tellers getting berated by grumpy bank customers and immediately receiving support from their co-workers.


“What I see is other employees step in to be loving and caring to their co-worker,” Mathews says. “They’ll agree that, ‘Boy, wasn’t he rude?’ It’s not something like, ‘Well, I’m glad he was her customer!’ We’re a small community bank and we care about one another.”


Englewood Bank is one of more than 55 businesses that subscribe to the simple tenets of Because It Matters, a communitywide civility initiative that was launched in Sarasota County, Florida, in 2007. Thanks to the Internet, some participating businesses are as far away as California, Montana and even the island of Palau, in the South Pacific.


Mathews is his bank’s civility cheerleader, using materials provided free by the Gulf Coast Community Foundation of Venice, Florida, to make the 10 “keys to civility” part of Englewood Bank’s values and culture. Mathews highlights one of the keys each month, such as paying attention or speaking kindly, featuring them in the company newsletter and displaying them as a screen saver on all corporate computers.


He encourages employees to “catch” each other being polite, respectful and civil by handing out cards of recognition. Duplicate cards identifying the recognized employee go to Mathews. Before each quarterly employee meeting, he shows the succession of cards in a slide show and singles out one of the recipients as the Core Value Winner.


In a spring 2009 survey of employers participating in Because It Matters, more than 63 percent said customer service had improved. Additionally, almost 77 percent said communication was better; 70 percent said meetings were more effective; nearly 52 percent said employees were more productive; and 37 percent said employee retention was better.


Because It Matters grew out of a close 2006 U.S. House of Representatives race in Florida that seemed to bring out the worst in people, whether discussions were in the workplace or on street corners.


“It was a rather rancorous campaign and a symptom of a level of political discourse that was devolving to a point where people were talking at each other not with each other,” says Greg Luberecki, director of marketing and communications at Gulf Coast Community Foundation.


Better communication often is the key to improved civility, and common sense is a major factor as well. Some people just don’t seem to have it, says Bayer, head of the Civility Experts training company. They will show up for work dressed in outfits that shouldn’t see the light of day or engage in behavior that’s meant to please just one person—themselves—no matter how others respond.


“I have lots of issues now with people who bring their pets to work or to an interview, a little dog in a purse,” Bayer says. “And then they’re upset when the interviewer says the dog has to wait outside. One girl actually said to me, ‘Well, what if it was my 3-year-old? What difference is it? This is my baby.’ ”


Bayer’s objection to the dressed-down look of casual Friday, or casual any day, is echoed by Jill Bremer, an executive coach in Chicago, who performs civility and professional image training.


“This whole thing with business casual dressing really caused a shift,” Bremer says. “I think casual dressing begot casual behavior and that begot casual communication. I think it’s just been a kind of slippery slope.”


Bremer, who is a fan of Mad Men and the TV series’ fashions and manners from the 1960s, says casual dress and conversation have a tendency to lower standards of behavior in the workplace. That, in turn, makes it easier for boundaries to be crossed and offenses to be committed.


“I’m all for a world where people have good manners,” she says. “Get the honorifics back when you address someone, until you’re invited to do otherwise. Now everybody assumes we’re all buddies.”


Kassie Rempel, who oversees nine employees in her Washington-based online shoe shop, SimplySoles, says she won’t hire anybody who doesn’t exhibit the same good manners to colleagues and customers that she developed from her Southern upbringing. For one thing, employees are expected to enclose handwritten thank you notes with every order. Customers actually write thank you notes in response. Such a strong customer relationship has helped Rempel build her business into a solid, million-dollar enterprise over the past six years.


Handwritten notes always rate high in the manners books, but electronic communications are not exempt from rules of civility. Answering e-mails promptly and politely should be a given, as should realizing that the use of electronic devices at inappropriate times is just plain rude. But as Bremer points out, people also need to consider the content of their texts, e-mails, blogs, tweets and Facebook posts.


“Technology has outpaced the etiquette books,” Bremer says. “In the meantime, people’s lives have been destroyed because people use it without thinking. It’s never really private and it’s never gone. I always tell students, ‘Clean up your Facebook page!’ ”


Workforce Management, January 2011, pgs. 16-18, 20-21 — Subscribe Now!

Posted on January 14, 2011August 9, 2018

Some Subtle Signs of Incivility

Incivility isn’t always easily identified, especially when it isn’t accompanied by blatant rudeness or hostility. Many people have become inured to incivility, only later feeling the hurtful effects of colleagues’ transgressions.


Here are some of the more insidious examples of workplace incivility listed by Christine Pearson and Christine Porath in their 2009 book, The Cost of Bad Behavior: How Incivility Is Damaging Your Business and What to Do About It.


• Checking e-mail or texting messages during a meeting
• Belittling others’ efforts
• Leaving snippy voice mail messages
• Leaving a mess for others to clean up
• Shutting someone out of a network or team
• Acting irritated when someone asks for a favor
• Taking resources that someone else needs
• Not listening


Workforce Management Online, January 2011 — Register Now!

Posted on January 3, 2011August 9, 2018

Vision Insurers Eye Employers’ Interest in Wellness

Vision providers are piggybacking on employers’ heightened interest in wellness, making the case that cost-cutting efforts shouldn’t jeopardize the potential for using eye exams to help detect high blood pressure and other medical conditions that might otherwise go undiagnosed.


It’s an argument they are making against a backdrop of several, to some extent, conflicting trends.


On one hand, the Patient Protection and Affordable Care Act is expected to improve preventive care, which likely will boost access to vision specialists, says Maureen West, a director at the American Optometric Association. But in a tight economy, all benefits are subject to scrutiny—and cutbacks in eye care are inevitable, according to data and vision coverage experts.


In the past two years, 7.3 million U.S. adults have lost their vision insurance, with 110.6 million Americans reporting coverage in 2010 compared with 117.9 million in 2008, accrding to a survey by the Alexandria, Virginia-based Vision Council, a trade group for optical manufacturers and suppliers. Jeff Spahr, staff vice president of vision and voluntary services for the Indianapolis-based health insurer WellPoint Inc., also notes increased price sensitivity among employers.


Vision, because of its low cost compared with other medical coverage, tends to be one of the last places employers look to trim health benefits, Spahr says.


“But relative to prior years, the conversation and questions around cost are coming up more and more often,” Spahr says. “In particular with larger employers, I’ve seen a tendency to actually shop vision where they previously had not.”


Meanwhile, vision providers are striving to reframe the discussion, pointing out that for a low upfront investment, regular eye care can pay off significantly, particularly given the vision and other medical needs of an aging workforce. VSP Vision Care, the Rancho Cordova, California-based vision benefits provider, with 55 million members, says the average age of its participants is 44.


Vision problems can rack up a hefty price tag in direct and indirect costs, including productivity, totaling $35.4 billion annually, according to a 2006 Archives of Ophthalmology study cited by West as one of the most comprehensive. But the eye, with its latticework of blood vessels so easily visible during an exam, also can provide an early glimpse into other chronic conditions, including diabetes and high blood pressure, West says.


“We are really in a prime spot for detecting systemic disease,” she says, calling eye care “another primary-care touch point. Many people don’t go to a primary-care doctor at all. But a vision issue will often prompt them to pick up the phone and make an appointment.”


Beyond 20:20
The good news is that despite an aging population, computers and other eye-straining trends, vision benefits costs are projected to increase slightly less than last year, according to the 2011 Segal Health Plan Cost Trend Survey. This year, costs for vision insurance is projected to increase no more than 3.5 percent compared with a projected ceiling of 4.1 percent for 2010. And those increases, albeit higher than inflation, are dwarfed by 2011 cost projections that range as high as 12 percent for medical insurance, according to an analysis conducted by the Segal Co., a benefits and human resources firm based in New York.


Vision benefits typically run an employer about $60 annually for family coverage, says Lawrence Singer, a Segal senior vice president and expert on voluntary benefits. “Optical care is not as age-sensitive as medical care,” he says.


“While an individual might need multiple procedures some years as they get older, they likely won’t need more than one new pair of lenses annually,” he adds.


Cost projections also have been held down by the relative affordability of eye materials and related services, Singer says.


For their part, eye-care providers are talking up their workforce role beyond a new pair of progressive lenses. Vision difficulties can erode productivity in ways that employers and employees may not realize, says Melody Healy, VSP’s director of product, strategy and integration. Aches and pains? The real culprit could be computer-related eye strain.


But employees “don’t correlate it to eye strain because the pain is in the neck, back or shoulders,” she says.


Employers also shouldn’t leave the eyes behind, as they move more aggressively into disease management, says West, who directs the association’s Third Party Center, which advocates for eye coverage to insurance providers.


When West speaks with business groups about managing diabetes, for example, “many say that eye care and foot care are the sleepers. I think so many companies focus on prescription drug maintenance they lose sight of the other aspects of care that are really important.”


In 2009, just half of people with diabetes received an annual eye exam, according to federal data reported to the National Business Coalition on Health. More than 80 percent got an annual A1c test, to assess average blood sugar levels, and cholesterol screening.


Trimming vision costs
   
Price-sensitive employers have some alternatives to dropping vision benefits completely, such as asking employees to subsidize part of the cost, says WellPoint’s Spahr.


In a 2010 survey conducted by WellPoint, 88 percent of U.S. adults said access to a wide variety of benefits was important in their decision whether to accept a job, even if some of them required the employee to foot a portion of the total cost. According to the same survey, which involved 2,500 adults, 55 percent reported sharing the cost for vision coverage with their employers compared with 59 percent for dental and 67 percent for major medical.


In the last couple of years, there has been a shift toward employers not providing any vision subsidy, particularly among new VSP clients, according to Healy. She declined to release any related data, saying that they were proprietary.


Another cost-trimming option, which Healy supports, is for employers to continue to pay for a regular eye exam, while giving the employee the voluntary option regarding lenses and other vision materials.


“Don’t go short on the eye exam,” she advises employers, “because the eye exam is what will get your people into the health care system.”


Workforce Management Online, January 2011 — Register Now!

Posted on December 17, 2010August 9, 2018

House Extends Health Insurance Subsidies for Some Laid-Off Workers

While there is broad support in Congress for the subsidy, it isn’t known if the Senate will act on the proposal before the session ends.


The House on Dec. 15 approved legislation that would give an 18-month extension to a federal law that provides rich health insurance premium subsidies to workers who lose their jobs due to foreign competition and older participants in failed pension plans.


Under H.R. 6517, introduced by Ways and Means Committee Chairman Rep. Sander Levin, D-Michigan, eligible beneficiaries would continue to receive through June 30, 2012, an 80 percent tax credit to partially offset the cost of health insurance coverage they purchase, such as COBRA continuation coverage.


A 2002 law created the subsidy—known as the Health Coverage Tax Credit—and set the tax credit at 65 percent. The 2009 stimulus law raised the tax credit to 80 percent.


While there is broad support in Congress for the subsidy, it isn’t known if the Senate will act on the proposal before the session ends, said Frank McArdle, a principal with Aon Hewitt Inc. in Washington.


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


 


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Posted on December 15, 2010August 9, 2018

The Pepsi Challenge: Helping Expats Feel at Home

In Mexico City, expatriate executives for PepsiCo Inc. can take more than language lessons to immerse themselves in Latin culture. Those who aren’t afraid of a little spandex and swirling hips can join fellow PepsiCo employees for on-site Zumba lessons, a sultry, high-energy, Latin dance fitness program. In Dubai, international employees participate in a World Cup soccer challenge and corporate Olympics. And in China, pingpong tournaments help PepsiCo expats engage with local hires.

Participating in athletic and social activities in a new country can help expats adjust to culture shock as well as curb the impulse to work nonstop in a demanding new job. More often than not, cultivating a healthy, balanced life overseas is left to the employee, not the human resources department. But PepsiCo is one of a growing number of companies promoting global wellness programs to help smooth overseas transitions. “Wellness is not a thing; it is a culture,” says Ellen Exum, program director for wellness and prevention. “It’s about programs that help employees and their families live healthier, fuller lives.”

Of PepsiCo’s 185,000 employees outside the U.S., 600 are in international assignments. As part of the global wellness program, expats are offered a health risk assessment that is available to spouses and partners as well. As an incentive, all participants get a reward of $100 in their health care spending accounts. A care management program for expats connects those with chronic illnesses such as diabetes to assigned nurse “coaches,” who talk with the workers regularly by phone during the most convenient hours for their time zone. Exum says that of those employees eligible for the care management program, 90 percent participate.

Employers also are offering more structured support for spouses and partners to help with everything from language to loneliness. PepsiCo provides standard family benefits like language lessons for spouses and school tuition for children. But it is also exploring other cost-effective ways of helping expat families feel supported, such as facilitating spouse networking opportunities in local communities and developing a children’s cultural integration program.

“If a spouse feels left out and their needs are not addressed, it can lead to the failure of an international assignment,” says Roxanne Szczypkowski, director of work-life services at ComPsych Corp., which offers employee-assistance programs to more than 13,000 organizations in 100 countries.

Workforce Management, December 2010, p. 36 — Subscribe Now!

Posted on December 15, 2010June 29, 2023

Special Report on Globalization: The Globe-Trotters

When Ford Motor Co. approached engineer Juan De Peña about an overseas assignment, it wasn’t for a traditional expatriate stint of three to five years. The auto company was preparing to introduce a new version of its Fiesta model in Mexico, and it selected De Peña to update the assembly plant, hire and train a local workforce and launch the car, all within 13 months.

  

  The condensed assignment allowed Ford to relocate the launch manager without extended costs related to housing, home visits, quality-of-life premiums and other expat perks. Although De Peña brought along his wife and toddler, there were no education costs. And as an added bonus, De Peña is a Spanish speaker so the company did not have to pay for language lessons.

  “The pace was intense and extremely challenging, in a good way,” says De Peña, who has been with the Dearborn, Michigan-based automaker for 16 years. But the short-term assignment had perks for him, too. Rather than worrying about renting out his house, he paid a neighbor’s son to mow the grass and shovel the snow. An administrative assistant picked up his mail and sent it to him in batches. He worked long days and weekends and finished the assignment ahead of schedule in 11 months, turning the refurbished plant over to a local team with an engineering staff of roughly 40 before he returned to Michigan in August.

“With the global nature of our economy, we have to stay competitive,” De Peña says. “If it makes sense for the company to move talent around in these short-term assignments, and it works for the employee in terms of the stage of life they are in, then it can be a great experience with pluses for both sides.”

Compact international assignments like De Peña’s are part of a larger trend among multinationals to craft smarter, leaner policies for global mobility. The recession has forced companies to cut costs at a time when they also must become more competitive in international markets. “The sudden reduction of cash tends to get people’s attention,” says Rebecca Powers, a principal consultant on global compensation and mobility at Mercer, the human resources consulting firm. “Companies have been forced to sit down and really think about why they are where they are, what their goals are internationally and what are the best, most cost-effective ways to achieve those goals.”

A growing number of companies are shortening international assignments, sending more junior employees with more specific skills abroad, and offering packages that are carefully designed to reduce expenses and better fit long-term goals. A study on international assignments that Mercer released in June showed that 59 percent of the 220 firms surveyed had revised their policies for international assignments between 2007 and 2009. About half of respondents reported moving to more short-term assignments. “Historically, companies have handled global mobility in a knee-jerk fashion—‘We need someone in Shanghai; let’s see who’s willing to go,’ ” says Margery Marshall, president of Vandover, an employee transition support company based in St. Louis. “Not a lot of planning went into the job itself or the fit of the employee, and more and more companies are trying to move away from that.”

A global resource management study by Ernst & Young released in May found that nearly two-thirds of the 347 respondents said their organizations lacked standard policies for managing the careers of employees on international assignments. The same study showed that only 37 percent of companies integrated management of international employees across the enterprise, allowing for better cost tracking and career development. And 30 percent revisited expatriate policies to reduce costs.

Most companies aren’t eliminating standard features of global relocation packages such as housing assistance and education for children, cuts that would be deal breakers for many prospective assignees. But employers are seeking ways to make those benefits less expensive, such as reducing housing benefits and cost-of-living allowances and sending employees without school-age children.

Two years ago, for example, Ford revamped its global housing policy, eliminating an option for international employees to sell their homes to the company for assessed value. It was a nice perk for many expats who, before the change, were expected to contribute toward their international housing costs. But because the decline in the housing market has been particularly steep in Michigan, it left Ford with a growing inventory of homes it couldn’t sell. Under the new policy, the company covers all housing costs for expats, but offers no assistance for the homes employees leave behind.

Companies are focusing more strategically on who gets which assignment and for how long. Although traditional assignments of three to five years are still the most common, more companies are sending employees abroad for one to three years. Assignments of less than one year can be even more cost effective because they do not require a full change in residency and can typically be managed without the costly relocation of a whole family. American multinationals are also making better use of intraregional assignments because moving a trained expert from London to Moscow or from Hong Kong to Shanghai is generally cheaper than relocating an employee from the U.S.

“Strategic fit” and “talent development” are becoming key buzzwords for global workforce policies. For many companies, global personnel management and talent development have traditionally been separate, siloed business functions. But more employers are integrating the two and crafting career development plans for valued employees earlier in their careers to match the global goals of the company.



In 2008, for example, Stryker Corp., a Kalamazoo, Michigan-based medical technology company, restructured its global mobility program to better align it with talent management. In the past two years, the company has expanded its travel and home-leave policies, for instance, to address employee needs related to elder care and child custody arrangements. It also has instituted a tiered international policy with different compensation and benefit plans to address both short-term assignments and early-career expats.

Stryker also requires a candidate assessment for all potential overseas employees and their spouses or partners. A clinical psychologist conducts a one-day review to observe cognitive, social and cultural readiness for the overseas assignment for which an employee has been selected.

“An international assignment can cost three to five times an employee’s annual base salary,” says Sharon Byrnes, Stryker’s director of international assignments. “If a company is willing to make that investment, we want to make sure we perform due diligence upfront to understand and prepare for all aspects of the investment.”



Karen Horan, Ford’s manager of international service and relocation, says the company’s global mobility strategy is tightly aligned with the One Ford mission, which Ford president and CEO Alan Mulally instituted to streamline operations and which is widely credited by industry analysts with helping Ford avoid the financial implosion that hit General Motors Corp. and Chrysler Group two years ago. Ford now has 875 expat employees in a mix of short- and long-term assignments. International assignments have two principal drivers, Horan says, filling a skill gap and developing valued talent.

Offering some support 
Another facet of smarter expat policies is more structured support for families. Industry studies cite spouse/partner issues as the No. 1 reason employees turn down overseas assignments, as well as a major reason for failed, shortened or unsatisfactory stints abroad. With dual-income families now the norm and with the growth in assignments to BRIC countries (Brazil, Russia, India and China), which can pose challenging cultural adjustments, companies are paying more attention to families and work-life issues.

“With old expat packages, spouses wanted help staying active because it was important to them to have something to do,” says Alain Verstandig, founder and managing director of Net Expat, a company with regional headquarters in Atlanta, Brussels and Hong Kong that offers assessment, training and coaching to international employees and their partners. “Today, many couples have no choice but for both to work, and these dual-income families have transformed approaches to mobility planning.”

When Eunice Latty’s husband, Pierre, was transferred from Paris to Montreal by the French energy company Areva T&D (now Alstom Grid), she was worried about losing her income and career momentum. Areva provided spousal consulting services through Net Expat and matched Eunice with a professional counselor soon after the couple arrived in Montreal last February. The consultant helped Eunice with everything from reworking her résumé for the local market to understanding cultural differences in business norms. In less than four months, Eunice landed a full-time job as a procurement manager with a distribution company, a job she says she would not have found so quickly, if at all, without the spousal assistance provided in her husband’s relocation package.

“It’s important for me to have my own income,” she says. “And psychologically it was important for me, too. I know no one and have no family in Montreal. So having a job gives me my own thing to do and provides balance for my life, so we can both benefit professionally from this experience.”

Addressing the career needs of spouses is even a concern when both work for the same company. Ford engineer Ron Smith entered discussions about a job in China five years ago, but at the time there was no job for his wife, Nancy, also a longtime engineer with Ford. The job talks fizzled before Nancy was forced to make the tough decision about whether to take a leave of absence for her husband’s potential opportunity. But in February, Ford approached the Smiths about China again—this time with job offers for both.

The Smiths are scheduled to start their dual international service assignment this month at Ford’s 6,000-worker manufacturing facility in Chongqing, a metropolis in southwestern China along the Yangtze River that is one of the world’s fastest-growing urban centers. Nancy Smith will become a product development manager for chassis engineering, and Ron Smith will become the vehicle team manager, responsible for quality of all outgoing cars.

The timing worked out well this time for both the Smiths and Ford. The couple’s sons are adults now. One is a senior at Michigan State University and one is pursuing law school. Moving without children in the equation is logistically easier for the couple and less expensive for the company. The biggest consideration for the Smiths was moving their cat, Snap, and large dog, a vizsla named Rock. Cartus Corp., a relocation company that works with Ford, arranged transport of the pets through Animals Away, a pet relocation service, so that the pets wouldn’t have to be quarantined upon arrival.



“I wouldn’t have even realized that I needed to ask about quarantine without the relocation experts,” Nancy Smith says. In a city bursting with new high-rises, the relocation team also helped the couple find a single-family villa for $4,200 a month (including furnishings, taxes and management fees) with a small yard about the size of a one-car garage so their dog can roam around. With most of the big logistical concerns taken care of, the couple devoted the months before their move to intensive Mandarin classes several hours each week with individual private tutors.

While companies are getting smarter about managing global assignments, they may be thinking less about what to do with expats when they come home. In the Ernst & Young study, 47 percent of respondents reported doing little to help returning expatriates reintegrate into the organization. Only 42 percent of the companies in the Mercer study guarantee international assignees a job upon repatriation.

De Peña, however, says he had a smooth transition back to Ford headquarters this fall after his whirlwind assignment in Mexico. He is now program manager and assistant chief engineer for Fiesta for all of North America. And he is weighing another global assignment next year in Europe, perhaps for a year and a half. That slightly longer assignment, he says, should give him a bit of free time for weekend getaways and more sightseeing. “I’ve been very fortunate,” De Peña says, “to have the chance for another assignment so soon.”

Workforce Management, December 2010, p. 32-34, 36, 38 — Subscribe Now!

Posted on December 10, 2010June 29, 2023

Firms Offering Finance Classes to Employees to Allay Anxiety

When Michael and Amy Sykes decided to enroll in a personal finance class offered by Amy’s employer, McLeod Health, the Florence, South Carolina, couple owed about $120,000 in credit card bills, car payments and other debt (not including their mortgage). Less than two years later, they have whittled the debt down to $25,000 and put a budget in place that includes paying cash for everything. Their arguments over money have stopped, and Michael, a self-employed landscaper, has been able to scale back his work hours.


A hospital system might seem like an odd place to take a personal finance course, but employers like McLeod Health realize that their workers’ financial worries are spilling into the workplace, hurting productivity and increasing absenteeism.


“I don’t think there’s still the recognition of the pervasiveness of financial issues in the workplace and their impact on business,” says Tim Hess, associate vice president of human resources at McLeod Health. He championed using personal finance expert Dave Ramsey’s Financial Peace University program, which is run by McLeod volunteers.


Since the program started in September 2008, about one-tenth of McLeod’s roughly 4,700 employees have taken part, paying off about $2 million in debt along the way.



A survey released in July by Buck Consultants found that 30 percent of employers are offering financial management classes to help combat workplace stress. Plenty of employees need the advice. MetLife Inc.’s Study of Employee Benefits Trends, conducted at the end of 2009, found that about half of the 1,300 full-time employees surveyed are concerned about their finances, and 17 percent acknowledge spending time at work dealing with financial issues.


MetLife offers its own free workplace course, called Retirewise. The program was introduced in 2008, and the number of participants has doubled to more than 500 employers this year. The company is gearing up to expand it even further, changing the name to Plansmart to cover a broader range of financial issues.


When employees are under financial duress, “they focus on the solution 24 hours a day. It certainly doesn’t turn off when they clock in,” says Todd Mark, vice president of education for the not-for-profit Consumer Credit Counseling Services of Greater Dallas, who teaches personal finance courses in the workplace.


Employees might spend as much as 20 percent to 30 percent of their working hours thinking about or dealing with money woes, Mark says. They “often are embarrassed and ashamed to talk to HR about it. They don’t want to seem like they’re in chaos.”


Lorraine McCord, director of the International Trade Center SBDC, a joint program of the Small Business Administration and the Dallas County Community College District, retained Mark to speak to her employees and those in the community college system about good money management habits.


About 50 to 60 people attended, and the only costs for McCord were a boxed lunch and a certificate for each participant. Many of the employees wanted even more information on managing debt and improving credit scores, so McCord hopes to organize a new session next semester.


Robert Harris, director of the financial wellness program at Waddell & Reed Inc., a financial planning company based in Overland Park, Kansas, says his firm began offering classes in 2005 and has seen the greatest demand for general investment and retirement planning, as well as basic budgeting and cash flow courses.


Waddell & Reed encourages spouses and partners to attend, too, because when employees try to explain financial planning at home, “certain things get lost in translation,” Harris says.


Waddell & Reed charges $200 to $1,000 per employee for the courses. Some companies foot the bill, but others split it with employees. Harris says he believes that employees with a financial stake in a class are “more likely to succeed.”


At McLeod Health, employees who enroll in the Financial Peace course sign an agreement to pay for course materials—$139—if they don’t complete the class. Otherwise, McLeod picks up the tab.


Everyone from entry-level employees to physicians has attended the courses. “Research clearly shows financial stress and distress don’t play favorites,” Hess says.


Amy Sykes, a nurse at McLeod, says the course “is better in a way than getting a raise. They’re helping us to better manage with what we have.”


Workforce Management, December 2010, p. 12 — Subscribe Now!

Posted on December 10, 2010August 9, 2018

New Normal for Retirement Get a Job

Middle-class Americans need more help than they realize in planning for retirement, according to the results of a survey from Wells Fargo & Co.


The study, which surveyed nearly 1,800 households with annual income of between $25,000 and $100,000, found that three-quarters of respondents are expecting to work during retirement, and two-thirds of respondents admitted to having no retirement plan in place.


As an illustration of the gap in understanding the realities of retirement, the average respondent has $31,000 in current retirement savings and estimated that he or she will need $1.5 million in order to finance their retirement.


Even with their current average retirement nest eggs so woefully underfunded, respondents generally feel that they will be able to finance at least 10 years of an anticipated 20-year retirement.


“The gap in reality shows that people are clearly not adding things up well,” said Laurie Nordquist, director of Wells Fargo institutional retirement and trust.


The point of the survey, which was conducted between Sept. 9 and Oct. 7, was to determine where middle-class Americans are in terms of retirement planning.


One of the major findings was the “new normal” of working during retirement, according to Joe Ready, director or Wells Fargo’s Institutional Retirement and Trust unit.


In studying the research across various age groups, Ready said people in their 20s are most confident of a comfortable retirement and also most realistic about having to fund their own retirement.


People in their 40s are considered to be the “most stressed” about retirement, with 60 percent expecting to work beyond the traditional retirement age.


Survey respondents in their 50s are “feeling pretty good and are very confident about retirement,” Ready said.


The biggest factor in the level of retirement-funding anxiety, Ready explained, is the availability of pension and Social Security income.


Of those surveyed, 59 percent of people in their 60s have pension income, which compares with 55 percent of people in their 50s and just 36 percent of people in their 40s.


But based on the survey findings, complacency might be a big mistake.


For people in their 50s, the median retirement savings of respondents is $29,000.
Stretched out over a 20-year retirement and assuming a 5 percent annual rate of return, that $29,000 would amount to about $190 a month.


Yet, according to the survey, 56 percent of 50-somethings said they are “confident or very confident” they will be able to fund their desired lifestyle throughout retirement.


“Too many Americans have their heads in the sand in the face of obvious savings deficits,” Nordquist said. “People are not even close to where they need to be in total savings.”


Another obvious example of the gap in understanding is the fact that 47 percent of respondents listed health care costs as being a major drag on retirement income.

Respondents expect post-retirement health care costs to total more than $30,000, which would consume everything they saved for retirement.


However, Nordquist added, even if all the numbers don’t quite add up, Americans appear to be at least embracing the idea that funding retirement is a personal responsibility.


The survey found that 71 percent of respondents are now working to reduce debt, but only 6 percent are saving more, and two-thirds of respondents have not changed their savings habits. 


Filed by Jeff Benjamin of InvestmentNews, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


 


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