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HRGUIDEBOOK
S2 August 7, 2017
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PRESIDENT’S LETTER
ASKING TOUGH QUESTIONS SHAPES CULTURE, FOSTERS COMMITMENT B By PAT PERRY
ack in first grade, when my teacher, Mrs. Vleck, asked a tough question, my classmates and I would routinely bow our heads and attempt to avoid eye contact with her. Evidently, we were of the belief that if we looked busy, staring down at whatever was on our desk, we would not be called upon for an answer. I assume that Mrs. Vleck must have really been amused when this occurred. Fast forward 40-plus years. I now find it interesting that this same phenomena is played out among some executive teams during management retreats we facilitate. For the dialogue to have a chance at being successful, we encourage the CEO to not participate
in the conversation. In addition, we ask that all laptops, smart phones and any other distractions be “left at the door.” Consider taking a different approach at your next management get-together, just for once. When critical questions about workplace core values, beliefs, strategies and game plans are asked, heads go down. During these awkward Perry moments of silence, the only executive with their head upright is the CEO, sitting there dismayed, typically with arms crossed looking around the room for one of his/her leaders to participate in the discussion. While the CEO is seeking thought leadership, his/her ex-
ecutive team members are all hoping that the CEO will answer the “tough” questions. This reaction is reminiscent of how our first-grade class hoped Mrs. Vleck would give up on us and provide the class the answer. We see this all too often with executive teams. It suggests underlying issues related to communication, intimidation, shared beliefs and/or leadership. More importantly, the fact that the team does not answer implies that some of these questions have never been raised, discussed nor answered with conviction or commitment. Questions like expanding a service, buying versus leasing, product development and/or branding are pretty straightforward and much easier to answer than strategic workplace inqui-
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ries. This is pretty scary when you consider that the workplace environment, philosophies and strategies should drive everything in the organization. Amazingly, these areas are seldom explored, dissected and pursued. So, at your next management retreat, try asking your executive team a few of these questions: n Are
we committed to only hiring and keeping top performers? If so, how are we implementing this strategy? n Do we have the right work environment to hire and retain top people? If so, how do we know? n How do we define a top performer? n Are we committed to becoming one of the top places to work in the area? Why or why not? n Is HR a key member of our executive team and one of the drivers of our organization’s success? If not, why not? n What is our philosophy on employee compensation, and why? n Do we treat our employees like adults or like children? n Why do we have a probationary period for new employees? n When is the last time any of us thoroughly reviewed our employee handbook and general workplace policies? Are they consistent with our beliefs and organizational core beliefs, values and strategies? n Do we trust all or some of our em-
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ployees? And, why retain employees we don’t trust? n How would our nonmanagement employees describe our executive team? n If HR does not report directly to the CEO, why not? n How do we define organization success? These are a sampling of questions that can provide terrific dialogue and insight into your executive team’s mindset, organizational understanding and individual beliefs. The answers can set the foundation of your workplace game plan and strategy. You’ll glean additional insight through the editorial analysis of our “2017 Workplace Practices Survey,” published in this issue of Crain’s Cleveland Business. So at your next management get together, ask some of the tough workplace-related questions. I think you will be amazed at what gets discussed and concluded. If done right, the true character of your organization will emerge. That could be a good or bad thing. But at least you’ll know. Most importantly, when the tough questions get asked, don’t hide from the answers. Mrs. Vleck would be proud of you. Pat Perry is the president of ERC, a provider of human resources, training, consulting and coaching services. Contact him at 440-6849700 or pperry@yourERC.com.
for an analysis of this year’s ERC Workplace Practices Survey.
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August 7, 2017 S3
A multigenerational workforce is changing the benefits landscape Employers should re-evaluate programs to attract, retain talent By GREG HUBBELL
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e are just a few short years from having a workforce composed of five separate generations — traditionalists, baby boomers, Gen X, Gen Y/millennials and Gen Z/ centennials. And guess what? There are profound differences between these generations in their approach to worklife balance, benefits, use of technology and communication. How employers react to these factors may influence whether a company succeeds or fails, or attracts and retains the right talent. As if remaining relevant, competitive and above all else, profitable isn’t challenging enough, now more than ever, employers must work hard to strike the right balance between the benefits to offer, how they are offered and the perceived or inherent value to the millennial as well as the traditionalist and everyone in between. If that balance is ignored, there will be workforce issues. According to the 2017 Aon Health Survey results, when asked what are the top three outcomes employers would like to achieve in 20172018 through their Hubbell health and benefit strategy, 72% of respondents listed meeting cost/budget targets and offering competitive benefits that meet the needs of an increasingly diverse workforce, while 67% responded with improving employee health and well-being. Keeping cost targets and agediversity in mind, employers must focus on what it will take to improve health and well-being within the workforce. The healthier a workforce, the more productive it is. Improved productivity is a key benchmark to better earnings and company profit. The definition of well-being is expanding so that it now encompasses physical, emotional, financial and social health. According to Aon’s recently released 2016 Consumer Mindset Study, consumers are thinking more broadly and deeply about their health. The concept of total well-being resonates with consumers, with emotional (mental) well-being ranked as the most important attribute. And it doesn’t end there. The emergence of the Gen X, Y and Z is pushing employers to reconsider how benefits are communicated and offered. Technology is driving change, which provides a better employee experience when it comes to an employer’s benefit offering. Consumers expect employers to
communicate health plan choices through a variety of deliveries. They increasingly expect to digest health communication like the information they consume from the public media. They want it quick, simple and personalized. The bottom line: consumers know they’re being asked to do more with less. They often have fewer health plan options, and their costs are rising. They expect their employers to provide useful resources to help with decision-making. Communicating with employees is complicated. As plans and programs evolve, employees may find them con-
fusing because what they really want are simple solutions that are easy to understand and use. That’s a tricky situation in the complicated world of benefits. Employee benefits firms can help employers navigate these complexities by developing practical actions that guide employees through retirement plans, health choices and beyond. Here are three examples:
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1
SHAPE THE BIGGER PICTURE
A strictly physical and financial benefits focus is outdated. Employees
Call or email to find out how we can help meet your HR needs, Robin Carlin, Principal, 216.650.0220 or robin.carlin@rustbelthr.com
are also asking for guidance in their emotional and social well-being. Expand your horizons. Provide support programs and incentives, and equip managers to advocate for work-life balance so employees feel safe taking care of their emotional health needs.
2
MAX OUT THEIR SENSES
Whether the well-being experience is in person or virtual, engage as many of the senses as possible. Foster connectedness and engagement with podcasts, social networks, online
chats with leadership and local group events. Don’t forget to reach the whole family by sending fun, engaging print communications home.
3
REMEMBER YOUR AUDIENCE
Are they 25, 45, 65 or older? Prepare your benefit programs and communication means accordingly. Gregory M. Hubbell is senior vice president of Aon Health & Benefits. Contact him at 216-623-4126 or gregory.hubbell@aon.com.
HRGUIDEBOOK
S4 August 7, 2017
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Stock your communications toolbox A multifaceted approach sets up employees for success By HAROLD G. HARRISON
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he goal of any internal communication strategy is to inform employees of your organization’s mission, core values and strategic goals. Communicating to an expansive organization composed of diverse roles can be challenging, but with flexible mediums, timely delivery, and thoughtful content, you can ensure that employees are not only informed, but also connected and engaged. When employees are aligned with an organization’s mission, they are empowered to build a successful career and become brand ambassadors. Employee orientations help convey these benefits by educating staff on the organization’s overall values and goals, and how they can contribute. Involve members of your chief executive staff and employees across your network to communicate that mission. This approach shows how the organization’s message resonates among employees in different depart-
“
When employees are aligned with an organization’s mission, they are empowered to build a successful career and become brand ambassadors.”
ments. Be sure that your orientation presenters are employees across a variety of roles so that new employees are able to build connections with peers they may not see on a daily basis. Once employees complete this in-depth orientation process, they should step into their position Harrison with a clear understanding of your organization and how they fit into it. Technology provides innovative ways to enhance your organization’s interpersonal communication. While it may be impossible to deliver an in-person message to all
staff at the same time, video messages disseminate important communication in a timely manner. With a monthly video, leaders of your departments can share high-level messages, important updates and other news within the organization. The shorter the video, the better. A two- to threeminute video communicates important messages and respects employees’ time. Mobile-friendly videos reach staff whether they’re at their desk, traveling or working in the field. They not only keep employees informed, but offer transparency and connection to the organization. An intranet system is another effective way to incorporate
technology into your communication strategy. This database of information enables employees to stay up to date on important announcements, register for necessary training and access vital documents. The intranet will also save your employees’ in-boxes from being inundated with all-staff emails. Departments should manage their own pages so that employees can quickly access information pertinent to their role. Use your homepage for broad communication messages. Be sure that your site is ADA-accessible and mobile friendly. While technology affords ways to enhance interpersonal connections, face-to-face interactions are a powerful communication tool. Localized seminars connect staff and executive leadership. When possible, your executive team can travel to work stations throughout your organization and allow employees the ability to not only hear from leadership, but share their own feedback and knowledge. Transparent dialogue provides deeper connections between employees and leadership. Employee recognition programs
also foster ongoing companywide communications and provide employee validation and motivate both recipients and their peers. Be sure recognition programs are inclusive and not competitive. Whether you are having frequent one-on-one meetings with your staff, delivering a thank-you message when warranted, or participating in an organized award system, recognition promotes purpose. Communication is a part of culture. How you deliver the message of your mission, values and goals is a reflection of your organization. Staff members can build a successful career when they are connected with the organization for which they work. With effective tools, you can ensure that your employees are engaged on every level with your mission and empowered to represent and advocate for your organization internally and externally. Harold G. Harrison is chief human resources officer at Cleveland Metroparks. Contact him at hgh@clevelandmetroparks.com.
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August 7, 2017 S5
Drive deeper value through total reward strategies By KYLE ANTHONY
A
s a business owner or executive, you understand the cost and value of the benefits you offer employees. You know the challenge of balancing escalating costs with employee demands as you navigate the talent war. Do your employees understand and appreciate the rewards they receive in exchange for being a part of your organization? Perhaps more importantly, do they know your organization’s total reward strategy and value exchange?
With the average employer investing 32% of its total compensation on rewards other than direct compensation, ensuring employees value their total compensation has become a business critical objective. Total rewards packages encompass more than the traditional tangible benefits such as insurance coverage and paid time off. Rewards also include “soft” benefits such as flexible work arrangements, dependent care, employee assistance programs, tuition reimbursement, wellness incentives, retirement planning services and oth-
ers. It takes more than a balance sheet to recognize the impact your total rewards package has on your business and your employees. The companies that best leverage total rewards rely on a 360-degree view of their employee population and benefits usage. They Anthony spot emerging trends and create unique solutions to offer the right mix of traditional and nontraditional rewards in ways that make financial sense.
It’s worthwhile to use data-rich tools to contrast and compare your benefits packages with others in your industry, geography and with similar workforce populations. But that’s not enough to drive the value proposition for your employees. Ensuring that they understand and appreciate the total rewards you offer requires ongoing effort. Strategically communicating the value of total rewards shouldn’t stop with a new hire or occur only during benefits enrollment periods. Savvy employers keep total rewards top of mind for
employees by delivering well-managed communication campaigns through every channel employees access. While benefits design is critical to financial success, touting total value can engage your employees. They become more loyal, more productive, and your company becomes a great place to work and grow. Kyle Anthony is director of Strategic Accounts and the Human Capital Practice at Oswald Cos. He can be reached at 216-487-7408 or kanthony@oswaldcompanies.com.
Key ways to improve team dynamics in negotiations By ROBIN J. CARLIN
A
t some point in our career, we have been part of a team negotiating an outcome — whether a labor union contract, acquisition, large equipment purchase, real estate deal or a complex work agreement, to name a few. Your team most likely represented different departments, skill sets or job functions and, without a doubt, different points of view. Most took
different paths to get to their positions. How did you lead your team to get the best outcome for your employer or client? Were you faced with challenges, team harmony or dysfunction during the process? There are three critical components to improving team dynamics in negotiations: BUILD AND ALIGN A STRONG TEAM. Explain how each person has an important role. Highlight their strengths. Share information and seek
input when developing proposals. Clarify team goals and work to build team unity through a shared strategy. EDUCATE YOUR TEAM. What can they realistically expect in the process? Know the right behaviors and share how patience and active listening Carlin can go a long way. Encourage your team to ask for clarification — this will prevent misunderstandings later.
Never negotiate against yourself. Role playing is good preparation. BE READY TO MANAGE EGOS AND EMOTIONS. Have a plan for handling disagreements, problemsolving, making decisions and communicating in and out of negotiations. How will you handle a key absence? Do you reschedule or move forward with discussions, and is your team on board with this decision? There also will come a time that you will have to address an unpredictable
behavior, improper body language or a negative response. By building and aligning your team, educating them in the process, and having a plan for managing egos and emotions, you will undoubtedly improve the dynamics of your team in negotiations. Robin J. Carlin is owner and principal of Rustbelt HR. Contact her at 216-650-0220 or robin.carlin@ rustbelthr.com.
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Collaborate. Innovate. Elevate. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Chapman and Chapman, Inc. is a member firm of BenefitsPartners. Kestra IS and Kestra AS are not affiliated with Chapman and Chapman, Inc. or BenefitsPartners. Copyright © 2017 Chapman and Chapman, Inc. All rights reserved.
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HRGUIDEBOOK
S6 August 7, 2017
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Automation a harbinger of new talent investment By MARY ST. CYR and PAUL LIPINSKI
causing anxiety in the workforce. According to KPMG’s recently released “U.S. CEO Outlook 2017,” 61% of CEOs who responded say they are concerned about integrating cognitive processes and artificial intelligence. But listen to any CEO discuss the use of artificial intelligence, St. Cyr machine learning and cognitive computing in their organization, and it’s clear that the question of talent management is far more important than the technology behind these new capabilities. To help address this challenge, CEOs say they expect to add headcount in the next three years to deal with emerging cognitive technology. These technologies will have the greatest impact on hiring middle and senior
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ill machine learning replace some of your workforce? Despite the perceived bleak views of the rising role of cognitive automation and robotics in the workplace, automation addresses business demands and a driven workforce, and could not be occurring at a better time. “Aging workforces, millennial expectations, market disruptors, changing business models and new skill sets are creating the perfect storm for finding, developing and keeping people with the skills and ability to create competitive advantage,” says Paul Lipinski, principal of Advisory, People and Change at KPMG. The advent of the cognitive era is not causing massive redundancies, but it is
management, research and development and human resources personnel. Some jobs will disappear, but others will be created. This is always the case with business model changes. The paralegal profession, for example, once feared that automation and the ability Lipinski to search vast databases of legal case history would eliminate the need for paralegals, says Constance Hunter, chief economist at KPMG. “Instead, we’ve actually seen a surge in paralegal demand because better analytical tools and data created an increase in demand for more robust evidence,” she says. Paralegal employment has grown by 15% since 2007. The Bureau of Labor Statistics predicts it will
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grow by 6.8% over the next decade, compared to a growth rate of 4% for overall employment since 2007 and 6.5% over the next decade. Meanwhile, 80% of CEOs are increasing budgets for recruiting, according to the study. As new businesses and offerings are developed, people will be needed to build, lead, maintain and market them. It will be incumbent on these organizations to grow their agility — and the agility of their workforce — to take on these new challenges. It is nothing less than a call to arms for the leaders of enterprises and human resources functions alike to take principled and proactive stands. Lipinski encourages organizations to be proactive in having conversations with employees around cognitive automation. Rather than be reactionary first responders, they should lead the conversation and preempt, understand and manage the changes. Very few skilled jobs can be replaced completely by automation, but many can be greatly enhanced with cognitive capabilities. In an environment of constant disruption, learning will likely be a feature of work in the future — learning both for the known future needs and to position for unknown and emergent needs. Indeed, six out of 10 companies plan to invest in workforce training over the next three years, according to the study. We need to infuse cognitive capabilities to create the greatest impact. Most of these systems require training by the humans who do these jobs now. We also will need to rewrite the job descriptions for those positions that change dramatically.
Many organizations already are automating back-office functions in finance and accounting, which frees up those professionals to play a more strategic role in assisting managers and operational managers with real-time problem solving and “what-if” scenarios. Technology may be driving transformation, but succeeding in the cognitive era requires a coherent strategy, enlightened workforce and talent strategies and an understanding of how an organization can create value. It’s not just technology — it’s about people and values and the ability to create an organization that can adapt to accelerating change. “The reduced talent supply is a costly challenge for most organizations and, at the same time, cognitive technologies are becoming smarter and easier to integrate,” says Mary St. Cyr, managing director of Advisory, People and Change at KPMG. “It’s no surprise digital labor has surfaced to the top of the CEO agenda.” Ultimately, integrating digital labor creates new opportunities for innovation and agility. These technologies empower organizations to conceive new products and services, which are only limited by the scope of one’s imagination. Mary St. Cyr is a member of KPMG Cleveland’s People & Change practice. Contact her at 216875-8168 or mstcyr@kpmg.com. Paul Lipinski leads the Talent Management and Organizational Design for Performance practices at KPMG LLP. Contact him at 321-720-3873 or plipinski@kpmg.com.
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August 7, 2017 S7
Is high employee turnover hurting your company’s bottom line? Develop team-based activities that engage all employees By ROBERT J. PETERSON
T
he average annual turnover rate for all occupations nationwide was 16.7% in 2015, according to the U.S. Bureau of Labor Statistics. Experts estimate the cost of turnover for nonexempt employees can be up to 50% of their annual salary and climbing as high as 150% for exempt employees. Causes of frequent turnover include supervisors lacking management skills; Peterson lack of professional development opportunities; no clear path for employees to advance their careers; and a toxic work environment. Employee solutions to battle these key issues affecting high employee
“
In today’s changing work environment, teamwork and collaboration are critical elements to achieving your organization’s goals.”
turnover include training in: leadership; organizational development; corporate team building; quality and business process management; technical training; project management; and soft-skills training. By investing in employee training, your organization and its employees will see greater retention and professional growth. Your bottom line and productivity will improve. First, figure out problems by diagnosing your current level of team
effectiveness and honing in on your team’s strengths and development areas. It may be a challenge to tackle every problem at once. There are simple solutions that any organization can act upon to improve teamwork immediately. Get to know each other to work better as a team. In today’s changing work environment, teamwork and collaboration are critical elements to achieving your organization’s goals. Improve effectiveness at all stages
of team development, whether you have a new team or an existing team that is struggling, through activities to enhance communication, problemsolving, creative thinking and business results. For example, get your employees at all levels to take up a cause and volunteer as a group, or host a fun competition for teams of employees (cooking challenges are always a big hit). Communicate effectively. The best leaders have learned that effective communication is as much about listening to others as the words they speak. Make sure your leaders practice this and do it. The importance of the exchange of information in the workplace makes
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Robert J. Peterson is president and CEO of Corporate College, A Division of Cuyahoga Community College. Contact him at 216-987-2836 or robert.peterson@tri-c.edu.
to find out how employers are handling these and other issues, and for an analysis of this year’s ERC Workplace Practices Survey.
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effective communication skills a critical business tool and an essential employee attribute. Embrace change. Change happens all around us — at home, in our communities and at work. The only constant of change is that it is unavoidable. Anxiety over the unknown, changes in roles and responsibility and/ or processes can result in unhappy, unproductive and stressed-out employees. Embracing change is easier when we know what changes may be and why they might happen. To overcome barriers to change, develop a plan to keep employees updated on possible changes so it becomes easier for them to embrace change. Ideally, a comprehensive strategy to solve employee turnover is the best strategy and worth the investment.
HRGUIDEBOOK
S8 August 7, 2017
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Virtual world’s real effects at work By SHANNON M. BYRNE, ESQ., and JOHANNA FABRIZIO PARKER, ESQ.
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ith the ever-expanding popularity of social media and online employer review sites, the virtual world directly impacts the work environment — for both employers and employees.
A TREASURE TROVE OF INFORMATION — DO YOU LOOK INSIDE? Now that nearly all applicants maintain some social media presence, employers easily can conduct background research, and in doing so, learn information about the applicant’s age, religion or race — information that the employer would have no other reason to know. Before conducting such an investigation, an employer should first confirm there is no law prohibiting or limiting social media review. (For example, the Fair Credit Reporting Act
applies to consumer reports compiled by a consumer reporting agency). Then, to minimize risk, an employer could: designate an individual without authority to make a hiring decision as n
the person authorized to conduct social media searches and create a summary of relevant findings without any mention of an applicant’s protected characteristics; n reinforce to both individual(s) conducting the search and those
making the hiring decision that protected characteristics should not be considered when deciding whether to make a job offer; and n document the reasons for all hiring decisions.
WILL YOU ACCEPT MY FRIEND REQUEST? Much like the challenges posed by using information obtained through social media in hiring, employers whose managers follow or friend
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employees on social media create additional ways of getting more personal information about the employee. If the employee is later terminated or disciplined, he could claim the employment decision was made based on this kind of information learned through social media. If an employer does not take action for a known policy infraction apparent on social media, that too could create potential issues. And, if a supervisor only accepts invitations from certain subordinate employ- Byrne ees, this could breed sentiments of alleged discrimination or even just favoritism. When considering whether to take disciplinary action based on information obtained Parker on social media, employers should: analyze whether the posting is protected (for example, is the employee complaining about treatment or safety?); n determine if the posting is so outrageous and/or disparaging that it loses any potential protection; and n take disciplinary action that is consistent with past practices of the company.
should be evaluated and addressed in the same way as any other anonymous complaint, such as a complaint made to an employee hotline. If the employer does not have such a procedure, consider using a response post to encourage the complaining party to come forward.
CAN’T I JUST HAVE A POLICY FORBIDDING ALL THIS? Employers can regulate social media by implementing policies, but
need to be aware of the National Labor Relations Act, which generally protects employees’ collective discussions about wages, hours and conditions of employment. This includes discussions on social media and can apply to nonunion and union employers alike. Under the previous administration, the National Labor Relations Board had taken a particular interest in social media claims. Employers who disciplined an employee in response to posting critical comments were found
August 7, 2017 S9
to violate employees’ NLRA rights. Recent case law is beginning to distinguish employer review sites (such as Vault or Indeed) from traditional social media sites (such as Facebook) where users “talk” with each other. (See IXL Learning, Inc., Case No. 20-CA153625, 2016 NLRB LEXIS 306, Apr. 28, 2016). A post may not be protected concerted activity if it was not a group discussion like a post on Facebook. Employers should review their policies — and how they are
implemented — to be in line with this evolving trend. Shannon M. Byrne is an associate of the Labor & Employment Practice Group at Benesch. Contact her at 216-363-4578 or sbyrne@beneschlaw.com. Johanna Fabrizio Parker is partner and vice chair of the Labor & Employment Practice Group at Benesch. Contact her at 216-363-4585 or JParker@beneschlaw.com.
n
Managers should be reminded that if they have information about a complaint or issue at work learned through social media, they need to report it to the designated individual or individuals, just as if they had witnessed “IRL.” And all employees should be aware that people are watching. Just recently, Yale University announced that a dean had left her position following her posting on Yelp Elite regarding patrons of a movie theater. A studentrun newspaper reported on the post. (See Hayley Miller: “Yale Dean Who Called People ‘White Trash’ and ‘Low Class’ on Yelp Leaves Position, at huffingtonpost.com/entry/ yale-dean-june-chu-yelp-resigns_ us_594a547ee4b0177d0b8ab4a0.)
HE
AL TH
YS MIL M E E S = H A P PY
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BUT HE CRITICIZED ME PUBLICLY? An increasing number of employees are now online talking about work, including complaining about mistreatment or just about managers in general. If an employer takes action against that employee, this too could lead to potential claims. For example, the U.S. Equal Employment Opportunity Commission recently filed a complaint against an employer on behalf of a transgender employee who posted a negative review on an employer review site and was subsequently fired. (EEOC v. IXL Learning, Inc., Case No. 17-2979, N.D. Cal. filed May 24, 2017). And, even if no adverse action is taken, does such a posting require action by the employer? How do you address an anonymous complaint? Online anonymous complaints
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HRGUIDEBOOK
S10 August 7, 2017
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Employee engagement eludes many who seek it Focus on more than a survey score By ANGELA CRAWFORD
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ith unemployment low, and turnover rising, understanding employee engagement is critical in today’s workplace. Retaining employees has real financial benefits and risks — recruiting and training costs for one employee averages more than 30% of her yearly salary. Companies cannot afford to lose their most valuable resource — humans. Conducting employee research can help companies understand why employees are engaged or disengaged and build a more powerful brand. Done
correctly, employee survey research uncovers actionable insights and drives retention rates with real financial benefits. Failing to provide employees with such an outlet, or conducting the research without expertise in this area, can backfire and foster a more elevated level of distrust between the organization and employees. Although many firms are using employee surveys, a few common mistakes can limit the effectiveness: 1. FOCUSING TOO MUCH ON DRIVING SCORES. Many organizations track year-over-year departmental
engagement results, and some even use the information for evaluations or awards. Unfortunately, this myopic focus on the numbers often has unintended negative consequences, as managers place undue pressure on employees to respond positively, invalidatCrawford ing results, and breeding resentment among employees.
2. COLLECTING THE DATA INTERNALLY WITHOUT CONTROLS FOR ANONYMITY. Employees know that every organization tracks their IP address, and so no matter how many times you promise the survey will be
anonymous, if the company is collecting the data directly, someone internally knows their name. A third party research provider can help ease this perception. However, organizations must also commit to protecting employee confidentiality by focusing on key trends versus individual responses.
3. FOCUSING ON THE NEGATIVE. Many employers misunderstand the purpose of employee-focused research and believe the main goal is to compile lists of problems. The most effective employee research includes both qualitative and quantitative research methods, brought together in a way equally highlighting areas of success and improvement, along with generating innovative ideas. Inte-
grating what is going well, along with improvements, allows organizations to capture the true voice of the employee and discover ideas that drive growth. By focusing on more than the score, ensuring confidentiality and expanding a focus on the positive, we learn insight from employees that will strengthen brands. Standard survey questions give you percentages to track, but designing research to learn from employees provides you with insight that can transform your organization now and prepare you well into the future. Angela C. Crawford is chief marketing officer at Direct Opinions. Contact her at 513-702-2237 or ACrawford@ directopinions.com.
A safe workplace creates a healthier bottom line By SCOTT BICKSLER
M
ost employers understand the value of providing a safe and secure environment for their workers. Employers who invest in workplace safety and health can expect to reduce fatalities, injuries and illnesses, according to the U.S. Department of Labor. Creating a safe work environment
also results in cost savings in a variety of areas, such as lowering workers’ compensation costs and medical expenses, avoiding Occupational Safety and Health Administration penalties, and reducing costs to train replacement employees and conduct accident investigations. For employers, it’s a win-win because changes made to improve workplace safety and health significantly improve
their organization’s productivity and financial performance. A safer work environment may lead to lower insurance costs. They’ll also build a reputation as a desirable workplace. Although manufacturing or industrial sites most often come to mind when discussing workplace safety, OSHA regulations include every job site. While the danger may not come
from heavy equipment or electrical circuits, the risk is real even in an office environment. Workplace violence and emergency evacuation procedures ensure that office workers are prepared to handle unforeseen incidents Bicksler such as tornados. But some companies seem to be missing the mark — OSHA conducted 31,948 federal inspections in fiscal year 2016. “It’s easy to say your firm cares about safety,” according to “Reaching the Highest Standard of Temporary Worker Safety,” a 2017 article in Staffing Success Magazine. But some employers find that developing and implementing a healthy workplace strategy can be difficult.
— Katheryn Robinson Director of Human Resources, Impact Products
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Companies may be unaware of their responsibility to temporary employees and to follow the full scope of OSHA regulations. Some think the issue is too complicated to deal with. A trustworthy recruitment partner, with extensive experience in mitigating health and safety risks, can be your largest ally in avoiding unnecessary legal exposure. Recruiting and staffing service providers educate companies on safety standards — including what’s required and what’s at risk — and otherwise help prepare companies for the future. In this industry, the bottom line is ensuring that we’re all doing everything we can to keep our employees safe and healthy.
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August 7, 2017 S11
Nature provides positive benefits for employees By CAIT ANASTIS
S
tudies have shown that spending time in nature can decrease stress and increase productivity. New research indicates that it may also stimulate creativity. During a study conducted at the University of North Florida, employees who had access to nature during the workday reported decreases in stress and stress-related problems. In 2003, researchers at Texas A & M University conducted an eight-month study with 101 participants Anastis to see if flowers and plants promoted innovation and ideas. They found that both men and women demonstrated more innovative thinking in an environment with flowers and plants. The Texas A & M study indicated that men generated about 15% more ideas when exposed to plants, while women “generated more creative and flexible solutions,” according to the study. Subsequent studies continue to
show the benefits of nature. In 2008, researchers at University of Michigan conducted a study that found “simple and brief interactions with nature can produce marked increased in cognitive control.” In 2014, researchers in Japan found that participants who walked in forests had less anxiety than those who walked in urban settings.
Some companies are taking advantage of nature’s impact on their employees’ well-being by adding walking trails to their facilities or reworking their office spaces to include elements of nature. However, not every company can make these changes. Stepping outside the box and hosting corporate board meetings, off-site employee work ses-
sions or employee appreciation events at a nature-based site is one solution. A Cleveland marketing firm recently visited the Holden Arboretum for a strategic planning session and staff retreat. Staff members utilized classroom space and an adjacent patio for small group sessions. Employees received breaks throughout the day,
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during which they visited the gardens, the Murch Canopy Walk and Kalberer Emergent Tower. The Canopy Walk and Tower provide guests with a new perspective on nature, as well as breathtaking views of the surrounding area, including Lake Erie. The experience can add new energy to group discussions, as well as providing a break that makes work more pleasant, said Shannon Bradick, the Arboretum’s private events coordinator. “We want to help employers create events that will be memorable and enjoyable, as well as productive,” Bradick said. “The combination of indoor and outdoor spaces available allows employees to step outside of the box and view their work and their coworkers in a new setting.” Cait Anastis is editor at Holden Arboretum. Contact her at 440602-3827 or canastis@holdenarb. org. For more information about hosting private events, contact Shannon Bradick at 440-602-3835 or sbradick@holdenarb.org.
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S12 August 7, 2017
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4 ways to revamp your leadership development program By TOM AULT
E
ngaging in a sound, well-constructed leadership development process is essential to helping an organization achieve its organizational strategy. Even though 58% of organizations have identified closing leadership skill gaps as their top priority, only 19% of organizations state they are “very effective” at developing leaders, according to “The State of Leadership Development,” a report conducted by Brandon Hall Group, a human resources research and analyst firm. If you are a part of that 19%, here are four key ways to revamp your leadership development process:
1
DEFINE YOUR LEADERSHIP STRATEGY
Organizations often make the mistake of not defining a strategy before they develop leadership. Without articulating a strategy, the organization will not have a clear understanding of what they are attempting to achieve, and why. It is better to provide leaders with a combination of leadership assessments or 360-degree feedback, developmental coaching and stretch assignments that align with the overarching goals of the company.
Here’s what you need to determine to create a successful leadership development strategy: What is the key business objective that is highlighting our need for leadership development? n What role will the organization’s leadership play? n What are the critical competencies a leader must possess to achieve and support the organizational strategy? n What timeframe will be required to ensure these competencies are in place? n How will leaders be developed? Will the process be internal, using their own learning and development group, or through an outside training and consulting organization, or both? n
Answering these questions will help pave the way for your organization to get the most out of its leaders.
2
INCLUDE EMERGING LEADERS
It’s important to consider your emerging leaders. Identify who these top-performing potential leaders are within the organization. Place them in a planned, strategic process to help them achieve the necessary knowledge and skills and experience
to become successful. Investing in their development early on can lay the necessary groundwork to create a network of future leaders. You can implement different models and approaches to learning and development. For example, you could go the route of Ault the 70:20:10 model, which attributes 70% of learning through job-related experiences, 20% of learning from interactions with others and only 10% from formal education. Another similar model is the 3-33 model, in which 33% of learning is formal, 33% of learning is informal and 33% of learning is social. You can also adopt an approach that focuses on formal in-person learning, e-learning or a mix of both. No matter which model or approach you choose for your leaders, having a strategy in place sets your leaders up for succeeding in a long and fruitful career.
3
ASSESS THE GAPS
After you’ve determined your strategy, you must identify the gaps.
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Begin by giving your leaders a training needs assessment, which evaluates critical areas such as skill proficiency, how often they apply those skills, and the level of skill critical for job performance. Data collected can reveal deficient skill sets, identify training priorities and focus the investment of your organization’s time and money on the development initiatives that matter most. Assessing the gaps helps widen the scope of your leadership team development. You may have a team of five leaders who on their own are extremely effective, but lack trust, communication and accountability when they come together at a management retreat. Team assessments can help uncover the critical skills that your teams need to embrace to be as effective as possible.
4
REVAMP YOUR LEADERSHIP PROGRAM
Now that you know where your gaps are, revamping your leadership program will help close the gap between leadership capabilities today and what is needed in the near term. Your leadership program should align with the specific leadership
development objectives. Measurable outcomes should follow, usually in the form of a project completed that involves requisite skills and education. Leadership programs should also include the following: A full and comprehensive list of leadership competencies and core values that will help identify what it means to be a good leader n Optimum exposure to quality developmental resources. n
Regardless of the strategy you decide, the gaps you need to fill, and the leadership program you develop, your leadership development is a vital and fundamental process to the long-term success of an organization. Leaders set the tone and expectations for the rest of the employees. If they are not properly developed, bad habits could infect the entire workforce. Start from the top and ensure your leaders are properly equipped to coach others and to lead by example. Tom Ault is the director of Technical Training and a senior training consultant at ERC, a provider of human resources, training, consulting and coaching services. Contact him at 440-684-9700 or tault@yourERC.com.
Contingent labor trends signal shift in employment needs By NICK BAILEY
C
ontingent staffing has reached an all-time high in the U.S., while unemployment figures continue to decline. Staffing Industry Analysts, a global research firm, reported in May that “year-on-year temporary help employment maintained a multi-year high rate of growth at 3.9%.” If this seems counterintuitive, that’s because it is. In the past, contingent labor was only seen as a harbinger of Bailey bad economic indicators. Economic uncertainty led many companies to delay hiring to hedge their bets against an imminent downturn. But the motivation today is quite different than in a down cycle economy. Companies are increasingly using contingent labor as a pipeline for their permanent workforce. Everything from training to background checks can be an expensive process. Hiring a potential employee on a contingent basis is a way to increase the chances that a full-time hire will work out. A second factor is how much more nimble companies need to be today to satisfy the needs of their customers.
From consumer products to B2B services, delivery has become more closely tied to seasonal ups and downs. Retail holiday shopping, for example, was once tied to December shopping. Today, retailers market to holiday niches throughout the year. This one indicator impacts employment from warehouse workers to IT professionals. Finally, it’s important for workers to be educated on contingent labor opportunities. Full-time employment remains a goal for most people. However, contingent labor may be a pathway into a company or industry segment. The continued growth in contingent labor points toward a long-term trend that benefits the industry that supplies contingent labor as well as the industries that utilize their services. We are a long way from the gig economy impacting most employment. But the rise in contingent labor in the face of low unemployment points toward a market in need of flexibility. Instead of an indicator of bad news, contingent labor represents a new path toward growth. Nick Bailey is area manager for Nesco Resource in Northeast Ohio. Contact him at 440-341-5623 or nbailey@nescoresource.com.
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August 7, 2017 S13
A collaborative approach to professional development
Have a plan in place to help build employee skillsets By ROBIN DOERSCHUK
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mployers and employees are constantly searching for the best return on their investments, especially when it comes to how they spend their time. Employees want to keep building their skillset but may feel pressured to pursue professional development on company time.
Meanwhile, employers want to get the most out of their workforce today and into the future. Is there a happy medium? The answer is yes. Doerschuk While the costs of allowing employees to participate in outside workshops, conferences and net-
working events can add up, a thoughtful employer can reap big rewards to enhance the bottom line. Giving employees time and resources to pursue their professional development can:
bring new talent into your organization through employee networking and referrals; n increase awareness of the employer’s brand in the labor market; n bring fresh ideas into your organization; and n lead to new business opportunities.
sharpen employees’ skills and enhance their on-the-job productivity; n increase employees’ sense of engagement and loyalty;
With all these benefits, the choice isn’t whether employers should support their employees’ professional development, but how they can help facilitate.
n
n
Local human resource management societies can help advise your organization on how to fashion a professional development plan to meet your unique needs and ensure a great return on your investment. Robin Doerschuk is president at Cleveland Society for Human Resource Management. Contact her at 216-503-1690, ext. 2310 or rdoerschuk@mytalentlaunch.com.
Employers must focus on objective criteria to justify pay By JACK E. MORAN
P
ay equity seems to be in the headlines almost every day. New studies are constantly emerging that reflect the current disparity in pay between men and women. While the expanse of the pay gap fluctuates based on the source, the implication is the same. Given the level of scrutiny applied to this issue, employers who do nothing to address it put themselves at risk. The Equal Pay Act Moran requires that men and women who work in the “same establishment” must receive equal pay if they are performing “equal work,” unless the employer can justify a pay differential for a reason “other than sex.” Unsurprisingly, any such factor must be adopted for a legitimate business reason. There are other federal and state laws that similarly prohibit pay discrimination.
Recent court decisions stress that employers should be careful when relying on some of the typical justifications often used, particularly if a factor is arguably “subjective.” For example, several recent judicial opinions emphasize that an employer that relies on “prior experience” should develop an empirical way to measure it. Otherwise, the employer risks subjectively evaluating employees’ experience. An employer’s method for measuring experience should be applied consistently, including when differentiating between how the employer pays two different men or two different women. Also, an employer that justifies a pay difference based on “varying duties” should be cautious when dealing with employees who work in the same division. If the duties of two employees are technically different, but they are on the same level of the organization, their work is in the same field or department, and the work requires substantially equal skill, effort and responsibility, then an employer
“
It is vastly preferable to conduct a pay audit that focuses on job requirements and duties instead of wage history, classifications or titles.”
may be exposed to liability unless there is some other legitimate reason for the pay difference. There are serious risks with putting off an evaluation of pay equity, the first of which is that employees may resign. The talent departure will likely harm the organization. It is vastly preferable to conduct a pay audit that focuses on job requirements and duties instead of wage history, classifications or titles. Pay equity audits also reveal that decisions made years earlier result in a female employee getting paid less, which has reverberated into a present disparity that cannot be justified objectively. Under some
Adopting a cross-disciplined approach to benefits communications Selecting the right broker, consultant makes an impact By PHILIP AMOS
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hen it comes to providing a comprehensive benefits program, employers should be sure to develop a communication strategy that clearly defines each option so employees understand and elect their benefits appropriately. As the saying goes, “To the hammer, everything looks like a nail.” To the voluntary benefits specialist, the solution relates to voluntary benefits. To the retirement plan representative, the answer points toward to retirement savings. In today’s benefits world, the benefits packaging needs a more holistic
perspective. A health savings account should be connected to a retirement plan and a 529 college savings plan. A medical insurance election should be linked to a menu of supplemental benefits, including an HSA, or a Section 125 plan, which allows employers to offer certain Amos benefits on a pre-tax basis. Wellness plans are no longer just about fitness and diet but have evolved to include a financial wellness perspective. Insurance and employee benefits service providers offer the kind of ex-
pertise that help companies develop and manage participant-centered communication strategies. Collaboration among consultants, account managers, supplemental benefit experts, retirement plan consultants, compliance specialists and financial advisers all factor into a properly executed benefits strategy. These services enable communications specialists to have a personal dialogue with participants rather than delivering a sales script for a particular product. Philip Amos is president of Chapman and Chapman Financial Services. Contact him at 440-934-4103.
laws, each paycheck constitutes a new violation, so the employer cannot avoid a potentially sizable claim of pay disparity through the passage of time. Employers who don’t address the issue until an employee raises a
concern do so at their own peril. A complaining employee is protected by anti-retaliation provisions and, once the complaint is made, it is often too late to develop a more coherent basis for a pay difference. Given the need to retain top talent and the risk of liability, employers should vigilantly be reviewing their pay practices to ensure legal compliance. Jack E. Moran is a principal in the employment law practice at McCarthy Lebit. He can be reached at 216-696-1422 or jem@mccarthylebit.com.
HRGUIDEBOOK
S14 August 7, 2017
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Three key policies for your 2017-18 employee handbook By JON HYMAN and SETH BRISKIN
gay, bisexual or transgender. It sends the right message that you are an employer of inclusion, not exclusion.
he Golden Rule of employee relations says, “Do unto your employees as you would have your employer do unto you.” In a simpler world without our alphabet-soup of employment laws and regulations, this Golden Rule would suffice as your employee handbook. Our employmentlaw world, however, is not that simple. As a result, our handbooks must serve as comprehensive guideposts for each aspect of the employer-employee relationship, and, as laws evolve, so must they. Here are three issues that should be on your radar for your handbook in 2017-2018.
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1
3
T
LGBTQ
rights:
Even though our national attitude towards LGBTQ rights is moving toward full inclusion, our laws have not yet caught up. Employers should get ahead of this issue and enact policies prohibiting discrimination against individuals who are lesbian,
Social media: The Na-
tional Labor Relations Board has actively regulated social media policies under its umbrella of “protected concerted activity.” Moreover, many employees have not yet realized that anything they say online can affect their professional persona. Hyman In the event you have employees who have not yet learned this important lesson, it is your job as an employer to help educate them.
times during which they are working off-the-clock only serves to help an employer defend against an employee’s claim for unreported, undocumented, off-the-clock time. These three policies are but a small sample of many concerns you should consider addressing this year and going forward into 2018. New laws/rules are often passed that require guidance, and courts may render your old policies obsolete or illegal. Briskin To ensure that your handbook is current and protects you and your employees, an annual review and update is critical. Jon Hyman and Seth Briskin are
Overtime reporting: Un- both partners with the Labor
der the Fair Labor Standards Act, an employer must pay an employee for all time the employer knows or should know an employee is working, even when “off-the-clock.” A policy that underscores that burden by requiring employees to document
and Employment Law Group at Cleveland-based Meyers, Roman, Friedberg & Lewis. Contact Jon at 216-831-0042, ext. 140, or jhyman@meyersroman.com. Contact Seth at 216-831-0042, ext. 141, or sbriskin@meyersroman.com.
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By SUSAN C. RODGERS
I
f your business is not going to commit to taking the time and making the effort to do performance evaluations right, do not do them at all. Performance evaluations will do more harm than good, if done wrong. If done right, performance evaluations may be effective in maintaining or improving job satisfaction and morale by showing employees the company is interested in their personal growth and development. Performance evaluations may be used to positively recognize employees’ skills and talents, and also reveal the areas in which they need to improve. The following best practices can help managers facilitate the performance evaluation process:
August 7, 2017 S15
Performance evaluations should work for, not against, your business
1
Train your supervisors on how to properly complete performance evaluations.
Odds are that conducting performance evaluations is one of a supervisor’s least favorite responsibilities. Some supervisors delay doing evaluations because they distract from business operations. Other supervisors simply mark everyone as outstanding because it’s an easy way to avoid conflict and complete the task. Supervisors must understand that completed performance evaluations may be viewed by outside parties such as attorneys, government investigators or jurors in future legal proceedings or investigations. Inform supervisors of their responsibility to properly document employee performance. This key expectation also factors into the supervisor’s own performance evaluation.
2
Performance evaluations should be honest, accurate, fair and timely.
Inflated or overly complimentary
evaluations for “confidence building” or “cheerleading” are not fair to anyone. An inaccurate assessment does not provide employees a true understanding of their performance, and they are deprived of an opportunity to improve. It is also unfair to the Rodgers business, since there is no accurate record of performance on which to base future employment decisions, such as promotions, raises, training opportunities, disciplinary action and termination. If done improperly, the performance evaluation may be the primary piece of evidence against a company in an employment discrimination case.
3
A negative performance evaluation should not be a surprise to an employee. The
evaluation
should
be
a
fair assessment of the past year’s performance. A supervisor should not have an employee on “double secret probation” and build up a file to unload on the employee at the time of the review. The secret build-up of issues may impact the evaluation’s credibility. Employees should be made aware of job performance concerns through some type of communication, whether coaching, disciplinary actions or even email.
4
Use legitimate criteria that are objective, measurable and consistent with the employee’s job description.
Supervisors should review the job description for the position, define the benchmarks for each level of ranking in the evaluation and base the evaluation on the employee’s ability to perform the job. The same benchmarks should be used for every employee in the position. Whether the supervisor personally
likes the employee should not be a consideration. Supervisors should not create a perception of favoritism by excusing some employees while holding others accountable to their responsibilities. Avoid comments about attitude, individual personality traits and other characteristics that do not impact the job. However, a supervisor should expect an employee to make a positive contribution to the work environment and to be a team player. Certainly, supervisors can discipline an employee for having a negative attitude, which impacts the work environment.
5
Evaluators need to avoid comments regarding a potentially unlawful subject matter.
Supervisors should be well-versed on employment laws so they do not unintentionally focus on legally protected characteristics or activities.
The evaluation should not contain any comments about an employee’s age, race, gender, veteran status, religion, national origin or any other protected category. Evaluators don’t need to be employment law specialists, but they do know when to involve the human resources or legal department if the performance issue they are facing involves a protected area. Negative remarks about attendance issues because of a work-related injury or an approved Family and Medical Leave Act could yield a claim of retaliation against the company. Comments relating to employee’s health or substance abuse issues could lead to a disability or perceived disability discrimination claim. Susan C. Rodgers is partner, general counsel and chair of the Employment & Labor Group at Buckingham, Doolittle & Burroughs LLC. Contact her at 330-258-6552 or srodgers@bdblaw.com.
Americans are sick and tired of being sick and tired Lawmakers responding with new PTO regulation By GEORGE ASIMOU
T
he Trump Administration recently issued a Statement of Administration Policy that advocates for passage of the Working Families Flexibility Act (H.R. 1180). This bill would amend the Fair Labor Standards Act to allow private sector employers to give their employees the choice to receive paid time off instead of overtime compensation. Such “comp time” schemes, which allow employees to defer earned overtime compensation in return for the ability to take PTO of equal value
at a future date within 12 months, are common in the public sector but are prohibited for private employers under current law. The Working Families Flexibility Act passed the U.S. House of Representatives in May and now awaits action by the U.S. Senate. Describing H.R. 1180 as a step to “help American workers balance the competing demands of family and work,” the policy states that, “if H.R. 1180 were presented to the President in its current form, his advisors would recommend that he sign the bill into law.” Americans spend a lot of time at
work. Recent government statistics suggest the average American puts in about 34 hours a week. Meanwhile, polls asking Americans about their workweek consistently have reported an average workweek of about 47 hours. There are many explanations for the discrepancy — Asimou but Americans feel like they work a lot. A growing number of states and municipalities across the country have taken on the PTO issue through their own laws and regulations. Much
of this legislative push derives from worker concerns about income security in the event of illness. In 2011, Connecticut passed the first state-level mandatory sick leave law. Since that time, eight states (including California, Illinois, Massachusetts, New York, Oregon, Vermont and Washington) and several municipalities (including New York, Los Angeles, Chicago, Seattle, Minneapolis and Washington, D.C.) have mandatory sick leave laws. Pittsburgh, our Rust Belt counterpart, passed a sick time mandate — though it is currently the subject of a legal challenge. Neither Ohio nor Cleveland have passed sick leave mandates. Branding for purposes of talent
recruitment has long dictated that employers be thoughtful about policies that support work/life balance. To date, the various sick leave mandates passed have largely been limited because employers already offer PTO in excess of what is required by law. But, in times of full employment and with such a dynamic legal environment, regular review of employer paid time off frameworks should be considered best practice. George Asimou is an attorney in the labor and Employment Practice Group of Cleveland-based Walter | Haverfield LLP. Contact him at 216-781-1212 or gasimou@walterhav.com.