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Volume 4,
Issue 4
April 2004
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THE
FUTURE OF YOUR WORKFORCE
 An
article in The Economist about the future of the
corporation concluded that to survive a corporation must
be lean, flexible, reputable, and talented. One
of the greatest challenges to survival will be government regulation,
with an estimated annual price tag of $1 trillion
($1,000,000,000,000) in the U.S. alone. What do these
conclusions mean for your company?
Leanness: Middle management
and micro-management are defunct. The trend today is
from junior to senior, student to mentor, and network to
network. No more driving orders down a hierarchical
chain. If you're still holding on to this dated notion
get rid of it!
Flexibility: Lifetime job
security gave way long ago to uncertainty for workers
and managers alike. Flexibility requires more loosening
of the reins of control; better communication with input
from the entire workforce; proactive, rather than
reactive thinking; and realizing that your career is due
for a change whether you planned on it or not.
Flexibility: Lifetime job
security gave way long ago to uncertainty for workers
and managers alike. Flexibility requires more loosening
of the reins of control; better communication with input
from the entire workforce; proactive, rather than
reactive thinking; and realizing that your career is due
for a change whether you planned on it or not.
Reputation: Whether you
call it "branding" or any other name,
customers and clients need to trust in who you are, not
just what you do. This reputation will depend in large
part on how you treat employees, how they treat your
customers and clients, and on the activities of your
company in the local community.
Talent: This is perhaps the
most important factor. The battle to find and keep
"talented workers" who can survive and thrive
in a lean and flexible environment will be essential.
You'll need to test the skills and characters of your
workers before and during their employment.
Regulation: Top employers
provided most of the "regulated" benefits
before they became mandatory. Be proactive. Go beyond
regulatory requirements to offer the highest level of
employee benefits that your profits will allow. Going
the extra mile will yield a wealth of dividends in terms
of attraction, retention, and customer/client
satisfaction.
Conclusion: Ask yourself if
your company is lean (doing more with less), flexible,
reputable, and talented. And, instead of bemoaning
regulation, ask "how can we advance our company by
caring for workers and customers/clients beyond what's
required?"
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FIGHT
WORKPLACE FRAUD!
 A
recent nationwide KPMG survey of workplace fraud has
significant risk-management implications. To begin, 75% of
responding employers reported an increase in fraud since
1998. Three fifths (60%) of all business fraud is employee
generated, with theft of assets, expense account abuse, and
medical/insurance scams topping the list. Not surprisingly,
while the incidence of claims involving financial reporting
is low, the impact of this exposure on public companies
dwarfs all others. When facing financial exposure risks,
almost all employers will conduct an immediate
investigation. In more than three out of four cases (76%),
an employee is fired; and two thirds of the time the company
files a lawsuit or requests government assistance.
The most logical way to curb the risk of
employee fraud is by implementing internal controls. Do
not trust blindly, no matter how "important"
a person might appear. After all, the higher a manager in
the chain of command, the greater the risk! Audit practices
and checks and balances with third-party relationships are
essential. Finally, make it easy and "safe" for
your employees to blow the whistle on internal fraud.
To read the entire KPMG report, go to http://www.us.kpmg.com/RutUS_prod/Documents/9/FINALFraudSur.pdf
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HOW
DANGEROUS IS YOUR WORKPLACE?
 The
Assistant Secretary of Labor for Occupational Safety and
Health has warned some 13,000 employers that their injury
and illness rates are significantly higher than the
national average and urged them to address workplace
safety and health hazard issues. The notification is
intended to offer these businesses assistance in helping
reduce those rates. According to OSHA, "This process
is not necessarily a negative; on the contrary, it
provides employers a tremendous opportunity to take steps
to improve workplace safety and health and create value
for their organization."
To see how your company, industry, or clients fare, go
to http://www.osha.gov/as/opa/foia/hot_10.html.
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UNCLE
SAM REDEFINES 'JOB APPLICANTS' USING ONLINE TECHNOLOGY
On March 4, 2004, the U.S. Equal Employment Opportunity
Commission (EEOC) joined the Departments of Labor and
Justice and the Office of Personnel Management to publish
a document in the Federal Register that clarifies
recordkeeping provisions concerning the definition of
"job applicants" who use the Internet and
related technologies.
When online recruitment began to skyrocket during the
late 1990s it became clear that existing recordkeeping
guidelines on race, gender, and ethnicity under the
Uniform Guidelines on Employee Selection Procedures (UGESP)
weren't adequate. In July 2000, the EEOC and its sister
UGESP agencies began to consider providing a supplemental
definition for Web-based job applicants. According to the
new definition:
In
order for an individual to be an applicant in the
context of the Internet and related electronic
data-processing technologies, the following must have
occurred: (1) the employer has acted to fill a
particular position; (2) the individual has followed
the employer's standard procedures for submitting
applications; and (3) the individual has indicated an
interest in the particular position.
Says EEOC Chair Cari M. Dominguez: "With online
transmission of hundreds of thousands of resumes, there's
a critical need to provide supplemental guidance that is
aimed at protecting the rights of applicants, while
relieving employers of onerous recordkeeping
requirements."
The new recordkeeping guidelines would apply
exclusively to the Internet and related technologies,
including Internet resume banks and job boards, and
employers' own Web sites, resume databases, and online job
listings. Existing UGESP guidelines would continue to
apply to traditional non-electronic recruitment and
selection, such as the submission of hard copy resumes to
employers.
View the new guidelines here: http://www.eeoc.gov/press/3-3-04.html.
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 COMPLIANCE/PERSONNEL
MANAGEMENT CHECKLIST
How
effectively are your compliance and personnel management
practices? Rate your company's performance using a 1 to 10
scale, on which 1 is "we're doomed," 5 is
mediocre, and 10 is perfect.
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1.
We have a fail-safe system designed to hire only
trustworthy employees.
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______________
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2.
All new employees go through an extensive
orientation experience.
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3.
We have clearly identified the workflow
obligations for each employee.
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______________
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4.
We have clearly communicated to our
workforce our company's vision, mission, values, and
goals.
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5.
Our employees are very clear on expected
performance standards.
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6.
We allow employees to devote time and
resources to furthering their career development.
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7.
We have eliminated all unwanted turnover.
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8.
We have taken all steps "reasonably
necessary" to avoid compliance law concerns.
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9.
We have systems in place to proactively
encourage innovation.
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10.
We celebrate and reward superior performance.
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TOTAL:
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_______________
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If
your score is less than 80, there's a lot of work to do.
It's time to start talking about how to achieve better
results in harder times.
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The race is between a better-informed, hopefully
inspired young world versus a running-scared, misinformedly
brain-conditioned, older world.
R.
Buckminster Fuller,
(1895-1983)
Inventor, architect, and engineer
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This issue discusses:
Weve also provided hyperlinks to a free Form
of the Month.
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TRAINING:
WHO PAYS?
It can be hard to determine whether a worker or their
company should pick up the tab for third-party employee
training. Here are some brief pointers on the legal
obligations involved:
- An employer must compensate for mandatory training
time unless it's directly related to professional
licensing;
- If an employee is required to attend training on a day
not normally scheduled they must receive at least a half
day's pay;
- Time spent on voluntary training is not compensable if
it's outside normal working hours and not directly
related to the employee's job. For example, training a
programmer on using a current application is
compensable; paying for an MBA program so the employee
can become a future manager is not;
- Training that directly benefits an employer is always
compensable. For example, new-hire training on welding
procedures on an object eventually purchased by a client
is compensable; voluntary welding training that results
in no end product is not.
- Training expenses can be reimbursed on a pro-rata
basis if an employee agrees to do so beforehand and
leaves the company a short time afterwards. So, if the
employee goes through a year-long training program that
costs the company $10,000 and they take another job a
month later, it's appropriate to demand reimbursement
for most, if not all, of this expense;
- An employer that operates a for-fee training program
cannot use completion of the program as a condition of
hire.
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CASES
OF THE MONTH
Our legal staff offers this review of top
cases that might affect your business.
(PDF)
(WORD)
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FORM
OF THE MONTH:
Employee Request for Family or
Medical Leave of Absence Form
(PDF)
(WORD)
If any employee suggests they may need medical leave to
take care of themselves or a close family member, have them
fill out and sign this form. Note: Under the FMLA you are
required to give notice to an employee that their 12 week
FMLA leave may have started. The failure to do so may
prevent the 12 week period from starting. See how this form
would have saved a lawsuit by looking at the Cases of the
Month.
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For
more information on the contents of this newsletter,
please e-mail or give us a call.
The material presented here is general in nature.
Due to local and state laws and ordinances, an individual
article might not apply in every jurisdiction.
Copyright Employer
Advisors Network, Inc. 2004
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Copyright © 2002 by WorkComp
Partners
215 East Main Street
Bartow, FL 33830
800.330.4745
FAX: 863.534.3562
E-mail: frank@workcomppartners.com
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